ETFs driving decline in fixed management fees

The SIG study shows many global asset management firms expect the use of performance related fees (PRFs) to rise across a range of asset classes. Two-thirds of those surveyed anticipate PRFs on equity funds to increase in the coming year, while half predict the same on absolute return vehicles. The survey follows a year in which the number of share classes available for sale in the UK with PRFs has risen from 1,433 to 1,952 - an increase of 36%. SIG says that if managers' expectations are realised, fee polarisation will occur. As managers move towards increased use of PRFs, pressu...