If you've spent the past few years under a rock, then you'll be happy to know that InvestmentNews has taken note of the fee-based revolution in the fund industry.

While the premise of the story should be obvious to most in the business, the statistics Jason Kephart provides in the articleaccentuate the urgency of the trend — which he dubbed a "bad omen."

Kephart reports that Cogent Advisor Brandscape 2013 data shows two-thirds of industrywide compensation should come from asset-based fees, compared to 59 percent today and 55 percent in 2007. Those fees should make up 70 percent of wirehouse advisors compensation in 2015 from 58 percent last year.

Kephart interviews James Osborne, founder of Bason Asset Management, a low-cost asset management firm, who declared: "I'm not surprised given it's widely more profitable than transaction-based business models…It's much more sustainable for the adviser."

To read more, click here.  

Edited by: Casey Quinlan


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