Each of these arguments holds equally true for defined benefit pension schemes, trustees and their investment advisers, whether they be consultants or fiduciary managers. For the avoidance of doubt, in this analogy trustees own the car, and they need to be sure that they are sitting in the driver’s seat and not at the side as a passenger.
Pension trustees should be continuously running the slide rule over their investment consultant or fiduciary manager. It’s the best way to ensure that their adviser remains the right one and is delivering value for money.”
This article is by Donny Hay. It discusses pension fund trustees…yet its relevance to ALL investors is significant.
The point is that ALL investors when delegating their investments for others to manage MUST check out the people who manage their money. It means if you use wealth managers to look after your money, you MUST, get an independent assessment of the services provided to you. Independent oversight is essential. Far too often, investors are passengers in the process and therefore increase the chances of poor outcomes.