Money managers are facing a revolution. Their business was built on fat margins, yet suddenly they’ve found a new religion. The new gospel: low fees, by any means necessary.
Signs of the shift are everywhere. Low-cost, exchange-traded funds are in favour, and everyone from AGF Management Ltd. to Mackenzie Financial Corp. is launching its own suite; Royal Bank of Canada, Canada’s largest money manager by assets, is now advertising its bare-bones mutual-fund fees in order to lure clients; and pension funds around the world keep slashing their exposure to expensive hedge funds.Report Typo/Error