US public pension funds and other institutions
are now more empowered to negotiate fee arrangements as hedge
fund industry performance is challenged and redemption pressure
creates an unforeseen restructuring of the traditional 1% and
20% fee model.
Utah Retirement System has taken the lead in suggesting a
new fee structure that not only takes into account long-term
performance, but also recognises that the management fee
structure should be based on actual business expenses, the
assets under management and the length of lock-up.
Larry Powell, deputy chief investment officer at Utah, has
been leading the charge bringing with him experience at a