FTFM Achieving an alignment of interests between investors and fund managers is a key concern in investment management. How do you ensure managers run money in the interests of investors rather than to maximise their remuneration?
Roberto Paganoni, chief executive of LGT Capital Partners, an alternative investment management firm, has strong views on the subject. Managers should put their own money into the funds they run, rather than just “having an option on the upside” via performance fees, he says. And it should be a meaningful amount in relation to their net worth.
