Do you get what you pay for?

2 responses to “Do you get what you pay for?”

1. 

   Chris Ailman

   January 31, 2012

   David Villa and Charles Cary are both with Public Funds.

   While you point out people will always disagree, one does have to ask if the CIO had full discretion over Asset Allocation and risk appetite. It certainly isn’t level across these funds. I realize it’s the most recent time period, but would you ever use the data from 1928 to 1932 to measure someone’s performance?

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   1. 

      AMANDA WHITE

      January 31, 2012

      Thanks for your comment Chris.
      Clearly it is more complicated than a simple basis points/$ figure, particularly at fiduciaries where the board sets strategy and the role of the investment team is to implement.
      I also take your point about time frames. One of the enduring challenges for the industry across the globe is to think, and act, with only long term goals in mind. I’d welcome ideas on how we can challenge the industry, in particular service providers and stakeholders, to think like that – long-term mandates perhaps?

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