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.
Consolidated revenue reached P275.8 million, up by 10.5 percent year-on-year, largely driven by higher interest income and trailer fees.
Consolidated revenues in the second quarter reached P 275.78 million, higher by 10 percent year-on-year from P249.59 million, largely driven by higher interest income and trailer fees.
grew its second quarter net profit by 17.1 percent year-on-year to P133.9 million as higher interest income and trailer fees from fund distribution made up for slower revenues from commission.
COL's consolidated revenues in the second quarter reached P275.8 million, higher by 10.5 percent year-on-year, largely driven by higher interest income and trailer fees.
The firm said that it would lower the management and trailer fees on certain series of the HSBC World Selection(R) Diversified Funds.
Or--and this is increasingly common not only in respect to VAs, but also variable universal life products--they offer exclusively trailing commissions (or trailer fees).
That same year, California's legislative counsel issued an opinion that the IRP superceded state rules and therefore the state could not assess additional trailer fees. When it came time to stop collecting those fees, though, California did not comply.
Advisors are generally compensated by commission, although they may also receive trailer fees paid by mutual funds, and fees for professionally money managed accounts.
Trailer fees from the fund distribution segment also rose by 39.8 percent to P14.8 million as average assets under administration reached P2.6 billion.
In a statement, COL said revenues jumped 71.2 percent to a quarterly record of P365.7 million, primarily led by an 87.3 percent increase in commission revenues and the strong growth in interest income and trailer fees.