Dialogue Chair: Nathalie Burrows

An independent trustee recently shared with me the governance review yearplan in place on a standalone fund he served on – there was no fewer than 18 fund policies to be reviewed annually (excluding provider and SLA reviews). Assuming 4 trustee meetings a year, that’s 4.5 policies per meeting! This governance burden has certainly lent impetus to rationalisation of the industry into umbrella funds. But is this in the best interest of the average retirement fund member? Sure, administration fees may be cheaper, but there may be expensive consequences – no employer involvement, other fees, conflicts of interest, limited investment managers/portfolios provided.

Read contributors’ views here.