Monday, June 24, 2013

AMNT at Pensions and Benefits Show (and pros & cons of fiduciary management)

This picture from the Pensions and Benefits show at the Excel Centre in London earlier this month.

The Association of Member Nominated Trustees (AMNT) had a stall during the 2 day event run by AMNT volunteers.

I only managed to pop in briefly during the Wednesday lunchtime to say hello.

Beforehand I went to a presentation on "Fiduciary Management" by MN.

They reported that in June 2007 the average DB pension fund was 124% funded! Now it is only 84%. The Fiduciary Management argument is that they can close this closing gap by pooling investment funds and cut costs and improve performance.

I think there is an argument that scale can achieve this but in the Q&A I questioned why they use the term fiduciary when actually they have no fiduciary duty to pension trustees? Their fiduciary duty is to their owners and shareholders. 

I think that this is a fundamental confusion. On a more positive point I did wonder whether this model could be considered as an option in the consultation currently taking place in the Local Government Pension Scheme? Individual LGPS could remain while they pool fund management?
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