Glossary · fee
Management Fee
Also known as: advisory fee, AUM fee
- Definition
- A management fee is the recurring annual fee a private bank, fund manager, or advisor charges as a percentage of client AUM, typically 0.3–1.5% per year depending on tier, mandate type, and AUM band.
Management fees are the dominant fee mechanic in private banking and fund management. They are typically debited monthly or quarterly in arrears, calculated on month-end NAV. Discretionary mandates anchor at 0.5–1.5%, with tiered step-downs at AUM scale (e.g. 1% to US$25M, 0.7% to US$50M, 0.5% above). Alternative fund managers may also charge performance fees on top. Fee transparency is improving — most SG private banks now publish a fee schedule at the client level, and EAMs typically operate fee-only.
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