Thinking Beyond the Hiring and Firing of Asset Managers: a New Framework Truly Aligning Asset Owners with Asset Managers

18 Pages Posted: 8 Jul 2021

Date Written: April 01, 2021

Abstract

Research has shown that the way asset owners deal with their asset managers often leads to adverse outcomes for themselves and their asset managers. This paper introduces an innovative framework which plays a key role in achieving a stronger alignment between an asset owner and their asset manager. The framework has been designed to offer a strong theoretical foundation to determine the asset owner’s optimal set of investment strategies across multiple asset classes. Based on this framework, the paper offers an asset owner a coherent set of alignment strategies which contribute to a better alignment with the asset owner’s investment objectives.

Keywords: investment strategy, asset owner, external manager’s selection, asset manager, pension funds, investment management, portfolio management, asset management

JEL Classification: G11, G23

Suggested Citation

Wierckx, Patrick J., Thinking Beyond the Hiring and Firing of Asset Managers: a New Framework Truly Aligning Asset Owners with Asset Managers (April 01, 2021). Available at SSRN: https://ssrn.com/abstract=3873146 or http://dx.doi.org/10.2139/ssrn.3873146

Patrick J. Wierckx (Contact Author)

Independent ( email )

No Address Available
Netherlands

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