The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/most-actively-managed-funds-have-signifigantly-23857869.aspx

Subject:  Re: Portfolio Management Fee? Date:  3/20/2006  12:16 PM
Author:  Hawkwin Number:  50616 of 75381

Most actively managed funds have signifigantly higher annual expense ratios than passively managed.

Most? Do you have some proof to back that up? Not a single fund in the wrap account has a higher op expense than their associated passively managed A share fund. It would be nonsensical to charge more for such.

I don't know where you get that idea. I and R shares are always cheaper than their comparable A share. That is why they often require 1 million plus to buy an I, R, or select share class.

Here is a good example:

Thornburg Value I class:
Min investment 2.5 million, op expense .98

Thornburg Value A class:
Min investment 5k, op expense 1.40

What funds do you work with where the wrap op expense is more?

Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us