Fee(ling) High
Investment advisor reps raised their fees last year for the first time since 2002. This nudged them up to a median 1 percent on assets from 0.98 percent the previous year, and brought them back in line with median fees charged in 2004, according to Rydex Advisor Benchmarking's annual survey. Sure, it's not a lot. But, it's interesting to note that firms raised prices not to pay for new services, but because they simply felt they weren't getting enough for all of the services they offer. “Market performance is one part of the story,” says Maya Ivanova, market research manager for Advisor Benchmarking. “But also, while they're offering the same services, the way they provide them is improving. It's more sophisticated, so they feel they deserve more.” Advisors raised their fees the most (18 basis points to a median 1 percent) on accounts with assets of between $1 million and $3 million. (The results came from a survey of 912 advisors conducted in May 2007.)
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