FINANCIAL TIMES: Pension funds and other large investors are throwing away billions of dollars a year on worthless advice from investment consultants, according to academic research.
The funds recommended by consultants do no better than any other, and by some measures they underperform the wider market significantly, the research* found.
On an equal-weighted basis, US equity funds recommended by consultants underperformed other funds by 1.1 per cent a year between 1999 and 2011, according to analysis of 29 consultancies accounting for more than 90 per cent of the market by a team from Oxford university’s Saïd Business School… (more)
