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.
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.