BIS report highlights asset managers' role in inefficient markets

The structure of incentive schemes may limit the ability or willingness of institutional asset managers to act as a natural counterbalance to mispricing, according to the Committee on the Global Financial System (CGFS) – a G-10 central bank forum that investigates issues related to financial stability.

The CGFS’s tentative findings – based on interviews with nearly 50 investors - were published today by the Bank for International Settlements (BIS). The committee found the prevalence of management against benchmark indexes in combination with typical compensation structures - that are determined by average assets under management - could “contribute to a loss of institutional asset managers’ ability to serve as a market control mechanism". For example, tightening of allowable tracking

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here