Financial Times FT.com

Fund management: Conservatism creates little incentive to outperform

By David Firn

Published: June 9 2009 15:22 | Last updated: June 9 2009 15:22

The fledgling fund management sector has been hard hit by the collapse of equity markets and related disasters, including the fraudulent “Ponzi” scheme run by US broker Bernard Madoff.

The availability of attractively high interest rates at a time of market turmoil has triggered the liquidation of millions of euros of financial products as customers fled to the safety of cash deposits. Spanish funds are also under fire for failing to beat basic benchmarks.

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