Glossary of Municipal Securities Terms

MANAGEMENT FEE

(1) A component of the underwriter’s discount representing compensation for the manager’s work in structuring the financing. See: SPREAD.

(2) A fee, also known as a program management fee or program fee, typically charged by the program manager of a 529 college savings plan for administrative and marketing services related to management of the program. This fee is distinguished from underlying fund or portfolio expenses, which are typically charged to portfolios to compensate the investment advisers to manage the funds or portfolios and pay other related administrative expenses of the underlying investments. Certain programs combine the program management fees and underlying fund or portfolio expenses into one management fee.

(3) A fee typically charged by the program manager of a local government investment pool for administrative and management services related to management of the pool. This fee is distinguished from underlying fund or portfolio expenses, which are typically charged to the portfolios to compensate investment advisers to manage the funds or portfolios and pay other related administrative expenses of the underlying investments. See: MUNICIPAL FUND SECURITY.

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