It is no secret that investment managers are battling with a downward fee pressure on their investment funds. In the UK, for example, average fees for actively-managed equity funds have dropped by 16 percent between 2012 and 2019. For passive vehicles, the average price has been sliced in half, according to an analysis by Morningstar.
One fund category, however, that, at least so far, has been fairly unfazed by this development is thematic funds. According to senior fund analyst at the Chicago-based investment consultancy Kenneth Lamont, investors pay 14.3 percent more in average ongoing charge for a thematic fund compared to a traditional global large-cap fund. The corresponding thematic premium for passive funds is 25 percent.
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95 percent of active global high-yield managers struggle to consistently add value net of fees, according to the world's fourth-largest asset manager ahead of launching a global HY index fund. However, a recent survey by consultancy Kirstein showed a vast majority of Nordic investors preferring their HY portfolios actively managed.