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Ian Bickis of The Canadian Press reports CPP Investments earned 8 per cent in latest fiscal year, net assets rose to $632 billion: Canada's biggest pensionfund earned an eight per cent return last year, but significantly underperformed the 19.9 Managementfees decreased by $10 million, remaining broadly in line with the prior year.
In private credit, tightening credit conditions resulting from a handful of bank failures and rescues in the United States have opened up opportunities for non-bank players like pensionfunds, he said. Managementfees increased by $165 million, due to an increase in average assets managed by external fundmanagers.
Private debt, private credit was unheard of in Europe until the banks effectively went into this massive liquidity squeeze and all those asset managers had to step in and fill this void. Private equity at the time was only about buyout and LBO. Great opportunity for us. And I think this is where the industry should be heading.
Pensionfunds are calling for more transparency from private equity firms, seeking clearer and standardised reporting on fees and returns, in new guidelines published by the Institutional Limited Partners Association (ILPA), according to a report by the Wall Street Journal.
Higher fees, including both management and performance charges, also deter employers from integrating such options into their retirement plans. While ETFs typically charge around 0.51% in fees, private equity firms often collect 2% in managementfees and 20% of profits. Can`t stop reading?
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