New Research: Lighter Loads Spell Compensation Squeeze for Fund Advisors

How has the evolving fund industry load structure affected advisors on the front lines? The story about loads is ultimately about how advisors get paid for selling funds. With advisor compensation top of mind for regulators and industry observers alike, this month’s Insight research feature follows the load thread from the point-of-sale all the way to the advisors’ bottom lines.

The analysis reveals that, without sound or fury—or regulatory intervention—the advisor compensation model for selling mutual funds has undergone a sea change over the course of the past 15 years. While the mass media remain fixated on what is embedded, what is included and how much it all costs, changes in the industry’s competitive dynamics have already ushered in a new, leaner, advisor economic model for fund-centric advisors. For more on this topic, please see March 2012 issue of Insight Advisory Service by Goshka Folda