Pension Fund Management

This chapter explains the functions of pension fund managers. A pension fund manager is an individual who, or company which, manages the assets in a pension fund on behalf of the trustees of a pension scheme. The fund manager can be employed directly by the pension scheme or can be an independent organisation under contract to the scheme. There are a number of different investment management styles that a fund manager can follow. Which one is appropriate depends on the size of the fund and the preferences of the trustees, and also the size and preferences of the fund management group itself. The most common management style is known as balanced management. With this style, the fund manager is responsible for deciding on both the general asset categories that are invested in and the individual securities within each asset category that are invested in.