gross of fee vs net of fee

CFA Level III
#1

This has no reference to any exam question. I am curious as to the relationship between net of fee and gross of fee returns. Is the following relationship true? Net of fee return = gross of fee return - fees

#2

As long as you get units right on “fees”.

#3

Care to elaborate?

#4

like 11% = 13% - 2%

#5

2+2 = 5 :frowning:

#6

Gross of fee returns = gross returns less trading expenses Net of fee return = gross of fee returns less management fees and other expenses

#7

Usually Gross = Gross of Mgmt & Incentive Fees, but it can also mean Gross of just Incentive Fees, depending on the manager. This is in HF world. In mutual fund world, it would only be Gross of Mgmt fees.

#8

-1

#9

I hope you’re not -1 me, as mine is correct. As I"m in the HF world.