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Fund managers raise the stakes on performance fees

Pressure on fixed fees is forcing fund managers to take a gamble and develop new – potentially volatile – income streams

Fund managers raise the stakes on performance fees
Photo: iStockphoto

Asset managers are quietly adopting a high-risk strategy to generate more from performance fees and offset an expected decline in traditional revenues.

Financial News analysis of recent results announcements has found performance fees at major fund houses including Allianz Global Investors, Ashmore and Liontrust now make up noticeably larger proportion of overall revenues.

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