Marshall Wace will introduce a new fee across its systematic TOPS funds from 1 January, shifting a portion of rising technology, trading and staffing costs onto investors amid increased competition for quantitative and AI talent, according to a report by Bloomberg.
The $82bn manager told clients the charge will sit alongside existing management and performance fees. The firm expects to pass through $35m–$40m next year — roughly 0.09% of fund assets — although there is no cap on these costs.
Expenses covered include base and performance-linked compensation, recruitment fees, signing and retention bonuses, payroll taxes, employee benefits, and payments to contractors or external advisers working in similar roles.
Talent costs are becoming a strategic priority for hedge funds investing heavily in AI, machine learning and systematic infrastructure. The move follows an earlier arrangement in the firm’s Eureka fund, where recruitment and bonus costs were passed through to clients but capped at 0.75% of fund value.
