Allocation is being ignored, says Myners

Still not enough attention is being paid to asset allocation decisions within pension schemes, Paul ...

Still not enough attention is being paid to asset allocation decisions within pension schemes, Paul Myners told the Treasury Select Committee. In a defined benefits scheme the most significant decision that can be made is asset allocation because this determines the risk/reward level to be determined in order to meet the fund's liabilities. Yet this decision is made by pension trustees with little or no investment knowledge and who spend just 12 hours a year on making these decisions. Stock selection, which is the biggest cost and time-consuming portion of running the pension fund, is ...