Over the past year, we’ve refined a billing capability that enables firms billing quarterly in advance to retrospectively adjust fees based on the prior quarter’s average market value.

This approach allows firms to continue collecting revenue upfront while minimizing the impact of market volatility, eliminating manual cashflow and new account adjustments, and providing clear, confident answers to client fee inquiries.

In weeks like last one marked by significant market swings, clients will often ask about their fee being based off a high market day, followed by a declining portfolio value. “Why am I paying you to manage $1M when my portfolio, the next week, is only $900K?” Sound familiar?

Conversations like these often pressure advisors to reduce the fee or make manual adjustments. With the average daily balance reconciliation, those adjustments aren’t necessary.

A straightforward explanation, “We reconcile your fee at the end of the quarter based on the average daily balance” reassures clients and reinforces a fair, transparent process. While still giving the firm the advantage of collecting revenue in advance.

To learn more about this fee adjustment and how we’ve helped advisors make the switch, please schedule a demo >