Active global equity fees have dropped 11% since 2017: LCP


first_imgThe average annual fee for a £50m investment mandate was 65bps, down from 73bps in 2017, saving £40,000 a year, according to the consultant.It added that the largest contributing factor to declining fees was decreasing allocations to active equity mandates.LCP calculated that, as a result of DB schemes changing their asset allocations since 2010, the average scheme was paying more in fees to credit and liability-driven investment managers than to equity managers.Fixed income costs on the riseWhile the average fee for actively managed global equity had decreased by £40,000 for a £50m mandate, the cost of a similar-sized corporate bond mandate had risen by £35,000.LCP suggested that the increase in fixed income fees could be due to pension funds’ demand for bespoke and more sophisticated fixed income strategies.The survey also found wide variations in reported transaction costs for listed infrastructure and actively managed global equity.“This illustrated the need to ask managers to explain and justify these costs,” said LCP.Matt Gibson, head of investment research at LCP, said that falling investment manager fees had allowed investors the opportunity to renegotiate their fees to the new market level.However, he highlighted that reduced costs didn’t always result in value for money “as fees and costs should be considered against the value created by the investment manager”.The LCP survey found that transaction costs for global equity and corporate bonds added 25% and 45%, respectively, to asset management costs on average.It noted that, despite regulatory pressure, many asset managers had not been able to provide detailed transaction cost information, only providing a full breakdown of these costs for 170 of the 677 surveyed products.LCP said that a change in regulation at the end of 2017 had allowed for accurate and comparable analysis of transaction costs data for UK institutional investors for the first time in the history of the survey.The LCP survey was conducted among 71 asset management organisations and covered 49 asset classes.Further readingManagers urged to comply with new cost disclosure templates The UK could legislate to enforce new cost transparency codes if investment managers and service providers do not comply voluntarily, the country’s pensions minister has warnedCost transparency poses threat to asset managers, says Moody’sThe UK’s newly launched investment cost reporting templates could hurt asset managers’ business models and financial stability The average fee for an actively managed global equity mandate for a UK institutional investor has fallen by 11% since 2017, according to LCP.In its latest Investment Management Fee Survey, the consultancy cited increased competition and downward pressure from low-cost index trackers as the main reasons for the fall.The survey also revealed “notable” fee reductions in a range of other key asset classes, including multi-asset diversified growth funds, multi-asset credit, liability-driven investment strategies, and passive global equity mandates.The pensions adviser estimated that a typical £500m (€548m) defined benefit (DB) pension fund in the UK had seen a reduction in total investment fees from 39 basis points to 36bps, or £140,000 a year, in the past 10 years.last_img read more

Jayson Castro upbeat despite TNT loss to Ginebra in opener


first_imgJasmine Alkhaldi raring for SEA Games gold at home Ginebra beats Meralco again to capture PBA Governors’ Cup title TNT’s main problem in the game, however, was its stroke from the three-point area wherein it converted just nine of its 41 attempts for a 22 percent shooting clip.“We’re more confident with those kinds of plays and we don’t have big guys so that’s our advantage,” said Castro. “We will live and die by the three.”Castro was one of team’s top performers with 17 points, 10 assists, and two steals.ADVERTISEMENT Sports Related Videospowered by AdSparcRead Next Japeth Aguilar wins 1st PBA Finals MVP award for Ginebra Don’t miss out on the latest news and information. Philippine Army to acquire MANPADS, self-propelled howitzers Alyssa Valdez stays positive despite PH loss in volleyball opener PLAY LIST 01:14Alyssa Valdez stays positive despite PH loss in volleyball opener01:02Fans fill up Philippine Arena for SEA Games opening00:412 buses bound for SEA Games opening collide in Bulacan02:14Carpio hits red carpet treatment for China Coast Guard02:56NCRPO pledges to donate P3.5 million to victims of Taal eruption00:56Heavy rain brings some relief in Australia02:37Calm moments allow Taal folks some respite03:23Negosyo sa Tagaytay City, bagsak sa pag-aalboroto ng Bulkang Taal01:13Christian Standhardinger wins PBA Best Player award Gretchen Barretto’s daughter Dominique graduates magna cum laude from California college The KaTropa employed lineups that featured just one legitimate big with three wingmen and one point guard surrounding him—a gamble considering the Gin Kings have 7-foot Greg Slaughter and 6-foot-9 Japeth Aguilar.“If you can see we are effective with a small lineup because the ball was moving and we were getting open shots to Don (Trollano), Mike (Miranda), and our small guys,” said Castro in Filipino Sunday at Philippine Arena.FEATURED STORIESSPORTSGinebra beats Meralco again to capture PBA Governors’ Cup titleSPORTSJapeth Aguilar wins 1st PBA Finals MVP award for GinebraSPORTSGolden State Warriors sign Lee to multiyear contract, bring back Chriss“The only thing was the shots weren’t falling, but those were the shots we want.”Despite having a smaller lineup, the KaTropa were able to have a 50-50 rebounding matchup with the Gin Kings and even had more offensive boards, 21-12. Ginebra beats Meralco again to capture PBA Governors’ Cup title LATEST STORIES MOST READ Tom Brady most dominant player in AFC championship history PBA IMAGESBULACAN, Philippines—TNT may have absorbed a disappointing 90-79 season-opening loss to Barangay Ginebra in the PBA Philippine Cup, but Jayson Castro sees positive things for his team.Castro said they’ve got the system that’s perfectly suited for the players and it was just a matter of knocking down shots.ADVERTISEMENT In fight vs corruption, Duterte now points to Ayala, MVP companies as ‘big fish’ Will you be the first P16 Billion Powerball jackpot winner from the Philippines? Nadine Lustre’s phone stolen in Brazil View commentslast_img read more