News Analysis: Do performance-related fees and investment consultants mix?
Performance-related fees for consultants are a hot topic at present, alongside another area of discussion, namely the extent to which investment consultants pay lip service to the concept of accountability for their advice. These debates have been a long time coming and, hopefully, will result in an overall upgrade in the quality of investment manager advice generated by the profession and halt the inexorable move towards mediocrity that will otherwise occur. However, many investment consulting firms are simply not structured to provide a fully accountable level of service and will need to carefully review their business plans if they wish to demonstrate complete integrity of their decision-making and implementation processes going forward. To form this view, one simply has to look at the experience of the investment management profession over the last 20 years. There are many parallels between investment managers and investment consultants. One researches, identifies and constructs a
