Will Pension Funds Pay Internal Managers to Cut Costs?

The video discusses CalPERS' strategy of bringing investment management in-house to reduce costs and improve returns. Jeff Snyder, an industry insider, provides insights into the strategic moves and challenges faced by public pension plans. The discussion covers the importance of managing risks, attracting talent, and the potential influence of CalPERS' decisions on other pension funds. The video also explores market opportunities, constraints, and the need for strategic adjustments in response to future risks and unfunded liabilities.

What is one of the main reasons CalPERS is bringing investment management in-house?

• To increase the number of external managers

• To reduce overall expenses

• To diversify into new asset classes

• To focus solely on fixed income

What is a potential influence of CalPERS' in-house strategy on other public pension plans?

• It may lead them to increase external management

• It may result in higher fees for them

• It may encourage them to follow suit

• It may cause them to reduce their portfolios

How long has the strategy to bring investment management in-house been in discussion at CalPERS?

• Over 24 months

• Less than 6 months

• 12 to 24 months

• 6 to 12 months

What is a key challenge for pension funds when hiring talent compared to private equity firms?

• Inadequate training programs

• Limited geographic reach

• Lower compensation packages

• Lack of investment opportunities

What is a strategic opportunity for pension funds in 2017 according to the discussion?

• Focusing on short-term gains

• Making selective market choices

• Investing solely in hedge funds

• Avoiding all market risks

What is a significant concern when pension funds take on more risk?

• Potential for unfunded liabilities

• Decreased market competition

• Increased regulatory oversight

• Higher management fees

What role does governance play in managing pension fund investments?

• It reduces the need for strategic planning

• It limits investment options

• It ensures compliance with policies

• It increases investment risks