Institutional investors' average expense ratio was 54.2 basis points in 2020, down about 3 basis points from 2015, according to Callan's 2021 Cost of Doing Business Survey. The consulting firm sent the questionnaire to organizations such as public and private defined benefit plans.
Institutional investors see lower fund expenses
External investment management fees, the largest expense item, generally fell from 2015. The median fee was 41 basis points vs. 46.6 basis points incurred five years ago. On average, the fee fell to 43.2 basis points from 45.1 basis points.