In occupational pension schemes, who do asset managers report to?

• A. The employees
• B. The trustees
• C. The government
• D. The regulator

Answer: (B)

Asset managers in occupational pension schemes report to the trustees. The trustees are the scheme’s governing body and are responsible for the overall management of the scheme, including appointing and supervising investment managers, setting the investment strategy, and ensuring reports on performance, risk, and policy compliance are received and acted upon. The asset manager provides these updates to the trustees (often via an investment committee) so the trustees can monitor execution against the policy and duties to members. The regulator and government set the rules and framework, but routine reporting goes to the trustees, and the employees are beneficiaries rather than the governance recipients.