HAPFS’s Ho questions merits of performance-only fees

Paying investment managers just performance-related fees is an enticing idea, but its implementation does not always result in the intended alignment of interests between investors and fund managers. That's the warning from one of Hong Kong's largest public sector pension funds.  “The way you structure performance fees might affect the performance behaviour of fund managers because their income is based on such performance,” Doris Ho, executive director of Hong Kong's Hospital A…