How scheme size can affect consultant, fund manager relationships

first_imgThe size of a pension scheme has a bearing on its trustees’ relationships with fund managers and consultants, according to wide-ranging new research.It was led by Iain Clacher, associate professor in accounting and finance at Leeds University Business School, in partnership with Aon.The research found that trustees of large schemes place greater emphasis on fund managers’ investment philosophy, decision-making and risk management than small scheme trustees.Small scheme trustees, in turn, focus more on past performance, costs and fees, fund size, firm size and volatility. “Size brings buying power and the ability to be selective, which is not present at smaller fund sizes,” according to the report. “As such, larger funds, and particularly those with in-house investment teams, can use the asset management industry in a strategic way.”Clacher noted that the main reasons for trustees changing fund managers were not as predicted. Investment strategy shifts and de-risking were the main reasons given, with past performance ranking third.The publication of the research comes shortly before the UK’s Financial Conduct Authority is expected to publish its final report on its investigation into the asset management industry. This includes major scrutiny of investment consultants, which the regulator wants to refer to the Competition and Markets Authority.Varied expectations of consultantsThe picture was much more mixed when it came to trustees’ relationship with investment consultants, according to the report’s authors.John Belgrove, senior partner at Aon Hewitt, said: “We found that trustees of different sized schemes look for very different things from their consultants, meaning it is hard to pin down a generalised statement of what trustees look for in their investment consultants.”“In examining this issue, it raises a key challenge for the provision of advice in circumstances where the goals of trustees and the beliefs of consultants clash,” the report said. “It is not clear how trustees would respond to advice that conflicts with their beliefs, nor is it clear that investment consultants are able to have honest conversations with trustees about such issues.”Trustees’ views of consultants ranged from them being a service provider with limited remit, to being a sounding board for trustees to road-test ideas.Interactions between trustees and consultants are complex, the report noted. “Trustees have specific goals and objectives in mind and investment consultants therefore operate within those constraints.”Some trustees felt consultants were tailoring their advice, which the report said could result in the range of options being considered not necessarily being what the investment consultant believes is the optimal strategy. Belgrove said tailoring advice would seem a key part of how trustees and consultants can work together, but warned that it was less likely to be challenged.The report can be found here.last_img read more

July 14, 2017 Police Blotter

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Videoslots nets naming partnership with Valletta United Water Polo

first_img StumbleUpon Alexander StevendahlMalta-based online casino operator Videoslots (, has announced that it has agreed on a title naming partnership with Valletta United Water Polo Club.The agreement will see, the Maltese water polo club officially renamed ‘Valletta Videoslots United’, for the remainder of its sporting season.Furthermore, The Videoslots logo will also appear prominently on the club’s social media channels and on advertising hoardings at home matches. Videoslots marketing further informs that it will aid Valletta United’s social and grassroots water polo initiatives with the Malta sporting community.Valletta Videoslots United will compete in the 2018 First Division of the Bank of Valletta National Water Polo competition, with the team looking to invest the new funding into securing success in the coming seasons.Alexander Stevendahl, CEO at Videoslots, said: “This naming partnership will help raise the profile of both of our brands as we leverage the large, loyal fanbases that we both have.”“We’re looking forward to supporting Valletta United when the season starts later in the year, and we hope this arrangement and new investment will spark a period of silverware for the club in the coming years.” Genesis to appeal UKGC’s ‘disproportionate suspension’ July 23, 2020 Share Related Articles TVBET passes GLI test for five live games in Malta and Italy August 25, 2020 Submit Share Ray Wilson, AMLGS: Industry deserves praise for its reaction to a new normal July 23, 2020last_img read more