How much should you pay for asset management? It’s a question that comes up routinely in my travels in finance. There’s no standard answer, but most investors (and institutions) should err on the side of caution when it comes to paying hefty fees. The world is awash in claims of success for adding value over investment benchmarks, but comparing audited results with passive indices and/or simple rebalancing strategies begs to differ. Even before adjusting for taxes and trading costs, truly superior active management is a rare bird.