Multi-manager fees could fall - Lipper

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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 ...

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