Everything from charging dead people fees to trustees nixing mergers out of self-interest has emerged, as royal commission hearings have exposed big flaws in the world's fourth-largest pension system.
Just seven years after restructuring around a passive core in response to the GFC, Australia's $8.2 billion Local Government Super has found confidence and success in active management.
The board of CalPERS is still wrestling with issues such as pay and level of control over its new private-equity entity. Meanwhile, opportunities could slip away if the launch is delayed.
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.
A roundup of recent institutional investors' hedge fund activity.
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.
The $71.9 billion Mass PRIM pores over the numbers to be sure it pays active managers only for skill. That's just one way it uses intense analysis to deliver.
Hiro Mizuno, CIO of the world's largest investor, told the CFA conference that in exchange for multi-year commitments its mandates would now claw back fees when firms don't reach alpha targets.
Asset owners are lowering return targets, shrinking active long-only allocations and getting tough on fees as harsh outlooks persist, the annual Top1000funds.com/Casey Quirk survey reveals.
When the £16 billion BBC Pension Scheme started moving away from active listed strategies, it was time to rethink its interactions with external managers, starting with a few key questions.
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.
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.