London, 16 April 2018 – Advisory firm IC Select has launched a performance-measurement standard to help pension schemes compare the skills of fiduciary managers hired by trustees to make investment decisions on their behalf.
The IC Select Fiduciary Management Standard has been published amid unprecedented regulatory scrutiny of investment consultants. It has been backed by 14 providers including the world's largest consulting firms Aon Hewitt, Mercer and Willis Towers Watson. The others comprise BlackRock, Cardano, Charles Stanley, Goldman Sachs Asset Management, JLT Investment Solutions, Kempen Capital Management, Legal & General, P-Solve, Russell Investments, Schroders and SEI.
3rd February 2016
IC Select launches enhanced Fiduciary Management Stewardship Service
IC Select has launched an enhanced Stewardship Service to further assist Trustees with oversight of their fiduciary manager. This enhanced Service follows their work with the UK Power Networks Pension Scheme in selecting their fiduciary manager and establishing a framework for effective oversight of their fiduciary management relationship. It is the rigour with which the UK Power Networks Pension Scheme approached the move to fiduciary management, the selection of the manager and their determination to establish an effective oversight of their manager that has allowed IC Select to refine and enhance its Stewardship Service.
IC Select has launched an enhanced Stewardship Service to further assist Trustees with oversight of their fiduciary manager. This enhanced Service follows their work with the UK Power Networks Pension Scheme in selecting their fiduciary manager and establishing a framework for effective oversight of their fiduciary management relationship.
Carole will be working on the firm’s core research, as well as with both existing and future clients. She is a Fellow of the Institute and Faculty of Actuaries (IFoA) and an active member of their governing body the IFoA Council. As deputy leader of the Scottish Board of Actuaries she has become involved with the Actuarial Research Centre and has a special interest in tailoring research to bring actuarial expertise to wider businesses' needs. Carole brings a wealth of experience having worked in the fields of pensions, investment, insurance and academia.
"The current issues with fiduciary management performance have been widely discussed over the last 18 months. The fiduciary management industry faces real challenges in providing performance information that helps trustees to determine the most appropriate provider for their scheme. This is leading to scepticism from trustees as to the value that fiduciary management on its own can bring to a pension fund.
These problems originate from each provider using a different methodology to calculate performance and risk, combined with a lack of transparency, standardisation and consistency in the way that fiduciary manager performance is presented to potential clients. This leads to accusations that managers are 'cherry picking' their performance record, and the provision of virtually meaningless information by fiduciary managers to trustees, when responding to prospective clients' invitations to tender.