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Glossary

Management Fee

A Management Fee is the charge a wealth manager levies for administering an asset management mandate. It is typically calculated as an annual percentage of assets under management and covers investment decisions, risk monitoring and reporting.

At a glance

  • The fee is usually expressed as a percentage per annum of assets under management.
  • It is distinct from custody fees, transaction costs and product costs.
  • Transparent fee models forgo additional retrocessions.
  • The Management Fee of a mandate is distinct from the Fund Management Fee charged inside a fund. Both can apply alongside each other, one at mandate level and one inside the fund.

Frequently asked questions

The Management Fee compensates the wealth manager for the ongoing administration of the portfolio, including investment decisions, risk monitoring and reporting. Custody fees, stock exchange levies and product costs may be charged separately.