FYI: The overall cost of investing for the California State Teachers’ Retirement System has fallen, but not because investment managers have decreased their fees.
This is according to CalSTRS’s annual investment cost report, which was released ahead of the retirement system’s monthly meeting on November 6. The report showed that the total cost of managing the retirement system’s portfolio decreased by six percent year-over-year.
The reason? Two words: carried interest. As the performance of investments that charge carried interest — a type of performance fee — fell year-over-year, so too did the cost of investing for CalSTRS.
Regards,
Ted
https://www.institutionalinvestor.com/article/b1hwmtqt9d1z8l/The-Reason-CalSTRS-Paid-Less-to-Invest-in-2018
