GPIF fee structure aligns interests
The world’s largest investor restructured how it pays its active mandates to get more certainty from managers. Its actions, which were taken after self-reflection, will affect the entire sector.
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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.
CPPIB focuses managers on long term
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.
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.
Real investors properly align interests
A good investor must be proactive in determining the fee structure and legal terms in a fund’s documents. Funds that fail to get interests properly aligned on such issues will pay a price.
Not all fees are created equal
Could investment management fees be different? Nick Sykes at Mercer, suggests that an alternative fee structure that focuses on “idiosyncratic alpha” could benefit asset owners and managers.
Fees