Sat, Nov 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

British pensions' report criticises allocations to alternatives

Monday, November 12, 2012

Beverly Chandler, Opalesque London: A report from The Pensions Institute, authored by Dr Debbie Harrison, Senior Visiting Fellow of the Pensions Institute, and David Blake, Director of the Institute and Professor of Pensions Economics at Cass Business School finds fundamental flaws in the investment governance of the majority of London’s 34 local government pension schemes (LGPSs).

The key findings of An Evaluation of Investment Governance in London Local Government Pension Schemes reveal substantial weaknesses in the governance processes by Local Authority pension committees, including the fact that "pension committees demonstrate a strong preference for active, rather than cheaper passive asset manager solutions". This, the report finds, adds cost without evidence of the benefit of long-term outperformance. "Certain committees also allocate substantial allocations to alternative asset classes that appear excessive relative to the scheme size, again adding to administrative costs, but also increasing risk without demonstrating commensurate rewards" the report says.

Other weaknesses include the fact that elected councillors dominate pension committees and the decisions they make, but their experience and expertise is severely limited by the four-yearly election system; evidence from committee meeting minutes indicates that too few challenge the advice from their actuarial and investment ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Regulatory - Stringent rules for hedge funds make the financial system fragile[more]

    From FT.com: …It is one thing to impose a regulatory burden when there is a clear need to do so. Banks are underwritten by taxpayers via deposit insurance as well as the too-big-to-fail safety net; they need to be reined in, and if they shrink as a result, that may be welcome. But it is another thin

  2. Investing - Apple: Hedge funds are crazy about it, Greenlight Capital took stake in Citizens Financial after IPO, Tiger Global added to Hertz, exited Dollar General last quarter, Oberweis sells NQ Mobile stake as Valiant adds shares, Whitney Tilson sticks to losing bet on MagicJack shares, Brigade Capital backs €90m Quinn sale[more]

    Apple: Hedge funds are crazy about it From Techinsider.net: Apple Inc. is still the most popular stocks among hedge funds. According to a recent report by hedge fund tracking site Insider Monkey, more than one out of 5 hedge funds are invested in Apple Inc. At the moment there are

  3. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  4. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  5. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca