Smoke and mirrors behind performance fees

By John Collett
Updated October 16 2012 - 11:08am, first published October 8 2012 - 11:26am
Show-stopper … performance fees have superficial appeal but the problem lies in their structure. <i>Illustration: Karl Hilzinger</i>
Show-stopper … performance fees have superficial appeal but the problem lies in their structure. <i>Illustration: Karl Hilzinger</i>

One of the biggest enemies of investors is outsized fees. The higher the fees, the higher the required gross returns of the investment just to break even.