Advisers’ fees may begin to decrease, as clients are demanding additional services and lower fees, says ThinkAdvisor on a recent Cerulli Associates report.
Of the wirehouse, bank, independent, regional, insurance and registered investment advisers surveyed in the report, most are charging less than 1 percent for clients with $1.5 million or more in assets. Fees, on average, have remained stable, but this may soon change. More than 80 percent of advisers said they will charge less than 1 percent of assets under management for clients with more than $5 million in assets.
According to the survey, 44 percent of advisers reported to derive at least 90 percent of their revenue from fees. This number is expected to grow by 54 percent. Cerulli expects the percentage of advisers who charge a combination of fees and commissions to drop from 12 percent to 2 percent during the next two years.
