Paying for performance is one thing, paying someone a bonus to lose your money is another-and despite protestations, it is still happening in institutional investment.
Consulting and actuarial firm LCP’s fourth annual review of investment manager fees has found market returns, rather than the skill of a specific fund manager, remain both the main drivers of performance and the supplemental fees investors pay for the privilege.
…..read the rest of this British article HERE
On the same topic:
An article by Justin Fox appeared on the Harvard Business Review website in May. It was titled, “Just How Useless is the Asset-Management Industry?” Some months before, I had read a report by a hedge fund allocator who wrote that, as part of their compensation, managers “will extract” a portion of a fund’s profits for themselves. The imagery stuck with me.
…..read more HERE
The Million-Dollar Illusion: Why Many Retirees Could Outlive a $1 Million Nest Egg – HERE