An article in Professional Pensions which highlights that IC Select has "...beefed up its stewardship service to help trustees monitor their fiduciary managers..." To read the article click here.
This year I left my Christmas shopping to the last minute. I would not recommend it. All seemed well on Christmas Day with the usual smiles and joviality. However, on Boxing Day the first hint of problems started to emerge. “Do you really think red suits me” was the opening gambit, followed shortly afterwards by “I am not sure I wanted a sweater anyway.” All was not lost, as armed with the gift receipt, the sweater was soon replaced with a more appropriate item and harmony was restored.
Trustees may not be so lucky. They do not get gift receipts that allow them to correct any problems from an agreement entered into in haste. Nowhere is this truer than in agreeing a fiduciary management contract.
An article in Professional Pensions including commentary from Michele Hirons-Wood, Head of Pensions UK Power Networks, outlining the support IC Select provided to the Trustee and a comment from Peter Dorward, Managing Director of IC Select on the provision of ongoing oversight services to UK Power Networks Pension Scheme. To read the article click here.
IC Select has launched an enhanced Stewardship Service to further assist Trustees with oversight of their fiduciary manager. This enhanced Service follows their work with the UK Power Networks Pension Scheme in selecting their fiduciary manager and establishing a framework for effective oversight of their fiduciary management relationship.
Is there a problem with investment consultants and actuaries already working with pension funds taking on additional responsibility as fiduciary managers?
The head of European distribution of one of the fiduciary management firms does not think so. In a recent interview with IPE he said “a fiduciary mandate relied on a long term relationship, requiring a company trusted by pension trustees. If you think from the investment consulting universe, aspects you’re buying from fiduciary management are those skills that exist in the investment consultant industry – for example, asset allocation decisions, decisions around liability management, plan design and implementation.”
If this were true and these skills do exist, then the trusted relationship would indeed be good reason to stay with the same provider. The question is what proof is there that the statement is worth accepting or indeed what evidence is there to the contrary?