Fee-Based Investment

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Fee-Based Investment

A fund or portfolio where the money manager is paid a percentage of the fund or portfolio's market value rather than commissions based on the number of transactions conducted. Fee-based investment is thought to better align the incentives of investors and money managers; specifically, money managers have a reason to provide increased value for the investment. Fee-based investment also reduces the temptation to overtrade simply to extract higher commissions.
References in periodicals archive ?
Placemark Investments is one of the investment industry's leading managers for enabling Unified Managed Accounts (UMA), a fee based investment strategy that incorporates multiple investment styles into a customized portfolio.
Empire Financial Holding Company provides full-service and discount retail securities brokerage via both the telephone and the Internet; securities order execution, acting as principal in securities transactions for approximately 100 broker/dealers; turn-key fee based investment advisory services, and securities clearing and settling securities trades on behalf of the company's customers.