The third in a series of reports based on research from Leeds University Business School and Aon Hewitt sheds light on the inter-relationships of pension scheme trustees, fund managers and investment consultants.
The Actuarial Post reported on the paper titled “Selecting Fund Managers and Consultants – What do Trustees look for?” which puts the relationships between trustees and their fund managers and investment consultants under the spotlight and gives insights into the interactions which are fundamental to the investment processes of pension schemes.
The report was led by Associate Professor in Accounting and Finance, Dr Iain Clacher.
In looking at the relationship between trustees and investment consultants, the research demonstrated that smaller schemes are more reliant on their investment consultant than larger schemes, which is understandable given the resource constraints they face. However, in the case of the small proportion of schemes - of all sizes - who say they are totally reliant on their investment consultant, this is a real concern.