Understanding Fees

We believe it is the duty of financial advisors to provide clarity to clients about the type and amount of fees being charged and to disclose all conflicts of interest. At Entasis, we have a transparent portfolio discussion with clients that includes a detailed review of fees.

All fees are disclosed to clients in a clear quarterly invoice and reviewed in an easy to understand Fee Transparency Sheet. Many other advisors are less transparent. If you do not currently work with Entasis please take the time to review the three broad fee categories below and ask your advisor about them.

This chart summarizes the fees investors are potentially incurring. 

Advisor Fees

Fees paid to an advisor for their services. Billing practices vary by advisor. Examples include an asset-based or advisory fee, flat dollar fees by service, hourly rates and commissions. Some advisors charge a mix of those structures. All forms can easily be summarized into an understandable dollar amount.

Product Fees

Charges for certain investments that ultimately flow through to clients in the form of lower investment returns. These fees are not billed directly, but can have a large impact on long-term investment compounding if not managed. Mutual fund loads, 12b-1 fees and management fees are examples.

Platform fees

Charges for trades such as commissions and mark-ups. These fees are incurred at the time trades occur. These fees can be a form of advisor compensation and lower the actual amount invested or raise the price of the investment purchased when initiating a position. The reverse is true when a security is sold.