Fees charged by equity managers are around 70 per cent higher than for fixed income specialists, a new report on UK investment managers' fees by Camradata shows.

Research by the UK-based firm shows that managers specialised in Chinese equities charge the highest base fees at 0.89 per cent, compared to the cheapest base fee of 0.695 per cent for UK equities and an average of 0.777 per cent across all equitity categories.

Fixed income managers in European (0.639 per cent) and emerging market (0.587 per cent) stocks charge higher rates compared with their counterparts in global and US equities, according to the report, for which 100 investment managers submitted data. UK fixed income managers demand the lowest rate with 0.339 per cent – but nearly half of them charge an additional performance fee.

Hedge fund managers are the most expensive investment managers because of additional performance fees. The average fee for UK funds of hedge funds are 1.048 per cent, according to Camradata.

“Pressure on costs remains intense and evaluating manager performance and reward has never been more critical," said Camradata Live founder and managing director Steve Butler.

The report also demonstrates that investments over £28.4 million will, on average, attract a discounted rate. European equity is the most generously discounted at a 32.3 per cent reduction after £19.2 million, compared to global equity at 16.5 per cent.