Asset managers should pay investors to manage their investments, according to pension fund adviser Mercer. According to the Financial Times, the proposal would replace the current system where fees are paid regardless of the returns delivered to clients. Divyesh Hindocha, a partner with Mercer, told the paper: “If asset managers really believe that they can generate alpha [market beating returns], this new approach should provide them with a strong incentive to reorganise their business models.”
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