Mercer criticises focus on fees

Baby-feetLow cost pension provision does not necessarily equate to low risk, according to Mercer, a firm of pension consultants. The consultancy acknowledged the need to make fees appropriate and transparent, but warned that the current debate focused too much on the cost to members. “Whilst important, this fails to give due consideration to the risks members face if their savings are only invested in so-called low-cost funds and also fails to consider after-fees performance,” Mercer said. Costs for investment strategies that seek to protect members’ savings against economic downturns and market fluctuations may cost more. Martyn James, principal in Mercer Investments, said: “Putting in place an investment strategy driven by fees alone with minimum continued oversight from trustees and employers is no longer acceptable.” ©2012 Funds Europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.