The typical annual management fee is 1-2% of funds under management, with some charging as much as 3%.
The industry has had plenty of chances to improve the safety of money-management funds.
ECONOMIST: How Enron and Argentina have unsettled Japanese investors
Banks typically pool funds raised by wealth-management products and invest the money in poorly disclosed assets or projects, leading to a lack of clarity about the underlying assets.
Known as funds-of-funds, firms such as Financial Risk Management and Synergy Fund Management have received billions of dollars from investors in order to assemble diversified portfolios of underlying hedge funds.
Among other things, it established something called the National Veterans Business Development Corporation--aka, the Veterans Corporation, a quasi-government agency that also solicits private funds--as well as a new layer of management at the SBA and the U.S. Department of Veteran Affairs dedicated to veteran entrepreneurs.
The collapse of two hedge funds, Long-Term Capital Management in 1998 and Amaranth Advisors in 2006, were cases in point.
Mr Kitao says this reflects the availability of funds and Softbank's risk-management practices.
ECONOMIST: Is Softbank��s Internet empire as strong as it looks?
Miller, chief executive of Baltimore-based Legg Mason Funds Management, also believes that capital spending is on the road to recovery, another positive stimulus for a better economy.
Jonathan Harris, president of Alternative Investment Management LLC, a New York-based investment-management firm that allocates money to hedge funds, says he asks prospective fund managers to break out the list of expenses listed in the investor documents.
In the past couple of years, the idea has been sort of unique to the hedge funds and upper echelon of the money-management community.
FORBES: Futures Veterans See Steady-Higher Commodities In 4Q; Favor Grains, Precious Metals
One of the best-known hedge funds, Soros Fund Management, admitted that it chewed over the sell signal given by the Big Mac index when the euro was launched, but then decided to ignore it.
Other well-respected hedge funds, including Moore Capital Management LP and Scout Capital Management LLC, also sold all their positions in GLD in the quarter, according to filings.
On top of this, the underlying hedge funds charge management fees of 2% and one-fifth, or more, of profits.
And Weisel has recently poached leading managers of high-tech growth funds at Fidelity Investments, Wellington Management and John Hancock Funds.
Much credit creation now happens off balance sheets, whether through so-called wealth-management products at banks or special funds set up by local governments.
The retail channel can grab as much as two years' management-fee income from mutual funds just for placing their shares with clients, points out Charles B. (Brad) Hintz, an analyst with Sanford C.
Gradient mainly sells its research to money management outfits, including hedge funds and short-sellers.
Normally Greece's debt-management agency would already be raising extra funds to ensure that all goes smoothly in the spring.
ECONOMIST: A Greek deficit-reduction plan is greeted sceptically
They hope to drive the program into a political and technological dead-end by denying it the synergy and efficiency that can come from an integrated management structure and by diverting funds from space- to ground-based defensive systems.
CENTERFORSECURITYPOLICY: Hapless SDI damsel in distress: Awaiting a hero
For the moment, the funds are little more than a drop in the overall investment-management pool.
As a general rule, Bill Palmer, a certified financial planner at Win Wealth Management in Denver, prefers index funds or exchange-traded funds for their lower fees.
WSJ: Investors Buying Dividend Stocks for Income Are Taking On a Lot of Risk.
There is always debate among investors as to whether style investing using index funds or a style-based asset class fund is an active management strategy or a passive one.
Morgan Stanley, for instance, sponsors a fund of funds, Liquid Markets Fund I, that puts investors' money into an assortment of hedge funds that each impose one-way incentive fees (plus annual management fees).
It is not too difficult to work out why banks and traditional fund-management firms should want to be more like hedge funds.
Betterment uses low-cost exchange-traded funds from iShares and Vanguard Group, and takes a management fee of 0.15% to 0.35% on top of underlying fund fees.
Dire talk this spring of a systemic problem with hedge funds--on the magnitude of 1998's Long Term Capital Management crisis--has not played out in reality, many analysts say.
This is one reason why Zephyr, which specializes in the creation and management of highly focused and value-added investment funds in the emerging markets, is highly optimistic about opportunities in the developing countries.
Funds of funds got their start when Burch took over Jones' New York asset-management firm in 1983.
Instead, these investments would rely more heavily on active management--things like emerging market equity and debt funds, domestic high-yield bonds, small cap equities, real estate and private equity.
The BlackRock segment manages assets on behalf of institutional and individual investors worldwide through a variety of equity, fixed income, multi-asset class, alternative and cash management separate accounts and funds, including iShares.
应用推荐