Fees kill alpha from hedge funds
Many hedge fund portfolios perform well before costs but fall into negative alpha after charges are levied, Canadian firm CEM Benchmarking's analysis of nearly 400 large investors has found.
Sweden’s FTN focuses on fees and returns in latest procurement
Lower management fees and higher returns defined the latest selection process at the Swedish Fund Selection Agency in its latest awarding of active global equity mandates to 12 managers, its largest and most ambitious €20 billion ($23 billion) procurement so far.
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Building a better fee model
Changes in standard funds-management fee structures are inevitable. Better alignment and fairness can be arranged if the stakeholders are willing to make it happen. Mercer presents some ideas.
Fees get another rethink
A new measure of the value a manager adds meets a proposed rate of compensation and protection for asset owners in the Thinking Ahead Institute’s plan for fairer performance fees.
AustralianSuper’s equities ride
The large size and penchant for active investment of the $120 billion AustralianSuper present both opportunities and challenges for its fund managers and inhouse equities team.
A strategy to believe in
Nevada’s public pension plan only pays 11 bps in total costs due to 80 per cent of the fund being indexed. But CIO Steve Edmundson says low fees are a byproduct, not the reason for the strategy.
OTPP’s private equity revolution
A deep dive into the world-class private capital division of OTPP, led by Jane Rowe, reveals a strategy of buying large direct stakes in companies, and a commitment to innovation.
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