Thursday, January 19, 2006
It Took A While For Managed Accounts To Appear In Retirement Plans, But Now They're Everywhere -- And Fees Are Under Pressure
Fees have been falling throughout most of the money management industry (glaring exception: hedge funds), but nowhere has the decline been more dramatic than in managed accounts for defined contribution plans.
In roughly the past three years, average fees have dropped as muchas 50 percent, to 30 to 60 basis points; fees on retail managed accounts outside defined contribution plans, by contrast, have fallen 5 to 10 percent, to 100 to 200 basis points. Plan participants and retail customers pay the managed-account tariffs on top of fund management fees.
It Took A While For Managed Accounts To Appear In Retirement Plans, But Now They're Everywhere -- And Fees Are Under Pressure
Source: Insurance News Net
In roughly the past three years, average fees have dropped as muchas 50 percent, to 30 to 60 basis points; fees on retail managed accounts outside defined contribution plans, by contrast, have fallen 5 to 10 percent, to 100 to 200 basis points. Plan participants and retail customers pay the managed-account tariffs on top of fund management fees.
It Took A While For Managed Accounts To Appear In Retirement Plans, But Now They're Everywhere -- And Fees Are Under Pressure
Source: Insurance News Net
Permalink posted by armandn @ 11:24 AM 
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