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ETFs Challenge Hedge Funds

Pressure on hedge fund fees is likely to intensify as the number of pension funds using passive funds is set to increase over the next decade. A report from consultancy firm Create-Research put out yesterday found that on an asset-weighted basis pension fund holdings of passives would grow over the rest of this decade at an annual rate of 6%. The survey found that four out of five pension schemes plan to increase their assets held in passive vehicles; spread across segregated accounts, index-tracking mutual funds and ETFs.  The report found that 66% of investors now see passives as a mature part...