Most asset owners are over-diversified and rely too much on market capitalisation weighted benchmarks for them to deliver optimal long term pension benefits, Dutch pension fund PGGM says.
Bringing select asset management functions in-house puts you in a better position to engage with external managers, UniSuper’s John Pearce says.
If pension funds need to be efficient and competitive, then who decides which one is not?
Internalisation gives an edge in managing risk, OPTrust CIO says.
Insourcing asset management makes for a compelling case, as long as you are transparent to all stakeholders, Keith Ambachtsheer says.
Not all asset classes lend themselves well for internalisation, but which ones are best to start with depends on the individual fund.
Super funds rely on culture to attract and retain good asset management staff, CIFR research finds.