June 11th, 2019

NJ HF Cut Just Latest Action in Industry’s Value-For-Fees Pursuit

The New Jersey Division of Investment’s decision at the close of May to halve the state’s pension funds' hedge fund allocation to 3% from 6% to save on asset management fees raised nary an eyebrow, viewed by the industry as just business as usual—just another fund in a long and growing list of institutional asset owners moving to reduce asset management costs. Since the financial crisis, cost management, in general, and investment costs in particular, have climbed in importance as a fiduciary imperative at institutional funds.