Perhaps this is the peril of an asset manager under the constant scrutiny of public investors. If it was privately held like Vanguard, it would be only responsible to investors in its funds, allowing more focus on delivering returns. But as a publicly listed entity, it has to worry about earnings quality. In the world of Blackstone and BlackRock, raising money is becoming more important than making money for clients. Their ultimate loyalty has to be to their shareholders.
Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. A former investment banker, she was a markets reporter for Barron’s. She is a CFA charterholder.