The scale of Citigroup's funds under management was hard to reconcile with their performance.
Investment firms usually receive management fees calculated as a percentage of funds under management.
The typical annual management fee is 1-2% of funds under management, with some charging as much as 3%.
Aside from allegedly diverting massive amounts of investors' money for their own purposes, they have largely ignored the law requiring them to set aside at least 5% of funds under management in cash.
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Cheney's outfit makes money by charging a fee of less than 1% of the funds under its management.
Funds with at least a billion dollars under management that are headquartered there (and often domiciled offshore in places like the Cayman Islands for tax and regulatory purposes) represented 46.6% of global assets managed by similarly sized funds in January of this year.
Some of these leveraged ETFs were introduced in November 2008, including the Direxion 3X Daily Bull Fund (NYSE: FAS) and Direxion 3X Daily Bear Fund (NYSE: FAZ), and these funds could not have had the assets under management to really affect market moves to the extent we were seeing in late 2008, and 2009.
While the vast majority of assets under management (AUM) are in conventional funds, the growth is on the more active side.
Mulvihill spent years haggling with the Ministry of Finance for licenses to operate institutional portfolios and mutual funds under one roof and make efficient use of Goldmans fund management and other resources.
In March, the company, which has come under new management, tried to beef up its funds by selling its assets to the Halifax.
The scandal was triggered when New York Attorney General Eliot Spitzer revealed a scheme under which Nations Funds, advised by Banc of America Capital Management, a unit of Bank of America (nyse: BAC - news - people ), permitted hedge fund Canary Capital to trade mutual fund shares at prices that had already been set at the day's close.
Baker points out that private mutual funds, on average, charge much higher fees (as a percentage of assets under management) than the costs of the Thrift Savings Plan the federal government makes available to federal employees.
Rowe, which operates one of the largest no-load mutual fund complexes in the U.S. Some 75% of its assets under management is invested in equities and 25% in target-date retirement funds.
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