trailer fee

Trailing Commission

A commission that the salesperson of a mutual fund receives each year an investor remains a shareholder. That is, the salesperson receives the first trailing commission when the investor first buys shares in the fund, and a new trailing fee each year thereafter. Critics of this practice point out that it can create a moral hazard that the salesperson will aggressively sell a fund because of his own financial incentive, rather than because he believes it to be a good investment for the potential shareholder. Not all mutual funds pay their sales staff trailing commissions. A trailing commission is also calling a trailer fee. See also: Load.

trailer fee

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Multifonds' key strategic clients have welcomed the extensions and 40% have already committed to using the extensions which include: Retrocessions - replacing the need for a separate trailer fee system, MFGI provides a fully comprehensive trailer fee engine for the calculation of commission fees and rebates to the agent and investors.
Clients also benefit from more flexible data importing capabilities, which eliminate workarounds and manual entry, when it comes to the provision of data for trailer fee calculations, which historically have posed issues due to a lack of standardisation.
The firm said that it would lower the management and trailer fees on certain series of the HSBC World Selection(R) Diversified Funds.
That same year, California's legislative counsel issued an opinion that the IRP superceded state rules and therefore the state could not assess additional trailer fees.