SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Scott Mc who wrote (3510)6/22/2002 4:52:06 AM
From: Peter W. Panchyshyn  Read Replies (2) of 11633
 
Give 1000$ to Fund: Fund buys 1000$ worth of REIT with a 10% payout REIT pays $100 to fund, fund takes 2.5% of $1000 or $25.
$100 payout - $25 = $75 paid to shareholders

------- While this example of yours from a previous post much like you use in that recent post of yours is used by many to depict management fees for funds. It has one key basic flaw in it. It is not how the fees are charged to the funds. PERIOD. Management fees are charged that 2.5%. But the funds do not have a little man standing there when a deposit is made to the fund by a fundholder taking the fee out of that $1000 as you say. The fact is that management fees are charged on a monthly basis to the, or against the net assets of the funds. And it is done well before payouts are made by the fund. To show what really goes on. In any one particular month a fund with net assests of say $100,000,000 (as by example) will be charged 1/12 of (2.5% of $100,000,000). Now that $100,000,000 will include yes payouts from that which is in the fund (say a trust-REIT) but it will also include any real gains made from the sale of assests or holdings of the fund (say a right) , it will also include any unrealized gains of assets or holdings held by the fund at that time. So what you show as $25 coming solely from the pocket of fundholder A, isn't what is really happening at all. That first $25 you speak of isn't coming entirely from a single unitholders A , $1000 initial purchase. Nor is that $25 you speak of coming from one single funds holdings (REIT) payouts. It is coming from the total assests of the fund. And it is done well before any payouts are made to any and all fundholders. STICK TO WHAT IS REALLY HAPPENING IN THE REAL WORLD. -------------------
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News