The percentage of financial advisors who earn 50% or more of their revenue from fees increased 60% between 2002 and 2007, Cerulli Associates reports.
Cerulli, Boston, also found 77% of advisors surveyed expect fee revenue to increase in the future.
Only about 20% of advisors report that having a sponsor or third-party vendor take control of investment management decisions is a desirable feature of managed account programs.
In addition, almost 40% of advisors report that they rarely use programs where they do not have at least some control over investment-management decisions.
While commission-based advisors report that almost 30% of their revenue is from variable annuities, fee-based advisors derive less than 10% of their revenue from VAs, Cerulli found.