trailing commission

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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.

trailing commission

A commission paid annually to a sales agent for as long as a client's money remains in an account. Also called trailer fee.
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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That same year, California's legislative counsel issued an opinion that the IRP superceded state rules and therefore the state could not assess additional trailer fees.
The compensation model also creates a continued revenue stream in the form of trailer fees, a one time origination fee and a renewal fee every time the customer renews with Cervus.
Mutual fund trailer fees increased due to higher fund assets.
Expense increases resulted from the higher level of Mutual Fund assets and correspondingly higher trailer fees.
Cervus is pleased to announce it has paid its first trailer fees to the mortgage broker industry.
5% primarily due to higher sub-advisor fees and increased trailer fees on higher mutual fund assets.
The company's model compensates the broker with a one time origination fee, a trailer fee for each year the mortgage remains with Cervus and a renewal fee upon renewal of the mortgage for another term.
The Cervus business model is an exclusive mortgage offering in Canada, as it provides a one of a kind trailer fee designed to align the commercial interests of the broker with the ongoing service requirements of the borrower.
The company paid its first trailer fee and renewal fee to the mortgage broker industry delivering on the "Customer for Life" model.
Cervus's unique model compensates the broker with a one time origination fee, a trailer fee for each year the mortgage remains with Cervus and a renewal fee upon renewal of the mortgage for another term.
Cervus compensates the broker with a one time origination fee, a trailer fee for each year the mortgage remains with Cervus and a renewal fee upon the renewal of the mortgage for another term.