Therrien: CDPQ targets an absolute return slightly above 6% for clients
Mario Therrien · Mario Therrien – The Canadian Pension Model (Capital Allocators, EP.12) · Jun 19, 2017 · at 17:12
Mario Therrien, Senior VP at CDPQ, explains the Canadian pension fund's return objectives and shift toward an absolute return mindset.
0:00 / 0:05exact quote · 5.9s
720p mp4 · rendered on demand · StarZero watermark
“Which for us, you know, we, we're, Targeting just a little north of six percent for our clients.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Mario Therrien
Therrien: Falling interest rates broke the traditional 2-and-20 hedge fund fee model
“The problem we've had in the last 15 years really is the whole rate structure fell, which brought sort of the two 20, not no longer the right fee structure.”
Therrien: Illiquid assets reduce optical risk and daily mark-to-market panic
“Investing more money in illiquid assets also mitigates sort of the optical risk, if you like. Because, you know, these assets are not revalued every day, so I think that I mean, at the end, I think that's also important, because why people behave in a certain …”
Therrien: CDPQ uses '1.5% or 15%' fee structures to capture more alpha
“From our standpoint, one of the variation that we brought, which is in parallel to what Luke said, was the fee structure, which is X or Y. So we pay 1.5 or 15%, depending, instead of 1.5 and 15%, which actually helps us capture the portion of the alpha that's …”
Terrien: CTA strategies carry positive gamma and thrive in volatile markets
“That strategy as a positive gamma. That strategy thrives in more volatile markets.”