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Bailey McCann, Opalesque New York: Fees for active management continue to fall, according to a new report from data provider Investment Metrics. The report includes data from both US and non-US actively managed funds.

On average, active U.S. & Non-U.S. fees came down 4% last year, Investment Metrics says. Investors also appear to have more power when it comes to renegotiating mandates. If a mandate was reviewed and there was a significant change in fees, cuts ranged between 7-11%.

Equities strategies under pressure

Managers are under pressure to show that they have a significant edge that makes the fees worth it and that has been harder to come by if the strategy is focused on large-cap equities. For example, U.S. and International small-cap equity funds have the highest active median fees at 75 basis points. However, for large-cap strategies (domestic and global) the median fee is 61.8 basis points.

International managers struggle

Investors are also pushing for changes from international managers. International large-cap manager fees decreased 1.5%. Global equity managers overall made the most fee concessions with the median fee down 8 basis points or 11%.

Emerging markets managers also saw fees decline by 7% in 2021.

The report notes that performance could be a contributing factor, as global equity markets were hit hard by......................

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