For institutions that have investment reserve funds, standards and benchmarks are established for the returns on fund investments to support the financial sustainability of the programme.
Guideline code
GG_07900
Mechanism
Mechanism
- The management should evaluate, monitor and review the performance of its fund managers, whether internal, external or both, to ensure that returns to member funds and the cost of fund management services to members are within the prescribed standards and benchmarks.
- Whether by policy or rule of thumb, a minimum rate of return on fund investments may be established to support the financial viability of the programme (the so-called actuarial hurdle rate) and/or ensure the sufficiency of accumulated member accounts for the contingencies covered by the programmes.
Structure
Structure
- The board or external competent authority should direct the management to establish standards and benchmarks to evaluate, monitor and review the investment performance of the funds.
Title HTML
Guideline 61. Investment performance and benchmarks
Type
Guideline_1
Weight
83