A private foundation has asked if compensation paid to its two individual trustees for personal services rendered on its behalf would constitute a prohibited act of self-dealing. The foundation makes direct grants to public charities, private operating foundations and other qualifying 501(c)(3) organizations.ul. 200135047, the Service has ruled that compensation for personal services rendered by individual trustees on behalf of a private nonoperating foundation, based on a percentage of assets under management, will not be a prohibited act of self-dealing if such compensation is not excessive.. Published in Sep 2001.
Definition of 'Expense Ratio'. Definition: Expense ratio is the fee charged by the investment company to manage the funds of investors. Description: All the investment companies incur cost for operating mutual funds and they charge a percentage of asset funds to cover the expenses.
Definition and Importance of Gross Expense Ratio. A mutual fund or ETFâs expense ratio represents the percentage of a fundâs assets that are used to pay operating expenses, management fees including 12b-1 fees, and administrative fees. In most cases, a fundâs gross expense ratio and its net expense ratio are the same amount. But in some instances, the gross expense ratio is higher than the net expense ratio. This occurs when a portion of the gross expenses are reduced by waivers or reimbursements.