• The FUSE 2022 Sub-Transfer Agent Fee (sub-TA) survey examined how asset managers compensate sub-transfer agents. It examined sub-TA payment methods, types of fee caps they employ, and related issues. The last time FUSE surveyed asset managers regarding sub-TA fees was in 2015.
• All but one manager reported that they pay sub-TA fees using a combination of a flat rate based on the actual number of accounts (i.e., per account charges) and basis points applied to assets on mutual funds.
• Asset managers establish fee caps to control costs. A majority of firms reported having a dual cap with a per account limit type of fee cap. The largest managers use this approach exclusively.
• Most firms rely on more than one input to determine fee caps. The most commonly used factors cited in both 2015 and 2022 were industry fee surveys and average cost benchmarks, and fees paid to similar intermediaries.

Inputs Used to Set Fee Caps for Sub-TA Fees

Source: FUSE Research 2022 Sub-TA Fee Survey