All Active management articles – Page 3
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OpinionDesigning DC default funds for better outcomes
From active and passive investment management to member concerns and ESG – three experts, including a mastertrust director, a consultant and a finance director, debate the key issues facing DC default fund providers.
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Opinion
DC default funds: Does active management have a role to play?
Paul Todd, director of investment development and delivery at Nest, Lydia Fearn, head of DC and financial wellbeing at Redington, and the Revd Keith Stephenson, director of finance and resources at the Association of Commonwealth Universities, discuss investment styles and target date funds for DC default fund design.
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OpinionPrivate sector pooling is a costly red herring
The government’s deadline for the 89 local government pension schemes to pool their assets has now officially passed. Some of the eight pools are up and running already and others will be later this year, but will this change the pensions and investment landscape in the UK?
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OpinionWill the return of volatility save active management?
You will have probably read that Warren Buffett recently cashed in his bet against hedge fund firm Protégé Partners.
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News
Can schemes still justify active management?
The average active fund manager cannot outperform their benchmark net of fees, and according to the Competition and Markets Authority, the average investment consultant cannot reliably identify those managers who do. Can an average trustee board reasonably keep the faith in active management?
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OpinionCost disclosure is only valuable if you know how to use it
Bond and equity returns over the past 30 years have exceeded long-term averages and are widely regarded as unsustainable. As investment costs take a bigger slice of the return ‘cake’ when returns are low, it is unsurprising that investor attention is turning to cost.
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OpinionThe challenges of passive ESG investment
The universe of passive and smart beta products with an environmental, social and governance-based dimension has expanded significantly over the past five years.
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Features
Structured equity appeals but ‘not a no-risk strategy’
Analysis: For some time now, financial punters have prescribed passive investment as the low-cost panacea for investors bloodied by years of underwhelming active management.
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News
Jersey teachers’ fund puts faith in active management
The States of Jersey Teachers’ Superannuation Fund has bucked the current trend away from active management and increased its exposure to active equities, reducing index shares.
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Opinion
Asset manager mergers: How they affect pension schemes
Analysis: The recent uptick in mergers and acquisitions activity in the asset management industry has sparked debate among experts over potential ramifications for schemes. Fees, innovation and relationships with managers could all be affected.
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OpinionWhat to look for in an active manager
The question of active versus passive management never really gets answered. Various market participants have their own views on each approach, often depending on what time period is considered.
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OpinionWill the FCA market study revolutionise pensions?
The Financial Conduct Authority’s asset management market study is finally with us, but despite the dramatic headlines, the final report turned out not to be the ‘game changer’ that some hoped for and others feared.
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OpinionActive management fees – how low can they go?
Here’s a challenge that came across my desk the other day. Are low charges incompatible with active management in pension schemes? I can hear the two words most beloved by consultants – it depends – ringing in my ears, but in truth it depends on two things: first, what is meant by low in the context of charges, and second, just how active is active?
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News
FCA market study: All-in fee might not be all-in cure
The consultation stage of the Financial Conduct Authority’s market review of the asset management industry closed last week, with experts welcoming the boost to transparency but remaining reticent over proposals for an all-in fee structure.
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News
DCIF: Mastertrusts must up their game on investment design
Mastertrusts must place greater importance on investment design to achieve the best possible outcomes for members, a new study suggests.
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NewsIsle of Wight's outperformance vindicates active management
The Isle of Wight Pension Fund’s funding level jumped from 78 per cent to 92 per cent over three years, posting returns that reignite the debate over active and passive fund management.
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OpinionUnderstanding the transaction cost disclosure debate
The debate around transaction costs became increasingly polarised during 2016. The 'Loch Ness Monster' paper issued by the Investment Association in August summarised research claiming there is no excessive trading nor hidden costs damaging investor returns.
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FeaturesReuters scheme simplifies strategy in liquidity search
As part of a push to simplify its asset allocation and achieve greater liquidity, Reuters Pension Fund is exiting its property investments, putting some of the proceeds into a new buy-and-maintain mandate and an existing diversified growth fund.
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News
FCA wants to strengthen duty on managers and consultants
About £109bn of investor assets is held by managers who charge high fees but do not offer significant variation from an index-tracking strategy, the Financial Conduct Authority’s interim report on competition in the asset management market has found.
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OpinionThere is no such thing as passive
“It sounds like they’re saying passive life is good, he thought. But there is no such thing as passive life. That’s a contradiction.” Philip K Dick, A Scanner Darkly