Global asset owners have made significant advancements in the transparency of disclosures with the industry, showing unprecedented alignment with best practices in performance, responsible investing and governance disclosures. However, cost reporting continues to be a pain point.
Performance is eroded by institutional investors’ decisions around hiring and firing managers according to the preliminary results of a behavioural study by Boston University that links qualitative factors such as committee characteristics with earlier empirical research on performance.
The 108 investment staff of the Teacher Retirement System of Texas (TRS) have had their performance incentive awards reinstated, and will receive $9.7 million between them, after a year which saw the fund outperform its benchmark by 240 basis points making it the best performing public pension fund in the US.
Global equity markets significantly underperformed emerging and frontier markets in 2010, evidenced by MSCI Indices end of year data, with some emerging markets returning as much as 50 per cent and some frontier markest returning 70 per cent for the year.
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Global Pension Transparency Benchmark