Managers Shake Up Fee Models in Bid to Please Investors

By Lydia Tomkiw September 21, 2016

“Lower fees and options such as clawbacks are giving investors more leverage,” says Chris Cutler, the president of Manager Analysis Services. He sees terms becoming more favorable to investors, but argues that a large portion of funds still may have a good future even with a lower fee structure and lower revenues.

“I think about those terms more along the lines of investors demanding better economics than an effort for alignment of interests,” he says in an email to FundFire. “If you think about the revenue impact of these trends on the industry, you will note that they are material and ultimately affect compensation levels.”