Internal vs. external management for state and local pension plans

Aubry, Jean-Pierre, and Kevin Wandrei. “Internal vs. external management for state and local pension plans”. State and Local Plans Issue in Brief 75, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, November 2020. http://hdl.handle.net/2345/bc-ir:109051.
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Abstract

The brief's key findings are: As state and local pension plans have increased their investments in alternative assets, they have taken on more external asset managers. However, due to concerns about fees, some large plans have started to reevaluate the size of their external team. This study explores how the number of managers affects fees and after-fee returns, controlling for plan size, asset allocation, and extent of external management. The results suggest that a significant reduction in the number of managers could reduce fees somewhat, but, in terms of after-fee returns, it matters who gets cut.

Title
Internal vs. external management for state and local pension plans
Author
Aubry, Jean-Pierre
Wandrei, Kevin
Center
Center for Retirement Research
Genre
report
Date Issued
November 2020
Publisher
Center for Retirement Research at Boston College
Series Title
State and Local Plans Issue in Brief
Series Number
75
Persistent Link
http://hdl.handle.net/2345/bc-ir:109051
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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