Amin Rajan: Active investing needs meritocratic fee structures

first_imgActive asset management fee structures need to become more meritocratic, according to Amin Rajan, CEO of CREATE-research.Presenting independent research commissioned by eight* asset managers for an active investing conference held in London yesterday, Rajan said active managers need to be guided by two main principles. One is a recognition that, as investors and regulators have become vigilant about charges, investing has become about value for money rather than just returns.A second principle is that fee structures need to become much more meritocratic. Investors want their asset managers to “eat their own pudding as well”, said Rajan.Addressing the debate about active versus passive investing, Rajan said it involved “more heat than light” and that it was misplaced to consider the two styles mutually exclusive.Instead, they are mutually complementary.“To me they’re like yin and yang,” he said. “They each support one another, they each thrive on one another.”He said this interdependency had, in his opinion, not featured in debates on active investing that he had attended.The outperformance trends of active and passive investing were cyclical, with both having swapped places as winners over different market cycles historically, Rajan noted.When markets are inefficient, active managers step in to buy or sell over- and under-valued stocks, respectively, he said.As markets become more efficient again, more money will flow towards passive funds, which will lead to renewed price distortions and offer opportunities for active managers.Rajan said that despite a hostile environment, brought about by developments such as quantitative easing and regulatory pronouncements favouring passive funds, many active managers have performed well.“This fact has not really been that widely recognised,” he said.Still, active managers need to “up their game” and are doing so, he added.All the managers Rajan has spoken to over the past two years – some 100 – recognise that they needed to change given that the shift to passive is structural, he said.European institutional passive investment grew by nearly three times as much as active investment between 2013 and 2017, according to IPE’s Top 400 Asset Managers survey.*Aberdeen Standard Investments, BMO Global Asset Management, Columbia Threadneedle Investments, Franklin Templeton Investments, Janus Henderson Investors, Jupiter Asset Management, M&G Investments, and Schroderslast_img read more

Scott Shafer on Leonard Fournette: ‘I think this kid is the most talented tailback I’ve gone against’

first_img Published on September 22, 2015 at 12:48 pm Contact Chris: | @ChrisLibonati Before the first half was over last week, No. 8 Louisiana State (2-0, 2-0 Southeastern) running back Leonard Fournette had 169 yards, including a 71-yard run and a 40-yard run, a touchdown and was responsible for putting Auburn in a 24-0 hole.Syracuse (3-0, 1-0 Atlantic Coast) will get all of Fournette’s 6-foot-1, 230-pound frame on Saturday at noon in the Carrier Dome.“In my 26 years, I think this kid is the most talented tailback I’ve gone against,” SU head coach Scott Shafer said. “He’s special.”Shafer had high praise for the running back, who is a Heisman Trophy hopeful. This season, he’s racked up 387 yards and six touchdowns — only four less than he had in all 13 games last season — on 47 carries in two games against Mississippi State and Auburn. Coming into college, Fournette was ranked by most recruiting sites as the No. 1 player in the Class of 2014 and had 1,034 yards and 10 touchdowns as a freshman last season.“You’ve got unbelievable vision and his physicality is … I mean remember Earl Campbell?” Shafer said. “He’s a great player, we’ll have our hands full.”AdvertisementThis is placeholder textCampbell, who led the NFL in rushing in his first three seasons in the late 1970s and early 1980s, ran for 4,443 yards in his college career. Shafer also compared LSU as a team to the 2013 Florida State team, which won a national championship with Jameis Winston at the helm and romped SU, 59-3.Shafer marveled at LSU’s offensive line, too. He said the Tigers are big up front, but what impresses him the most is the offensive linemen aren’t “stiff.”“He’s 6-1, 230, but he moves like he’s 5-9,” Shafer said of Fournette. “He moves like Brisly Estime and then with that power behind it.” Comments Facebook Twitter Google+last_img read more

Konadu unhappy with 1-1 draw with Liberty

first_imgKotoko head coach, Maxwell Konadu, was not a happy man after his team failed to beat Liberty Professionals in their Week 7 clash at the Baba Yara Stadium in the Ghana Premier League.The Porcupine Warriors needed William Opoku Mensah to score in the 86th minute to give them a point in the encounter.After defeating rivals Hearts of Oak in Week 6, the expectations were that the Reds would use the momentum of the victory to push them to another victory but they had to settle for a 1-1 draw and that did not make Konadu a happy man on Sunday.“We are not that we lost points at home. We were stronger in the second half but we just could not manage to take the points, We wanted to win to help our position on the table.It was a tough match and Liberty played very well. It was a good match overall but then, Liberty were better than us.”The result meant that Konadu’s team has picked up two wins, a draw and a loss in their home matches so far in the season.Kotoko head to WAFA and Dreams FC in Week 8 and 9 before returning home to face AshGold on February 16.last_img read more