Funds find ways to cut costs that don't involve nailing
down the admin fee
Controlling costs is now at the top of the
agenda for many funds, thanks in part to a realization that
saving outgoing capital helps boost returns in a lower return
environment. But the imperative to cut costs, or at least keep
costs under control, isn't always as straightforward as it
would seem. Slash too many costs and staff get demoralized,
brokers stop offering you a decent level of service and your
systems start to creak. As a result, many managers are
beginning to turn to outsourcing companies for help and, in
some cases, are finding big savings.
What has helped push the cost cutting drive is the fact that
across the board costs are rising. The price of audits, in the
wake of corporate accounting scandals and rising insurance, has
risen some 40% in the last...