Pike RFP

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Minimizing Investment Management
Expenses
• Research indicates that investment management expenses are a major predictor of
future performance1
• Overweighting past performance when selecting investment managers can lead to
“buying high”
• Our Approach:
– Minimize investment management expenses but also consider other factors when
selecting managers
• Our Recommendation:
– Minimize and levelize revenue sharing to fairly allocate cost to participants and
provide full transparency
1. Source: Russel Kinnel – “How Expense Ratios and Star Ratings Predict Success” quoted in
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