The trend of retirement funds bringing assets in-house is gaining momentum, driven by a combination of factors. Rising interest rates, along with ESG concerns and regulatory pressures, have created a perfect storm for this shift. With interest rates on the rise, traditional investments are regaining appeal and are easier to manage internally.
According to CEM Benchmarking Inc. cost reduction has also been a key motivator, as managing assets in-house proves to be more cost-effective. Furthermore, stringent regulations on sustainable investments and cybersecurity have made it crucial for funds to have greater control over their portfolios. This shift towards internal management reflects a growing desire for control and a proactive approach to investment decision making.
Monitoring and measuring returns take on increased importance during periods of transition and change within an organisation. Having a sustainable process that can measure and reliably report on returns are an important tool for senior management and key stakeholders.
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John Simmonds
INDEFI
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