Fees charged to institutional investors by asset managers have fallen across a variety of asset classes although specially ESG type products according to bfinance.

The firm found a reduction in the cost of active global Equity strategies with ESG requirements, where the median fee for a é100 million mandate has decreased by 14 percent since 2016.

Management fees for renewable energy Infrastructure strategies have fallen by 8 percent since 2016 and performance fees have also declined.

Aside from ESG products, bFfnance also found US high yield saw median fees decrease by 15 percent since 2017, while fees for blended emerging market debt strategies decrease by 10 percent in the same period. Multi-sector fixed income also saw its median fee decrease by 15 percent since 2017.

Investors can benefit from a degree of fee erosion for ESG strategies, according to bfinance. Some ESG-related sectors are now becoming relatively mature, a period often characterised by narrower dispersion in fee quotes.

Kathryn Saklatvala, head of investment content at bfinance, said: “The fourth instalment of our investment manager fees series once again puts fee reductions in focus while honing in on some specific asset classes. In the light of investors’ growing interest in ESG and impact strategies, it is particularly interesting to see some very significant reductions in the fees that managers are quoting for clients. We will be keenly watching how pricing evolves for some of the more nascent sectors, such as Article 9 funds and Impact Real Estate, where there is more uncertainty around what an appropriate fee should look like.”