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How much do you think changes in the stockmarket impacts consumer spending at the higher end, just from your experience over the years? At what point does stockmarket volatility really start impacting consumer behavior and consumer sales? Please proceed. Vince Tibone -- Green Street Advisors -- Analyst Hi. Good evening.
And they also have a unique approach to feeds when they’re generating alpha, when they’re outperforming their benchmark, they take a performancefee. And when they’re not generating alpha, when they’re underperforming, they actually return fees. What happens when you underperform the market?
There’s probably more volatility on tap for stockmarkets, Graham said, adding he’s “cautiously optimistic” about what lies ahead for the fund this year as certain sectors in some parts of the world appear ready to soar. Management fees increased by $165 million, due to an increase in average assets managed by external fund managers.
And all these formally high performers are now just so big, they’re very happy collecting the management fee and the performancefee matters less. And if you’re trading an asset class that is very liquid, with sort of unlimited supply like the stockmarket, you’re going to run out of talent.
There's hardly any arguing with the fact that investing in the stockmarket is one of the best ways to build wealth. One area that deserves some blame is the fees that these fund managers charge. It's not difficult to realize that over time, a large chunk of client capital in these funds gets eaten up by fees.
billion was 8% higher year over year, driven by positive organic base fee growth and the impact of market movements on average AUM over the last 12 months. Higher performancefees and technology services revenue also contributed to revenue growth. Our annualized effective fee rate was flat compared to the first quarter.
Blackstone is still a net buyer of assets, but given the macro setup, with the high stockmarket valuations and anticipated rise in IPOs, when do you expect to inflect and be a net seller of assets in corporate private equity? We wanted to circle back on Michael's monetization commentary and the expected ramp in transaction activity.
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