UK - Small schemes take up too much time and money for fund managers to service economically, Barclays Global Investors has admitted.
And co-chief executive Andrew Skirton says fund managers are raising their passive and active management fees to discourage small schemes as they take up a disproportionate amount of time and resources.
Skirton said: “Smaller clients have been a focus of ours and the whole industry. It has been quite a challenge to figure out – we need to make a profit, we need to get the economics right.
“We’re in the business of delivering, very dependably and at a competitive price, the returns our clients want.”
One consultant – who declined to be named – said: “BGI has very clearly made the decision to move away from the smaller end of the market – but someone has to provide these services.
“It is fair enough that it has taken a business decision to only really work with large clients, but it is quite a snub to small clients.”
Earlier this month schemes and consultants attacked BGI for raising its annual passive management fees from £5000 to £15,000.
Clients which refuse to accept the increase will instead have a reduced web-based service that contains limited detail on their investments and no access to a human liaison.
University College Union (UCU) and Universities UK have appointed Joanne Segars to chair the joint expert panel to examine the valuation of the Universities Superannuation Scheme (USS).
The Pensions Regulator (TPR) was right to use its powers to seek financial support from ITV for members of the Box Clever pension scheme, the Upper Tribunal has said.
All 6,000 UK schemes had a surplus of £361bn by the end of last month when calculated under a best estimate return on their assets, according to First Actuarial.
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