ABSTRACT
The strategic point of interaction is at the Board, and need to make sure that have a good Board. Having significant investments in a few hundred companies, this requires an appreciable amount of engagement. The fund management industry is responding to pressure from the government and felt they had to do something in order to stave off legislation. There is an area of trust which is really difficult. One problem is that everybody in industry assumes that investment managers are paid a fortune and that it is a bit hypocritical having them clamp down on the pay of industrialists. The theory is that the fund managers help address this problem. There is a sort of fuzziness or meeting in the middle of the hedge funds and long only investors. But the world in which we are now operating means that management fees are a bigger issue than they were when people imagined that much larger returns were sustainable.
