Institutional Investors

Performance fees come under close scrutiny as Brent mulls alternative to funds of hedge funds

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Brent Pension Fund in north-west London has reviewed its $64 million holding in a Jubilee Fund run by Fauchier Partners and discussed future options for handling the allocation.

While it is unclear as yet what route the UK local authority pension fund will choose, the scheme is understood to believe that in light of underwhelming performance, fees charged by funds of funds are under close scrutiny.

“The double layer of fees provides a fairly heavy drag on the overall net return. When returns were buoyant fees could be considered acceptable in that context, but in a low-return environment