Fund managers pose threat to global financial stability, says IMF

International Monetary Fund says delegating investment decisions to large asset managers, as many savers do, can 'induce destabilising behaviour'

Fund management companies that invest billions of pounds of savers' money pose a threat to global financial stability and regulators should police them more closely, according to the International Monetary Fund.

Delegating day-to-day investment decisions to large asset managers, as pension funds and many individual savers do, "introduces fundamental incentive problems between end investors and fund managers, which can induce destabilising behaviour and amplify shocks," the Washington-based organisation says.