How investing got ‘dumbed down’ (and how to fix it)
The benchmarks that are supposed to measure performance and create alignment with end investors are working against asset managers, and the industry must find new ways to demonstrate value before it’s too late, according to MFS.
It is a truth universally acknowledged that nobody – from massive pension and sovereign wealth funds to the asset managers that they invest with – actually likes benchmarks.
They were born from a desire to create accountability, but the humble benchmark is now the bane of many investors’ existence, who struggle to align the horizons they actually invest towards with the yearly movements of indices that look more and more pumped…
