Fisher Investments is a large independent investment adviser based in the United States. The firm is known for managing money for wealthy clients and institutional investors. When it comes to fees, Fisher Investments uses a tiered fee structure based on the amount of assets under management. Generally, Fisher Investments’ fees range from 1% to 1.5% annually. Understanding Fisher Investments’ fee scale is important for investors considering the firm or comparing it to other investment managers. This article will provide an overview of Fisher Investments’ tiered fee schedule and how it works.
Fisher Investments charges a tiered fee based on assets under management
The hallmark of Fisher Investments’ fee structure is that it uses a tiered or graduated system. The fee percentage declines as the client’s assets under management increases. For example, Fisher Investments may charge 1.5% on the first $1 million, 1.35% on the next $1 million, 1.25% on the next $3 million, and so on. This tiered structure allows Fisher Investments to charge higher fees on smaller accounts while remaining competitive for larger clients.
Fees typically range from 1% to 1.5% based on account size
According to Fisher Investments’ Form ADV disclosure, their standard fee schedule for individual clients is as follows: 1.5% on first $1 million, 1.35% on next $1 million, 1.25% on next $3 million, down to 1% on amounts over $10 million. The minimum annual fee is $2,700. For reference, 1.3% is around the industry average for assets under management between $1 million and $10 million. Fisher Investments’ fees are fairly typical for their client asset sizes.
Institutional clients receive lower fees
For institutional clients like pensions, foundations, and endowments, Fisher Investments’ fees are lower. Their Form ADV shows a tiered fee schedule starting at 0.65% on the first $100 million and declining to 0.25% for over $500 million assets under management. Given the large asset sizes of institutional investors, it makes sense Fisher would offer reduced management fees to win their business.
Fees cover comprehensive investment management services
Fisher Investments says their fees pay for their time and expertise in developing long-term investment strategies, continuously monitoring markets and portfolios, executing trades, providing reporting, and generally managing the assets. With over $197 billion under management, Fisher argues their scale allows them to provide institutional-quality services even to smaller investors.
Fisher Investments utilizes a tiered fee structure that starts around 1.5% for smaller accounts and declines to 1% or lower for larger clients. Their comprehensive investment management service aims to justify the fees charged across their range of individual and institutional investors.