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In their study, Mr. Freeman and Mr. Brown found that the weighted average advisory fee for 10 Vanguard funds run by outside money managers in 1999 was 0.149 percent, even lower than the 0.20percentt paid by pension plans.
In 2001, they reported that the average advisory fee paid by mutual fund investors -- without any administrative charges -- was $56 per $10,000 in assets, compared with $28 per $10,000 for institutional clients.
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Compare that to a $20 million advisory fee.
With bigger size comes a bigger advisory fee.
Advisory fee revenue rose 50 percent in the fourth quarter, to $85.5 million.
This manufacturer's advisory fee goes to HA&W.
But the advisory fee is a steep 1.1% (plus fund fees) on such small accounts, although you could do worse.
Nine Thirty Capital charges a 1.5% advisory fee plus 10% of any profits earned.
Cloonan receives an annual advisory fee of 0.2% of the fund's assets.
Rau's study found that fund managers who close their funds rewarded themselves by raising their advisory fees 0.04 percentage points on average.
The mutual funds had average assets of $1.3 billion, compared with $443 million for the pension funds, yet the mutual funds paid investment advisory fees of 0.56 percent, twice that of the pension funds.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com