The repricing of investment fund products has accelerated over the last year to an extent previously unseen. While investment fund management fees have been declining for the best part of two decades, the number of fund companies that have reduced their management fees since 2015, along with the extent of those price reductions, suggests that a profound adjustment in the pricing paradigm of asset management services is underway.
The current shift in the pricing paradigm of investment funds goes well beyond management fee cuts. In addition to such cuts, numerous fund companies are changing their approach in areas adjacent to pricing, including diversifying their business with low cost products, introducing preferred pricing programs and platform-traded funds.
The July issue of Insight provides an in-depth look at the evolution of the investment fund industry pricing paradigm. The Trendlines article focuses on the recent growth and sales experience of ETFs, particularly in retail distribution channels.