Australian Pension Dumps Hedge Funds

Mar 7 2013 | 12:19am ET

Another institutional investor is quitting funds of hedge funds.

CareSuper, an Australian superannuation fund, will redeem it’s A$100 million from Fauchier Partners. The move will leave the A$7 billion pension manager with no hedge fund exposure at all.

The move is designed to save CareSuper on fees and to come into compliance with new Australian superannuation regulations.

"Hedge funds have not met our expectations and they are expensive," Greg Nolan, chief investment officer, told The Australian Financial Review. "Those two factors combined have led our board to decide to terminate the hedge fund managers we have."

CareSuper plans to replace its hedge funds with absolute-return managers offering lower fees, better liquidity and more transparency.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...