Acquired Fund Fees and Expenses - AFFE
Categories: Mutual Funds, Index Funds, Banking, Trusts and Estates
First check out Fund of Funds, which isn't any more fun.
AFFE are simply the operating expenses of the actual funds being managed. That is, when you pay your fund of funds fee, that fee is in addition to the fees you are already paying for the funds themselves to be managed. The AFFE was driven by SEC mandate in 2007, when the complexity of pricing for the hedge fund and private equity communities began to be so difficult to understand that government intervention was required.
So in a typical mutual fund, AFFE fees might run in addition to distribution fees at, say, half a percent, then operating expenses of 1%, and then add another five to ten basis points for AFFE, so that the total fees per year being paid by the customer are some 2%-plus in this expensive, high-fee world.
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Finance what is acting as a principal Yeah unless you
want to get sent to detention we don't recommend doing
this on halloween Okay this one's really about acting as
a principal How versus acting as an agent princip al
equals owner agent equals a commission taker principal The end
result like how well or poorly and investment performs determines
success Agent whether or not a commission happens determines success
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or event being successful agent the party responsible for getting
people teo just spend money on that event Principal developer
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Make money for investors Agent the person who sold office
units in that commercial building Principal the portfolio manager the
buy side player region the stockbroker the sell side player
and well that's it in our next video will cover
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