This article was published in Pensions Expert, by BENJAMIN MERCER | September 10, 2020
Interesting article by Pensions Expert around investment consultant manager selection, with input from Roger Brown of IC Select. Pension trustees have an important, but difficult, role to play in the good governance of their scheme. As an industry, pension experts should strive for increased transparency and clear presentation of salient information across all areas of impact.
A generic search for headlines on the performance of active managers paints an unhappy picture. ‘UK active fund managers suffer bloodbath in 2019’, the FT recorded last year, the latest in a long line of unhappy tales for stockpickers.
Markets have since undergone profound change, however, and as Pensions Expert reported in April, high levels of dispersion in equity returns signalled the beginning of a period of volatility that should have allowed active managers to shine.
“IC Select is proud to have assisted the trustees of Civil Aviation Authority Pension Scheme with this selection exercise, one of 17 similar investment adviser selection projects for DB schemes in 2019-2020 ytd, totalling £13bn. Who said that Covid-19 has slowed things down!”
The Civil Aviation Authority Pension Scheme (CAAPS) has appointed BlackRock to run a £4bn fiduciary mandate for its growth portfolios.
Following a competitive tender process, the manager was chosen to plan and execute the asset allocation and manager selection across all asset classes in the portfolio for both the CAA and the National Air Traffic Services (NATS) sections.
For DB schemes, assessing fiduciary managers by comparing their growth funds grossly misses the point – to outperform liabilities – of these mandates, IC Select’s Anne-Marie Gillon explain how the performance of fiduciary managers should be assessed.
Martin brings 40 years of experience to the defined benefit (DB) investment governance specialists, having worked in previous pensions roles for blue-chip multinational companies. These include as global benefits director at Tetra Pak, head of pensions and benefits at Royal Bank of Scotland, and vice-president of pensions at DHL.