Revenue Sharing Defined - Spay and Associates

There is much misunderstanding about what revenue sharing is and what it provides.

As an overview, it reflects the acknowledgement by the fund company that a portion of its normal investment fee will no longer be incurred since a third party recordkeeper will be providing the services being shed. For example, if a fund originating from ABC Fund Company will be marketed and serviced by XYZ Retirement Recordkeeper then fees built into the ABC fund expense for marketing and servicing would be “shared” with XYZ Retirement Recordkeeper. Any amount above what the investment manager is paid is considered revenue sharing and is retained by the recordkeeper.

Spay & Associates | 5465 Utica Ridge Road | Davenport, Iowa 52807 | Phone: 563-326-0960 | Fax: 563-823-0535

Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Spay & Associates are not affiliated.

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Spay and Associates