search query: @indexterm Portfolio management / total: 694
reference: 184 / 694
| Author: | Gillenkirch, R. M. |
| Title: | Anreizwirkungen und Bewertung von Erfolgsbeteiligungen im Fonds-Management |
| Journal: | Zeitschrift für Betriebswirtschaft
1999 : ERGÄNZUNGSHEFT 3, p. 61-85 |
| Index terms: | PORTFOLIO MANAGEMENT PERFORMANCE APPRAISAL MANAGERS |
| Language: | ger |
| Abstract: | Performance fees for portfolio managers are designed to align the managers goals with those of the investors and to motivate managers to aquire information, and to make better investment decisions. A part of the literature bases the analysis of performance fees on the assumption of their risk neutral valuation. In this article it is shown that the conditions which underlie risk neutral valuation imply that performance fees are in general useless or even dysfunctional. In particular, a performance fee does not motivate a manager to use superior information for investment decisions concerning the managed allocation decision. It is shown, that a simplified approach to the problem can be found in designing performance fees which at least create unanimity among investors and the manager. |
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