As mutual funds and hedge funds increasingly outsource risk management, investors could benefit through lower fees and better transparency, The New York Times reports, citing a PricewaterhouseCoopers survey of more than 150 investment management executives. About 31% said they plan to outsource more business functions over the next two years.

“The whole point [of outsourcing] is economies of scale,” explained Barry Benjamin, head of the investment management practice at PwC. If handled propertly, “the investor should get a higher-quality product for more competitive cost” since outsourcing frees up managers to focus on asset management.

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