BreakingViews expects 2% management fee and 20% performance
fee will no longer be an industry standard, despite its surprising persistence
over the credit crunch and Eurozone crisis.
During the crisis investors have demanded greater scrutiny
over third party administrators and changes to fund. These operational demands
and the increase in costs that go with them have kept this fee structure
afloat, removing investor bargaining power to reduce fees.
If returns remain weak persistently, 2/20 will not persist.
BreakViews predicts in 2020 what the industry will be saying, “investors
initially settled for modest returns during good years and capital protection
in bad times. But then many realized that the two-and-20 fee structure was out
of kilter”
Read all about it at http://www.prohedge.co.uk/220-fee-structure-no-to-fizzle-out-by-2020 Subscribe free
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