NYT – Life for pension funds is getting tough. The race to the bottom in global interest rates has reduced the rate at which funds discount their future liabilities. Life expectancy continues to surge. Deficits have ballooned.
In response, pension funds are looking to cuts costs, and investment management fees are a relatively simple place to start. This leaves hedge funds – which typically charge an annual fee of 2 percent of assets under management along with 20 percent of performance – high on the kill list. But public relations also appears to be playing a role.
