Lexicon
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Management fees
Management fees are calculated as a percentage of net asset value of a fund ; their primary purpose is to pay the fees for the asset management company, auditors’ fees, etc. They are directly deducted in the calculation of NAV.
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Management mandate
Legal and bilateral contract by which a principal grants, to a duly empowered agent, the authorisation to manage a portfolio of securities under conditions and at a cost that are determined in advance. Such a contract is regulated and subject to the control of the French Financial Markets Authority and various indications must be included therein: the asset management objective, authorised activities, information on the principal, fees collected for the service in question.
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Markets in Financial Instruments Directive (MiFID)
The European Directive “Markets in Financial Instruments” known as MiFID, in force since November 2007, requires order execution on the stock exchange to be open to competition in order to render the functioning of the markets more flexible (extension of opening hours) and to lower the costs of intermediation. In addition, a new type of order has appeared: “best execution”, which should allow the order to be directed to the exchange offer the best price.
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Master-feeder fund
This involves one or several feeder UCITS funds, which are legally independent funds, being permitted each to invest 100% of their assets permanently in a UCITS known as the master fund. Thus a response adapted to the type of customer and even the country can be achieved in terms of marketing, in a context of management of all the assets.
