If the Government Employee Pension Fund (GEPF) aims to seek outside guidance, perhaps the model adopted by the Government Pension Fund of Norway is a more suitable template than advice from the asset managers. (Time for public servants to stand up against the looters, September 27). The Norway model invests solely in public securities, stresses cost efficiency, diversification and transparency, and has a long-term investment horizon. Unfortunately, the asset management industry thinks in quarterly periods and in line with its bonus policy, which is to the detriment of pension funds with liabilities payable many years into the future. Publicly listed asset managers exacerbate this situation where they are accountable to their shareholders and their promise to pay dividends. The GEPF’s trustees should remain vigilant in taking advice and falling victim to the innovations of asset managers — be it trendy alternative investments, passive products or social and governance considerations....
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.