According to a study by McKinsey & Co., the basic idea is that investors should pay fees for alpha, or outperformance over an index. 39 Many of these new structures seem to be settling in around...

According to a study by McKinsey & Co., the basic idea is that investors should pay fees for alpha, or outperformance over an index. 39 Many of these new structures seem to be settling in around performance fees of 30% over a relevant benchmark, accompanied by a small beta fee similar to ETF pricing.