In the Margins

'Lousy' incentives for corporate stewardship in asset management?

June 13, 2017

By Reuters

"Lousy incentives for corporate stewardship is a flaw at the heart of our system of delegated asset management," writes James Saft for Reuters. "What’s more, index funds, which are rapidly becoming the dominant force in investment management, have the lowest incentive to spend money to chivy the companies whose shares they hold to perform better." Read the original story from Reuters.