Can allocating assets on a more sector, geographic or theme-based approach help schemes to boost returns?
BENSON: The short answer is that this type of allocation is best left to the professional investors the scheme employs to manage its assets. Having said that, the trustees must make sure their managers are actually taking their views on-board. The trustees should focus on the strategic allocations that will have the biggest impact on the health of the scheme while giving their investment managers sufficient freedom to add value to the scheme’s returns. BURGON: In simple terms, yes. But in practical terms it again comes back down to the risk awareness and appetite of the scheme trustees and sponsors. The major essence of portfolio management is appropriate diversification across asset classes. We are increasingly seeing a move to a wider range of asset classes such as property, hedge funds, private equity, and commodities as well as high alpha equities and bonds. But would the prudent trustee invest in only one asset class? In simple terms, no! FORRESTER: Allocating on a sector, geograp
