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Again, (and as usual) the monthly April Commentary was a great read. Thank you. Along the way, attention was paid to Seafarer. Did I miss it, or was the ER given as Morningstar has it, rather than the CORRECT ER, at 1.25%...? Morningstar has the SFGIX ER at 1.4%. I'll be on the road, or else I'd join the Call with Andrew Foster, coming up.
There are theoretical numbers and actual numbers. M* publishes both on a fund's expenses page, but uses the actual on a fund's summary page.
By "actual" I mean actual dollars and percentages spent by the fund, as reported in its latest (semi)annual report. By "theoretical" I mean the prospective expenses as speculated by its prospectus.
It is worth noting that all the figures incorporate fee waivers. So both the "actual" ER of 1.4% and the "theoretical" ER of 1.25% are subsidized numbers. The "true" "theoretical" ER (per prospectus) is 1.66%.
The lower number (1.25% vs. the older 1.4%) going forward is a result of a reduced cap put into place by Seafarer last Sept 1. It does not necessarily represent a reduction in "true" expenses. On the other hand, Seafarer did reduce its declared management fees by 10 basis points at that same time - that represents a true reduction in ER.
Comments
By "actual" I mean actual dollars and percentages spent by the fund, as reported in its latest (semi)annual report. By "theoretical" I mean the prospective expenses as speculated by its prospectus.
It is worth noting that all the figures incorporate fee waivers. So both the "actual" ER of 1.4% and the "theoretical" ER of 1.25% are subsidized numbers. The "true" "theoretical" ER (per prospectus) is 1.66%.
The lower number (1.25% vs. the older 1.4%) going forward is a result of a reduced cap put into place by Seafarer last Sept 1. It does not necessarily represent a reduction in "true" expenses. On the other hand, Seafarer did reduce its declared management fees by 10 basis points at that same time - that represents a true reduction in ER.