Performance fee usage set to rise

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Fund managers believe the use of performance related fees will increase over the course of the next year, according to research from Skandia Investment Group (SIG).

The survey asked senior executives at over 60 fund management groups for their views on the future of the asset management industry. SIG found almost two-thirds of those surveyed expect to see an increase in the use of performance related fees, with equity and absolute return vehicles most expected to see a rise. "The asset management industry is under increasing pressure to demonstrate its commitment to producing value for investors," says SIG chief executive officer Nils Bolmstrand. "One way active fund managers are seeking to do this is by aligning their own interests more close...

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