How are fund expense levels determined?
There are three elements to fund expenses:
- The sub-advisor fee that is individually negotiated with each sub-advisor.
- Our fee which starts at 0.40% and declines when each fund reaches its closing level. The combination of our fee and the sub-advisors’ fees equal the total management fee.
- The operating expenses, which are a function of economies of scale as assets grow and our ability to negotiate attractive contract rates with our vendors.