Fee-Based Investment

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 ?
Elios Financial Group, an independent wealth management firm located in suburban Cleveland specializing in retirement/financial planning and fee-based investment management.
Thus, the wealth business is reviewing "those limited circumstances" and considering possible alternatives to its fee-based Investment Advisory Program for some clients "in a manner consistent with a higher standard of care," he added.
Some Parthemer customers were brokerage customers, while others were fee-based investment advisory clients that paid advisory fees for which Parthemer recommended and managed their investments.
Trump administration DOL officials might slow or reverse the push toward fee-based compensation, but some life insurance agents and other financial professionals have been moving toward fee-based arrangements on their own, to compete fee-based investment planners and to seek a steadier revenue base.
Nationwide, for example, announced it would acquire Jefferson National, which specializes in fee-based investment products.
Similarly, fee-based investment arrangements also have been on the rise.
While client activity slowed given the markets, we continued to generate solid net inflows in fee-based investment advisory accounts and strong investment performance."
Financial broadcaster Dave Ramsey has come out against the change, saying it could hinder the ability of the Middle Class to access financial advice, while benefitting fee-based investment advisors.
He is principal of Coyle Realty Advisors, a Dallas-based real estate services firm engaged in fee-based investment property valuation, analysis, research, expert witness testimony and counseling.
The same assets placed into a fee-based investment portfolio will pay a smaller annual fee, but will pay it to the advisor year after year.
(member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services.
We employ transactional and fee-based investment solutions for our clients.