Sun, May 24, 2015
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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. Opalesque Exclusive: Ovation Partners targets opportunities where few "natural lenders" participate[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Changes in financial regulations post-2008 (Dodd-Frank and Basel III) are forcing banks to significantly alter their core lending businesses. And as mid-sized

 

banner