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Pension plans are doubtful that product innovation will boost returns and want asset managers to improve what they already offer rather than create new products, a survey across 30 countries has found.
Pension plans are doubtful that product innovation will boost returns and want asset managers to improve what they already offer rather than create new products, a survey across 30 countries has found.
Performance-based fee compensation relies on performance fee models that require that specific parameters be clearly stipulated in the investment management agreeement. This case study is one example of the misinterpretation that can occur when the fee model’s parameters are not specifically defined.
Access to investment smarts and better fee alignment are just some of the benefits institutional investors can gain through their mandates with funds managers, says Craig Baker, global head of manager research with Towers Watson.
Towers Watson has revealed an alternative fee model for private equity which includes halving the base fee and a two-tiered performance-based fee linked to staff retention, earnings growth as well as returns.
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