Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: PUBLIC RELATIONS SEGMENT

CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE

No. SIC Year Notes
1 6282 2009 Funds of all stripes have been pressed to roll back fees lately as they try to hold on to investors. Some of the best-performing managers of the past decade have either cut future fees or refunded fees earned, including Citadel Investment Group LLC, which gave back about $300 million in fees it had collected during money-losing months in 2008. They still must pull in big profits to return to their funds' "high-water mark," the point that marks the end of positive performance and the beginning of an investment decline.
2 6282 2009 A multibillion-dollar hedge fund run by Renaissance Technologies LLC has waived all its management fees for 2009, a rare move suggesting fund managers' pay will come under greater pressure in the year ahead. The CEO recently told investors in his year-old futures fund, Renaissance Institutional Futures, that he was waiving the 1% fixed management fee this year following poor performance in 2008. That 12-month fee break equates to about a $30 million price cut from what investors in the $3 billion fund would have paid. The discount applies even if the fund delivers good results in 2009.

<< Return to Choice 3