FYI: (This is a follow-up article.)
Peter Kraus, the former CEO of AllianceBernstein(ticker:AB), is launching an asset management firm, Aperture Investors, with Italian insurance company Generali. Aperture will kick off with up to $4 billion in seed capital that will go into funds and other types of investment vehicles.
None of this makes Aperture unique. But Kraus, 66, is betting that the firm’s fee structure will be a hit with investors and disrupt the industry. Rather than charge fixed fees based on assets under management, the fund industry standard, Aperture’s investment products will charge base fees comparable to those of low-cost exchange-traded funds—about 0.1% for equity funds, for example. Investors will only pay additional, performance-based fees if the funds beat their benchmarks. And some of the managers’ compensation can be “clawed back” if they fail to maintain or beat market returns over the following two years, with excess fees returned to clients.
Regards,
Ted
https://www.barrons.com/articles/peter-kraus-aperture-investors-1537933426
