notices - See details
Notices
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tyc (not verified)
30th June 2012 | 10:23am

A relative way to measure fee is to compare the active management cost to an index or ETF product cost. First look at the R square or Beta of the active manage product to its benchmark, and then find an index or ETF that is manage similar to the benchmark.

To justify the higher cost, rather then comparing return results, I believe active manage product needs to better advice clients as to what they can offer (services, strategy execution and others).