It is critical today that investment firms have the tools to manage complex schedules for billing clients. Historically, fee schedules for clients were simpler, based on percent of assets, flat rates, performance, etc. As time went on clients put more demand on firms to provide flexible billing: the ability to exclude assets, charge different rates for different asset groups, apply minimum and maximum fees, etc. billPort has always been able to process a vast array of fee schedules, enabling advisors to continue to expand their offerings in order to provide maximum service and flexibility for their clients.
Today, as more parties are involved in the client relationship, there is increased pressure to accommodate different fee schedules for those involved. Consider the scenario where the firm has a variety of fee schedules for their share of the fee. Then they have advisors who also have their own fee schedules which need to be layered on top of the firm schedule. Then there is the group of portfolio managers that have different schedules themselves depending on the type of accounts they are managing. The result is that there may be three different schedules that need to be combined and applied to one account. If the firm, advisor and manager each have only eight different schedules then the various combinations could result in a total of 512 different fee schedules! Although billPort can accommodate unlimited fee schedules, no firm wants to be constantly creating new schedules for every combination that arises.
Arcons has created Composite Billing® as the ideal solution. Now the user has ultimate flexibility in creating and assigning fee schedules to accounts. In one household, each account can have a different fee schedule. The user is not limited to choose either composite or traditional schedules, they can have both in the same household. In this sample, notice that three accounts have three different schedules: the first is a traditional tiered schedule and the other two each have a different Composite Billing® schedules. It is simple to assign the Composite Billing® schedules right in the household, with the click of a button. Just highlight the account(s) then from the fee schedules drop down button choose the appropriate schedule on the fly. No need to first create the required combination of components into one schedule!
Erin Foote, from Frontier Asset Management, says this about Composite Billing®, “Frontier has a very complicated fee structure and Arcons’ composite schedules have helped me reduce the number of schedules that have to be setup by more than 70%. It has simplified the billing process and reduced my workload immensely.”