Active management fees remain 'resilient' while passives slash prices

In its report entitled Investment Management Fees: New Savings and Challenges, the investment consultant found global active equity fees for institutional investors had fallen by a "meaningful" 8% since 2010. Average fees quoted by global equity managers have decreased from 62 basis p;oints (bps) between 2006 and 2009 to 57bps between 2015 and 2017, while some firms were able to negotiate an average discount of 12%, reaching as high as 46%. But this reduction was significantly less than in other sectors such as smart-beta, where fees were down 25%, and low volatility strategies, which...