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Investment Metrics, a Confluence company has today released its Q2 Fee Analyser report, which compares negotiated fees for different plan types, mandate sizes and asset classes. Asset allocators and managers can gain competitive insights from benchmarking and evaluating fees vs. returns and risk – essential to manager selection, fee transparency and pricing efficiency across the institutional investment market.
The Q2 Fee Analyser report found that the median fee for the high dividend yield portfolios was 66.5 basis points, a 10% discount compared to peers. What makes the emerging markets high dividend products compelling beyond the lower fee, is their risk risk/return profile.
Some highlights from the report:
- Active Emerging Markets equity managers’ relative performance has rebounded in 2023, the median portfolio in the IM Emerging Markets Large Cap peer group has outperformed the MSCI Emerging Markets Index by 2.1% year to date.
- Emerging Markets equity portfolios with above median dividend yields (>3%) offer even stronger relative performance, outperforming the benchmark by 3.8%.
- Over three years, emerging markets portfolios with above median dividend yields produced significantly stronger returns than peers, with lower risk and fees.
