Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Investing
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Investing

The Journal of Investing

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
Primary Article

Paying Up: The Hidden Cost of Portfolio Management

Commission Recapture:A Way to Get Some Back?

Neeraj Baxi
The Journal of Investing Fall 2003, 12 (3) 76-81; DOI: https://doi.org/10.3905/joi.2003.319558
Neeraj Baxi
An associate at Ennis Knupp and Associates, Inc., in Chicago, IL.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: n.baxi@ennisknupp.com
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Abstract

Brokerage commissions over and above the cost of pure execution can be viewed as an indirect fee to investment managers. This fee is not visible and gets absorbed in the performance of the portfolio. Arrangements like this may cause investment managers to trade more through brokers that provide additional services than through execution-only brokers, which may not necessarily be in the best interest of the investor. An unbundling of research and execution costs should result in a more efficient allocation of resources, as well as add transparency to the investment management process. Commission recapture suggests that commission dollars are being used inefficiently, which strengthens the case for differentiating research and execution costs. Plan sponsors must be careful in setting up such programs, as the recaptured commissions in a poorly structured program can be easily offset by invisible costs related to market impact and delayed execution.

  • © 2003 Pageant Media Ltd

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Investing
Vol. 12, Issue 3
Fall 2003
  • Table of Contents
  • Index by author
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Investing.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Paying Up: The Hidden Cost of Portfolio Management
(Your Name) has sent you a message from The Journal of Investing
(Your Name) thought you would like to see the The Journal of Investing web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Paying Up: The Hidden Cost of Portfolio Management
Neeraj Baxi
The Journal of Investing Aug 2003, 12 (3) 76-81; DOI: 10.3905/joi.2003.319558

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Paying Up: The Hidden Cost of Portfolio Management
Neeraj Baxi
The Journal of Investing Aug 2003, 12 (3) 76-81; DOI: 10.3905/joi.2003.319558
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • Issues in Mutual Fund Soft-Dollar Trades
  • Google Scholar

More in this TOC Section

  • Shorting Companies That Restate Previously Issued Financial Statements
  • On the Teaching of Financial Economics
  • The ETF Free Lunch
Show more Primary Article
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 1068-0896 | E-ISSN: 2168-8613

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy