UK - Watson Wyatt is urging schemes to adopt 10-year mandates, in order to lower trading costs and boost returns.
The consultant believes the current reliance on index-based benchmarks, which measure fund managers’ performance over quarterly, yearly and three-year periods, promotes short-term investment attitudes.
Watson Wyatt said that by introducing 10-year mandates, it would reduce the amount of trading fund managers do and encourage them to use corporate governance to boost returns.
The target for managers assessed in this way would be to produce a return that matches the rate of inflation plus 7-8% on a rolling basis.
A "substantial" parliamentary bill acting as a "roadmap" for the long-term future of private pensions will lead to a "significant period of calm", Guy Opperman has promised.
The Department for Work and Pensions (DWP) has completed its appointment process for the Single Financial Guidance Body's (SFGB) board, naming three non-executive directors.
Pensions and financial inclusion minister Guy Opperman has launched a simplified two-page annual statement in a bid to provide a best practice template for the industry.
Some 70% of defined contribution (DC) members want to know their scheme is personalised and tailored to their needs, an Invesco language study reveals.