More than half asset management leaders planning 2021 fee cuts

Competitive pressures are intensifying, according to survey

Mike Sheen
clock • 1 min read

The majority of leaders in asset management are planning to reduce their fees as competitive pressures continued to escalate during the pandemic, according to research by Brown Brothers Harriman.

The survey of asset management C-suite level leadership found 52% of respondents were planning to reduce expense ratios over the next 12 months. Unsurprisingly, the Covid-19 pandemic was identified as the main driver of this and had forced 77% of respondents to reallocate capital, with 49% looking to reduce their real estate spend as a result. This issue of fee compression was found to be fairly consistent across the board with 56%, 52% and 50% of large, medium and small firms respectively confirming their plans in this area. At the same time, 19% of all respondents said they were ...

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