Saturday, 26 July 2014
Last updated 12 hours ago
Oct 22 2013 | 9:46am ET
Massachusetts' main public pension manager is set to make a number of changes to its alternative investments portfolio in an effort to save money.
The $53.9 billion Massachusetts Pension Reserves Investment Management Board is set to begin phase one of its Project SAVE, Pensions & Investments reports. And that's bad news for funds of hedge funds, whose share of the system's assets will be cut in favor of direct hedge-fund investments. MassPRIM estimates that the move will save it $40 million.
The pension is also taking advantage of contract renegotiations with some of its hedge fund managers, hoping to squeeze some fee savings out of them. And it plans to begin a private-equity co-investment program which would see it pay no fees at all.
MassPRIM is also investigating hedge-fund replication strategies.
Phase two of the project could see Massachusetts move money out of hedge funds and into passive and internally-managed strategies, according to P&I.
In addition to Project SAVE, the MassPRIM board on Friday also approved an additional $100 million investment in Cantab Capital Partners' Core Macro Fund.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…