2012 | Vol. 2, No 1 | 97-108
Article title

A note on the investment funds' management fees

Title variants
Languages of publication
The aim of this paper is to discuss the real (gross) values of the management fees charged by the investment funds' managing firms in Poland as well as the difference between these values and the published ones on one hand and between them and the respective fees charged by the managing firms in Western European countries on the other. To meet this aim the concept of the real (gross) rate of return on investment funds is presented first. Next the formulas are developed to compute values of this rate of return in terms of simple as well as compound interest rates assuming that the net rate of return of the investment fund as well as the net management fee are known. On that basis the investigated real (gross) values of the management fees are computed for a number of sets of values of investment fund's net rates of return on one hand and the values of the published management fees on the other. These values are presented in the tables attached to the paper. The paper ends with the considerations why investment funds' management fees charged by the managing firms operating on the Polish market are much higher than in Western European economies. Then follow answers and the two related questions: when the management fees on the Polish market will be reduced to the level of western European standards and what are the preconditions for the reduction of the management fees on the Polish market. The main conclusion is that the respective actions of the Polish Government are required to reduce these fees in favour of the whole economy and especially of the individuals. (original abstract)
Physical description
  • Kazimierz Pułaski University of Technology and Humanities in Radom, Poland
Document Type
Publication order reference
YADDA identifier
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