According to the latest Nomura Global Markets Research report, investment consultants do not add value in terms of fund selection. Criticism arose amid concerns over their cost and their worth to the industry, with the report concluding that investment consultants can find themselves pushed out of some markets.
“The tortoise and the hare: passive is the new active” report calls into question whether consultants, who can influence asset allocation decisions, should be more tightly regulated and whether they are too focused on short-term returns at the expense of longer term interests.
The report also shows that conditions could allow for some consultants to get entrenched and tighten their stranglehold on pension investments in some markets despite all challenges.
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