Insight Investment Funds Report June 2023—Pricing Evolution Is the Constant

Lowering management fees used to be the main mechanism fund companies had to adapt the pricing of their products—not anymore. As the funds business matured and built scale over time, opportunities for asset managers became larger but more fragmented. New product types, management styles and options to add value emerged, while a growing number of share classes aligned with distinct client segments, advisor practice models and distribution paradigms. As some of these segments of the funds industry grow, while others tank and still others emerge, the repricing of the book of business of fund companies is shaped by multiple forces—and not all of them are pushing prices down.

As fund sponsors adapt to these shifting market forces, Investor Economics will explore these impacts on product pricing with its current dataset for the period ending December 2022. The June research feature of the Insight Investment Funds Report examines the recent events that impacted fund prices across product types, series, and asset classes. Information on assets and sales trends for different series is also included.