The Canadian model, revered world over for its supreme pension management, is not low cost despite that being one of its oft-described traits. New research by CEM Benchmarking and McGill University shows that these funds are cost efficient, rather than being low cost. Their aim is to be high net performers, not low cost.
On the eve of its centenary, Alecta’s head of investment management reflects on the low-cost, Sweden-centric, active in-house strategy which has kept the pension provider on top of its game.
The total investment costs of AP2 are only 17 basis points, yet the portfolio is described by chief executive, Eva Halvarsson as complex and advanced. So how do they do it?
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