Australia's $2 Trillion Fund-Management Fee Machine Sputters

The video discusses current trends in fund management, highlighting the reduction of fees and closure of some fund managers. It explores the shift towards in-house management by large pension funds like Australian Super and Unisuper, emphasizing cost efficiency and scale. The video also examines fee structures, fund ratings, and the performance of in-house managed funds, particularly during market downturns.

What is one of the main reasons some equity desks have closed recently?

• Increased competition from international markets

• Lack of qualified staff

• Mandates being pulled by major pension funds

• High operational costs

What is a significant factor in the cost of managing large funds?

• The percentage fee on assets under management

• The number of fund managers employed

• The diversity of investment strategies

• The geographical location of the fund

How has the trend of moving fund management in-house affected large pension funds?

• It has increased their reliance on external fund managers

• It has allowed them to manage a larger portion of their investments internally

• It has made them less competitive

• It has decreased their overall performance

What is a potential challenge for in-house fund management during a market downturn?

• Difficulty in accessing unlisted markets

• Inability to quickly replace underperforming managers

• Higher management fees

• Increased regulatory scrutiny

Why is the performance of investments in unlisted markets considered opaque?

• High volatility in these markets

• Frequent changes in market regulations

• Lack of transparency in reporting

• Limited access to these markets for pension funds