Fund-by-fund review of advisory profitability and economies of scale continue to be pillars of the 1940 Act, Section 15(c) contract renewal process since the 1982 "Gartenberg" case. Recent actions continue to suggest that directors should not rely solely on market competition as a justification for approving advisory fees.
Assessing fund profitability, breakpoint pricing, expense reimbursements and fee waivers while taking into account necessary reinvestments in the business is challenging. Incorporating it with additional oversight responsibilities, including the comparison of relative expense and service quality benchmarking, in an environment of growing regulations, can become overwhelming.
This webinar discusses guidelines which independent fund directors can begin their annual assessment regarding the reasonableness of advisor profitability and economies of scale. Also discussed are trends and influences impacting scale, profitability and oversight including industry-wide breakpoint statistics, trends in expense reimbursements, competitive forces on advisory fees, estimates of industry profitability ratios and trends, and recent regulatory issues influencing all of these issues.
This webinar will be broadcasted live on Wednesday, June 1, 2016 at 2 pm (ET). To register, clickhere.