Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

As investors remain focused on fees a new study highlights effective strategies for allocators

Wednesday, October 09, 2019

Bailey McCann, Opalesque New York:

A new study shows that asset owners have been successful at bringing fees down in nearly every asset class. The study was completed by consulting firm bfinance and is based on fees being quoted by asset managers for real mandates.

According to the findings, fund of hedge fund fees are down 28%; absolute return fixed income fees are down 15%; emerging market debt fees are down 10%; emerging market equity fees are down 6%; and global active equity fees are down 4%. And while private market fee trends are obscured by complex structures, management fees have also fallen in certain sectors, including, US Direct Lending fees and European Open-End Real Estate.

Mal Hunt, Head of Portfolio Solutions at bfinance, tells Opalesque that allocators with bigger ticket sizes tend to get the best deals from managers on fees, but adds that overall downward pressure is making it easier for mid-tier and small allocators to get better terms. He adds that there is "a potential opportunity for investors who appointed managers several years ago to re-evaluate their spending."

Fee compression has been driven by the rise of cheaper competitors, increasing transparency on costs, and expansion of the manager universe, adding that price competition in asset management is relatively inefficient. For managers that want to keep their fees at a higher overall rate, there is more pressure than ever to show consistent outperformance. Data throughout the repor......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1