Asian Hedge Funds

Asian Hedge Funds Lower Fees for Investors

Few hedge funds have agreed to reducing their fee structure, despite pressure from investors after poor returns. In Asia, a deeply hurt hedge fund region, hedge funds are lowering fees. Asian hedge funds have dropped fees to lure investors who are now wary of the struggling industry.

While 2 and 20 is increasingly rare in the global hedge fund industry—the average fees charged by hedge funds globally is now 1.63% for management and 17.21% for performance, according to Prequin—in Asia the drop has been much starker. Asia hedge funds, on average, now charge just 1.55% and 15.88%.

“A lot of Asia funds folded last year—the ones that survived are the ones that have been the most flexible about fees,” Prequin’s Amy Bensted told the Financial Times. And they haven’t finished falling, she said.

“Managers are desperate to get new capital in,” Bensted said. “Once the industry stabilizes, we’ll see fees creep up again.” Source

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