Lodon: The UK fund management industry has a couple of shameful secrets. The first is the way it charges. I’ve written about this many times here before so I won’t bore you at length on the matter. I just want to send you in the direction of a new study from Cass Business School, which points out two things.
First is that the worst type of fee structure from the point of view of investors is one in which the manager is paid either a flat percentage of the assets under management or a flat percentage plus a performance fee. And second that the best is a symmetric fee, one in which both manager and investor share in the upside and the downside of the fund’s performance More >>
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