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Matthias Knab, Opalesque:

Callan, a leading institutional investment consulting firm, has released its 11th Investment Management Fee Study, providing a comprehensive analysis of what institutional investors are actually paying for asset management versus published fee schedules.

The study, which examines negotiated fees across 23 asset classes, analyzed $784 billion in assets under management (AUM) representing $1.9 billion in total fees paid. The data was collected from approximately 329 investment firms and 180 institutional investors using Callan's proprietary databases.

"We're seeing continued pressure on actual fees paid for active management, but the pace of fee compression seems to be slowing, and may be approaching practical lower limits for quality institutional products in some asset classes," said Ivan "Butch" Cliff, study author and Callan's director of research.

The findings suggest that while the long-term trend toward lower fees continues, the rate of decline is moderating, particularly in specialized asset classes where manager skill and differentiation remain highly valued.

Active vs. Passive Management:

• 97% of total fees paid went to active managers (down 1% from 2023)
• 61......................

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