> annual fees for U.S. equities of about 0.08 percent. So the funds got 99 percent of the returns on their investment, and the managers got 1 percent of those returns.
If you round up 0.08%, it should be 99.9% and 0.1% respectively.
No, because the 0.08% is a percentage of the _assets_. So if your return is 8.24% of assets per year and your fees are 0.08% of asserts per year, then your fees are 0.08/8.24 = 0.0097 of your returns. Or in other words 0.97% of the returns. Rounding gives you the 1%.
You're not supposed to round 0.08, you're supposed to divide 0.08/8.24. The 8.24 is the percentage point return for the pension fund and the 0.08 is the percentage point cost for the fees
If you round up 0.08%, it should be 99.9% and 0.1% respectively.