George Latham, Managing Partner and CIO of WHEB Asset Management and Mike Clark, Founder of Ario Advisory and member of WHEB’s Independent Investment Advisory Committee challenge conventional benchmark orthodoxy and suggest a way forward
The debate around the so-called ‘tyranny of the benchmark’ is not new. Yet it continues to be revisited time and again as a cause of short-term thinking which creates a perverse incentive for fund managers. However, nothing seems to change. Few are prepared to challenge the existing orthodoxy of portfolio construction and the role of benchmarks. The status quo is maintained. This must change.
