FYI: (Click On Article Title At Top Of Google Search)
It’s no secret that active management has been a tough sell recently. Yes, there are talented managers who justify their higher fees, but investors increasingly aren’t willing to take that gamble. Last year investors pulled $207 billion out of active funds, according to Morningstar, and plowed $414 billion into passive portfolios.
So here’s an idea: Why don’t active managers walk the talk? Charge a minimal fixed fee “to keep the lights on,” says Andrew Clare, a professor of asset management and associate dean at Cass Business School in London. Then add a performance-based fee that rewards them for beating their benchmark and penalizes them when they don’t. Under the typical flat-fee structure used by most mutual funds, investors pay the same fee (as a percentage of assets) regardless of how their funds fare.
Regards,
Ted
https://www.google.com/#q=should+fund+managers+be+paid+for+perfprmance
