Issue #48

How often do we see asset managers rewarded for the wrong things? Fees tied to Assets Under Management (AUM) rather than value creation lead managers to prioritise raising capital over maximising returns, diluting performance and misaligning with client goals.

This creates a cycle where growing AUM adds complexity, shifting focus away from generating alpha. Clients end up paying for inefficiency, eroding trust in the process. What if fees were tied strictly to performance? No rewards for bloated AUM, just a focus on delivering value to clients.

At Noviscient, we’ve adopted performance-only fees, aligning our success with our clients’ outcomes. This model fosters innovation, agility, and client-centric practices. By eliminating the obsession with asset gathering, managers can return to what truly matters: managing risks and delivering returns.

Investors deserve better. A shift toward transparency and alignment isn’t just desirable — it’s inevitable. Are you ready to demand better?