The Latest
Governance

UK reforms have pension schemes in mind

The UK’s Competition and Market Authority has put forward several changes to the investment consultant and fiduciary manager markets designed to ensure competition improves outcomes for pension schemes and other institutional investors. A competitive tender process would be required, as would clear distinctions between advice and marketing.
Research

Why consultants can’t pick winners

A research paper that concludes that the funds recommended to institutional investors by investment consultant do not add value, has won the Commonfund Prize, awarded for original research relevant to endowment and foundation asset management. The paper, by academics at Saïd Business School, Oxford University and University of Connecticut School of Business, found that there […]
Research

Measuring manager performance expectations

Institutional investors do not act on their own expectations when choosing fund managers, rather their reliance on consultants, and past performance, exacerbates the agency problem in the institutional investment supply chain a new study from Oxford University shows. Using survey data for 1999-2011 the academics analyse the views of plan sponsors on their asset managers, […]
Analysis

Alternatives increase as investors manage to outcomes

Investor allocations to alternatives will increase over the next three years as the focus on outcome-oriented investments heightens, according to respondents in the annual www.top1000funds.com /Casey Quirk Global Fiduciary CIO sentiment survey. The second annual survey, which included respondents from 56 asset owners with combined assets of $3 trillion, showed an accelerating trend to moving […]
Insider

The diminishing role of agents

I’ve always been frustrated by interviewing consultants and the lack of conviction they have about their decisions. “What would your ideal model portfolio look like?” I constantly ask. “It depends on the client” is the predictable and consistent answer. That may be valid, even true, but it speaks to a wider problem. Consultants are hired […]
Insider

Over the industry? Change it

The pension and funds management industry is self-serving. There are too many players, there’s too much jargon, too much leakage and too much patting each other on the back. And that’s not just my opinion: the results of a 12-month research project, across 60 countries and more than 3000 investors concur. The research by State […]