July 14, 2021, Opinion: "Information acquisition is costly for investors—the exact cost of which depending on timing, location, a person’s private information set, etc. To this end, delegated portfolio management is the predominant way in which investors are being exposed to both equity and fixed income assets. With over 16 trillion dollars invested, the US mutual fund market, for instance, is made up of over 5,000 delegated funds and growing. While the SEC has mandated disclosure of many aspects of mutual fund pricing and attributes, different asset classes are better (and worse) served by this current disclosure level. Investors have thus turned to private information intermediaries to help fill these gaps."
Non-HKS Author Website - Lauren Cohen