Average performance and management fees of global hedge funds are increasing, new research shows.
Cerulli Associates, Boston, discloses this finding in the March 2013 issue of “The Cerulli Edge: Global Edition.” The monthly publication analyzes asset management trends, data and strategies worldwide.
Average performance fees increased to 19.28 percent in 2012 from 17.84 percent in 2010. For three consecutive years, the report adds, the number of new funds reporting a hike in their performance fee outnumbered those cutting theirs.
IN 2012, the number of funds with an increased performance fee stood at 33, as compared to the 31 funds that year with decreased performance fees. Similarly, in 2011 and 2010, 61 funds and 31 funds, respectively, had increased performance fees. That compares with the 51 funds and 20, respectively, with decreased performance fees that year.
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“The upward trajectory suggests that some bargaining power has been reclaimed from investors by the managers, even those of young funds,” the report states.