Fund Fees Expected to Tumble By $38 Billion by 2012
Fees on actively managed mutual funds in the U.S. could fall as much as 26%, or $38 billion, by 2012 due to investors' renewed preference for fixed income and passive investments, Bloomberg reports, citing a report from Boston Consulting Group. This year alone, actively managed fund assets in all classes around the world will decline from $58.9 trillion to $50 trillion, representing a 15% decline, according to Boston Consulting. Worldwide, the declines through 2012 could reduce the proportion of mutual funds revenue out of the total asset management pie to 36%, down from its current 49%. Last year, active mutual funds took in $147 billion in fees, about the same amount as hedge funds, private equity funds and real estate funds-combined.