Revenue Sharing

In the normal course of doing business, both Capital Analysts and/or Financial Advisors affiliated with Capital Analysts receive compensation for the sale of securities including mutual funds, money markets, variable products, stocks, bonds, options, and/or alternative investments. This compensation may be in the form of:
  • Commissions, mutual fund loads or new issue dealer concessions based on specific transactions. For any product sold by prospectus or offering circular, please read this document in detail for additional information.
  • Advisory fees based on the amount of assets under management or financial planning functions performed by Investment Advisor Representatives of Capital Analysts. These fees are disclosed in the clients’ Investment Advisory agreement with Capital Analysts.
  • Recurring distribution fees based on assets held in an account (12b-1 and/or management fees). For any product sold by prospectus or offering circular, please read this document in detail for additional information.
Additional forms of compensation received by Capital Analysts may include.

  • Cash payments to Capital Analysts from product companies as reimbursements for training and educational expenses incurred by financial advisors or Capital Analysts home office associates when attending educational meetings or conferences held by Capital Analysts or by a product company.
  • Cash payments research and due diligence associated with products offered.
  • Cash payments to Capital Analysts based on total assets of a product company or group of product companies.
  • General marketing and administrative support to be used by Capital Analysts at its discretion.
Capital Analysts offers securities distributed by over 250 product companies and receives additional compensation in one or more of the forms described above from the product companies. It is estimated that in 2011 the total additional compensation for these items will be $100,000. The amount of additional compensation given by these product companies varies from one company to another. Certain compensation received by Capital Analysts is not shared with Financial Advisors or their Managing Associates.

We currently receive additional compensation from the following product companies:

Allianz, Atlas Athem, CNL, Cole Capital, Dividend Capital, Everbank*, Genworth, Hartford, Inland, KBS Capital Markets Group, Mewbourne, Nationwide, Prudential, SEI, Touchstone** and Wells.

Capital Analysts receives compensation calculated on cash balances in money market funds in accounts held at Pershing LLC (Capital Analysts’ Clearing Firm) as well as margin debt interest. Capital Analysts also receives cash compensation from certain advisory platform providers.

In addition to the above, individual Financial Advisors may be reimbursed for the following activities from any firm approved product provider:
  • Approved travel and meeting expenses incurred by Capital Analysts Financial Advisors when attending educational/due diligence meetings sponsored by the product company.
  • Approved marketing and sales expenses incurred by Capital Analysts Financial Advisors including general mailings and other marketing efforts, client appreciation meetings or educational seminars for investors or the public.

Please contact Capital Analysts in writing if you need additional information.

* EverBank is a banking and mortgage provider. Affiliation with EverBank by Capital Analysts Financial Advisors is approved on an individual basis as an outside business activity.

**Touchstone funds are offered through an affiliate of Capital Analysts.

Revised January 14, 2011