Total Annual Fund Operating Expenses

You're a mutual fund. You have all kinds of expenses beneath that 1% Assets Under Management fee you charge. You have to pay a dozen analysts. You have two portfolio managers who call the shots. You have a trader. You have lawyers, accountants, and auditors. You have all kinds of computer hardware and software licenses and security experts who come in and snoop around all the time. You have rent, insurance, and secretaries. And then marketing. You buy ads.

It all adds up to a number. It's your annual nut. Many funds actually disclose this number and "market" that they're a "cost plus" business (i.e. high value to the customer). But, in reality, investors care about one thing: the shininess of the white shoes of the people doing the investing. (Ok, ok, snark alert. No, they care about investment results. That's it. "Show me the money.")