Mutual fund families have traditionally left the topic of how to allocate certain fund expenses to management and fund officers.

While many expenses, such as advisory fees, are driven by annualized basis point formulas at the fund level, other expenses, such as audit, trustee, legal and Chief Compliance Officer, touch the entire fund family and must be allocated to each fund through some methodology. For most complexes, the allocation is done in one of three simple ways:

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.