In some cases, members of retail funds that use related-party services are paying double the cost paid by a member of a median not-for-profit fund. Based on the data provided in the APRA paper, AIST has estimated that outsourcing to related service providers – notably in the area of administration – collectively costs members of retail funds $423 million or $1,522 per member each year. If Cooper is genuine about the importance of good governance, tackling the inherent conflicts of interest that exist at the board level of retail funds must take precedence over any tinkering with the boards of not-for-profit funds.
Opinion
The on- and off-stage antics at the extravagant Milken Global Conference in Los Angeles tell us a lot about where institutional capital is right on the money – and where it is putting its head in the sand. And while the event retains the extraordinary intellectual and financial firepower that has always been its signature, something has shifted. The absences are as instructive as what's on the program.
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