To earn themselves big bonuses, portfolio managers are more concerned about their firms profitability and drumming up new business, than they are how well they do by shareholders returns, The Wall Street Journal reports today.
Citing a University of St. Louis survey of 400 portfolio managers that revealed that bonuses comprise 45% of portfolio managers pay, the survey went on to discover that a firms profitability and new business are more important to the fund skippers than beating a benchmark. On the bright side, however, beating a benchmark did top their concerns for net asset flows.
The Journal cites the study in light of a pending SEC rule that would require fund companies to reveal their portfolio managers pay packages. If the SEC does pass the new rule, investors just might not like what they see.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.