In this latest paper, Watson Wyatt, suggests some changes to redress the imbalance in private equity fees including changing the basis on which a manager sets its management fees; and that GPs should consider phasing in management fees over the investment period to reduce the significant fee drag from paying on commitments early in the life of a fund.
Nest, the largest workplace pension in the UK, says that private credit managers who prioritise institutional clients will be more favourably viewed. The £61 billion ($82 billion) fund has awarded a £450 million ($605 million) US direct lending mandate to Crescent Capital this month, citing the manager's institutional-client-first approach as a key attraction.
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.
MSCI’s long-awaited decision to include China’s A shares in its emerging markets and ACWI indices will affect more than $1.6 trillion in funds that track the MSCI Emerging Markets In
Since 2014, the Government Pension Investment Fund, the world’s largest investor, has shifted a chunk of its holdings, in domestic bonds to equities, and heightened its focus on stewardship.
Reima Rytsölä, chief investment officer at Finland’s largest private pension insurance company, sticks with the fund’s longstanding interest in hedge funds and extends its risk premia strategies.
Danish pension fund Lønmodtagernes Dyrtidsfond has embraced innovation, introducing four buckets for a more dynamic equities portfolio and co-investing with peers to get top value for fees.
The University of Toronto Asset Management Corporation adopts passive moves into US equities, active allocations to international shares and select opportunities in private credit markets.
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