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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 […]
Amanda WhiteFebruary 13, 2015
Uncategorised posts

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 […]
Amanda WhiteJanuary 14, 2015
Uncategorised posts

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 […]
Amanda WhiteOctober 15, 2014
Asset Classes

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, […]
Amanda WhiteSeptember 17, 2014
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 […]
Amanda WhiteMay 2, 2014
Asset Classes

Data doesn’t lie: illiquidity premium doesn’t exist

There is no 3 per cent illiquidity premium in private equity, according to research by CEM Benchmarking. A cost drag on private assets cancels out the returns of investing in private equity and real estate for those investors that outsource to external providers, the research finds. CEM Benchmarking, which has a database of 354 pension […]
Amanda WhiteJanuary 22, 2014
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