Fees in Active Equity Rise, Fall and Remain Stable

March 8, 2016

Tech News

Research Study Examines Asset Management Fees for Active Equity Products

DARIEN, CT – (March 8, 2016) – Investment Metrics, LLC (www.invmetrics.com), a leading provider of investment analytics and reporting solutions for investment professionals worldwide,  is pleased to announce the release of a new research study, Active Management Fees – Equity. The study uncovered distinct differences in fees charged for actively-managed equity investments. 

“There is a considerable amount of passive and enhanced indexing pressure on active managers competing for institutional mandates,” said Scott Treacy, Client Services Consultant at Investment Metrics. “By examining the actual fees charged across the equity landscape based on differing investment characteristics, we can better understand the subtle differences between active management fees and where they stand today.”

The study, which focuses on U.S., non-U.S., Global, and Emerging Market equities, found that fee discounting has taken place throughout the equity space.  Other findings include:

Fee discounting is more prevalent among less established managers in Emerging Market equities.
Non-U.S. Small-Cap equity products were able to maintain their historic fee levels.
The difference between actual and stated fees is lowest within Global Equity.
Active managers with institutional equity separate accounts, who claimed compliance with the Global Investment Performance Standards (GIPS), were included in the study. Research was done using InvestWorks (www.investworks.com) based on data supplied by over 1,200 asset managers to the Investment Metrics database. 

The study includes 55 exhibits examining fee levels across:

  • Market Capitalization Size and Style
  • Concentration
  • Asset Size
  • Stated Fees versus Actual Fees
  • Product Availability – Open or Closed to New Business
  • Highest Performing Products vs. Peers

The complete study may be ordered at:  bit.ly/1RxaQoP or by contacting:

Scott Bugbee
Director of Sales
(508) 530-3169

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