InvestorForce Study Reveals Findings on Actual Post-Negotiated Institutional
Investment Management Fees
Study Shows Large Fee Dispersions within Investment Styles, Little to No
Correlation between Performance and Fees
CONSHOHOCKEN, Pa. -- June 26, 2013
InvestorForce, part of MSCI Inc. (NYSE: MSCI), announced today that it has
released the first in a series of whitepapers, Institutional Investment
Management Fees: Findings Regarding Dispersion and Correlation with
Performance. The paper provides unprecedented insight into actual
post-negotiated management fees for institutional investment products.
Jim Morrissey, CEO of InvestorForce, said, “Two important findings emerge from
this paper. First, contrary to the popular view that asset managers charge
close to the same fees for a given investment style and mandate size, the
results find significant differences in actual post-negotiated management
fees, even within the same market segment. Second, contrary to the perception
that managers with stronger performance command higher fees, the data shows
little or no correlation between performance and actual post-negotiated
Data for this whitepaper was sourced from InvestorForce’s Manager Fee Tracker,
an online analytics platform that provides institutional investors,
consultants and asset managers with access to over 34,000 observations of
actual “post-negotiated” management fees across 31 investment styles along
with a range of mandate sizes and plan types. While individual manager fees
are never disclosed, Manager Fee Tracker users can calculate fee universes and
distribution metrics to provide an unprecedented level of fee transparency.
Dan Kelly, Chief Operating Officer of NEPC, one of the world’s leading
independent consultants, said, “InvestorForce’s Manager Fee Tracker and this
white paper are helping bring much-needed institutional asset management fee
transparency to NEPC and its clients. Providing greater transparency into
asset management fees is an important component of NEPC’s offering to our
clients. This analysis – backed by a significant volume of actual management
fee observations – will help us assess the appropriateness of the asset
management fees paid by our clients.”
Future white papers will examine the relationship between fees and risk,
tracking error, portfolio concentration and other key institutional investment
InvestorForce is the premier provider of performance reporting solutions to
the institutional investment community, providing investment consultants with
an integrated solution for daily monitoring, analysis and reporting on
institutional assets. InvestorForce’s technology leverages automated data
collection to provide institutional investment consultants and their
institutional investor clients with greater operational efficiencies and
real-time insight, transparency and deeper analysis into investment
portfolios. The InvestorForce platform is used by institutional investment
consultants to report on over $3.5 trillion of assets for over 3,500
institutional plans. In 2013, InvestorForce was acquired by MSCI Inc.
For more information on InvestorForce, please visit www.investorforce.com
MSCI Inc. is a leading provider of investment decision support tools to
investors globally, including asset managers, banks, hedge funds and pension
funds. MSCI products and services include indices, portfolio risk and
performance analytics, and governance tools.
The company’s flagship product offerings are: the MSCI indices with close to
USD 7 trillion estimated to be benchmarked to them on a worldwide basis^1;
Barra multi-asset class factor models, portfolio risk and performance
analytics; RiskMetrics multi-asset class market and credit risk analytics; IPD
real estate information, indices and analytics; MSCI ESG (environmental,
social and governance) Research screening, analysis and ratings; ISS
governance research and outsourced proxy voting and reporting services; and
FEA valuation models and risk management software for the energy and
commodities markets. MSCI is headquartered in New York, with research and
commercial offices around the world.
^1As of September 30, 2012, as published by eVestment, Lipper and Bloomberg on
January 31, 2013
For further information on MSCI, please visit our web site at www.msci.com
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