Fee Structure for AUM?

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Jan 18, 2007 5:38 pm

Can I get some help from the fee guys out there?  What is the typical % you charge for AUM up to 100k, 250K, etc...What does ML, SB, etc... charge?


Thanks in advance!

Jan 22, 2007 7:57 am

It depends on the type of account.  Generally 1%, you keep about 40% of that.  So annually, you'll make around $400 on a $100,000 account.

Jan 22, 2007 9:42 am

Fees officially start at about 3% for managed accounts and 1.5% for fee-based trading accounts. Usually, these fees are discounted 30-50% by the broker.


The industry is being pulled towards 1%, as this is increasingly the standard in the independent world.

Jan 22, 2007 12:58 pm

Anything more than 1% is robbery. 

Jan 22, 2007 2:19 pm

thus far, i have found as an independent (because my payout is higher), i can charge 80-85 bps and win the business easily.


me at 88% payout on 500k account at 80 bps = net payout of $3400/year.


others at wirehouse at 40% payout at 125 bps on same 500k = net payout of $2500/year.


effectively, i can charge less and make more.  better for client, better for me.

Jan 22, 2007 3:05 pm

$100K - $250K  1.3%


$250K - $500K 1.2%


$500K - $1 Mil  1.1%


$1Mil -  $2.5Mil 1%


$2.5Mil - $5Mil  .9%


$.5Mil +    We can talk about it.


These are for an ETF portfolio (average .25bps expense ratio). So, even the $150K accounts are only paying a tad over 1.5% for everything.

Jan 22, 2007 5:23 pm
AllREIT:

Anything more than 1% is robbery. 



I get more than that because I'm worth it.....

Jan 22, 2007 9:21 pm
now_indy:

These are for an ETF portfolio (average .25bps
expense ratio). So, even the $150K accounts are only paying a tad over
1.5% for everything.





I do it as 1% of AUM, prorated for 50% of hourly fee's.

Jan 23, 2007 7:33 pm

joedabrkr,



I get more than that because I'm worth it.....
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Your Mom's opinion doesn't count, sport!

Jan 23, 2007 11:31 pm
doberman:

joedabrkr,



I get more than that because I'm worth it.....
---------------------------------------------------


Your Mom's opinion doesn't count, sport!



Good one!