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AMP Capital Investors has moved more squarely into the performance-based fees environment with nearly three-quarters of its business now being covered by such arrangements, according to the company’s managing director, Stephen Dunne,
Dunne told Money Management that of AMP Capital Investor’s $100 billion in funds under management, $60 billion to $65 billion had performance fees attached to them.
“It is something that allows us to align better with the client and, in turn, align better with our clients and shareholders,” he said.
Dunne said that the level of FUM currently subject to performance-based fee arrangements today compared with around 40 per cent to 50 per cent of FUM being subject to such arrangements five years ago.
However, he said the company’s approach was not based on a heavily discounted base fee.
“Rather, we prefer a healthy base fee with a bit of a kicker for performance,” Dunne said.
