- What is the fund operating fee?
Fund operating expenses refer to the expenses paid by the fund assets in the actual operation process, including listing fees, securities transaction fees, information disclosure fees, membership fees for general meeting of shareholders, CPA fees, audit fees, attorney fees, etc. As a fund’s operating costs, these fees represent a small percentage of the fund’s net assets. It is usually determined in advance in the prospectus of the investment fund and paid in accordance with relevant regulations. The operating fee is one of the basis for investors to measure the efficiency and performance of the fund’s operation. Generally speaking, funds with high operating costs are often found in the following situations: smaller funds, funds with poor operating performance, funds with lower minimum investment limits, newly established funds or multinational investment funds.
- What are the operating expenses of the fund?
(1) Fund management fee . The remuneration payable by the fund management company for the management and operation of the fund (currently, the annual management fee for closed-end funds is uniformly 1.5% of net assets)
(2) Fund custodian fee (currently, the custodian of closed-end funds is a state-owned commercial bank, and the annual fee is 0.25%)
(3) Performance remuneration fee (currently, closed-end funds meet the annual average unit net value cannot be lower than the face value, the net distributable yield exceeds the one-year savings deposit interest rate by more than 20%, and the net asset value growth rate exceeds the average yield in the securities market. The performance reward can only be withdrawn when the net value of the unit after distribution cannot be lower than the face value)
(4) Other expenses. Including securities transaction fees, information disclosure fees, transfer agency fees, sales service fees, attorney fees, audit fees, shareholders’ meeting fees, etc.