Institutions paying lower fees for active global equity accounts

Institutional investors negotiated lower fees on new active large-cap global equity accounts over the past few years. The median fee was 55 basis points from 2020 to September 2022, down from 65 basis points for the three-year period that ended Dec. 31, 2019.

At the 25th percentile, fees were 37 basis points vs. 50, and they fell by 5 basis points at the 75th percentile to 70 basis points.


Looking at the largest new accounts, fees fell across the core, growth and value styles since the end of 2019. The biggest drops were core and value, which saw the median fee decline by 28% and 25% to 43.5 and 41.7 basis points, respectively.

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