Asset managers pay vastly unequal fees for using indices
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Index providers charge some asset managers 13 times as much as other clients for similar bundles of products and services, according to research into the opaque pricing models that could lead to higher costs for investors.
Trillions of dollars are benchmarked to financial indices, but the costs paid for access to them remains a tightly guarded secret. Index providers often bundle products and services, which makes accurate like-for-like comparisons problematic for asset managers to find.
This story originally appeared on: Financial Times - Author:Chris Flood
