Financial mishaps in the asset management industry should remind trustees of the importance of risk reporting for their funds' portfolios, according to Steven Braudo, operations director of South African-based Investment Solutions (IS).
IS recently warned that financial mishaps could cost a retirement fund and its members millions of Rands. The company said that fund management errors include loading too many or too few stocks onto portfolios, non-payment of interest on bank accounts or fixed interest securities and investing in securities such as an unlisted instruments that are specifically excluded from a mandate and thus in contravention of a mandate.
Errors such as these can result in a portfolio being either overvalued or undervalued, both of which can lead to a situation where some fund members could gain at the expense of other members. Braudo explained that effective risk management of an investment portfolio requires that everyone involved in managing the portfolio develop an intuitive sense of a portfolio's performance numbers.
Institutional and even individual investors are going to demand a greater explanation of the types of risks they are taking and they are going to demand methods for monitoring these risks through time. Trustees will need to be aware of these requirements and accommodate their investors.
By Janet Du Chenne
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.