Daily Archives: June 8, 2009

Sophia Grene

I'm with Mr Stupid

I'm with Mr Stupid

Is there a difference between a transactional business culture, like that of investment banks, and a fiduciary culture, such as asset managers are supposed to have?

According to one hedge fund manager of my acquaintance, this is a key distinction when selling products, because the fiduciary responsibility means you’re going to have to put up with your clients for the life of the investment.

“The very last thing you want is an investor who doesn’t understand what they’re getting. They’re the ones who are on the phone to you every week with all sorts of stupid questions.” Since this manager is deeply intolerant of stupidity, he has been careful to ensure his products were only ever sold to people who really understood them.

This does not seem to have been a guiding light for many investment managers, however. Are they more tolerant of stupidity or have they simply failed to understand the implications of their fiduciary responsibility?

About the blog

FTfm is no longer updated but it remains open as an archive.

FTfm's specialist writing team offer their insights into the global fund management industry.

About the authors

Pauline Skypala has been editor of FTfm for four years having previously been deputy personal finance editor. She joined the FT in 1999 and has been writing on savings and investment issues throughout her career.

Steve Johnson, FTfm deputy editor, has been a journalist for 17 years, 10 of which have been with the FT.


Sophia Grene, reporter on FTfm, has been a financial journalist in print and online for 12 years.

Ruth Sullivan has worked as a financial/business journalist and foreign correspondent and for the past 10 years has been at the FT.

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