Volume 1 / Issue 3

HERE’S THE THING!

In our last issue of Quaero JOURNAL, we scratched the surface on fee transparency. I opened the discussion with several theoretical arguments against “the industry standard” fee structure that charges bps as a % of assets and I promised to share my radical solution to the problem in this, Issue 3.

My novel idea calls for all investment management fees to be quoted in absolute dollar (or other local currency) terms, what we shall refer to as “flat fees”. Additionally, active management strategies should be compensated with a pre-determined share of “alpha” generated against a carefully developed, passive benchmark. In short, I argue for more transparency and for more performance fees.

TAKE ME TO THE ARTICLE . . .