Managers reconsider use of index providers amid 'eye-watering' costs

'Index providers having a laugh'

The use of data from index providers by asset management groups as a benchmark tool is set to be disrupted as firms reconsider the "eye-watering" fees, and some providers respond by making their indices free to use for benchmarking purposes.

Industry participants have told Investment Week index providers have been charging them "significant" fees to use their indices and benchmarks on factsheets, marketing literature and websites. A number of firms have been reviewing their relationships with key index providers as costs mount, with one industry figure saying FTSE Russell had recently tried to hike their costs and voicing concerns major providers have monopolised the market. Active management fees remain 'resilient' while passives slash prices Another senior figure at an asset management firm, who asked to remain anony...