Case study: Passive Global Equity

Detailed below are two clients who have passive global equity portfolios.

Scheme	Mandate	AMC	AUM	Benchmark
A	Passive Global Equity	0.21%	£ 14,531,529	Above Median
B	Passive Global Equity	0.20%	£ 43,783,054	Above Median

The benchmarking exercise highlights the potential negotiation to reduce costs of managing these passive strategies which are effectively identical in exposure. This analysis serves as a valuable reference for understanding how ongoing charges can vary and the potential for cost optimisation in asset management.

The findings of the exercise and negotiations have led to both clients achieving lower charges,

Manager delivers poor value for money – Client negotiates fee reduction of c.£15k p.a. for Client A and £38k p.a. for Client B