Governance Quality In Asset Management: Why It Is The Key To Long-Term Investment Performances

Frank Fabozzi, Editor of The Journal of Portfolio Management, contacted me some months ago to say that he was planning to dedicate a future issue of the Journal to exploring the role that governance plays in determining success or failure in asset management organizations. Would I be willing to contribute an article to that issue?

The result of that request is the lead article in the May 2026 issue of the JPM, titled “Governance Models for a Changing Asset Management Landscape”. My original title for the article was a little more assertive: “Governance Quality in Asset Management: Why It Is the Key to Long-Term Investment Performance”. According to the JPM, the article’s three key findings are:

1. Governance quality has a direct and measurable impact on long-term investment performance and client outcomes, making it a strategic priority rather than a compliance function.
2. The Canadian Pension Model demonstrates how organizational legitimacy, professionalized boards, and clear accountabilities can improve decision-making and value creation in complex asset management settings.
3. Adapting the asset management firm for the future requires rethinking organizational design and governance structures, not just refining investment strategies.    

Keith Ambachtsheer

Click HERE to download the PDF of the JPM article