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.
What it is: The expense ratio is the recurring management fees for a mutual fund. A fund company charges its fund holders the expense ratio each year (expressed in terms of a percentage of the fund's assets).ow it works/Example: The expense ratio is the recurring annual fee for a fund, and should not be confused with sales fees and commissions (these are paid only upon the purchase or sale of a fund). The average expense ratio for an actively managed mutual fund is about 1.5%.