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Title: Risk-Adjusted Impact of Administrative Costs on the Distribution of Terminal Wealth for Long-Term Investment
Author: Guillén, Montserrat
Jarner, Søren Fiig
Nielsen, Jens Perch
Pérez Marín, Ana María
Keywords: Riquesa
Distribució (Teoria econòmica)
Societats d'inversió
Control de costos
Distribution (Economic theory)
Mutual funds
Cost control
Issue Date: 2014
Publisher: Hindawi Publishing Corporation
Abstract: The impact of administrative costs on the distribution of terminal wealth is approximated using a simple formula applicable to many investment situations. We show that the reduction in median returns attributable to administrative fees is usually at least twice the amount of the administrative costs charged for most investment funds, when considering a risk-adjustment correction over a reasonably long-term time horizon. The example we present covers a number of standard cases and can be applied to passive investments, mutual funds, and hedge funds. Our results show investors the potential losses they face in performance due to administrative costs.
Note: Reproducció del document publicat a:
It is part of: Scientific World Journal, 2014, vol. 2014, num. 521074, p. 1-12
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ISSN: 1537-744X
Appears in Collections:Articles publicats en revistes (Econometria, Estadística i Economia Aplicada)

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