By Aziza Kasumov September 30, 2019
“The measures taken by UC have dropped the bill for investment management expenses by $1 billion over a five-year period, according to board materials. But with management fees having dipped across the industry, $1 billion in savings for a portfolio the size of UC’s isn’t necessarily “in excess of what others have achieved,” says Chris Cutler, founder of Manager Analysis Services.
The school’s consolidation among public strategies is also not uncommon, Cutler also says. “I’ve seen a substantial reduction in alpha across many strategies, and that tends to lead to allocators consolidating to managers that they think are best,” he adds.