As the Danish labour market pension fund puts more into alternatives and illiquid assets, it is also in talks with managers to increase its control over investment decisions and lower its costs.
Keith Ambachtsheer says net value added for members, not absolute cost, is the way to evaluate funds, and points to a report from Australia’s Productivity Commission as a sensible blueprint.
In 2017, Denmark LD chief financial officer Lars Wallberg plots a push into unlisted credit, complementing a key exposure to environmental services, to manage his fund’s maturing profile.
Funds will look to pressure fund managers to put more skin in the game with fee structures as they try to control costs and expectations in a low-return world, our third annual CIO survey finds.
Outgoing CaIPERS’ CEO, Anne Stausboll, talks to Amanda White in an exclusive interview, about her passionate views on sustainability, simplifying the portfolio, and where improvements are needed.
Investors should adopt the ILPA standardised fee reporting template for private equity, say Mike Heale and Andrea Dang from CEM Benchmarking
The impact of size is a delicate point for asset managers. For specialist asset classes, and boutique managers, being small and nimble can be a source of alpha. On the other hand, being large can reduce fees and increase innovation and product offering. But now there is evidence to show that the emergence of the... Read more »
A pension fund that has 10 times more assets under management has on average 7.67 basis points lower annual investment costs according to a working paper from authors at De Nederlansche Bank, that explores the relationship between pension fund size and investment costs. Written by Dirk Broeders, Arco van Oord and David Rijsbergen the paper... Read more »
Factor-investing has not yet won the right to be the endurable and dominating asset allocation method, according to new research, which shows that industry or sector-based allocation still has its merits. In particular the study shows that industry-based investing offers defensive opportunities as it delivers better risk-return trade-offs for long-only portfolios during recessions and bear... Read more »
Governance experts say that paying competitive salaries for internal staff will have benefits across the entire fund. For some, including those working in public sector pension funds or profit-to-member funds, that is unpalatable. But a comparison of salaries and total investment costs, between two large, different and high profile funds – Ontario Teachers and CalPERS... Read more »
Asset owners, on average, add 15 basis points of value above their asset class benchmarks after fees, according to an extensive study by CEM Benchmarking. The survey, which measured 6,666 data points from a global set of defined benefit plans, and some sovereign wealth funds and buffer funds, from 1992-2013. Gross of investment fees, funds... Read more »
A study of 300 US pension funds by CEM Benchmarking reinforces the importance of asset allocation, highlighting the performance of asset classes, as well as new evidence on correlations between asset classes. Alex Beath, author of the study, discusses the implications for asset allocation with Amanda White. A CEM Benchmarking study “Asset Allocation and Fund... Read more »