SC Treasurer Asks For Disclosure Of $106 Million In Investment Fees
(Columbia, SC) – State Treasurer Curtis M. Loftis, Jr. requested today that approximately $10You must Subscribe or log in to read the rest of this content.
(Columbia, SC) – State Treasurer Curtis M. Loftis, Jr. requested today that approximately $10You must Subscribe or log in to read the rest of this content.
8 comments
Stay on them Mr. Treasurer. We are with you!
Stay on them Mr. Treasurer. We are with you!
Curt, you are beginning to feel a little strident. Your credibility is being strained.
Curt, you are beginning to feel a little strident. Your credibility is being strained.
The add’l expenses are netted into earnings. So, while perhaps more transparent, simple accounting would dictate that there would be an offsetting entry to investment income. So you would gross up expenses by 106 and investment earnings by 106. The net effect is zero.
One must always know the cost of an investment. High fees must be paid, and in fact must be earned. Additional risk is taken to earn the fees. That may be aceptable if all variables are managable. Perhaps that is the case here, but the fees must me identified and accounted for, otherwise one is simply guessing.
The add’l expenses are netted into earnings. So, while perhaps more transparent, simple accounting would dictate that there would be an offsetting entry to investment income. So you would gross up expenses by 106 and investment earnings by 106. The net effect is zero.
One must always know the cost of an investment. High fees must be paid, and in fact must be earned. Additional risk is taken to earn the fees. That may be aceptable if all variables are managable. Perhaps that is the case here, but the fees must me identified and accounted for, otherwise one is simply guessing.