Institutional investors, from mutual funds to endowments and
pension plans, are below average when it comes to doing their
The 100 largest public pension funds in the U.S. alone, have
only 68 cents of every dollar they need to fulfill their
promises to employees, according to Milliman. Corporate plans
have a little more on hand, a whopping 77 cents for every
So who is at fault here? Money managers? Hedge funds?
Consultants? Investment Committees? Charley Ellis, the founder
of Greenwich Associates who has spent a lifetime observing the
markets and investment management. says almost everybody in the
investment world is culpable. However, Ellis says very few even
recognize their unintended role in what he calls the crime of
underperformance and nothing will change until they do.
In part three of this five part video series exploring this
issue, we look at the differences between active management
and passive, and how it might be contributing to the