At its ‘Ideas Exchange’ (IX) conference in Melbourne last month, Watson Wyatt Worldwide flagged an increase in the use of performance fees, but not just for managers – for consultants too.
How restrictions on managers lead to lower alpha and style biases
There may be a shift to relaxing constraints on investment managers, through rising use of absolute returns funds and global tactical asset allocation, but for the bulk of assets under management constraints remain. A recent paper by Charles Jacklin, president of Mellon Capital, shows how constraints on managers lead to inefficient investment outcomes.
