Less than a fifth of all hedge funds launched this year have been able to charge investors the standard 2% management fee, according to new research that comes as the industry faces up to the prospect of life without the lucrative “two and 20” model.

Only 13% of funds set-up this year have asked clients to pay a 2% fixed fee for managing assets, according to a report from Morgan Stanley's prime brokerage division entitled 'Out-perform and under-deliver'.