UK - Schemes will look increasingly to fund managers to provide asset allocation services instead of consultants, Credit Suisse Asset Management predicts.
And it believes the switch will herald a return of balanced management.
CSAM said investment consultants’ traditional role of providing asset allocation advice was changing as they focused on asset-liability studies and manager-selection advice.
CSAM deputy chairman Robert Parker says schemes will fill the void by turning increasingly to fund managers to provide asset allocation advice.
He said: “The big evolution is the emergence of sophisticated asset allocation advice from fund managers to their clients.
“This trend is prompting a revival of balanced fund management, which lost popularity in the late 1990s as the specialist model of fund management won favour.
“This time, however, the balance is made across a more diverse range of markets and asset classes.”
But Isis Asset Management head of institutional business Robert Matthews said that rather than trying to usurp the consultants’ traditional role, all parties should work together.
He added: “It is important that the fund manager, consultant and trustee work closely together in a three-way partnership.
“The skills and depths of resources of fund managers has increased, particularly in terms of risk management and risk modelling, and this can be an advantage to both the trustee and the investment consultant.
“I certainly don’t see this as a conflict – it is very much a partnership.”
Railways Pension Trustee Company chief executive Phil Willcock has quit the scheme after only 10 months to take up a position as head of AIG UK Life.
The Financial Conduct Authority (FCA) has launched a consultation on how to enable defined contribution (DC) savers to invest in patient capital via unit-linked funds.
The Pension Protection Fund has published its final levy rules for 2019/20 following a consultation launched in September.
The Competition and Markets Authority's (CMA) final report on the investment consultant market has been celebrated as having "real teeth" to produce better outcomes for members.