UK - Bedlam Asset Management is offering pension funds £10,000 and a three-month fee holiday in a bid to lure them from Cazenove Asset Management.
Bedlam – which operates a “no gain, no fee” price structure – believes Cazenove clients are dissatisfied with its performance and the uncertainty about its future status.
Cazenove’s brokerage parent company has put itself up for sale and is in the process of reviewing offers.
Bedlam says pension funds and other investors rarely benefit when their contracted asset managers are sold and is trying to entice Cazenove clients by giving them £10,000 for every Bedlam fund they invest in and a three-month management fee holiday.
Bedlam founder Jonathan Compton (pictured) said the firm would only take a Cazenove client on if it could guarantee to cut their costs and investment management fees by at least 20%.
Aside from lower fees, schemes would also benefit from Bedlam’s absolute return-style of long-only investing.
Compton said: “Fund managers are paid a fee, usually a fixed percentage of assets, whatever they do. Customers are then boxed up and sold to another fund manager. As a business model it is genius but institutional clients rarely have a choice.
This offer is real, made in the belief that trustees should have an alternative to their portfolios being sold without any benefit to the beneficiaries.”
Although Cazenove declined to comment, sources within the firm dismissed Bedlam’s offer as an “advertising stunt”.
They added that while Cazenove’s record was poor two years ago, the problems had been corrected after it brought in an investment team from HSBC Asset Management.
Guy Opperman has indicated his support for a fresh pensions commission as the government seeks to understand how to progress pensions policy in a wide range of areas.
Auto-enrolment (AE) minimum contribution rates could rise to 12% by 2030, with a 50/50 split between employer and employee, the Pensions and Lifetime Savings Association (PLSA) says.
ITM director Maurice Titley looks at the next steps schemes should take on GMP equalisation.
Schemes are too focused on outcomes when assessing governance, when this may be a result of circumstance not skill. James Phillips looks at whether governance needs more of a framework.