The Latest
Analysis

The impact of the mega manager

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 […]
Analysis

More evidence big is better in pension funds

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 […]
Editorial

Does pay for performance work?

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 […]
News

Do pension funds add value?

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 […]
Analysis

The cost of bad asset allocation

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 […]
Analysis

Costs cast increasing doubt over hedge fund relevance

The inability to scale hedge fund exposures and risks, has led many large investors, like CalPERS this week and ATP last year, to exit their hedge fund programs. Complexity continues to be a drain on the relevancy of hedge funds, but importantly cost is driving the agendas of these investors. As AQR’s Cliff Asness admits, […]
Research

Australian industry degraded by inflated fees

The Australian superannuation industry is often quoted as among the world’s best. However a new report by the Grattan Institute reveals Australian funds charge on average three times the OECD median rate. The report says that superannuation fee reform is the biggest opportunity for micro-economic reform in that country’s economy. The report, Super sting: how […]
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