1. the value and duties of an
asset consultant
Rob MacMahonMartin Poole
2. agenda
~ PF130
~ what is an asset consultant?
~ what services do they offer?
~ when to use an asset consultant
~ will funds pay extra?
~ how do EB consultants work together
with an asset consultant?
~ assessing asset consultants
~ discussion
3. PF130
~ best governance structures
~ stakeholders need to understand their
role and the when to use expert
advisors
~ board orientation and education
~ risk management and internal
controls
~ investment performance and
communications
5. what is an asset consultant?
~ investment experts
~ by your side
~ analyse fund membership
~ help trustees & EB consultants
discuss and make investment
decisions
~ work with other providers where
necessary e.g. communications
content and strategy
6. understanding our roles
objectives &
specialist asset
goals
class
investment
board of
asset
management/
manager
trustees
develop & asset benefit
implement consultant consultants
investment
strategy
actuary administration
fund structure
member records
statutory role, to achieve your fund goals reliably over time
valuations,
strategy approval
- no conflict of interest, one common goal
7. services asset consultants offer
fiduciary duty & investments: good governance
investment governance investment strategy analysis & investment
investment
workshop review & strategy development
governance compliance with PF130 workshop
development
investment philosophy
workshop
analysis & manager
investment workshop member
asset manager member education
manager review & quantitative &
knowledge & communication
recommendation qualitative analysis understanding
implementation of
investment strategy
end-to-end advice &
trustee knowledge & trustee seminars implemented
implementation
understanding trustee training consulting value added services
8. when to use an asset consultant...
at any stage in the process
setting investment
objectives
developing
review
investment strategy
governance
framework
reporting to selecting asset
members & trustees managers
implementing and
monitoring
9. when to call an asset consultant
~ new fund
~ any large change to
membership/corporate action
~ review of membership and
investment strategy development
~ review of asset managers
~ trustee training for investments
~ investment communications strategy
10. will funds pay extra?
~ access to investment funds at good
cost is critical
~ best governance structures are not
without cost
~ asset consultants can use their
influence when implementing
~ total cost (relative to risk) to member key
~ more appropriate funds
11. benefits / obligations
~ fiduciary liability
~ compliance with PF130
~ governance adds 1-2%p.a. in
performance
~ long term benefit for members
~ appropriate investment funds
~ long term education programmes
~ members’ faith in trustees
~ peace of mind
~ the fund is receiving advice!
12. asset consultants: how are they paid
~ for just advice / single service
~ agreed rand based fee per service
~ monthly retainer or % of assets
~ for implemented solution
~ % assets or retainer
~ could be recovered from asset manager
~ general guideline: convenience and
value
14. working together
~ understanding areas of expertise
~ collaboration for our clients best
interests
~ independence and transparency
~ long term working relationships
~ effective communications
~ consulting opportunities
18. legal case 1
~ administrators, Estate Richards vs.
Nichol & another
~ the trustees of a retirement fund must
seek advice on matters on which they
are not expert
~ apply their minds to all the information
at their disposal
19. legal case 2
~ Jowell vs. Bramwell-Jones & Others
1998
~ if trustees do not have the knowledge or
skill for investment decisions they must
secure expert advice
~ the adviser then becomes liable
