Frédéric Petiniot discusses the stabilisation of management fees for Les Echos, based in particular on the figures from the latest edition of the Observatoire des frais de gestion institutionnelle produced by Amadeis.
Extract from the article dated 29/11/2022 by Caroline Mignon for Les Echos :
Since 2008, the trend has seemed inexorable. The fees charged by asset management companies across all asset classes have been falling year on year. But in its new study on management fees charged to institutional investors, the Amadeis consultancy firm notes a turning point.
Nearly half of the companies surveyed report that management fees have remained stable over the last two years, and 78% expect them to remain stable over the next two years.
Frédéric Petiniot, CEO of Amadeis
Amadeis surveyed 23 major market players (including AXA IM, Crédit Mutuel AM, Natixis IM, la Banque Postale, Lazard Frères, HSBC AM and Fidelity) with combined assets under management of over €6,400 billion.
The reason for this downturn? Asset management companies have enhanced their non-financial management offering, particularly in ESG (environmental, social and governance criteria). And they intend to make the most of it.
It has to be said that this expertise comes at a cost, in terms of more complex reporting, database management and the recruitment of specialist analysts, of whom there are not many in the sector and who command high salaries. In this way, asset management companies can respond with precision to the demands of clients seeking to comply with the sophisticated standards of green finance (SRI, impact management, SFDR classification, etc.).
Now at the forefront of these issues, asset management companies are no longer hesitating to charge their clients more.
As a result, 43% of the companies surveyed are increasing their pricing this year to incorporate an SRI approach, compared with just 19% in 2020. The stakes are high. According to the Autorité des marchés financiers (AMF), management fees account for almost 80% of the operating income of asset management companies.
And while few asset managers (35%) have introduced variable pricing based on the level of extra-financial objectives, many are considering such an option.
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