Managing other people’s money
Investment governance tries to codify how to put safeguards around managing other people’s money, Michael Drew and Adam Walk say in their new book.
Last year, we conducted a thought experiment with delegates at our Asset Allocation Forum to see how they dealt with decision-making under uncertain circumstances.
With the help of Professor Jack Gray, we laid out a hypothetical investment case where investors would be presented with a fund that produced remarkably high returns and had the blessing of some of the world’s most respected investment professionals, think of your personal heroes, who all had performed due diligence on it and given it the thumbs up.
The catch was that the delegates themselves would not be able to do due diligence on the fund and, therefore, would have little to no information about the strategy.
Would they invest their own money in it?
You can read Managing other people’s money here.