Managers need to be in sync with their clients’ demands.
Key takeaways
The fund manager only does well when the investor does well.
An optimal model of alignment accounts for the ever-changing mandates of investors.
Report shows how the proactive efforts of investment fund managers to align with those of their investors are arguably the most attractive aspect of their offering.
The most successful fund managers are those that are most in sync with their clients’ demands; the core of this ethos is demonstrated by the increasingly large amount of capital that these fund managers have in their own firm’s success. Not only principals but other key staff are also expected to have their capital in the fund as a way of demonstrating to their firm and underlying investors that they are committed to the mission.
The Alternative Investment Management Association (AIMA), in partnership with RSM International, has published new research into these evolving relationships of fund managers and their investors to investigate to what extent they align interests for mutual benefit in their new report, ‘In Sync: How hedge funds achieve alignment with investors to foster long-term strategic partnerships.’ Key themes include:
Aligning interests: The fundamentals
The modern fee model
Innovating to maintain alignment
ESG: Adapting to the changing landscape
To find out more about how fund managers are adapting their business model in response to competition and the evolving mandates of investors and competition, download the full report.
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