PT  - JOURNAL ARTICLE
AU  - Evan. Schulman
TI  - Soft Dollars
AID  - 10.3905/jpm.2004.319933
DP  - 2004 Jan 31
TA  - The Journal of Portfolio Management
PG  - 87--88
VI  - 30
IP  - 2
4099  - https://pm-research.com/content/30/2/87.short
4100  - https://pm-research.com/content/30/2/87.full
AB  - With the level of management fees, it is argued that it is not in the interest of money managers to undertake some research activities benefiting their clients, net of costs. There could thus well be underinvestment in securities research, investment platforms, or trading facilities, and so on. Making charges directly to the corpus of the fund can cure this problem, and soft dollars are an ideal conduit to effect such payments. The fact that money managers are negotiating commission dollar contracts using other people's money causes other problems, though.