Investment Management Fee Revenue as a Percentage of Assets Under Management

Investment Management Fee Revenue as a Percentage of Assets Under Management

KPI Details

Investment Management Fee Revenue as a Percentage of Assets Under Management measures the commission that the company earns from managed assets. A high value typically suggests greater commission revenue and may indicate that the company expects higher returns for its clients and employs a more aggressive investment strategy. On the other side of the spectrum, a low value for this KPI indicates lower revenue from commissions, but may be a sign that the company has a more conservative investment strategy and may appeal to a wider client base.

KPI Definition

The dollar amount of firm-wide revenue (fees) collected for investment management and advisory services (involves portfolio management, financial counseling, brokerage and other transactional services) services divided by the total dollar value of assets managed by the firm, as a percentage. Includes both retail and institutional accounts.

KPI Best Practices

• Superior customer service and returns to justify higher investment management fees
• Perform peer research periodically to know what competitors are charging for investment management fees
• Create referral rewards for investors who refer friends/family to the institution

KPI Calculation Instructions Investment Management Fee Revenue as a Percentage of Assets Under Management?

Two values are used to calculate this KPI: (1) the total investment management fee revenue generated by the company during the measurement period, and (2) the company’s average total assets under management. Only include service fee revenue or commission that is directly tied to managing the client’s assets in the numerator of this equation. Do not include any interest or investment revenue in the numerator of this calculation. Add the assets under management at the beginning and end of the measurement period, and divide that number by 2 to calculate average total assets under management.

KPI Formula :

(Investment Management Fee Revenue / Total Assets Under Management) * 100