Study looks at differences between institutional and retail mutual funds
| Jun 17th, 2009 | Filed under: Academic Research, Investment Management Fees, Today's Post | By: Alpha Male |
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Long-only equity strategies may have recouped most of their 2009 YTD losses, but there is little question the past year has left them with a volatility only their mothers could love. The FT reports this week that UK pensions are “paying the price for an equity bias”. Reports the paper:
“…UK company pension schemes are among the most heavily invested in equities when compared with employers based elsewhere. The average allocation to equities was 48 per cent at the end of 2008 – a figure that reflects the collapse in stock markets – and is higher than that in any other country where the private sector accounts for a significant proportion of pension schemes.”
At the same time, Hedge Funds Review points to a survey showing that pensions continue to allocate to equities. Reports the magazine:
“On the issue of active management, 27% said their allocations to active management would be reduced. A further 37% said they would increase their allocations but only if fee terms rewarded actual, not expected, out performance.”
Meanwhile, Pensions & Investments reports that European pensions are actually giving a “cold shoulder” to equities… More…
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