UK - Fund management groups will have to remodel their businesses in order to win pension scheme mandates, GMO warns.
In a private seminar held in the City of London last week, GMO group chairman and joint founder Jeremy Grantham said that both pension funds and consultants were beginning to demand services that very few investment management firms can provide.
Grantham said: “Nowadays, pension scheme trustees want equity-like returns with bond-like risks.”
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.