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I don't mean this to be catty, but I honestly did not come up with any understanding of this phenomenon from your message

Let's say a mutual fund has two expenses: A $1,000 Bloomberg machine and a $3,000 (market rate) trade. What they should do ethically is pay $3,000 for the trade, and $1,000 for the Bloomberg machine. Instead, they pay $6,000 for the trade, and get comp'd the Bloomberg machine.

Note that:
a) The customer was overcharged $2,000.
b) The $1,000 Bloomberg expense is now hidden, not expressed in the fund Expense Ratio as it should be. The fund paid 3X as much as it should have in order to hide the cost.

It's sneaky stuff, on par with mutual funds silently sucking their expense ratios from your account without itemizing the charge. Can you name any expenses you paid last year besides fund fees that weren't itemized on a bill somewhere?

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