Government to shake up advice to pension schemes

CAMRADATA says Government opening up financial advice services market for pension schemes will lead to better retirement outcomes…

The Government has announced a radical reshaping of financial advice services used by pension schemes for long-term investment strategies.

This follows a Competition and Markets Authority (CMA) report into the investment strategy advice accessed by pension schemes, which found trustees were often denied clear information, which would help them weigh up different investment options.

Sean Thompson, Managing Director, CAMRADATA, a leading provider of data and analysis for institutional investors welcomes these plans, as he believes that opening the financial advice services markets is essential to help trustees get the best retirement outcomes for their members.

Sean Thompson says, “Trustees have a responsibility to ensure their pension schemes are performing as expected and they should be checking regularly to see if they are on track. If not, they must ask questions to better understand why they are underperforming and potentially be prepared to switch asset manager if they are not delivering what has been expected of them.

“Often trustees struggle to find clear information to compare asset managers, including the fees charged and past performance. Opening up the advice market will help resolve this, but trustees should be wary about paying for information that is already freely available.”

Government ministers say opening the financial advice services market will help trustees get better value for money, boost members’ retirement funds and reduce employers’ shortfalls.

CAMRADATA is one source of information trustees can already tap into for free. The company provides clear and independent investment data and analysis for pension scheme trustees.

The CAMRADATA Live online asset manager database allows trustees to research and compare asset managers on over 250 different asset classes. They can compare management fees and run peer to peer reporting to see how managers perform within their different peer groups.

If they are interested in a specific asset class, they can find out which managers offer it, details about the firms, their strategies, their investment philosophy and process, and performance too. The database provides trustees with everything they need to know about an asset manager and their capabilities.  Furthermore, they have free access to a wide selection of thought leadership articles, reports and news to keep up to date with current investment trends and thinking.

Sean Thompson says, “We’re helping trustees stay informed and ensure they are delivering what is expected of them. Using CAMRADATA Live they can track performance on a month by month basis and ask their asset manager questions if the scheme didn’t perform as well as expected.

“Quick and easy access to this information means trustees can monitor performance far more closely, as well as gain better understanding and trust in their asset manager. We’re also providing trustees with informed buying opportunities, so they can compare strategies, manager performance and fees before committing.

“Our data enables trustees to benchmark their own schemes to establish if they are getting value for money and make adjustments should they find their scheme is unlikely to provide the retirement funds their members expect,” adds Mr Thompson.

CAMRADATA Live, enables asset managers to showcase their strategies, and allows institutional investors and investment consultants to analyse them all in one easy place. Over 600 institutional clients use the dedicated portal to search and analyse nearly 6,000 investment products offered by 750+ asset managers.

If you would like access to CAMRADATA Live please click here to submit your request.