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.
Smaller fees equal more money in your pocket. Sometimes you need to pay more for a higher level of service, but not in index-based products. In a mutual fund's prospectus, after the load disclosure is a section called Annual Fund Operating Expenses.. This is better known as the expense ratio. It's the percentage of assets paid to run the fund. Many costs are included in the expense ratio, but typically only three are broken out: the management fee, the 12b-1 distribution fee, and other expenses. And, it's not that easy to find out what fees are contained in the other expenses category. The size of the expense ratio determines how much money the investor ends up with. ETFs avoid many of these fees because the fund usually doesn't buy or sell the stock held in its portfolio.