SOUTH AFRICA - Approximately R62bn ($7.4bn) worth of retirement fund assets may have been adversely impacted by high levels of consolidation in the asset management industry over the past two years, according to multi-managers Investment Solutions.
Chief investment officer at the firm Glenn Silverman said the research accounts for changes and consolidation in the industry since 1999 when Rand Merchant Bank acquired Southern Life, and more recently when Investec bought Fedsure and absorbed its investment arm into Investec Asset Management. About R50bn ($6bn) worth of assets were transferred during his acquisition, said Silverman.
The research also tracked the number of personnel changes within the asset management industry.
“Already this year there have been 73 people changes in the industry - 10 of which have been at the executive level, either the chief executive or the chief investment officer moving on. .
Although Silverman acknowledged that such changes may prove beneficial to funds, he added:
While these events may not seem to be important, management's eye will be off the ball - the ball being the clients' assets... .”
The markets are becoming more volatile and asset managers need to be in a position to concentrate all their energies on managing the assets which have been entrusted to them. By Janet Du Chenne
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers