This all tends to manifest itself in one key way from an investment perspective: the ability to attract and retain good people over long periods, which again directly impacts fund management.
Business structures should be an enabler, not a disabler of the investment team.
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Those aspects that work against the client – such as bulk assets, consensus thinking, running too many funds, turning fund managers into salespeople and cut-throat cultures – all find their way into the running of client portfolios.
Those firms that can structurally align best with their end clients over the long term can, and should, be rewarded with better fund ratings over time.
Rory Maguire is managing director of Fundhouse
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