Trustees should embrace the importance of independent advice
Too many retirement fund boards of trustees still make poor investment manager choices based upon limited information, leading to unfavourable outcomes for the fund members which they represent. This is partially attributable to trustees’ reluctance to employ the expertise of investment consultants, due to the perceived high costs related to this advice. Historically, investment-related costs have been high, with the last few years revealing a global drive from regulators and industry commentators to lower these. We believe this has contributed to improved fee structures, however, this drive should not come at the cost of long-term returns for investors. Occasionally – even in the case of highly educated professionals – trustees believe they are able to choose an ideal combination of portfolio managers and/or asset allocations which will lead their fund to its desired investment goal. Regardless of a person’s understanding... Read More
