To aid in meeting requirements of the SEC Marketing Rule, in December 2022 new rows were added to the 3 report sections that show portfolio-level performance. These rows represent performance net of fees and will show in the Model Portfolio report, Client Performance Summary(in monitoring report template), and Client Performance Summary(in proposal report template).
Max Fee
A fee of 3% was added to these 3 reports to represent the affect of fees on portfolio performance. Based on feedback from our customers, this fee was labeled "max fee" because it theoretically represents the highest fee any advisor might charge and highlights how high fees can reduce returns on a portfolio.
Custom Fee
To allow for advisors to show clients their actual fee, a optional custom fee can be added to these reports.
To add the custom fee to Monitoring or Proposal Report, a cost profile needs setup in that respective account/proposal and it needs to be assigned under the Investment Advisory/Mgmt service category.
Future planned enhancement
In March 2023, we plan to allow enterprises to configure the max fee that would show for their advisors. Advisors that are not part of a larger enterprise would get control over changing this 3% max fee as well.