Pressure on asset management fees will increase further as a result of MySuper, according to BT Investment Management (BTIM).
Growth assets, including Australian equities, are especially likely to experience fee pressure from institutional investors.
"There is obviously talk about what [MySuper] will do for fees," BTIM chief executive Emilio Gonzalez said.
"Ironically, to have some of the more pricy assets, such as alternatives, but you want to deliver an overall price outcome means you will have to get other asset classes cheaper," Gonzalez said.
"I think across the board there will continue to be pressure on fees."
Growth assets are the most likely asset class to experience pressure, as the margins there are higher than in other asset classes.
"It is more the growth assets that are likely to see the pressure: global equities, Australian equities," Gonzalez said.
"Fixed income is pretty price competitive already."
Certain specialised fixed-income products, including credit products, could experience some pressure as well, he said.
The pressure on fees will also be exacerbated by ongoing consolidation in the superannuation industry, as large funds will have better opportunities to negotiate on fees than small funds.
There are also still a large number of fund managers in Australia, which means the revenue share per manager continues to decline.
Gonzalez said he also expected the use of performance fees to increase.
"There is also an increasing move towards performance fees. I'm starting to see that clients are more open to talk about performance fees. You get a lower base, but we're sharing the upside," he said.
BTIM has $42.6 billion in funds under management (FUM), including assets of the recently acquired J O Hambro.
Australian equities represent $12 billion or 28 per cent of overall FUM.
