Performance fees on equity funds, absolute return vehicles, fixed interest and the property sector are expected to rise over 2009, according to Skandia Investment Group (SIG).

The research-led investment management solutions provider recently surveyed 60 fund management groups with combined assets under management of over $7trn, and found that two thirds of believe that the use of performance fees will increase across a range of asset classes this year.

Skandia has attributed the trend in part to the increasing influence of hedge fund and institutional managers on the retail funds marketplace.

SIG chief executive officer, Nils Bolmstrand, said: "The asset management industry is under increasing pressure to demonstrate its commitment to producing value for investors. One way active fund managers are seeking to do this is by aligning their own interests more closely with those of investors through the use of performance related fees.

"While much debated over the years, performance fees have never really caught on in any meaningful way outside the hedge fund industry and some areas of the institutional space. Our research suggests this may well be about to evolve and that an increase in the use of performance fees is likely," Bolmstrand added.

Around three quarters of those surveyed also said that they expected the fees for active asset management to reduce this year.

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