In occupational pension schemes, who typically appoints the asset managers who run investment portfolios?

• A. The employees
• B. The company directors
• C. The trustees
• D. The regulators

Answer: (C)

In occupational pension schemes, the trustees are the governance body responsible for the scheme’s assets. They have fiduciary duties to the members and therefore appoint asset managers to run the investment portfolios in line with the scheme’s stated investment strategy. Trustees typically use an investment consultant to help perform due diligence and select managers, but the ultimate appointment sits with the trustees themselves. Regulators set the rules and oversee governance, and employees or the sponsoring directors don’t directly appoint the asset managers.