Royal London calls for industry standard on reporting performance data
11 December 2017
Following publication of the article in Corporate Adviser on the performance of master trusts and life office default strategies; https://www.corporate-adviser.com/exclusive-master-trust-performance-data-now-pensions-barely-beats-inflation-bull-market/?cmpid=canews_4399542&adg=8E493B55-2D73-47AC-9899-301D8AD7C7D1
Lorna Blyth, pension investment strategy manager for Royal London Intermediary commented; “There is a wide variety of investment strategies used for workplace pension default funds and it’s useful to see risk and return data for both life office and master trust defaults shown side by side in this article.
However, at a time when there is such a huge focus on transaction costs, we’re still in a position where some providers are unable to show returns net of some basic administration costs, such as contribution charge or any other one off charges. The actual return members receive could be quite different to that shown in these tables as a result.
What would be helpful, particularly to advisers and scheme members, is a consistent methodology that all providers and master trusts must adhere to. With this is in place for transaction costs then it seems reasonable that the industry has a standard approach for showing performance, with data net of charges, given the impact on performance may be so much greater.”
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About Royal London:
Royal London is the largest mutual life, pensions and investment company in the UK, with Group funds under management of £106 billion. Group businesses provide around 9 million policies and 3,449 employees. (Figures quoted are as at 30 June 2017).
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