To read Part I of this article please click here. carl baconGuest Contributor: Carl Bacon, Chairman, StatPro Some critics of performance fees make the claim that asymmetric fees in particular encourage managers to take more risk if performance is poor because they have little further downside and considerable upside. This is not my personal experience.
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Performance Fees – Good or Bad? Part I
Guest Contributor: Carl Bacon, Chairman, StatPro After a brief lull during the credit crisis, performance (or incentive) fees are again becoming increasingly high profile. An excellent time therefore to pose two questions: Are they a good thing? And if used, how should they be structured? Supporters of performance fees would suggest that they are desirable
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Individual Investors are Making a Comeback
Standard & Poor’s index is up 17 percent since late August, and other statistics are also showing that the market is improving slowly but surely. These improvements may be causing a bullish atAAIItitude and drawing individual investors back into the market. Last week, in a survey conducted by the American Association of Individual Investors to
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What Does Separately Managed Account (SMA) Mean to You?
Guest Contributor: Philip Lawton, Stone House Consulting LLC What does the phrase separately managed account (SMA) mean to you? If you work for an investment management firm with institutional clients, you probably think of their individual, stand-alone portfolios. However, if your firm (or your part of the firm) offers wrap-fee products, you’re more likely to