cheapest and dearest fees revealed

China equity fund managers charge the highest base rate for active management and are most likely to ask for a performance fee, while UK fixed income managers come in at the other end of the spectrum.

cheapest and dearest fees revealed


The average base fee charged by managers specialising in Chinese equities was found to be 89.3 basis points (bps), compared to 33.9bps from the lowest charging group investing in UK fixed income.

On top of that 42.9% of those running money in China equity funds commanded a performance fee, while only 15.4% of European equity managers and 20% of US equity managers looked for a performance fee.

At the asset class level average fees for equity managers were around 70% higher than those charged by fixed income managers, while hedge fund managers remained the most expensive group and commanded the most in performance fees.

UK-focused equity funds were also found to be the cheapest within the equities group, charging an average base fee of 69.5bps.

Camradata Live’s survey of average percentage fees also found investments over £28.4m would, on average, attract a discount rate, with European equity the most generously discounted at a 32.2% reduction after £19.2m, compared to global equity which offered an average discount of 16.5% after £27.3m was invested.

"Pressure on costs remains intense and evaluating manager performance and reward has never been more critical. We’ve brought together our substantial database and analytical expertise to offer an instant view, freely available for investors and managers to aid further transparency," said Steve Butler, founder and managing director of Camradata Live.

More than 100 asset managers submitted data to Camradata Live for the survey and the report should allow investors to benchmark whether or not the fees they pay represent sound value. For the full report and breakdown, click here.



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