Author name: fpadmin

Third-party management companies have been accused of cutting their charges to “unsustainable levels” and potentially “skimping” on their regulatory responsibilities as a result. Hugues Gillibert, CEO of Fitz Partners, which researches fees in the asset management industry, agreed, saying both mancos and asset managers were increasingly price sensitive. Gillibert added that low fees would cover manco […]

Cost pressure on third-party management companies has reached “unsustainable levels” and could compromise regulatory oversight, experts have said. External management companies generally oversee funds run by smaller investment managers that have outsourced different functions to reduce their operating costs and to enable them to focus on portfolio management. Competition between third-party mancos to attract asset

Two companies plan to combine fund data, regulatory reporting and risk calculations. Belgian financial technology company RiskConcile has acquired London-based specialist fund fee research firm Fitz Partners. The Leuven-headquartered provider of regulatory reporting and risk calculations is backed by private equity firm Main Capital Partners, which focuses on software investments. Fitz will continue as a

JPMorgan Asset Management is changing the way it charges operating expenses to its UK funds, which will cut costs for most share classes and bring the company in line with peers. Hugues Gillibert, chief executive of Fitz Partners, a specialist fee research firm, said the approach “adds clarity and falls in line with most of

Closures and consolidations drive fears of concentration risk and job losses. A wave of asset managers in Luxembourg are closing down “expensive” fund management companies, sparking concerns of concentration risk among third-party service providers and a loss of employment opportunities for fund professionals. A number of firms have closed down internal mancos and transferred the

The UK regulator’s plans for “paring back” the level of detailed information authorised fund managers must include in their annual value assessment reports have divided opinion. Asset managers have welcomed the proposals, released earlier this month, to publish only a summary and conclusions in reports, which they say would “reduce unnecessary burdens”. Data from Fitz

Boards making progress in tacking ‘natural conflict’ in charging structure. Fund board directors say there is “room for improvement” when disclosing performance fees to investors, despite increased oversight of the practice. Regulators in both Luxembourg and Ireland have tightened governance over funds’ performance-related fees in recent years as questionable structures continue to garner attention. View

Independent board members must look out for investors’ best interests. Independent directors must scrutinise the drivers and impacts of any proposals to raise fund fees, as increases in product charges outstrip cuts, experts say. More funds raised management fees than cut them last year as asset managers responded to growing pressure on margins, according to