Information Note: CMA Compliance Statements (due by 7th January 2021)

All DB Pension Schemes are required to meet this new regulatory requirement.

The purpose of this information note is to explain what Pension Scheme trustees need to do.

 

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Professional Pensions Article: Investments and the importance of reporting: Stick or twist?

Good communications is critical in pensions. It’s not just a nice to have and increasing DB trustees are reviewing investment advisers where it is poor.  

Trustees need clear reporting from their investment advisers to meet their scheme's needs, says Donny Hay

Effective communication is said to be the most important of life skills. Sound communication creates understanding, while also building confidence and trust - the basis of any successful relationship. However, it seems that quarterly investment reporting has not really been on top of the agenda for most investment advisers.

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Professional Pensions Article: Time ticking to complete fiduciary management retenders

This excellent Professional Pensions article highlights the low level of FM Re-tenders to date. Are trustees underestimating the time needed to complete this process?  Given that the lead times from kick off to signed contracts can easily be c.6 months or more, the 9 June 2021 deadline isn’t far away, and if the documentation and tender hasn’t been completed the adviser cannot act for pension scheme, which would be nuclear. Please call us if you wish to discuss.

At a glance:

  • Fiduciary management retenders must be completed by next June for mandates covering 20% or more of assets
  • Covid-19 delayed some retendering plans, but the process can take up to six months
  • Managers may become choosier as the deadline approaches
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Pensions Expert Article: Shots in the dark? The mounting evidence questioning the value of consultants’ manager research recommendations

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.

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DB investment governance post-Covid: What to delegate?

Research shows that getting DB Investment Governance right can add to investment returns.  For many this starts with deciding upon the most appropriate investment Governance model. Ray Martin, from IC Select, explains in this Professional Pensions Article.