UK Asset Managers Get Creative Adapting to Shrinking Fees, Margins

An article from Institutional Investor describes the ways European asset managers are fighting back against falling fees. One firm’s compensation scheme for its portfolio managers includes deferrals and clawbacks and provides the fund trustees with “proof of manager alignment.” That firm also has cut back on marketing and distribution costs and urges portfolio managers to build their own following and sales via social media. Firms are also cutting back on services to passive fund clients and requiring investors to pay extra for services beyond the bare minimum akin to basic-economy airline seats. Other asset managers are adding customized and outcome-based products to their lineups. The report was based on research from Cerulli Associates.