AlastairSC
Registered User
- Messages
- 357
Why is this not credible? Remember that the better the fund performs the more remuneration for the fund managers.
it costs a lot of money to run a fund management operation. it is really only possible to forego management fees if you have a mandate that allows you to take a reasonable degree of risk...
When you hear of a fund taking a 1% or 1.5% management fee what is this a percentage of?
- The profit made by the fund that year?
- The entire fund regardless of whether it's in profit or not?
If the second it hardly seems credible......
Well they're not charities - they have to make some money. After QL pay the management charges on the ETFs or whatever backs up their funds, they're probably left with .5% or so. Even if an investor has 10K of funds that only leaves QL with 50 quid a year. From this they have to sustain their business costs.Even if all you're doing is index tracking, like QL or others?
As long as they are tracking the index, surely they are 'doing their job' and deserve to be paid?
If they (QL) charge a flat fee, then you could find yourself paying more in years where the fund is losing money..
I thought I did a bit more? I explained why the service which you think is trivial is actually very valuable to investors unless they have hundreds of thousands and can afford professional tax advice - to avoid losing half their dividends and perhaps to deal with the paperwork revenue requires if you hold ETFs.AlastairSC said:I wonder if just to say this is the way it's always done isn't a little inadequate on a forum such as this, when one of its major advantages is to critique, analyse, justify etc and generally to be constructively critical of how things are done, particularly when debate has regularly achieved better deals....
Well it's really only what's available in the US that makes me envious; nowhere else in the world comes close - even in the UK 1% is typical of index trackers. The competition is fierce in the US. Apparently Fidelity, for example, sell their index trackers at a loss to attract customers for their managed funds.I have no connection, other than being envious of how competitive other markets are compared to Ireland! Far be it from me to suggest that it is possible that the likes of Quinn etc. merely invest their clients' monies in Vanguard's institutional funds and pocket the difference in fees charged
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