Issue link: https://resources.envestnet.com/i/1542168
© 2025 Envestnet, Inc. All rights reserved. • Advisor fees vary widely depending on account size, program structure, and advisor segment. • Contrary to broader industry trends, we do not observe widespread fee compression. In fact, average fees have increased in several categories. • Fee reductions are most evident in smaller account sizes, particularly within the mass affluent segment - a highly competitive space for financial advisors. • Advisors using the Advisor Model program (DIY approach) tend to charge lower fees than those who outsource investment management. Key Insights • In higher-net-worth segments ($1M+), fees are typically 20% lower than those for smaller accounts. However, fee compression over time is less pronounced, and in some cases, fees have slightly increased - likely reflecting the broader scope of advisor services beyond investment management. • Overall, fee compression appears selective rather than systemic. It is more prevalent among high-AUM clients, where scale drives negotiation. For mass affluent and mid-market households, advisor value remains a priced component of the client experience. • While fee compression has been a recurring theme in wealth management, our analysis uncovers a more nuanced story. • Leveraging real data from thousands of advisors and millions of client accounts across our network, we uncover patterns that challenge some of the conventional narratives. In this edition, we examine the economics of financial advisor fees. Envestat is our regularly published insights report, delivering real business intelligence that matters, direct from the industry's largest wealth data platform. • This report explores how account sizes, programs and advisory structures influence both the cost and perceived value of advice. • These findings equip enterprises and advisors with actionable insights in a marketplace where transparency, benchmarking, and strategic pricing are more critical than ever. The Truth About Financial Advisor Fees: Unveiled DECEMBER 2025 Envestat Series