Industry observers believe asset owners could increasingly turn to low fee passive funds and potentially back off from risky vehicles if new fund rules are introduced next year.
With no end in sight to the fund merger trend in Australia, funds of under $1 billion in size are under greater pressure to show their worth. There are ways they can do so, say experts.
The CIO of the Government Pension Investment Fund explained to AsianInvestor his thinking behind its performance fee structure and whether he will stay on as CIO.
The pension fund's assertive approach on managers has helped cut management costs, but it's yet to be emulated by its peers in Asia. However, that could change.
Performance-only fees do not necessarily better align investor and manager interests, says Doris Ho, executive director of Hong Kong's Hospital Authority Provident Fund Scheme.
Japan’s GPIF recently began paying active managers based on excess returns and cut the fees of underperformers. We asked four experts whether other asset owners will follow suit.