Press Release: IC Select appoints new Managing Director to lead its Fiduciary Management Assessment Business

With over 35 years in the industry, Peter joins from Scottish Widows Investment Partnership (SWIP) where he was head of the institutional business.  He brings a wealth of experience in the UK and overseas in governance and risk management, as well as a real understanding of the now complex challenges faced by UK pension fund trustees.

On his appointment, Peter was quoted as saying: "I am delighted to have joined IC Select, an organisation that stands out in the world of oversight and selection of both investment consultants and fiduciary managers. What is already clear is that the lack of any competition between IC Select and any part of the fiduciary management firms it researches allows access to information that is unlikely to be given to other fiduciary management oversight firms. This has allowed IC Select to provide unique insights to trustees to help them understand the different offerings of the fiduciary managers. I am looking forward to the challenge of using these insights and information to further enhance the firms oversight offering."

Roger Brown, IC Select, Founder and Director, said: "The media is currently full of comment about the lack of appropriate due diligence in both selecting and overseeing fiduciary managers. Peter has only been with the firm a short while but his appointment has already enabled us to implement new structures for trustees to ensure they have appropriate control and oversight of their fiduciary managers in a cost effective way. What is more exciting for me, is that following his appointment we will be able to bring forward a number of new initiatives, to address some of the major analytical issues in overseeing fiduciary managers, that have been in development for some time."

ENDS

For further information please contact:
Roger Brown, Founder and Director
0131 221 6505
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Peter Dorward, Managing Director
0131 221 6505
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IC Select, Forth House, 28 Rutland Square, Edinburgh EH1 2BW
Website: www.ic-select.co.uk
Tel: 0131 221 6505, Fax: 0131 221 6506.

Notes to Editors:

IC Select specialises in helping pension funds select, monitor and review investment consultants and fiduciary managers. The firm's assessment capabilities leverage on its unique positioning:

- wholly independent

- free of conflicts

- research led

- focused on assessment from an investors' and investment perspective

As a result, trustees can be more confident in the quality of their investment decisions and are able to enhance their scheme governance.

 

Press Release: IC Select launches Asset Liability Model Monitoring for DB Pension Funds

Strategic asset allocation is one of the key decisions for trustees since small changes in the asset allocation can have a significant impact on the long-term performance of a pension fund. One of the key inputs in strategic asset allocation decisions is the information produced by the consultant’s asset liability model. This information helps trustees understand how any particular portfolio is expected to perform and assists them in deciding how much to invest in different types of assets. This is true whether a fund is using a static strategic asset allocation, dynamic de-risking or fiduciary management approach.

The Asset Liability Model Monitor will enable trustees, for the first time, to understand how the asset liability model of their consultant performs and use this information to improve their decision making. The service benchmarks the output of a consultant’s asset liability model against similar models at other firms. As a result trustees are able to understand how their consultant’s model is performing and, consequently, are better equipped to challenge their consultant on this key information. Any anomalies that may exist in the models output can then be quantified and factored into trustees strategic asset allocation and de-risking decisions.

Roger Brown, founder and director of IC Select, said, “Knowledge about how the asset liability model is performing will enhance trustees’ decision making and lead to a step shift in governance for their scheme.

We had thought that the difference between models would be small, but this is not the case. For example, we have found that to achieve an expected return of 4.5% over ten years, one firms model indicates that a portfolio invested 20% in growth stocks is appropriate whilst the model at another firm requires almost 80% of the fund to be invested in growth assets. These are not trivial differences in strategic asset allocation and the implications of these differences are hugely significant for pension funds. It is vital trustees are aware of how their investment consultant’s asset liability modeling can affect their strategic asset allocation.”

The Asset Liability Model Monitor also allows larger pension schemes, that use in-house models, to benchmark their models to ensure they are not producing extreme results that could adversely influence decision making.

-Ends-

For further information please contact:
Roger Brown, founder and director
0131 221 6505
This email address is being protected from spambots. You need JavaScript enabled to view it.

IC Select, Forth House, 28 Rutland Square, Edinburgh EH1 2BW
Website: www.ic-select.co.uk
Tel: 0131 221 6505, Fax: 0131 221 6506.

Notes to Editors:

IC Select specialises in helping pension funds monitor and review investment consultants and fiduciary managers. As a result, trustees can be more confident in the quality of their investment decisions and are able to enhance their scheme governance.

Differences between asset liability models are significant. The following chart illustrates the difference in output for different portfolios from two consultant's models.

RiskReturn