Key Takeaways
- • Callan's initial study of open-end real assets funds found that almost 40% charge performance fees, according to Pensions & Investments.
- • The study is the firm's first look at fee structures across the real assets fund universe, a category that spans real estate, infrastructure, natural resources and commodities.
- • Performance fee prevalence is a key diligence item for allocators comparing real assets vehicles with a fee-structure lens.
Summary
Almost 40% of open-end real assets funds charge performance fees, according to an initial study by Callan, the consultant, as reported by Pensions & Investments on December 11, 2024. The study, described by the publication as Callan's first look at fees for real assets funds, indicates that performance-based compensation is common in this segment of the market.
The source article is brief and does not provide additional detail on fee levels, hurdle rates, fund sizes or the specific sub-sectors surveyed. Allocators evaluating open-end real assets funds may want to review the full Callan study for breakdowns of fee structures and how they compare across strategies.
The finding is relevant to institutional investors and consultants who assess total cost of ownership for real assets exposure, where performance fees can be a meaningful component of return drag in periods of strong absolute performance.
The source article is brief and does not provide additional detail on fee levels, hurdle rates, fund sizes or the specific sub-sectors surveyed. Allocators evaluating open-end real assets funds may want to review the full Callan study for breakdowns of fee structures and how they compare across strategies.
The finding is relevant to institutional investors and consultants who assess total cost of ownership for real assets exposure, where performance fees can be a meaningful component of return drag in periods of strong absolute performance.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.