Pension fund managers are failing their clients by slavishly replicating inappropriate benchmarks, c...
Pension fund managers are failing their clients by slavishly replicating inappropriate benchmarks, claims Hewitt Bacon & Woodrow (HBW). Anthony Ashton, head of UK investment at HBW, said the present method of establishing benchmarks is overly reliant on bond indices, which do not take account of the duration of a fund's liabilities and, as such, have no hope of creating the desired cashflows when required. He added: 'Bond portfolio managers must upgrade their services so the fund is managed in a way that is more relevant to the liability needs of pension funds. 'Corporate bonds and ...
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