Soft Commissions

Soft Commissions

Any type of commission that is not paid in actual dollars. Soft commissions allow investment companies and institutional funds to cover some of their expenses through trading commissions. For example, receiving research from a counterparty in exchange for using their brokerage services. Thus the expense would be classified as trading commissions and at the same time would lower their reported expenses on research in this instance.

There are a large number of investment funds that usually buy things in soft dollars, because it allows the fund to avoid reporting expenses to cost-sensitive investors. Soft commissions thereby allow funds to finance their expenses and ultimately lower their expense ratios. But this type of reporting has frequently resulted in reporting problems for fund companies for various reasons.


Investment dictionary. . 2012.

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  • soft commissions — paslėpti komisiniai statusas Aprobuotas sritis kolektyvinio investavimo subjektų veikla apibrėžtis Valdymo įmonės gaunama ekonominė nauda, kai jos valdomas kolektyvinio investavimo subjektas padengia sandorių dėl portfelio priemonių mokesčius.… …   Lithuanian dictionary (lietuvių žodynas)

  • soft commission —    a bribe    Paid in addition to normal commercial commission for the introduction of business:     It is the first time in Imro s history for a breach of rules on soft commissions . (Daily Telegraph, 25 June 1994 the British Investment… …   How not to say what you mean: A dictionary of euphemisms

  • Soft commission — is commission given in a non cash form.Many investment funds prefer to buy things using soft dollars so they can avoid reporting direct expenses to investors who are highly cost sensitive. Thus, soft commission allow institutional funds to use… …   Wikipedia

  • Soft dollar — The term soft dollars is used to describe certain payments made by institutional investment funds to their service providers. In contrast to hard dollars (actual cash), which have to be reported on the fund s books, soft dollars are incorporated… …   Wikipedia

  • Soft Dollars — A means of paying brokerage firms for their services through commission revenue, as opposed to through normal direct payments (hard dollar fees). The investing public tends to have a negative perception of soft dollar arrangements because they… …   Investment dictionary

  • Soft dollars — The value of research services that brokerage houses supply to investment managers free of charge in exchange for the investment manager s business/commissions. The New York Times Financial Glossary …   Financial and business terms

  • soft dollars — The value of research services that brokerage houses supply to investment managers free of charge in exchange for the investment manager s business commissions. Bloomberg Financial Dictionary …   Financial and business terms

  • paslėpti komisiniai — statusas Aprobuotas sritis kolektyvinio investavimo subjektų veikla apibrėžtis Valdymo įmonės gaunama ekonominė nauda, kai jos valdomas kolektyvinio investavimo subjektas padengia sandorių dėl portfelio priemonių mokesčius. Paslėpti komisiniai… …   Lithuanian dictionary (lietuvių žodynas)

  • china — /chuy neuh/, n. 1. a translucent ceramic material, biscuit fired at a high temperature, its glaze fired at a low temperature. 2. any porcelain ware. 3. plates, cups, saucers, etc., collectively. 4. figurines made of porcelain or ceramic material …   Universalium

  • China — /chuy neuh/, n. 1. People s Republic of, a country in E Asia. 1,221,591,778; 3,691,502 sq. mi. (9,560,990 sq. km). Cap.: Beijing. 2. Republic of. Also called Nationalist China. a republic consisting mainly of the island of Taiwan off the SE coast …   Universalium

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