Frédéric Petiniot comments for Les Echos on the 2024 edition of the Panorama of Institutional Management Fees.
Extract from the 26/11/2024 article by Caroline Mignon for Les Echos:
The slow decline in the pricing power of asset management companies, which began in 2008, never seems to stop. A survey on the subject by the consultancy Amadeis paints an edifying picture of the situation: 63% of the companies surveyed have seen a further fall in institutional management fees over the past two years, while the others have only observed stability. None of the managers reported an increase, and none expected an increase over the next two years. 74% expect fees to remain stable between now and the summer of 2026, while 26% expect them to fall further.
During a call for tenders, it is easier for investors to look at objective criteria, such as the performance of funds and their fees: if one fee is much lower than the others, it may be tempting to use this as leverage to negotiate with another manager whose offer they like.
Frédéric Petiniot
The survey polled 28 asset management companies representing a total of €7,800 billion in assets under management. And 38% of them believe they have lost mandates because their fees are too high. They rely on debriefings of calls for tender and external databases to determine their pricing, which they consider to be broadly in line with the market.
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