UK - Multi-manager IMS has begun consulting with its clients over the unbundling of the fees it pays to asset managers.
“We are in the process of giving our existing clients the choice whether to unbundle or not.”
Guy Davies, executive director of corporate pensions at IMS, said the initiative had been well received by clients and that most people could see the rationale behind it.
“They like the transparency of the splitting out of fees, and also that it allows us to reflect levels of managers we are hiring in the fees we are paying them,” he commented.
He admitted that some clients might prefer to retain bundled fees because they were distracted by other issues, but said all new clients would only be offered the option of an unbundled fee structure.
Davies said both the asset management and consulting communities had hailed the move as positive.
Matthew Tee, head of multi-manager research at Watson Wyatt, welcomed the news: “We have been talking to multi-managers for some time about higher levels of fee transparency for our clients, so this is a positive development for the industry. We are hopeful that in this highly competitive global market others will follow, which will set a
Meanwhile, Russell confirmed to Global Pensions it had no plans to unbundle its fees on the back of IMS’s decision.
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