CAMRADATA fees report shows proportional cost of investing
Fees for equity managers are around 70% higher than those charged by fixed income specialists, but hedge fund managers remain the most expensive with the added demand of a performance fee, according to a report from fund services firm CAMRADATA.
The firm has published a free report comparing average percentage fees charged by investment managers across asset classes, with a detailed evaluation of the proportional cost to institutional investors.
It enables investors to benchmark whether or not their management fees represent sound value. More than 100 investment managers submitted data for the survey.
CAMRADATA Live founder and managing director Steve Butler said institutional investors need a global perspective to demonstrate they are delivering value. “Pressure on costs remains intense and evaluating manager performance and reward has never been more critical,” he said.
The report has a broad reach, showing that managers specialising in Chinese Equities charge the highest base fees at 89.3 basis points. This compares to the cheapest fees of 69.5bp for UK equities and an average of 77.7bp across equities in total.
The report also demonstrates that, for the UK, investments over £28.4m will, on average, attract a discounted rate. European Equity is the most generously discounted at a 32.3% reduction after £19.2m, compared to Global Equity at 16.5%.
Fixed Income managers in European (63.9%) and Emerging Market (58.7bp) charge higher rates compared to Global and US. UK Fixed Income managers demand the lowest rate, at 33.9bp, but 45.8% of them also charge a performance fee.