I've never seen a fund report on net performance, only gross. So yes, if the fund says it returned 10% last year, it was really 10% minus fees. If it lost 5%, it really lost 5% plus fees.

A good fund (in my opinion) only has one fee: The expense ratio. I look for an expense ratio below 0.05% and I look at the fund's prospectus to make sure there are no other fees