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In January, T. Rowe Price will drop the program management fee on most of its 529 plans to 0.13percentt from 0.2percentthoughugh there's an additional fund management fee of up to 0.68percentt.
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It made about $235 million in fund management fees in the year ended in June.
Shop around for plans with low fund management fees and commissions to maximize your earnings.
Accounting rules governing the speed of such write-downs are vague, and some venture fund management fees are tied to the values of these assets.
But Janus's commitment to lower its fund management fees could reduce its profit, said Rachel Barnard, a stock analyst at Morningstar.
A1 Funds Pressured on Fees An expected agreement by Alliance Capital to reduce its mutual fund management fees will pressure other funds to lower their costs, regulators and industry analysts said.
With many of the new venture funds topping $1 billion as investors chase hot sectors like wireless communications, the firms have buckets of fund management fees to spend on big organization-building moves.
An expected agreement by Alliance Capital to slash its mutual fund management fees will put pressure on other mutual funds to lower their costs, regulators and industry analysts said.
But a draft copy of the new report marshals more extensive arguments in an effort to rebut an academic study that Mr. Spitzer has cited in his complaints about fund management fees.
Most of the big banks and building societies have gone down a "restricted advice" route in which they can only sell a limited range of products, but will still charge you a fee equivalent up to 3% of your initial investment plus 0.5% a year, plus fund management fees on top.
The annual fund management fees are 1% (75 basis points for large investors).
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