SOURCE: CLS Investments, LLC

FiComm Partners

January 28, 2016 09:00 ET

CLS Investments Releases 'Making the Switch: The Benefits of Moving to a Fee-Based Model,' the Latest in Its Advisor IQ White Paper Series

OMAHA, NE--(Marketwired - January 28, 2016) -

  • White paper visits theory behind advisor trend to move from commission-based to fee-based models
  • Trends indicate fee-based advising and investment management outsourcing as key factors in enhancing client service 

CLS Investments, LLC ("CLS"), a third party money manager and a leading manager of exchange traded fund ("ETF") portfolios released the latest white paper in its Advisor IQ series today, Making the Switch: The Benefits of Moving to a Fee-based Model. The white paper extrapolates trends based on reported findings from Cerulli that highlight a broader trend among advisors to move from commission-based to fee-based models.

"At CLS, we have a front row seat to the industry's top advisors, which allows us the ability to see how industry trends are born and continue to evolve," said CEO of CLS Investments, Todd Clarke. "We've developed this white paper as part of our Advisor IQ series to encourage an open dialogue around how professionals in our industry can make strategic business development goals that simultaneously benefit their clients."

The movement from commission- to fee-based models has been a growing trend in wealth management for more than a decade. The amount of assets in fee-based accounts more than tripled from $987 billion in 2003 to $2.7 trillion in 2013. For the first time in history, advisors are deriving more of their total revenues from fees than commissions; however, advisors are not completely abandoning commissions. According to Cerulli:

  • 11% of advisors are commission only
  • 23% of advisors are fee only
  • 23% of advisors are using a mix of fees and commissions (with less than 50% of those advisors being fee-based)

The white paper finds that many advisors who have made a change in how they bill their clients have seen an increase in their ability to provide enhanced client service.

"Advisors have told us that by freeing themselves from having to act as salespeople and maintaining more of an open architecture approach, they are able to more easily outsource time consuming functions, such as portfolio management," continues Clarke. "As an advisor, time is a valuable asset and with more time on their hands, advisors can focus on better servicing their clients, developing relationships, and pursuing strategic business development opportunities."

As the trend gains momentum and the advising community reaches the tipping point with switching to fee-based models and outsourcing investment management, there is additional pressure for the remaining hold-outs to transition their practices to those based on fees, outsourced investment management personal relationships, and financial planning.

For the full copy of the new CLS white paper, Making the Switch: The Benefits of Moving to a Fee-based Model, please visit: www.clsinvest.com/advisorIQ.

For more information about CLS, please contact: CLS@FiCommPartners.com.

About CLS Investments

CLS is an Omaha-based, family-owned and operated boutique registered investment advisor managing in excess of $6 billion. As one of the largest third party money managers and ETF strategists in the U.S., CLS partners with thousands of advisors, plan sponsors, and institutions to offer a full suite of outsourced portfolio management solutions for more than 35,000 individual investors. CLS specializes in creating portfolios based on a distinct risk budgeting methodology and active asset allocation approach. The CLS investment process is governed by systematic research across asset classes and strategies and the continuous measuring of risk. CLS claims compliance with the Global Investment Performance Standards (GIPS®). CLS Investments, LLC is a registered investment adviser. To obtain a copy of a fully compliant presentation and/or a list of composite descriptions, contact us at 888-455-4244. CLS is a member of NorthStar Financial Services Group (NorthStar), which currently has more than $374 billion* in assets under management and administration. To learn more, visit www.clsinvest.com.

*As of 11/30/2015

Contact Information