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.
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.
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.
APG is one of the few large asset owners putting AI to work effectively in its investment process. Amanda White looks at how it is integrating machine learning and more to enhance decisions.
The C$337 billion CPPIB works towards a full understanding of its external managers’ strategies. These efforts, plus a customised fee structure, ensure a focus on long horizons.
The head of North Carolina’s pension fund, Treasurer Dale Folwell, is dropping some managers, calling out others, and remaining cautious about reallocating capital – all without a CIO.
Portfolio-level views of risk and alpha-generating strategies help explain why the State of Wisconsin Investment Board says its technology refresh has already paid for itself.
Most investors aren’t ready for the enormous impact of AI, chaos theory and more on the industry. Stanford’s Ashby Monk says the first step in changing this is building networks for innovation.
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