The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:More Fundsters Drive Wholesaler Behavior With Bonuses Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, January 3, 2019

More Fundsters Drive Wholesaler Behavior With Bonuses

Reported by Neil Anderson, Managing Editor

More and more fundsters are using bonuses for their wholesalers, for both externals and hybrids.

Patrick Newcomb
Fuse Research Network
Director of Benchmark Research
That's one finding from the latest edition of the "Sales Management" report in Fuse Research Network's BenchMark series, which polls sales and distribution chiefs at mutual fund firms of various sizes. In 2018 81 percent of firms were using discretionary bonuses with their hybrid wholesalers, up from 73 percent in 2017, 71 percent in 2016, and 65 percent in 2015. That makes the discretionary bonus more common than any other type of compensation (including commissions on gross sales) for hybrid wholesalers ... except for base salary, which all firms use.

As for external wholesalers, 85 percent of firms now use discretionary bonuses (up from 75 percent in 2017 and level), tied with commissions on gross sales. Discretionary external wholesaler bonuses are even more common with bigger firms, with 89 percent of firms with more than $50 billion in AUM using them and 91 percent of firms with between $20 billion and $50 billion using them. However, discretionary bonuses still account on average for only 13 percent of externals' compensation.

"More firms are looking at that discretionary bonus to drive wholesaler behavior," Pat Newcomb, director of BenchMark research at Fuse, tells MFWire. "We expect that to continue moving forward and grow as a percentage of total compensation dollars, too." 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use