Investment fund managers' decision-making is affected by politics. Here's what that means
Fund managers are meant to be focused on value creation, and paid to make decisions that financially benefit the firm they invest in and, by consequence, the fund they manage. Yet, recent research suggests that’s not always the case and that, in the United States at least, their decisions can actually be driven by political motivations. What’s more, these managers then look to hide that bias by engaging in “signal jamming” to avoid any potential backlash for breaching their fiduciary duties. Not all behaviour is as expectedThis conclusion is based on an analysis of the proxy voting behaviour o...