8/3/2010

All too often, fund managers collect spectacular fees from investors for doing nothing more than keeping up with the performance of broader equity markets, according to The Economist. A study proposes measuring managers' performance against an "inertia benchmark," comparing returns from a manager's portfolio with those of a manager who does nothing. "Clients would face a lot of opposition if they tried to restrict managers' fees," the magazine notes. "But after a decade of dismal returns it is time for them to act."

Related Summaries