Mercer's asset manager fee survey 2010 is a bi-annual report analysing fee data on more than 20,000 asset management products from over 4,000 investment management firms. The survey covers asset managers in a range of geographies and across numerous products including pooled and separately managed accounts.

The study is intended for use as a reference when assessing asset management fees. For most investors fees are not a critical component in the evaluation of an investment manager product. It is nonetheless an important consideration as they can reduce the expected manager added value by anywhere from 20 to 50 percent.

Overall findings

• Fees in complex asset classes (mainly alternatives) have decreased. However, some fee structures, especially in private equity and infrastructure, remain complex and can be simplified
• For traditional asset classes, there has not been a general reduction in fees. In fact, some fees have remained the same or increased, depending on the specific mandate
• Pooled funds are more expensive than segregated funds across all comparable market sizes
• The total expense ratio (TER) includes the investment management fee plus other costs in running the fund. Additional costs can have a significant bearing on the overall fee of the fund and varies significantly depending on the region.
• On the whole, boutique managers are slightly cheaper than all managers
  

Download a table of the contents from the 2010 report now

This report is now available for purchase at a cost of US$2,500 in PDF format only

Delegates who have opted to receive Mercer's global package to attend Mercer's Global Investment Forums 2011 will receive Mercer's Manager Search Trends and Global Fee Survey free of charge.

Mercer is a leading global provider of investment services, and offers customized guidance at every stage of the investment decision, risk management and investment monitoring process. We have been dedicated to meeting the needs of clients for more than 30 years, and we work with the fiduciaries of pension funds, foundations, endowments and other investors in some 35 countries. We assist with every aspect of institutional investing (and retail portfolios in some geographies), from strategy, structure and implementation to ongoing fiduciary management.