Live5 concepts3 modules

Fee Drag Lab

Layer management, incentive, servicing, and load economics into a share-class comparison.

ModeInteractive lab

01Run lab 4Concepts 3Paths 0Evidence 2Outputs

Interactive Tool

Fee Drag Lab

Translate a fee table into the amount of performance consumed by wrapper and distribution economics.

Institutional class1.45% annual drag8% gross return exampleAdvisor class3.10% annual drag8% gross return exampleLoaded share class3.20% annual drag8% gross return example

Institutional class net return6.55%Most drag comes from recurring manager and fund expenses, not distribution costs.

Five-year gross example$146,933Before wrapper and share-class costs.

Five-year after costs$137,331$9,602 difference on $100,000.

Management fee1.25%

Incentive economics0%

Servicing / distribution0%

Platform / other expenses0.20%

Upfront load0%

What to inspect

Which share class is being compared.
Whether incentive economics are already netted from returns.
Whether servicing fees, loads, or platform expenses differ by channel.
Which prospectus fee table or supplement proves the current numbers.

Advisor class net return4.90%Recurring distribution economics create a persistent gap versus a cleaner class.

Five-year gross example$146,933Before wrapper and share-class costs.

Five-year after costs$127,022$19,911 difference on $100,000.

Management fee1.25%

Incentive economics0.75%

Servicing / distribution0.85%

Platform / other expenses0.25%

Upfront load0%

What to inspect

Which share class is being compared.
Whether incentive economics are already netted from returns.
Whether servicing fees, loads, or platform expenses differ by channel.
Which prospectus fee table or supplement proves the current numbers.

Loaded share class net return4.80%The one-time load lowers invested capital before recurring costs start compounding.

Five-year gross example$146,933Before wrapper and share-class costs.

Five-year after costs$121,993$24,940 difference on $100,000.

Management fee1.25%

Incentive economics0.75%

Servicing / distribution0.85%

Platform / other expenses0.35%

Upfront load3.50%

What to inspect

Which share class is being compared.
Whether incentive economics are already netted from returns.
Whether servicing fees, loads, or platform expenses differ by channel.
Which prospectus fee table or supplement proves the current numbers.

Operating-system handoffUse the lab, then route into concepts, controlled examples, document checks, and advisor language.

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After the labRoute the mechanic into the rest of Learn.

Translate a fee table into the amount of performance consumed by wrapper and distribution economics.

Advisor runbookWhat does this fee stack actually do to the return a client sees?

01Tool
Run the controlled example
Layer recurring fees, incentive economics, servicing fees, and loads into one net-return read.
Fee Drag Lab
02Concept
Define the mechanic
Anchor the lab in the canonical Fee drag definition before using the result with a client.
Fee drag
03Tool
Find the document route
Check the prospectus fee table and performance basis before comparing two return series.
Filing Trail Decoder
04Controlled example
Apply it to a model scenario
Open a model share-class fee case to inspect class-level expense mechanics.
MODEL-BDC-FEE: Non-traded BDC / fee stack
05Advisor output
Leave with usable language
Leave with prospectus checks and client-safe language about cost drag.
Prospectus checks

ConceptsFee drag Management fee Incentive fee Servicing fee

PathsEvaluate a first fund Fees and performance Advisor operations

Advisor outputsProspectus checks Investment committee notes

Controlled examplesMODEL-BDC-FEE: Non-traded BDC / fee stack