Transaction costs account for 24% of total investment charges

Transaction costs account for 24% of total investment costs, according to a study of institutional investors.

The report, ‘Transaction costs among large asset owners’ by Toronto-based CEM Benchmarking, was compiled following an analysis of transactions from global institutional investors with combined assets of over £2 trillion (€2.24 trillion).

John Simmonds, CEM Benchmarking’s UK Principal, said that the study is one of the most detailed global studies ever completed on transaction costs and “provides an indication of the overall magnitude of these costs for the first time”.

“Transaction costs make up a significant part of the investment costs incurred by institutional asset owners,” he said.

“While transaction costs are clearly material, there is a range and where you sit in that range is dependent on asset mix, volumes of trades, estimates of spreads or simply if you are paying more or less than others for similar activities.

©2018 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST