It has become gospel that increased transparency leads to accountability and this incentivises people to do better. The entire set of ESG regulations that are being passed into law in Europe at the moment has the goal to increase transparency for investors about the climate impact their investments have. And the hope is that by making this information public, fund managers will start to take climate risks more into account.
Given that the performance statistics for US actively managed funds are pretty dismal (as per SPIVA reports) this implies that European fund performance (on average) is likely to be even worse - or am I reading too much into this?
Hi Joachim. Couldn't be the other way around? that the best fund manager tend to be disclosed because they want to emerge (and have they own share of fame) while underperforming funds tend to be kept anonymous until the portfolio manager improve the performance?
Also, improving the focus of transparency on fund manager could also increase the risk of a "Star Single Manager" approach, don't you think?
Given that the performance statistics for US actively managed funds are pretty dismal (as per SPIVA reports) this implies that European fund performance (on average) is likely to be even worse - or am I reading too much into this?
Hi Joachim. Couldn't be the other way around? that the best fund manager tend to be disclosed because they want to emerge (and have they own share of fame) while underperforming funds tend to be kept anonymous until the portfolio manager improve the performance?
Also, improving the focus of transparency on fund manager could also increase the risk of a "Star Single Manager" approach, don't you think?