Bornelli charges a 2% asset-based management fee. In addition to the management fee, clients may pay an incentive fee at the end of each year. The incentive fee is equal to 20% of the account’s net investment income and net realized and unrealized capital gains for the year.
No incentive fee will be paid unless the Fund has offset all prior net realized capital losses and net investment losses with realized capital gains, unrealized appreciation, and net investment income from all securities held by the Fund.
Campanelli’s evaluation of the management fee disclosures is interrupted by a more urgent matter involving a client. The client has requested monthly performance reporting of his investment in a long-short equity hedge fund. The fund’s administrator argues “Our procedures call for us to provide clients with both gross- and net-of-fees returns within 30 days of the end of the quarter.” He adds “Quarterly reporting is the industry standard.”
Are the firm’s disclosures regarding management fees consistent with the required and recommended standards of the Asset Manager Code?
A Yes.
B No, because they do not use plain language.
C No, because they do not include the average or expected expenses or fees clients are likely to incur.
答案：C
这个也要披露吗？对比这个披露到什么程度，可否请老师总结下？比如各种费用
