Mon, Jan 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

InvestorForce white paper finds significant differences in actual post-negotiated management fees

Wednesday, June 26, 2013
Opalesque Industry Update - InvestorForce, part of MSCI Inc, announced that it has released the first in a series of whitepapers, Institutional Investment Management Fees: Findings Regarding Dispersion and Correlation with Performance.

The paper provides unprecedented insight into actual post-negotiated management fees for institutional investment products. Jim Morrissey, CEO of InvestorForce, said, “Two important findings emerge from this paper. First, contrary to the popular view that asset managers charge close to the same fees for a given investment style and mandate size, the results find significant differences in actual post-negotiated management fees, even within the same market segment. Second, contrary to the perception that managers with stronger performance command higher fees, the data shows little or no correlation between performance and actual post-negotiated management fees.”

Data for this whitepaper was sourced from InvestorForce’s Manager Fee Tracker, an online analytics platform that provides institutional investors, consultants and asset managers with access to over 34,000 observations of actual “post-negotiated” management fees across 31 investment styles along with a range of mandate sizes and plan types. While individual manager fees are never disclosed, Manager Fee Tracker users can calculate fee universes and distribution metrics to provide an unprecedented level of fee transparency.

Dan Kelly, Chief Operating Officer of NEPC, one of the world’s leading independent consultants, said, “InvestorForce’s Manager Fee Tracker and this white paper are helping bring much-needed institutional asset management fee transparency to NEPC and its clients. Providing greater transparency into asset management fees is an important component of NEPC’s offering to our clients. This analysis – backed by a significant volume of actual management fee observations – will help us assess the appropriateness of the asset management fees paid by our clients.”

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised