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What's in an expense ratio?

Posted by Mike Limbacher, AIF on May 19, 2015 in Fund Analysis

In our previous post on fund expenses, we focused on the Prospectus Net Expense Ratio and its revenue sharing components, including the 12b-1 fee.  Now we're going to take a look at two other common ratios, the Prospectus Gross Expense Ratio and Audited Net Expense Ratio, and how they compare and contrast to the Prospectus Net Expense Ratio. So, what’s the difference between the Prospectus Net and Audited Net?  And, what’s the difference between the Prospectus Gross and Prospectus Net? Sometimes the numbers can be exactly the same, and...

What's in an expense ratio?

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When does a client become a client?

Posted by Norman M. Boone, CFP® on May 14, 2015 in Fiduciary Basics Putting Process into Practice

Congratulations.  You have a new client.  Or, at least that new prospect has agreed to become a client. But when do they actually cross that threshold that makes them a “formal” client that anyone looking from the outside would agree that they are now your client? In my firm, Mosaic Financial Partners, four things need to happen before we consider someone an investment client of our firm, all of which happen roughly concurrently: They sign our Letter of Engagement (our contract).  This sets out all of the legal aspects of our new relationship, including our...

When does a client become a client?

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What’s the difference between “sole” interests and “best” interests?

Posted by Bennett Aikin on May 13, 2015 in Fiduciary Corner In the News Regulatory Update

If you’re like me, you’re probably guilty of using the terms interchangeably at least on occasion. So what is the difference between “sole” interest and “best” interest? And why does it matter? In his most recent Fiduciary Corner column for InvestmentNews, fi360 CEO Blaine Aikin looks at this distinction and asks whether some conflicts are what’s “best” for investors.  Sole Interests   The sole interest standard is the more rigid standard, requiring that conflicts of interest in a fiduciary relationship be avoided entirely. Strictly speaking, a sole...

What’s the difference between “sole” interests and “best” interests?

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401(k) plan fees: Three fundamental questions every advisor should be prepared to answer

Posted by Michael Limbacher on May 07, 2015 in Fund Analysis

If you advise 401(k) plans, you’ve probably heard the following fee questions from the plan sponsor or investment committee at some point in time. Before 408(b)(2) regulations went into effect in 2012, much of this expense information was hard for the plan sponsor to even find. While more readily available today, that doesn’t mean your plan clients necessarily understand it.       Here are three typical 401(k) plan fee questions you may encounter and some thoughts on how you might want to answer them: Q. Why should I keep my plan with you...

401(k) plan fees: Three fundamental questions every advisor should be prepared to answer

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Your Primer on the DOL's Fiduciary Rule Proposal

Posted by Bennett Aikin on April 15, 2015 in In the News Regulatory Update

The Department of Labor’s anticipated rule on conflicts of interest (aka, the Fiduciary Rule), is now available. For your convenience, we’ve prepared an executive summary covering the basics of the rule. We’ll have much more information about the rule in the coming days and throughout the comment period. But, for now, here’s your quick guide to the just released rule proposal.  What is it? Yesterday’s release is a new rule proposal under ERISA from the Department of Labor. It seeks to expand what constitutes retirement advice and therefore subject...

Your Primer on the DOL's Fiduciary Rule Proposal

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