management fees

How do you adjust for management fees within managed fund?
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this question
  • Brian,

    It depends what you mean by management fees. Normally the management fee is paid internatlly to the fund and the unit price you are quoted will be net of the manegement fee. The return calculations will thus be on an after fee basis.

    Some funds also levy additional fees like custody fees which are often paid for in units. In this case the number of units you hold will be reduced by this fee. To allow for this you should post a "consolidation" transaction type and reduce input the number of units used to pay for the fee. This will then leave you with the correct number of units and adjust the performance accordingly.

    Hope that helps.

    Andrew Bird
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