Will third parties turn out to be friends or foes?

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As asset managers look to build third-party distribution, just how worried should existing unit-hold...

As asset managers look to build third-party distribution, just how worried should existing unit-holders be about future performance of their funds? A basic rule of thumb is that the bigger a portfolio, the harder it is to outperform. It is a rule that fund managers certainly believe. Many are joining boutiques because it gives them far less money to run and the flipside is it should help them get better fund performance. It is a key reason why they are so keen on putting performance fees on portfolios: if they outperform they can get a growing income without having to take in more assets u...