A manager who feels compelled by his superiors to deliver short-term returns is unlikely to have the freedom to accept the risk that will deliver the best returns.
Only by undertaking a holistic assessment of the manager, the process and the environment in which they work will the adviser be able to guard their clients’ capital against closet speculators.
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Dan Kemp is co-head of investment consulting and portfolio management at Morningstar Investment Management (EMEA)
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