Huge institutional investors should be able to get better terms as investors than do smaller investors. Mutual funds do reduce expenses to clients who keep larger fund balances. This is perfectly logical and it’s legal.
But the U.S. has not been happy about fee discounts if done in unison by organized major investors. They include; endowments, foundations and pension funds, as part of groups, and Institutional Limited Partners Association (ILPA), who use buyout or private equity funds for special deals. The group’s 215 members have more than one trillion dollars at work.
They would all like to negotiate lower terms than they have been getting. But it would be against the "anti-trust" law.
No comments:
Post a Comment