Few hurdles to replacing Macquarie as manager of high-fee funds

Institutional investors in infrastructure funds managed by Macquarie Bank would be free to seek to replace Macquarie as manager, possibly by supporting the “internalisation” of management. Research published by Commonwealth Securities that reviewed the base fees for infrastructure funds managed by Macquarie Bank and other (non-Macquarie) funds. The Commsec research shows that the average base fee of the four largest Macquarie funds was 1.8 per cent, compared with an average fee of four other major infrastructure vehicles (Babcock & Brown, Alinta, Challenger and Transurban) at one per cent. The extreme fee levels were 2.3 per cent at Macquarie Communication Group and 0.45 per cent at Transurban.

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