JOURNAL OF ACCOUNTING AND FINANCE
Thinking Beyond the Hiring and Firing of Asset Managers: A New Framework Truly Aligning Asset Owners With Asset Managers
Author(s): Patrick J. Wierckx
Citation: Patrick J. Wierckx, (2021) "Thinking Beyond the Hiring and Firing of Asset Managers: A New Framework Truly Aligning Asset Owners With Asset Managers" Journal of Accounting and Finance, Vol. 21, Iss. 2, pp. 127-142
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Research has shown that the way asset owners deal with their asset managers often leads to adverse outcomes for themselves and their asset managers. This paper introduces an innovative framework which plays a key role in achieving a stronger alignment between an asset owner and their asset manager. The framework has been designed to offer a strong theoretical foundation to determine the asset owner’s optimal set of investment strategies across multiple asset classes. Based on this framework, the paper offers an asset owner a coherent set of alignment strategies which contribute to a better alignment with the asset owner’s investment objectives.