•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

By Beverly Chandler, Opalesque London:

The independent financial services firm, bfinance, has published the results of a study of fees based on its tenders run during the last 12 months. The study is based on 50 mandates relating to typical investments in international institutional portfolios with findings based on almost 1,200 price quotes from 350 fund management companies.

Findings were that management fees remained largely stable around the world in 2010; initial quotes on fees by managers offered low rebates on fees for larger mandates; open, transparent negotiation achieved significant reductions in fees, according to bfinance and the company feels that there is a need for a rebalancing of performance management fee structures in favour of investors.

Management fees in sought after asset classes such as emerging market debt and emerging market equities were the exception to the rule with their fees firming by a few basis points in individual cases. For actively managed equity mandates of all sizes, the highest fees are on Latin American equities, while some of the lowest management fees for externally managed funds occur in investment grade Eurozone credit mandates with a median of 0.23% and a mean of 0.24%.

Bfinance reports that the striking finding from the survey was the scale of reduction in initial fee quotes to ones actually charged. The fund managers which had been shortlisted by bfinance after quantitative and qualitative analysis made signific......................

To view our full article Click here