Multi-manager fees could fall - Lipper

clock

Multi-manager total expense ratios (TERs) may fall as difficult market conditions force single mandate managers to look at fund of funds to increase distribution levels, Lipper research suggests.

Lipper’s latest fund fees report shows the balance of power has shifted to multi-managers following the £1.35bn single equity fund outflow in Q1 this year, compared to a the £250m inflow for funds of funds. It says the current fund sales slump gives multi-managers increased bargaining power to negotiate lower feel levels for the vehicles in which they invest. Lipper’s analysis shows the amount reduced on an underlying funds' management fees when used in a MM vehicle is 0.38%. “Looking forwards, one can expect that the market conditions that are making it difficult to sell funds will ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

'It's been frantic – in a good way': Orbis' Matt Spencer on maintaining momentum

'It's been frantic – in a good way': Orbis' Matt Spencer on maintaining momentum

Advisers in the UK are ‘exceptionally high quality’

Jenna Brown
clock 25 November 2025 • 8 min read
Why 'bubble talk' doesn't always burst markets

Why 'bubble talk' doesn't always burst markets

What’s really driving recent returns?

Eleanor Ingilby
clock 20 November 2025 • 4 min read
Consultancy launches to provide IFAs with 'robust' investment processes

Consultancy launches to provide IFAs with 'robust' investment processes

Sheridan Admans launches Infundly

Isabel Baxter
clock 06 November 2025 • 1 min read