A new survey by Mercer finds that asset management fees in alternatives have fallen “due to supply and demand dynamics”. In Mercer’s 2012 Global Asset Manager Fee Survey, data on more than 25,000 asset management products from over 5,000 investment management firms were analyzed. The survey covers a range of asset managers.
According to Mercer, the majority of managers left fees relatively unchanged. Yet asset managers are under pressure to negotiate fees for hedge funds, direct private equity and infrastructure funds. The areas where fee reductions are evident include equity mandates. Retail equity funds have tended to lower their fees more than have their institutional and segregated counterparts, it said.
It also said that “2 and 20” industry standard continues to move toward “1.5 and 20”. Taking all asset classes into consideration, Mercer found that Canada remains the most inexpensive country/region in which to invest, with average median fees of around 0.3%. The UK and Europe are also relatively low priced, with average median fees of around 0.4% and 0.5% respectively. Emerging markets remain the most expensive country/region at 0.89% on average, with Asia averaging 0.75%, a fall of 0.08% since 2010.