The bad thing is they pay us like family, too. The exact opposite situation prevails for many of today's mutual fund managers.
Pay scales are through the roof, while fund family ties are somewhat strained.
Fund companies don't mind forking out top dollar for top talent, but they expect top rated performance, too. Not an unreasonable demand considering what's at stake, but the increased expectations on both sides has a tendency to foster de-stabilization and perhaps increase manager turnover. We noted in last month's article that the mutual fund market has become bifurcated over the past five years. In these segments, performance often plays a substantial role in building assets. That, of course, is where the money comes in.