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.

 

 

Most Read

10 Things
10 Things...to know about BDCs

Congress created business development companies in 1980 to support job growth and help emerging companies raise funds. As of 2023, there were 139 BDCs with $312 ...

Top of the Agenda - Succession
Vanguard nominates two, as two hit retirement

The Vanguard board expects to add two new independent directors in early 2025 to fill seats that will be vacated when two long-serving independents retire. The ...