I’ve taken to looking at the P&Ls of LICs to see exactly what proportion of ‘revenue’ is chewed up by base fees and performance fees. In one I looked at, something like 25% of reported revenue was gobbled up by these payments. This LIC pays a nice FF dividend, but, the share price goes nowhere, because NTA (after all fees) goes nowhere (very low performance fee hurdle for this one).
Even if you don’t look at the P&Ls, looking at whether the reported performance is before or after fees, and what the performance fees hurdles can be very instructive.
