Negotiating asset management fees
So, there's this firm that charges 1% annual management fee + 0.40% custody fee charged by the bank where the account will be opened. The firm asks for $1 million minimum and they said that they offer discounts for larger amounts. How much can you negotiate down these fees for a $50 million account?
the portfolio will be:
fixed income : 58%
cash/cash equivalent: 2%
global equities: 35%
If I have $50mm and you wouldn't charge me more than .10%. You wouldn't have my account.