Re: 70% of stock funds hiked costs between November and June, Lipper says (lip)

[ Follow Ups ] [ Post Followup ] [ FundAlarm Discussion Board ]

Posted by Maurice on November 06, 2009 at 13:43:39:

In Reply to: 70% of stock funds hiked costs between November and June, Lipper says (lip) posted by Fundmentals on November 06, 2009 at 13:31:05:

: Looks like the managers were more worried about their dwindling fees from shrinking asset bases than protecting their investors' portfolio values.

"The ICI report stresses, however, that any rise in fund expenses would not come from increases in management fees.

Lipper agrees that total expense ratios rose not because of an increase in management fees, but because of a decline in assets, Mr. Kreider said."

Is this some kind of Orwellian speak? Are they saying that there are other expenses that went up? Are they saying that mutual fund fees in the aggregate stayed flat, but the managers certainly wouldn't take a hit because they managed fewer assets. If the latter, then I am sure that next year they won't want to raise fees either, so the total expense ratios will have to fall to accordingly. Well wake me up next year.

Follow Ups:

Re: "total expense ratios rose" Old Joe 13:52:12 11/06/09 (5)
- Re: "total expense ratios rose" JR 14:29:38 11/06/09 (0)
- Mo's point is still valid: Why the asymmetry when assets increase if it is tied to assets? (nmt) Fundmentals 14:08:47 11/06/09 (0)
- Here's Lipper Report Kevin 14:04:51 11/06/09 (2)
  - Vanguard, American Century, others excluded from study msf 19:37:43 11/06/09 (0)
  - Re: They should make up thei minds, then... Old Joe 14:12:08 11/06/09 (0)

Post a Followup

Name:

Password (everyone use: 56789)

Subject:

Comments: : : Looks like the managers were more worried about their dwindling fees from shrinking asset bases than protecting their investors' portfolio values. : "The ICI report stresses, however, that any rise in fund expenses would not come from increases in management fees. : Lipper agrees that total expense ratios rose not because of an increase in management fees, but because of a decline in assets, Mr. Kreider said." : Is this some kind of Orwellian speak? Are they saying that there are other expenses that went up? Are they saying that mutual fund fees in the aggregate stayed flat, but the managers certainly wouldn't take a hit because they managed fewer assets. If the latter, then I am sure that next year they won't want to raise fees either, so the total expense ratios will have to fall to accordingly. Well wake me up next year.

URL Title (optional):

URL (optional):

[ Follow Ups ] [ Post Followup ] [ FundAlarm Discussion Board ]

Name:
Password (everyone use: 56789)
Subject:
Comments:	: : Looks like the managers were more worried about their dwindling fees from shrinking asset bases than protecting their investors' portfolio values. : "The ICI report stresses, however, that any rise in fund expenses would not come from increases in management fees. : Lipper agrees that total expense ratios rose not because of an increase in management fees, but because of a decline in assets, Mr. Kreider said." : Is this some kind of Orwellian speak? Are they saying that there are other expenses that went up? Are they saying that mutual fund fees in the aggregate stayed flat, but the managers certainly wouldn't take a hit because they managed fewer assets. If the latter, then I am sure that next year they won't want to raise fees either, so the total expense ratios will have to fall to accordingly. Well wake me up next year.
URL Title (optional):
URL (optional):