A U.K institutional investment report issued today by Paul Myners, Gartmore chairman, called for greater professionalism among U.K. pension trustees and suggested they be paid for their services.
The report also recommended that pension plans follow voluntary principles that include: establishing performance measurement criteria for pension fund advisers, such as investment consultants; separating contracts for actuarial and investment advice; and including private equity as an option in asset class allocations for pension fund investment. If plans do not follow the voluntary guidelines after two years, Mr. Myners suggests the British government make the principles into law.
The report, commissioned by U.K. Chancellor of the Exchequer Gordon Brown, also found a heavy reliance on peer-group benchmarks, a reluctance by money managers to intervene in the companies in which they invest, and a lack of disclosure of broker commission costs.
