In the Margins

Do money managers spend too much time in comfort zone?

April 19, 2018

By Bloomberg

A new survey from Greenwich Associates found that many institutional investors do not consider how to get the most efficient exposure to an asset or industry when allocating capital. That’s leading them to trade the same types of securities time after time, rather than branching out from, say, bonds into exchange-traded funds or swaps. “The comfort zone isn’t always the right place to be,” wrote Kevin McPartland, head of research for market structure and technology at the financial-services consulting firm. “Ultimately, making a suboptimal choice that did not take into account both explicit and implicit costs could, over time, have a major impact on fund performance.” Read the original story from Bloomberg.

 

 

Most Read

Top of the Agenda - Governance
Directors: Focus on prospectus for ESG funds

Environmental, social, and governance investing has been a huge topic of discussion in the mutual fund industry over the past several years, including in fund boardrooms. ...