A primer on fee calculation in wealth management

Abstract

Fee calculation is an important aspect of revenue management in wealth management firms. This article looks at some of the key concepts and processes involved in fee calculation. Firms that have a diverse product portfolio are moving towards a single fees and billing platform to make the process of fee calculation simpler and more client friendly. The focus for firms is to calculate fees based on streamlined processes and communicate the same to the client. Aspects such as theoretical pricing, investment search, client fee calculation, fee schedule, preferential pricing, client search, advisor compensation, minimum fees and fee approvals are covered in this article.