This is definitely a very thought provoking excellent article and there are a number of examples in the investment landscape,practices which were introduced with a proper logical purpose, but which seem to be causing more harm than good.Various indices exist all over the world and fund-mangers who bench-mark their performances with a certain index, fall over each other to beat these indices to prove their worth.That being the case, the constituents of these indices become very vital. There is sometimes a lack of transparency as to why certain constituents get in and what gets out. Obviously, those managers who get to know before hand will make a lot of money, not because of their skill as fund managers, but because of their proximity to certain officials who are involved in the construction of these indices.
This is definitely a very thought provoking excellent article and there are a number of examples in the investment landscape,practices which were introduced with a proper logical purpose, but which seem to be causing more harm than good.Various indices exist all over the world and fund-mangers who bench-mark their performances with a certain index, fall over each other to beat these indices to prove their worth.That being the case, the constituents of these indices become very vital. There is sometimes a lack of transparency as to why certain constituents get in and what gets out. Obviously, those managers who get to know before hand will make a lot of money, not because of their skill as fund managers, but because of their proximity to certain officials who are involved in the construction of these indices.