More Hedge Funds to Renegotiate Fees With Texas Endowment
- Half of endowment’s funds tie fees more closely to performance
- University of Texas expects to save as much as $45 million
This article is for subscribers only.
The University of Texas Investment Management Co. has persuaded about half its hedge funds to renegotiate fees, tying them more closely to performance.
The management company, which oversees about $31 billion of endowments for two public universities, said it may save as much as $45 million this year as a result of new fee arrangements. Utimco, as the Austin-based nonprofit is known, said today at a board meeting that 16 funds agreed to concessions, up from five in December, representing about $5.3 billion of assets.