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Fees

Time to make value judgements

Keith Ambachtsheer says net value added for members, not absolute cost, is the way to evaluate funds, and points to a report from Australia’s Productivity Commission as a sensible blueprint.
Amanda WhiteMarch 7, 2017
In-house Investments

What is the minimum AUM for internal management?

Large funds outperform small funds mostly mainly due to the cost savings of internal management. So when does internal management make economic sense for a fund? It’s at a much lower AUM than you might think. CEM Benchmarking analysed a universe of 186 pension funds globally. That universe is split into four groupings: 77 funds […]
Amanda WhiteMay 20, 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
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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