Mercer proposes fees shake-up

Description

Rob Bauer was quoted in a Financial Times article on the argument made by the Mercer consultancy that asset managers should to pay to run investors’ portfolios. He said the proposal was “a nice idea but difficult to implement” in practice: “asset managers have very small balance sheets relative to the size of their funds and would be unable to absorb the losses caused by underperformance on even a modest-sized portfolio. So who would underwrite these arrangements?”.