Rev. Date September 15, 2023
Advisory businesses that charge a fee for their services often need to show portfolio performance net of the advisory fees for client reporting and investment proposals to help stay compliant with the SEC Marketing Rule.
Users can specify advisory fees for any portfolio in Report Lab by clicking on the “$” icon next to the portfolio name at initial Report Lab Setup. The advisory fees can also be edited anytime in Global Configuration. Please note that Advisory Fees will be saved at the report level.
How will advisory fees impact my report?
The advisory fee will be deducted from the portfolio’s pro forma return time series and any analysis will run on the net of fee return stream. All tables and chart labels will specify the advisory fee imposed for each portfolio. Only a flat advisory fee can be imposed at the total portfolio level.
Will adding an advisory fee to a portfolio impact the returns of the underlying investments?
If you add a fee to a portfolio, the fees will only be applied at the total portfolio level and not impact the individual underlying investments, even if they are in the same report or analysis block.
Can I input an advisory fee outside of Report Lab?
Currently, Venn only offers the inclusion of an advisory fee within the context of Report Lab. The intention of including advisory fees is to clearly represent the impact of fees when presenting performance information to external stakeholders.
Will adding an advisory fee impact the return of portfolios outside of Report Lab?
Inputting advisory fees on portfolios in Report Lab will not impact the return of those portfolios outside of Report Lab.
Can I input different advisory fees on the same portfolio?
The advisory fee is specific to the selected report, therefore the same portfolio can have a different fee associated with it in a different report. You can also unlink the analysis block from Global Configuration to input a different fee level within the same report.
This document highlights certain aspects of this feature. As an overview, it does not discuss all material facts or assumptions. Please see Important Disclosure and Disclaimer Information.