UK - Fund managers are backing Hewitt Bacon & Woodrow's claims that "blindfolded monkeys" would give schemes a better measure of return than peer group benchmarks and indices. Baring Asset Management's head of UK institutional business Jenny Segal said Hewitt had "hit the nail on the head".
She explained: “Market cap-weighted strategies often mean you’re investing in yesterday’s story.
“A benchmark approach may have produced good returns during the bull market but over the past three years investors have become victims of volatile equity markets.”
BAM offers a targeted return product that includes equities, bonds, currencies, property, hedge and fund of hedge funds.
Segal added: “Trustees should be looking for real returns and asking managers to manage absolute risk on their behalf. Judging from pension funds’ positive response to our targeted return product so far, they couldn’t agree more.”
Axa Investment Managers, Martin Currie Investment and Bedlam Asset Management also supported Hewitt’s views.
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