This article covers:

  • Understanding the Fee Structure on Andes
  • Firm-Level Fee Preference

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Understanding the Fee Setup on Andes

To comply with the SEC Marketing Rule, financial advisors must be transparent about their fees and expenses while marketing their services to clients. You and your firm can ensure compliance with the new rule by clearly specifying default fees and outlining preferred fee options on the Andes platform.

Firm-level preferences for fees will be used as the default in all interactive charts and reports generated by advisors. There are three options available for Fee Preference:

        1. Net of Max Fee

Net of Max Fee will use the Maximum Fee

The Maximum Fee is the cap for the advisory fee, investment management expense (weighted average for all portfolios), and any other fees if applicable. Advisors can specify a maximum fee for each household level, if not specified then the firm default will be used.

        2. Net of Fee

Net of Fee will use the Advisory Fee + Investment Management Expense

Advisory Fee is expressed as a percentage of the assets under management while the Investment Management Expense includes the fund and model management expenses.

 Advisors can specify an advisory fee for each household level, if not specified then the firm default will be used. For investment management expenses, you can specify for each model, if not specified then the firm default will be used. 

        3. Gross of Fee

It doesn't consider any fees.

Please note that all these fees must be expressed as a percentage, and the validation range for these fees is between 0% and 20%. The fee used in the computation is the firm default specified.

Firm-level Fee Preference


Here are some important things to keep in mind before setting up your firm-level fee preferences:

  1. If an advisor chooses the net of fee option, they must define it as net of actual fees, which includes the actual advisory fee and any actual investment management expenses.
  2. If no Investment Management Expense is specified by the advisor in the model, the firm default will be applied.
  3. Firm-level preferences for fees will be used as the default in all interactive charts and reports generated by advisors. This ensures consistency and accuracy in the disclosure of fees and expenses to clients.

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