FYI: taking big risks on high-yielding assets -- and being rewarded with some of the highest fees in the industry.
These days the risks, and rewards, have shrunk. Competition is rising from passive funds able to generate similar returns at a fraction of the cost, and money managers are finding it increasingly difficult to justify charges 50 percent higher than those of their developed-world peers.
“When we started out, we were the only game in town -- we could revel in being exclusive and have clients come to us and pay the fees we were asking for,” Mark Mobius, executive chairman of Templeton Emerging Markets Group, said by phone from Dubai. “Now there are hundreds of funds in emerging markets, including ETFs. We have to either really perform better so we can justify the fees, or lower the fees.”
Regards,
Ted
http://www.bloomberg.com/news/articles/2016-11-15/rise-of-etfs-spurs-price-war-mobius-says-fund-managers-can-t-win
