Posted by Old Joe on November 06, 2009 at 14:12:08:
In Reply to: Here's Lipper Report posted by Kevin on November 06, 2009 at 14:04:51:
: : If the fund assets go down you don't necessarily fire people or trade less or need less space to rent, so the fixed costs don't change much. Of course the expense ratio will increase. Ratio is the key word here.
Which is it, expenses or expense ratios?
KEY POINTS:
• More than 70% of equity funds realized
increases in actual total expenses. For funds
where expense ratios increased, the average
increase was 8.2 bps.
And of course if lots of account holders are changing their asset allocations or simply selling to get out that means a lot more trading and accounting activity and so the actual expenses might very well increase.