Fisher Investments is a well-established investment management firm that has been providing financial services to individuals, institutions, and retirement plans for over four decades. Founded by Ken Fisher in 1979, the company has grown to become one of the largest independent investment advisors in the United States. With over $197 billion in assets under management, Fisher Investments has built a reputation for its disciplined investment approach and personalized client service. However, like any investment management firm, Fisher Investments charges fees for its services, which can be a significant factor in the overall cost of investing. In this article, we will delve into the fee structure of Fisher Investments, exploring how the company charges its clients and what investors can expect to pay.
Understanding the Fee Structure of Fisher Investments
Fisher Investments operates on a fee-only basis, which means that the company charges its clients a fee based on the assets under management (AUM) rather than commissions on specific investment products. This fee structure is designed to align the interests of the investment manager with those of the client, as the manager’s compensation is directly tied to the performance of the client’s portfolio.
The fee structure of Fisher Investments is based on a tiered system, with higher asset levels corresponding to lower fees. This means that clients with larger portfolios pay a lower percentage of their assets in fees compared to clients with smaller portfolios. The fee schedule is as follows:
| Asset Level | Fee Rate |
|---|---|
| $0 – $500,000 | 1.25% |
| $500,001 – $1,000,000 | 1.15% |
| $1,000,001 – $2,500,000 | 1.05% |
| $2,500,001 – $5,000,000 | 0.95% |
| $5,000,001+ | 0.85% |
How Fees Are Calculated
Fisher Investments calculates its fees on a quarterly basis, using the average daily balance of the client’s portfolio over the quarter. The fee is then deducted from the client’s account at the end of the quarter. For example, if a client has a portfolio valued at $1 million and the fee rate is 1.05%, the quarterly fee would be $2,625 ($1,000,000 x 1.05% / 4).
Additional Fees and Expenses
In addition to the management fee, clients of Fisher Investments may incur other fees and expenses, including:
Custodial Fees
Fisher Investments uses third-party custodians, such as Charles Schwab or Fidelity, to hold client assets. These custodians may charge fees for services such as account maintenance, trading, and reporting. These fees are typically passed through to the client and can range from $100 to $500 per year, depending on the custodian and the services used.
Trading Expenses
Fisher Investments may also incur trading expenses, such as commissions and exchange fees, when buying or selling securities on behalf of clients. These expenses are typically passed through to the client and can range from 0.01% to 0.10% of the trade value, depending on the type of security and the exchange on which it is traded.
Comparison to Other Investment Management Firms
The fee structure of Fisher Investments is competitive with other investment management firms in the industry. However, fees can vary significantly depending on the firm, the services offered, and the asset level of the client. Some firms may charge higher fees for more personalized services, such as financial planning or tax advice, while others may charge lower fees for more standardized investment products.
To give you a better idea of how Fisher Investments’ fees compare to those of other firms, here are a few examples:
- Charles Schwab Investment Management: 0.80% – 1.20% AUM fee, depending on the asset level and services used.
- Fidelity Investments: 0.50% – 1.50% AUM fee, depending on the asset level and services used.
- Vanguard Personal Advisor Services: 0.30% – 1.00% AUM fee, depending on the asset level and services used.
Conclusion
Fisher Investments’ fee structure is designed to be transparent and competitive with other investment management firms in the industry. While fees can be a significant factor in the overall cost of investing, they are only one consideration when evaluating an investment manager. Other factors, such as investment performance, service quality, and alignment of interests, should also be taken into account.
By understanding how Fisher Investments charges its fees, investors can make more informed decisions about their investment portfolios and better align their financial goals with their investment strategy. Whether you are a current client of Fisher Investments or simply considering the firm’s services, it is essential to carefully review the fee structure and ask questions to ensure that you understand all the costs associated with investing with the firm.
Key Takeaways
- Fisher Investments charges a fee based on the assets under management (AUM), with higher asset levels corresponding to lower fees.
- The fee schedule ranges from 1.25% for assets under $500,000 to 0.85% for assets over $5 million.
- Fees are calculated on a quarterly basis, using the average daily balance of the client’s portfolio over the quarter.
- Additional fees and expenses, such as custodial fees and trading expenses, may apply.
- The fee structure of Fisher Investments is competitive with other investment management firms in the industry.
By understanding the fee structure of Fisher Investments, investors can make more informed decisions about their investment portfolios and better align their financial goals with their investment strategy.
What is the fee structure of Fisher Investments?
The fee structure of Fisher Investments is based on a percentage of the client’s assets under management (AUM). This means that the more assets a client has invested with Fisher Investments, the more they will pay in fees. The fees are typically deducted quarterly from the client’s account.
The fee structure is designed to align the interests of the investment manager with those of the client. By charging a percentage of AUM, Fisher Investments is incentivized to grow the client’s assets over time, as this will result in higher fees for the company. However, this fee structure can also be a drawback for clients with smaller accounts, as they may end up paying a higher percentage of their assets in fees.
How do Fisher Investments’ fees compare to those of other investment managers?
Fisher Investments’ fees are generally competitive with those of other investment managers. However, the company’s fees can be higher than those of some low-cost index fund providers or robo-advisors. On the other hand, Fisher Investments’ fees may be lower than those of some other active investment managers, particularly those that charge higher fees for their services.
It’s worth noting that fees are just one factor to consider when evaluating an investment manager. Other important considerations include the manager’s investment philosophy, track record, and level of service. Clients should carefully evaluate all of these factors before making a decision about which investment manager to work with.
What services are included in Fisher Investments’ fees?
Fisher Investments’ fees include a range of services, including investment management, financial planning, and portfolio monitoring. The company’s investment managers work with clients to develop a personalized investment plan, and then implement that plan by selecting and managing a portfolio of investments.
In addition to investment management, Fisher Investments’ fees also include access to the company’s financial planning tools and resources. These tools can help clients to better understand their financial situation, set financial goals, and develop a plan to achieve those goals. Fisher Investments’ fees also include ongoing portfolio monitoring and rebalancing, to help ensure that the client’s portfolio remains aligned with their investment objectives over time.
Can I negotiate the fees charged by Fisher Investments?
In some cases, it may be possible to negotiate the fees charged by Fisher Investments. The company may be willing to offer discounts to clients with very large accounts, or to those who are willing to commit to a long-term investment horizon. However, it’s worth noting that Fisher Investments’ fees are generally non-negotiable, and the company may not be willing to offer discounts to all clients.
If you’re interested in negotiating the fees charged by Fisher Investments, it’s a good idea to speak with a representative of the company. They can help you to understand the company’s fee structure, and may be able to offer guidance on whether or not a discount is available. However, it’s also important to carefully evaluate the value that Fisher Investments provides, and to consider whether or not the company’s fees are reasonable in light of the services provided.
How do Fisher Investments’ fees impact my investment returns?
Fisher Investments’ fees can have a significant impact on your investment returns, particularly over the long-term. Because the company’s fees are deducted from your account on a quarterly basis, they can reduce the amount of money that you have available to invest. This, in turn, can reduce your investment returns over time.
However, it’s also worth noting that Fisher Investments’ fees are designed to be aligned with the company’s investment performance. If the company is able to generate strong investment returns, the fees that you pay may be more than offset by the growth in your portfolio. On the other hand, if the company’s investment performance is poor, the fees that you pay may be a significant drag on your returns.
Are there any additional fees or expenses associated with Fisher Investments?
In addition to the fees charged by Fisher Investments, there may be other expenses associated with investing with the company. For example, you may be responsible for paying trading commissions or other expenses related to the buying and selling of securities in your portfolio.
You may also be responsible for paying fees related to the custody and administration of your account. These fees are typically charged by a third-party custodian, and are used to cover the costs of holding and safeguarding your assets. Fisher Investments may also charge fees for certain additional services, such as financial planning or portfolio rebalancing.
How can I minimize the fees charged by Fisher Investments?
There are several ways to minimize the fees charged by Fisher Investments. One strategy is to invest for the long-term, rather than trying to time the market or make frequent changes to your portfolio. This can help to reduce the amount of money that you pay in fees over time.
Another strategy is to take advantage of tax-loss harvesting, which can help to reduce the tax liability associated with your investments. Fisher Investments may also offer discounts or other incentives for clients who are willing to commit to a long-term investment horizon, or who have very large accounts. By working with a representative of the company, you may be able to identify other opportunities to minimize the fees charged by Fisher Investments.