Are you concerned with your funds expense ratios?

With serious competition for shelf space, are you worried the distributor might drop your products if your expense ratios get too high?

If so, read on.

Do you know the various components that make up your expense ratios?

If you want to cut the expenses loaded on the funds, would you choose to reduce management fees (your revenue), or distribution expense?

Do you understand the impact of distribution expense (12b1, SubTA, Admin Fees) on your funds expense ratios?

Do you know how your overall distribution expenses are trending over time?

Do you know how the breakdown of assets across your distribution network?

Do you know which assets are profitable, and which ones may cost you more in distribution expense then you generate in management fees?

Do you know which contracts are efficient for both distributor and fund company?

Do you know which contracts are underwater (costing you more in distribution expense than you generate in revenues, and add unnecessary expense to your funds, and push up your expense ratios)?

If these questions bring you concern, and you don’t know the answers, come talk to Capnetix.

We can help you answer these questions about how to get smarter in your fund distribution, and compete in a tough environment.