Need More Rev-Share Data? Here's Information on 22 Broker-Dealers
Reported by Tommy Fernandez
The idea of revenue-sharing can be a complex and scary subject for many fundsters looking to break into platform distribution. We can't get you onto these platforms, but at the very least we can make it easier for you to research the basic fee data for most of these platforms. Going forward, we will strive to give up timely update information on when these fees are changed.
That totals eight B-Ds. Click onto those story links to find the various URLs for the data on these platforms.
Here is the revenue-sharing data from 14 more: 1. Schwab
From the disclosure page: "Through Schwab Mutual Fund OneSource, Schwab offers a selection of no-load and load-waived mutual funds. Schwab receives remuneration for the shareholder services provided to these funds and other no transaction fee funds it makes available (collectively, "NTF funds"). There are over 11,300 NTF funds available for Schwab clients to choose from.
To compensate Schwab for various shareholder services, NTF funds pay Schwab an asset-based annual fee, which usually equals 0.40% of the average fund assets held at Schwab but may be as high as 0.45%. The fee may be subject to a monthly minimum that generally does not exceed $2,000 and applies beginning with the seventh full month after the fund is made available for purchase at Schwab. When adding a new fund to Schwab’s NTF platform, NTF funds also pay Schwab a one-time establishment fee, which Schwab may waive. The amount of this fee generally does not exceed $10,000 for the first fund added and $1,000 for each additional fund within a fund family after that."
http://www.stifel.com/disclosures/mutual-funds/mutual-funds-disclosure "While not all mutual fund companies, their distributors, and/or advisors pay additional marketing and support fees (sometimes referred to as revenue sharing payments) to Stifel (some pay none), the compensation for those that do make such payments is a combination of up to 0.10% of new investments or sales and a maximum of 0.08% on assets under management (for a maximum per fund family of 0.18% per year ($18 per $10,000). Additionally, some fund families may make fixed payments in addition to the above payments or instead of those payments."
Stifel also provides a list of the firms that provide compensation:
http://www.signatorinvestors.com/assets/images/sii_revenue_sharing_supplement.pdf "For example, a mutual fund Featured
Product Sponsor may pay Signator Investors .1% basis
points for every dollar invested in its mutual fund.
If you invested $10,000 in such a mutual fund,
SignatorInvestors would receive $10 forthat transaction.
In other agreements, the product provider may simply
pay Signator Investors a flat fee, for example, $10,000."
http://tfg.transamerica.com/new/transamericafinancial/pdf/TFA_REVENUE_SHARING_12-21-11.pdf?advisorid=3007552 "TFA receives revenue sharing fees based on RRs’ overall sales of or AUM relating to investment products
issued or services of programs sponsored by Sponsoring Companies. TFA receives such revenue sharing
fees in a range of .10% to 2.5% ($10 to $250 per $10,000) of the total value of assets placed by TFA’s RRs
in products or services offered by Sponsoring Companies, and, for variable life insurance, in a range of
5% to 10% of target premium."
5. Royal Alliance
http://www.royalalliance.com/disclosures/revenue-sharing "The payments consist of amounts up to 25 basis points on a sponsor’s mutual fund sales and up to 45 basis points on fund assets and up to a $10 ticket charge for mutual fund purchases and exchanges which may offset a charge normally borne by advisors. In connection with sales (but not liquidations) of certain of the sponsors’ mutual funds, Royal Alliance Associates may absorb the nominal “ticket charge” of up to $15 per transaction, which is normally borne by your financial advisor."
http://www.sagepointfinancial.com/sites/sagepointfinancial.com/files/docs/ERISA%20Rev%20Share%20SPF.pdf "The payments consist of
amounts between 5 and up to 25 basis points on a sponsor’s mutual fund sales and between 5 basis points and up to 45
basis points on fund assets and up to a $10 ticket charge for mutual fund purchases and exchanges which may offset a
charge normally paid by advisors. In connection with sales (but not liquidations) of certain of the sponsors’ mutual funds,
SagePoint Financial may absorb the nominal “ticket charge” of up to $15 per transaction, which is normally borne by your
https://www.siionline.com/public/forms/SII_PremierSponsorDisclosure.pdf "Sales-Based Payments are payments made to SII by Premier Sponsors for new sales of their Investment Products.
In general, the Premier Sponsor pays SII up to 0.45 percent (45 basis points) on gross sales of their respective
products sold through SII. For example, if you invest $10,000 in a product offered by a Premier Sponsor, SII will
receive a payment up to $45.00 for that sale.
• Asset-Based Payments are payments made to SII by Premier Sponsors on an annual basis of up to 0.10 percent
(10 basis points) on the amount of the Premier Sponsor’s Investment Products held with that Sponsor. For example, a
$10,000 investment in a product sponsored by a Premier Sponsor would result in an additional payment up to $10.00
to SII for those assets for each year it remains invested, with the amount increasing or decreasing if the $10,000
grows in value or declines in value.
• Flat Fee Arrangements are payments of a negotiated set amount that a Premier Sponsor agrees to pay to SII for
participation in the Premier Sponsor Program. Some Premier Sponsors have negotiated a Flat Fee Arrangement,
rather than making Sales-Based or Asset-Based Payments."
8. National Planning
and https://www.natplan.com/public/forms/NPC_TPAMPremierSponsorDisclosure.pdf "Premier Sponsor Payments are generally
based upon the amount of client assets that are directed to Premier Sponsors by the Firm and its Representatives,
ranging up to 0.10% (10 basis points) annually. For example, if you invest $10,000 to be managed by a Premier
Sponsor, the Firm will receive a payment of up to $10.00 (at $10,000 current investment) for each year that your
investment remains with the Premier Sponsor, in addition to Standard Compensation."
9. Founders Financial
http://www.foundersfinancial.com/revenue-sharing.html "FFS receives revenue sharing fees based on overall sales by Registered Representatives of investment products issued by Sponsoring Companies. FFS receives such revenue sharing fees in a range of 10 to 50 basis points ($10 to $50 per $10,000) of the total value of assets placed by FFS' Registered Representatives in products offered by Sponsoring Companies."
http://www.ameriprise.com/investment/mutual-funds/purchasing-mutual-funds-thru-ameriprise.asp "As of December 2013, Ameriprise received an asset-based payment (up to 0.25% per year for mutual funds and 0.16% per year for 529 plans) on some or all of clients’ assets managed by the participating firms and a sales-based payment (up to 0.25% for mutual funds and 0.20% for 529 plans) on some or all of the participating firms’ gross sales made through Ameriprise."
http://www.janney.com/individuals--families/resources--education/investment-disclosure/erisa-section-408b2-notice-disclosures "The revenue share payments vary by fund family and are generally based on an annual percentage of the average daily assets invested in a fund ranging from 0.02% (2 basis points (2bps)) to 0.10% (10 bps), as well as an annual percentage of new or gross sales of fund shares generally ranging from 0.05% (5 bps) to 0.10% (10 bps). Additionally, some fund families may make fixed payments in addition to the above payments or instead of those payments."
http://www.ceterainvestmentservices.com/investment-disclosures/compensation.html "Our Strategic Partners pay extra compensation to Cetera Investment Services or its affiliates in addition to the usual product compensation described in the prospectus. The additional amounts Strategic Partners pay Cetera Investment Services vary from one Strategic Partner to another and from year to year. Elite Strategic Partners generally pay us a higher level of revenue sharing, based on the criteria below, than Participating Partners. Some Strategic Partners pay up to 30 basis points (0.3%)1 of your total purchase amount of a mutual fund or variable insurance product. So, for example, if you invest $10,000 in a mutual fund, Cetera Investment Services could be paid up to $30. Additionally, some Strategic Partners make an additional quarterly payment based on the assets you hold in the fund over a period of time of up to 10 basis points (0.10%) per year. For example, on a holding of $10,000, Cetera Investment Services could receive up to $10. Alternatively, Cetera Investment Services may receive a flat fee from the mutual fund or insurance company, regardless of the amount of new sales or assets held in client accounts (or, in the case of Sammons Financial Network, the greater of such amount of a flat fee)."
13. Equity Services
https://www.equity-services.com/Public/Views/About.aspx?id=5422 "The Firm has a revenue sharing agreement with a mutual fund group Sentinel Investments, which pays 15 basis points (0.15%) of the gross amount of the sale, plus 5 basis points (0.05%) on the average daily balance of assets. For example, on a $10,000 transaction with a participating company, ESI would receive up to a one-time $15 payment, plus a $5 annual payment for the period during which the assets remain at the company.
Revenue sharing agreements with variable annuity offerors vary, with payments up to 40 basis points (0.40%) of the gross amount of the sale. For example, on a $10,000 transaction with a participating company, ESI would receive up to a one-time $40 payment.
Revenue sharing agreements with direct participation program offerors vary, with payments up to 150 basis points (1.50%) of the gross amount of that sale. For example, on a $10,000 transaction with a participating company, ESI would receive up to a one-time $150 payment. Some firms may pay up to a $25,000 flat annual payment in addition to the payments based on sales."
14. Smith Hayes
http://www.smithhayes.com/important-information/revenue-sharing.html "At the present time SMITH HAYES receives 5 basis points (0.005%) on No Transaction Fee (“NTF”) mutual funds purchased through our clearing firm, National Financial Services LLC. A list of NTF Funds for which we receive Revenue Sharing and the applicable percentage for each is available on request."
Pershing doesn't offer specifics on revenue-sharing on its disclosure pages: (http://www.pershing.com/ria/business_continuity.html and http://www.pershing.com/ria/mutual_fund.htm), but it does provide a list, organized in order of highest-to-lowest amount of fees, of the participating firms.
Currently no specifics given by these B-Ds. Benjamin F Edwards
http://www.benjaminfedwards.com/content.php?anch=revenue&pageID=mut_fund_discl_rev Oppenheimer & Co.
http://www.opco.com/public/images/mf_bill_of_rights.pdf Allen Investments
http://www.alleninvestments.com/regulatory-information/revenue-sharing-disclosures Kraematon (Donegal Securities)
http://www.kraematon.com/sites/all/files/kraematon/Revenue%20Sharing%20Disclosure%20July%202010.pdf Retirement Alliance