CPPIB holds steady as other pension funds divest from hedge funds
While the average hedge fund asset allocation by public pension funds has been on the decline due to concerns with low performance and high fees, interest from Canada’s largest pension fund remains strong.
The hedge fund industry averaged a mere 4.6% p.a. return in the 10 years ending June 30, 2020, equaling just over a third of the S&P500 benchmark which averaged 12.5% p.a., according to Global SWF’s latest newsletter.
The comparatively low returns of hedge fund programs combined with their excessively high management and incentive fees has seen the average pension fund allocation fall from 1.7% to 1.2% since 2015 — with several prominent sovereign investors including CalPERS a…
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