handbook 2017€¦ · west midlands b90 8af tel: 0121 506 8200 website: barnett waddingham llp...

HANDBOOK 2017

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The past year has seen yet more change in the world of pensions.

The pension freedoms, launched in April 2015, are continuing to bed in and the auto-enrolment project is carrying on apace.

But the last 12 months have also seen increasing awareness of the challenges of defined benefit scheme funding, as the cases with the BHS and British Steel pension schemes have shown – and we have had reports from the Work and Pensions Select Committee (WPC) and The Pensions and Lifetime Savings Association’s DB Pensions Task Force as well as a green paper on pensions all trying to deal with this issue.

Yet, at the same time as all this change, schemes, trustees and sponsoring employers continue to face the challenges of ongoing scheme management and funding – and rely on the support and expertise of their consultants, advisers and service providers to do this.

It is against this backdrop that Professional Pensions strives to play a key role by delivering the latest news, information and analysis through our magazine, website and events.

The Professional Pensions Handbook 2017 – updated and expanded – is part of this growing service.

We hope you find it useful over the year ahead at such a time of change for the occupational pensions sector.

Jonathan Stapleton, editor-in-chief, Professional Pensions

A changing landscape

Handbooks Advertising Manager: Nita Hulme, [email protected]: Jonathan Stapleton

Published by Incisive Business Media Ltd © Incisive Business Media (IP) LtdEditorial & Advertising offices:

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All rights reserved. No part of this publication may be reproduced or transmitted in any form by any means including photocopying and recording without the written permission of the publishers. Such written permission

must be obtained before any part of the publication is stored in any retrieval system of any nature.

Time to change your adviser?Call the KPMG Trustee Services team today on 0118 373 1369 or visit www.kpmg.com/uk/trusteeservices

KPMG Pensions Trustee ServicesHelping trustees manage all sizes of pension fund by balancing people, technology, breadth and quality.

© 2017 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative.

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3 Professional Pensions Handbook 2017

6 Actuaries & Consultants

Smaller schemes getting improved

value for money on actuarial fees

17 Administration ServicesWhat schemes are looking for

in administration

28 Alternative Investment LGPS raises exposure to

alternatives

33 Annuity Providers

LTA rethink needed in light of

‘gloomy’ annuity outlook

36 Asset Management Spotlight shines on active

managers

55 Associations & Official Bodies

PLSA conducts governance

review to ‘reinvent’ itself

59 Auditors & AccountantsPension accounting changes -

the what, when, who and how

63 Auto-Enrolment ConsultantsShould AE rate hikes be in line with

staging dates?

67 Auto-Enrolment Providers

Why are opt-out rates much higher

among older workers?

70 CommunicationsLearning lessons from the EU

referendum

74 Custodians

75 DC Providers

Designing a gold standard DC

scheme

80 Employee Benefits

How employee benefits for

SMEs are changing

88 Employer Covenant

FTSE 350 schemes supported by

weak covenants doubles

92 ESG Manager

Putting ESG at the heart of

investment decision making

98 Fiduciary Management

Reinventing the investment

platform

102 Hedge Fund Providers

Picking winning hedge fund

managers

106 Independent Trustees21st century trusteeship

111 Insurance Companies Dashboard one step closer to

launch as ABI unveils prototype

114 Investment Consultancy ‘Big three’ consultancies setsights on change

119 Liability-Driven InvestmentLDI must evolve

122 Multi-Managers

CONTENTS

JLT Employee Benefits is a trading name of: JLT Benefit Solutions Limited, registered in England no. 02240496; JLT Investment Management Limited, registered in England no. 04274915; JLT Wealth Management Limited. registered in England no. 03876529. Authorised and regulated by the Financial Conduct Authority. All are Members of the Jardine Lloyd Thompson Group. Registered Office: The St Botolph Building, 138 Houndsditch, London EC3A 7AW. VAT No. 244 2321 96.© May 2017 273494

JLT EMPLOYEE BENEFITS

HERE TO HELP YOUR WORKFORCE AND ORGANISATION TO THRIVE.

As a trustee, it was reassuring to know that JLT have people who understand and care about what I wanted to achieve for our scheme and our members

Go to jltemployeebenefits.com

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124 Pensions Master TrustsGap in investment quality

130 Performance MeasurementWhy schemes need to look beyond

total returns when measuring

success

133 Property ServicesWhat did we learn from real estate

markets in 2016?

138 Risk Reduction ProvidersThe next de-risking innovation?

142 SIPPsConcerns over interest skimming

‘overstated’

146 Software & SystemsCan the dashboard develop with

patchy data?

153 Solicitors & Legal AdvisorsShould it be mandatory for

schemes to appoint a lawyer?

159 SSASs

161 Tracing Companies

164 Training Provider Guide

165 Transition Management

166 Trustee Liability Insurance

169 Trustee Training

How trustees can improve record-

keeping ahead of TPR’s new rules

CONTENTS

The Professional

Pensions Handbook 2017

To ensure your inclusion in the 2018 Handbook contact Nita Hulme NOW on

+44 (0)20 7316 9309 or

[email protected]

HANDBOOK 2017


HANDBOOK 2017


HANDBOOK 2017


CONSULTING ACROSS:

RISK | PENSIONS | INVESTMENT | INSURANCE

0333 11 11 222

[email protected]

www.barnett-waddingham.co.uk

Independent providersof innovative actuarial, administration and consultancy services for over 25 years

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6 Professional Pensions Handbook 2017 www.professionalpensions.com 7

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ACTUARIES & CONSULTANTS

Smaller schemes getting improved value for money on actuarial fees

The money smaller schemes pay in actuarial fees is going further on a like-for-like basis, research from KGC Associates revealed.

The consulting firm’s 7th annual actuarial fees survey looked at the actuarial fees schemes pay for core tasks such as triennial evaluations alongside those

additional services charged at an hourly rate.While there has not been much movement in how much schemes pay in actuarial

fees, this year’s report found the fees small schemes pay for core services went further compared to last year’s survey.

KGC said this showed actuaries have responded to the needs of trustees when it comes to costs of services.

Director Kim Gubler said: “One of the good things in our report is that smaller schemes are better year on year. Actuarial firms are responding to trustees needs across the piece.”

She said, similarly positive, the analysis of meeting costs, included in the report for the first time this year, found small schemes not disadvantaged by their size.

Therefore small schemes pay lower average cost per meeting than large schemes.So a 200 member scheme which has two meetings a year paid an average cost of

£1,537 per meeting.Meanwhile a 20,000 member scheme that has four meetings a year paid an average cost

of £2,306 per meeting. Gubler added: “We don’t know what the explanation for this is. It could be that the

meetings are of a shorter duration contrasted with larger schemes or the trustees of small schemes could be meeting the actuaries at their offices. This could reduce the cost of the meeting when it occurs.”

The report also revealed that fees paid in terms of the unit cost per member (UCM) were very different for large and small schemes.

The UCM is derived by dividing the total cost by the total number of members and shows the highest, average and lowest fees for all scheme sizes.

So a plan with 200 members had the highest UCM (maximum fee that could be paid in a year) of £213.50 while the equivalent for a 20,000 member scheme was £6.43.

Similarly the lowest UCM (smallest fee that could be paid in a year) was £66.17 for a 200 member plan and £3.53 for a 20,000 member plan.

Gubler said she believed such a discrepancy meant there had to be further discussion about value for money going forward.

She said: “For trustees it is important that they do not just focus on absolute cost but what they are getting for the cost. If schemes can work out the exact amount of money they need to pay for basic services, they then have more money to spend on additional things they might need.”

KGC conducted the survey during the fourth quarter of 2016. A total of 19 firms took part.

ALLENBRIDGE INVESTMENT SOLUTIONS LLP26th Floor125 Old Broad StreetLondonEC2N 1ARTel: 020 7079 1000Website: www.allenbridgeis.com

ALLIANCE TRUSTPO Box 1648 Westmarket GaitDundeeDD1 9YPTel: 01382 321000Website: www.alliancetrust.co.uk

AON HEWITT10 Devonshire Square London EC2M 4YPTel: 0800 279 5588Website: www.aonhewitt.co.uk

ATKIN & COCornwall HouseBlythe GateBlythe Valley ParkSolihullWest MidlandsB90 8AFTel: 0121 506 8200Website: www.atkin.uk.com

BARNETT WADDINGHAM LLPCheapside House138 CheapsideLondonEC2V 6BWTel: 0333 11 11 222Email: [email protected]: www.barnett-waddingham.co.uk

Contact: Paul Houghton

Founded in 1989, Barnett Waddingham has grown to become the UK’s largest independent provider of actuarial, administration and consultancy services.From small beginnings with just 20 people, our total headcount is now over 850 (including 64 partners and 97 associates) – with offices in seven locations around the UK. We act for a wide range of clients, large and small, in both the private and public sectors including 15% of FTSE350 firms with a DB scheme.We continue to grow through referrals from professional contacts and our existing clients. Our primary focus is to continue to provide the personal, quality, tailored approach that has made us successful and has led to our high level of client retention. We seek to build stable and long-term working relationships with clients, supported by our low staff turnover.Authorised and regulated by the Financial Conduct Authority and licensed by the Institute and Faculty of Actuaries for a range of investment business activities.

ALLENBRIDGE – BARNETT WADDINGHAM





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BATH ACTUARIAL CONSULTING LTDPO Box 5110BathBA1 0QYTel: 01225 481 450Website: www.bathactuarial.com

BBS CONSULTANTS & ACTUARIES LTD23-25 St Georges’ RoadCanard CourtBristolBS1 5UUTel: 0117 937 8700Website: www.bbs-actuaries.co.uk

BRIAN TATCH & CO14 Branscombe GardensLondon N21 3BNTel: 020 8882 6466

BROADSTONE CORPORATE BENEFITS LTD 55 Baker StreetLondonW1U 7EU Tel: 020 7893 3456Website: www.broadstone.co.uk

CAPITA EMPLOYEE BENEFITS65 Gresham StreetLondonEC2V 7NQTel: 020 7709 4500Email: [email protected] Website: www.capitaemployeebenefits.co.uk

Contact: Lynne StewartTwitter: @Capita_EBFacebook: Capita Employee BenefitsLinkedin: www.linkedin.com/groups/Capita-Employee-Benefits-4681308

Employee Benefits Consultancy of the Year: UK Pensions Awards 2016Firm of the Year: Corporate Adviser Awards 2015 & 2017Pensions Consultancy of the Year: Pensions Age Awards 2014

Capita Employee Benefits is the largest UK-owned employee benefits consultancy servicing over 1,200 clients and more than 4 million scheme members.With offices across the UK, we are part of Capita plc.

We offer a fully integrated service. Our actuaries, investment consultants and pension consultants work closely together to support our sponsor, trustee and pension manager clients.

We use our skills and the best technology on the market to help schemes navigate the path to fully managing their risk and fully meeting their obligations.

BATH ACTUARIAL – CAPITA

CARTWRIGHT CONSULTING LTDMill Pool HouseMill LaneGodalmingSurreyGU7 1EYTel: 01483 860201Website: www.cartwrightconsulting.co.uk

CHASE DE VERE 60 New Broad StreetLondonW1G 0PWTel: 020 7065 1700Website: www.chasedevere.co.uk

CLUB VITAOne London WallLondonEC2Y 5EATel: 020 7082 6060Website: www.clubvita.co.uk

COLUMBIA THREADNEEDLE INVESTMENTS60 St Mary AxeLondonEC3A 8JQTel: 020 7464 5000Website: www.columbiathreadneedle.co.uk

CONDUENT HR SERVICES160 Queen Victoria StreetLondonEC4V 4ANTel: 0800 066 5433Email: [email protected]: www.conduent.co.uk/hrservices

Conduent HR Services is an established, leading provider of consulting, administration and outsourcing services to fulfil the pensions and benefits needs of you and your employees/scheme members. We work

with our clients to deliver tailored, innovative solutions across health, risk and wellbeing, flexible benefits, share plans, and DB and DC pension schemes for both trustees and corporates alike.

We aim to help you effectively manage the full range of your HR, pension, and benefits programmes, whilst engaging your employees/scheme members in their health, wealth, and career. We integrate our years of experience with current day expertise and a customer partnership approach, to help you overcome your challenges.

Our consultants are proactive, commercial, balanced, and professional, focused on meeting and exceeding the needs of our clients. By harnessing technology of the future, and the power of Conduent’s global reach, we can help you to achieve your goals.

DELOITTE TOTAL REWARD AND BENEFITSHill House1 Little New StreetLondonEC4A 3TRTel: 020 7007 3687Website: www.deloitte.co.uk

Our actuaries and pensions consultants provide a full range of specialist pensions actuarial services to scheme trustees and sponsoring employers on both defined benefit and defined contribution schemes.

These include:•Trustee services, including formal Scheme Actuary and Administration appointments, trustee advisory services and the Deloitte Pensions Master Plan, our comprehensive solution to defined benefit pension provisionfor employers and trustees.

CARTWRIGHT CONSULTING – DELOITTE TOTAL



http://www.capitaemployeebenefits.co.uk

http://www.capita.co.uk/employeebenefits

http://www.linkedin.com/groups/ Capita-Employee-Benefits-4681308



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•Defined Contribution strategy, scheme design, implementation and governanceadvice.

•Corporate advisory services, including pensions strategy and funding negotiation support for employers, as well as specialistadvice on funding deficits, including asset backed contributions (e.g. Deloitte’s Pension Funding Partnerships).

•Preparation of accounting disclosures andpensions accounting advice.

•Scheme funding strategy advice, including pensions derisking strategies, liability management, pension scheme buyouts andfunding negotiation support for employers.

•Developing, implementing and monitoringinvestment strategies for trustees and sponsoring employers.

•M&A and Transaction support, including due diligence and post-transaction implementation.

DENTONS PENSION MANAGEMENTSutton HouseWeyside ParkGU7 1XETel: 01483 521521Website: www.dentonspensions.co.uk

ESHARE1 Oxford RoadNewburyBerkshireRG14 1PDTel: 0845 200 7829Website: www.eshareuk.com

EY LLP1 More London PlaceLondonSE1 2AFTel: 020 7951 2000Tel: 0118 928 1100Website: www.ey.com/uk

FIRST ACTUARIAL PLCMayesbrook HouseLawnswood Business ParkLeedsLS16 6QYTel: 0113 818 7300Website: www.firstactuarial.co.uk

GATEMORE CAPITAL MANAGEMENT LLP33 Cavendish SquareLondonW1G 0PWTel: 020 7580 0300Website: www.gatemore.com

HAMISHWILSON LIMITEDThe ByreWheelers LaneBrockhamBetchworthSurreyRH3 7HJTel: 0870 160 5700Website: www.hamishwilson.com

HARSANT PENSIONS321 Pensby RoadHeswallWirralCH61 9NDTel: 0151 648 7615Website: www.harsantpensions.co.uk

DELOITTE TOTAL – HARSANT PENSIONS

HS ADMINISTRATIVE SERVICES LTD3300 Daresbury ParkWarringtonWA4 4HSTel: 01928 707 900Website: www.hsadmin.com

HUGHES PRICE WALKER LTDPembroke House15 Pembroke RoadCliftonBristolBS8 3BATel: 0117 946 7269Website: www.hughespricewalker.co.uk

HUNTSWOODAbbey GardensAbbey StreetReadingRG1 3BATel: 0844 875 120Website: www.huntswood.com

HYMANS ROBERTSONOne London WallLondonEC2Y 5EATel: 020 7082 6000Website: www.hymans.co.uk

JAGGER & ASSOCIATESGround Floor14 Exchange QuaySalford QuaysManchesterM5 3EQTel: 0161 873 9350Website: www.jaggerandassociates.co.uk

JAMES HAY PARTNERSHIPDunn’s HouseSt Paul’s RoadSalisburySP2 7BFTel: 0845 850 44 55Website: www.jameshaypartnership.com

JOHNSON FLEMING LIMITEDFleming HouseBromsgrove Enterprise ParkWorcestershireB60 3ALTel: 0870 242 8600Website: www.johnsonfleming.com

KGC CONSULTINGWoodpecker Lodge15, Ford LaneRoxtonBedfordshireMK44 3ELTel: 01234 871010Website: www.kgcconsulting.com

KPMG LLPArlington Business Park Theale Reading Berkshire RG7 4SDTel: 0118 373 1369Fax: 0118 373 1373Website: www.kpmg.com/uk/pensions

Contact: Ray PygottEmail: [email protected]

Our pension team of over 400 people advise all sizes of pension funds and our clients include some of the biggest pension schemes in the UK right through to small and medium sized pension schemes. We have offices in London, Reading, Bristol, Birmingham, Manchester, Leeds, Edinburgh and Glasgow

We offer services to both trustees and scheme sponsors on the full range of pension services for Defined Benefit (DB), Defined Contribution (DC) and hybrid

HS ADMINISTRATIVE SERVICES – KPMG LLP


http://www.kpmg.com/uk/pensions



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pension schemes. We provide full services to trustees covering, administration, actuarial, investment and covenant support. Our advice and solutions extend to the areas of scheme funding, risk management, insurance solutions, benefit design, asset backed funding, communications, member options, liability management, transactions & restructuring, PPF levy mitigation and public sector pensions.

LCP95 Wigmore StreetLondonW1U 1DQTel: +44 (0)20 7439 2266Fax: +44 (0)20 7439 0183Email: [email protected]: www.lcp.uk.com

LCP is a firm of financial, actuarial and business consultants, specialising in the areas of pensions, investment and business analytics.

We advise more than 30 of the FTSE 100 and our clients include 3i, Barnado’s, Lenovo, NM Rothschild & Sons, Smith & Nephew, Tate & Lyle, UNISON, Volkswagen and Whitbread.

The firm has more than 600 staff based at locations in London, Winchester, Ireland, and - operating under licence - the Netherlands.

1. PensionsWe have 70 years of experience of advising on complex pensions issues in the UK and internationally.

2. InsuranceWe provide a full range of actuarial and consulting advice to insurance clients including Lloyd’s managing agents, insurance companies, captives, medical

indemnity societies, local authorities, government bodies, brokers and auditors.

3. InvestmentOur investment team provides high quality investment advice to trustees and sponsors of pension schemes, as well as advice to clients in the broader area of risk management.

4. Energy AnalyticsWe combine in-depth knowledge of the energy sector with modelling expertise developed over many years of engagement with government and industry to help our clients make informed decisions.

Our core consulting services include the following areas of expertise:

• Strategic consulting for trustees and corporate sponsors• Employee benefits• Executive pensions• Covenant services• Pension scheme administration• Defined contribution services• Trustee governance• Pension buyout and de-risking• Corporate financial reporting• Merger and Acquisitions• Public Sector outsourcing• Multinational consulting• Setting investment strategy• Investment manager research and performance monitoring• Solvency II• Reserving• Business modelling and risk appraisal

MERCER1 Tower Place WestLondonEC3R 5BUTel: 020 7626 6000

Website: www.mercer.com

KPMG LLP – MERCER

MICHAEL J. FIELD CONSULTING ACTUARIES8 St Stephen StreetManchesterM3 6AYTel: 0161 834 3297Website: www.michaeljfield.com

MITCHELL CONSULTING ACTUARIES LTDAlbion WharfAlbion StreetManchesterM1 5LNTel: 0161 236 1330Website: www.mitchellconsulting.co.uk

NIGEL SLOAM & CORoman House296 Golders Green RoadLondon NW11 9PYTel: 020 8209 1222Website: www.nigelsloam.co.uk

ORIGEN FINANCIAL SERVICES LTD1st Floor, Infor House1 Lakeside RoadFarnboroughHampshireGU14 6XPTel: 0844 209 3000Website: www.origenfs.co.uk

ORTEC FINANCE LTD23 Austin FriarsLondonEC2N 2QPTel: 020 3178 3913Website: www.ortec-finance.com

PREMIER PENSIONS MANAGEMENT LIMITEDPremierAMP HouseDingwall RoadCroydonCR0 2LXTel: 020 3727 9800Fax: 020 3014 8768Email: [email protected]: www.premiercompanies.co.uk

Contacts: Ian GutteridgeTitle: Sale & Marketing DirectorEmail: [email protected]

Paul CouchmanTitle: Managing DirectorEmail: [email protected]

Association Memberships: NAPF, ACA

Services offered: To Trustees: Consultant, Actuarial, Administration Services, Risk Benefits and I.F.A Services

To Companies: Strategic Consulting and Actuarial advice and on-site support. Advice on contract based pension and flexible benefit plans.

To Individuals: Financial Planning

Total Employees (UK): 160

Number of Pensions Fund Clients: 300

Value of Funds Advised: £15bn

Associated Companies:Premier Pensions Management Ltd. Premier Benefit Solutions Ltd.

MICHAEL J. FIELD – PREMIER PENSIONS



http://www.lcp.uk.com

mailto:�[email protected]

http://www.premiercompanies.co.uk



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Premier Benefit Solutions Ltd.Other Offices: Bristol

Company Profile:Premier was established to challenge the status quo in the pensions industry and to offer a range of services which actually meet customer needs at competitive costs.

Premier clients will be either trustees, employers or individuals and our services are focussed on their particular requirements.

For trustees, a full range of advisory and support services are offered including pensions consulting, secretary to the trustees, actuarial advice, administration, the insurance of risk benefits and all relevant communications. Our approach is to offer either a full range of services to manage the scheme or to allow the trustees to pick and choose from the range available.

For individuals, independent advice can be provided on a fully FSA regulated basis to ensure impartiality and a focus on individual needs.

For companies, we can provide strategic benefits advice, the management of group personal pension plans including selection and on-going governance support, the insurance of benefits such as private medical cover, disability and critical illness cover, salary sacrifice and high earners’ support. In addition, actuarial support for pensions’ accounting or actuarial funding negotiations with trustees is also offered.

Significant on-going investment in technology ensures that our service is responsive, relevant and accurate and assists us greatly with the communication of our consulting support. Premier are fully committed to long standing relationships with clients,

Experience the difference…. See change.

PRICEWATERHOUSECOOPERS LLP Hays Galleria1 Hays LaneLondonSE1 2RDTel: 020 7583 5000Website: www.pwc.co.uk

P-SOLVE11 StrandLondonWC2N 5HRTel: 020 3327 5100Website: www.psolve.com

PUNTER SOUTHALL11 StrandLondonWC2N 5HRTel: 020 3327 5000Website: www.puntersouthall.com

QUANTUM ADVISORYCypress HousePascal CloseSt. MellonsCardiffCF3 OLWTel: 029 2083 7900Website: www.quantumadvisory.co.uk

Contacts:AmershamRhidian Williams, PartnerDirect line: 01494 582 024Email:[email protected]

BirminghamRobert Palmer, PartnerDirect line: 0121 632 2190Email:[email protected]

PREMIER PENSIONS – QUANTUM ADVISORY

Cardiff/BristolStuart Price, PartnerDirect line: 029 2083 7902Email:[email protected]

LondonPhil Farrell, PartnerDirect line: 020 3008 7197Email:[email protected]

Established in 2000, Quantum Advisory is an independent Financial Services Consultancy that provides solution based Pensions and Employee Benefits services to employers, scheme trustees and members.

We design, maintain and review pension schemes and related employee benefits so that they operate efficiently and effectively, and are valued by employees. This means that you can get on with doing the things that you do best, therefore saving you time and money.

We offer a range of services to companies and pension trustees, all designed to focus on your specific needs, including actuarial, administration (including accounts and payroll), communications, consultancy, investment, secretarial and trustee training.

We have offices in Amersham, Birmingham, Bristol, Cardiff and London. Call us to see how we can help with your pension and employee benefit challenges.

QUATTRO PENSIONS CONSULTING LTDProspect HouseFishing Line LaneRedditchWorcestershireB97 6EWTel: 01527 598688Website: www.quattropensions.com

ROWANMOOR GROUP PLCRowanmoor House46-50 Castle StreetSalisburyWiltshireSP1 3TSTel: 03445 440 440Website: www.rowanmoor.co.uk

ROYAL LONDON CONSULTING ACTUARIES57 Henderson RowEdinburghEH3 5DLTel: 0131 652 5550Email: [email protected]: www.royallondonconsulting.co.uk

We provide straightforward, pragmatic advice. We have the expertise and agility to develop the best solution, giving you time to concentrate on your business.

Our pension consulting services are built around the needs of small to medium sized pension schemes and their employers.

QUANTUM ADVISORY – ROYAL LONDON


http://www.quantumadvisory.co.uk




http://www.royallondonconsulting.co.uk


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RUSSELL INVESTMENT LTDRex House10 Lower Regent StreetLondon SW1Y 4PETel: 020 7024 6000Website: www.russell.com/uk

STAMFORD ASSOCIATES LIMITED19-21 Old Bond StreetLondon W1S 4PXTel: 020 7629 5225Website: www.stamfordassociates.com

TOWRY GROUPTowry HouseWestern RoadBracknellBerkshireRG12 1TLTel: 01344 828 000Website: www.towrylaw.com

TRIANGLE PENSIONSUnit 7Sandown Road Industrial EstateSandown RoadWatfordWD24 74BTel: 01923 253 464Website: www.triangle-pensions.co.uk

WILLIS TOWERS WATSON71 High HolbornLondonWC1V 6TPTel: 020 7170 2000Website: www.willistowerwatson.com

XAFINITY CONSULTINGPhoenix House1 Station HillReadingBerkshireRG1 1NBTel: 0118 918 500Website: www.xafinity.com

RUSSELL INVESTMENT– XAFINITY CONSULTING ADMINISTRATION SERVICES

What schemes are looking for in administration

HANDBOOK 2017


HANDBOOK 2017


HANDBOOK 2017


To ensure your inclusion in the

2018Professional Pensions

Handbook contact Nita Hulme

NOW on +44 (0)20 7316 9309 or [email protected]

This years’ PP Administration Survey revealed what schemes are looking for in administration systems and third-party administrators, and highlights the key providers.This survey gathered data from respondents in both the public and private sector; and across a range of different scheme types - with 81% of respondents outsourcing the

administration for their main scheme and 19% keeping their administration in-house.PP received responses across a whole spectrum of schemes in terms of assets under

management. Almost one-quarter (23%) of those who responded to this year’s survey ran assets of more than £1bn; a further 10% of schemes were worth somewhere between £500m and £1bn; and 21% of schemes were worth between £100m and £500m.

Smaller schemes also responded to the survey – with around 46% of responses coming from schemes worth less than £100m.

So what are the reasons behind the decision to keep scheme administration in-house? There are many it would seem but this year cost control was cited as the primary driver, having a weighted importance score of 68. The next most important factors were quality of service (51), level of expertise (40) and flexibility (35).

However, while many schemes wish to keep their administration in-house they often need to outsource some aspects of it to ensure it works as well as it should. Schemes who have in-house administration commonly choose to outsource elements such as actuarial support, AVCs, DC arrangements and communication.

Assessing how well administration systems work is important and the results of this year’s survey shows there are many ways schemes are employing to do this. Just over two-thirds (67%) of schemes managed in-house said they assessed the efficacy of their administration through benchmarking.

The next most popular method was having a regular review - 47% of scheme participants said they held quarterly reviews and 40% said they held these annually.

Complaint levels were also a popular way to judge performance with 42% of scheme participants choosing this option, while 40% of those who answered the question said they gauged the efficacy of their administration by using member surveys.

Surprisingly perhaps, 40% of survey participants said they had no process in place to measure the performance of their administration.

The survey then went on to ask those who kept scheme administration largely in-house to let us know how important certain features are when it comes to evaluating administration systems. Eight attributes were chosen, with participants asked to rate them on a scale of one to five, with one being not important at all and five being essential. An average of these scores was then produced to put together a ranking of the most important features of administration systems.

Perhaps not surprisingly, data accuracy remained the most important feature when it came to assessing administration systems, scoring an average of 4.84 out of five. This was followed by reliability, which scored 4.81 and value for money with 4.44. Technical support (4.42) and good customer service (4.40) also scored highly.




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AON HEWITT10 Devonshire Square London EC2M 4YPTel: 0800 279 5588Website: www.aonhewitt.co.uk/administration

ARTHUR J. GALLAGHERThe Walbrook Building25 WalbrookLondon EC4N 8AWTel: +44 (0)20 7204 6195Website: www.gallaghereb.com


Contact: Paul Latimer

Barnett Waddingham LLP is the UK’s largest independent provider of actuarial, administration and consultancy services. Founded in 1989 our headcount has grown from 20 to over 850 today based in seven offices throughout the UK.

Developing client relationships at all levels and ‘knowing our client’ is an extremely important part of Barnett Waddingham’s personal service based approach. We help

our administration clients achieve their goals by striking an appropriate balance between technology and people skills.

We are extremely proud to have been awarded the PASA Accreditation. This award recognises the organisations in our industry which have evidenced compliance with the PASA Standards and affirms our position as one of the leading Third-Party Administrators in the UK.

Our well trained and qualified staff are highly motivated and, perhaps more importantly, take pride in their work aiming to achieve the very highest standards. All our administration services for each client are provided by one of our administration teams, dedicated to that client, who take responsibility for all aspects of the administration of the scheme.

Technology has an important role to play in providing an accurate, efficient and secure service which is risk managed and cost effective. Our pension administration software, Penstream, is being continually developed by IT experts with a pensions background and driven by experienced administrators in order to meet these goals.

We provide the full range of administration services for group occupational pension schemes - defined benefit, defined contribution, career average revalue earnings (CARE), hybrid, open, closed and those transferring to the Financial Assistance Scheme and the Pension Protection Fund.

These services include:• membership record keeping• member communications• benefit calculations and payments including electronic payments• all regulatory reporting including e-filing• full cash and accounting services including drafting the annual report and accounts• data audits and data cleansing exercises,

AON HEWITT – BARNETT WADDINGHAM

particularly where data originates from multiple sources• comprehensive internet functionality and links to other systems (such as HM Revenue & Customs)• trustee secretarial services including meeting management• consultancy services

Authorised and regulated by the Financial Conduct Authority and licensed by the Institute and Faculty of Actuaries for a range of investment business activities.

BARTLETT GROUPBroadway HallHorsforthLeedsLS18 4RSTel: 0113 258 5711Website: www.bartlettgroup.com


BERKELEY BURKEBerkeley Burke HouseRegent StreetLeicesterLE1 7BRTel: 0116 204 2988Website: www.berkeleyburke.com

BROADSTONE CORPORATE BENEFITS LTD55 Baker StreetLondon W1U 7EUTel: 020 7893 3456Website: www.broadstoneltd.co.uk

CANTWELL GROVE LIMITEDThe Old Registry6 Derby RoadBelperDerbyshireDE56 1UUTel: 01773 307200Website: www.cantwellgrove.co.uk

CAPITA EMPLOYEE BENEFITS65 Gresham StreetLondonEC2V 7NQTel: 020 7709 4500Email: [email protected]: www.capitaemployeebenefits.co.uk

Contact: Debbie WhiteTwitter: @Capita_EBFacebook: Capita Employee BenefitsLinkedin: www.linkedin.com/groups/Capita-Employee-Benefits-4681308

Communications Innovation of the Year: UK Pensions Awards 2016Third Party Administrator of the Year: PIPA Awards 2015Firm of the Year: Corporate Adviser Awards 2015 & 2017

Capita Employee Benefits is the largest UK-owned employee benefits consultancy servicing over 1,200 clients and more than 4 million scheme members.

With offices across the UK, we are part of Capita plc.

We offer clients a blend of experience, scale and expertise in the administration market.

BARNETT WADDINGHAM – CAPITA EMPLOYEE BENEFITS





http://www.capitaemployeebenefits.co.uk




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Our Hartlink administration platform is a proven performer with excellent automation, outstanding member communications, precise workflow management and the flexibility to manage DB, DC, Cash Balance and CARE schemes and all points in between. The platform has been fully updated to cope with all aspects of the new pension freedoms and is capable of handling one-off, regular and ad hoc payments.

Our implementation and transition teams work closely together to ensure scheme are brought on board in a timely and seamless fashion while our operations and client management team will work closely with you throughout the lifetime of the scheme.

Supported by secretarial, data, tracing and scheme wind-up experts, we are your perfect partner for scheme administration.

CAREY PENSIONS UK LLP1st FloorLakeside HouseShirwell Crescent Furzton LakeMilton KeynesMK4 1GATel: +44 (0) 1908 336010 Website: www.careypensions.co.uk


Conduent HR Services is an established, leading provider of consulting, administration and outsourcing services to fulfil the pensions and benefits needs of you and your employees/scheme members. We work

with our clients to deliver tailored, innovative solutions across health, risk and wellbeing, flexible benefits, share plans, and DB and DC pension schemes for both trustees and corporates alike.



DBC PENSIONS SERVICES LIMITED1D Mitre CourtLichfield RoadSutton ColdfieldWest MidlandsB74 2LZTel: 0121 362 8550Website: www.dbcpensions.co.uk

EQUINITI PENSION SOLUTIONSSutherland HouseRussell WayCrawleyWest Sussex RH10 1UHTel: 01293 560 999Website: www.equiniti.com

CAPITA EMPLOYEE BENEFITS – EQUINITI PENSION SOLUTIONS

GO PENSIONS The Belfrey237 Queens RoadWimbledonLondonSW19 8NYTel: 020 8213 5860Website: www.go-pensions.co.uk

GODDARD PERRY CONSULTING8th FloorCorinthian House17 Lansdowne RoadCroydonSurreyCR0 2BXTel: 020 8603 3700Website: www.goddardperry.com

THE HANOVER TRUSTEE COMPANY LTD824 Salisbury HouseLondon WallEC2M 5QQTel: 020 7585 8406Website: www.hanover-pensions.co.uk

HARSANT PENSIONS321 Pensby RoadHeswallWirralCH61 9NDTel: 0151 648 7615Website: www.harsantpensions.co.uk

HS ADMINISTRATIVE SERVICES LIMITED25 Goodlass RoadLiverpoolL24 9HJTel: 0151 448 5400Website: www.hsadmin.com


JLT EMPLOYEE BENEFITSThe St Botolph Building138 HoundsditchLondonEC3A 7AWTel: 020 7528 4000Website: www.jltgroup.com/eb

Our straightforward, member-focused approach takes away the hassle from running your schemes which is why JLT are the largest provider of pensions administration to the private sector.

KPMG PENSIONSArlington Business ParkTheale, ReadingBerkshireRG7 4SDTel: 0118 373 1369Website: www.kpmg.com/uk/pensions

GO PENSIONS – KPMG PENSIONS




http://www.hymans.co.uk

http://www.jltgroup.com/eb


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LCPSt Paul’s House St Paul’s HillWinchesterS022 5ABWebsite: www.lcp.uk.com

Contact: Daren Newman Title: PartnerTel: +44 (0)1962 870060Fax: +44 (0)1962 870086Email: [email protected]

LOCAL PENSIONS PARTNERSHIP LTD2nd Floor169 Union StreetLondonSE1 0LLTel: 020 7369 6000Website: www.localpensionspartnership.org.uk

LONDON PENSIONS FUND AUTHORITYDexter House2 Royal Mint CourtLondonEC3N 4LPTel: 0207369 2687Website: www.lpfa.org.uk

MCHARDY & BURNETT (FINANCIAL SERVICES) LTD5-7 Bon Accord CrescentAberdeenAB11 6DNTel: 01224 578250Website: www.machardyandburnett.com

MERCER 1 Tower Place WestTower PlaceLondonEC3R 5BUTel: 020 7626 6000Website: www.mercer.com

MITCHELL CONSULTING ACTUARIES LIMITEDAlbion WharfAlbion StreetManchesterM1 5LNTel: 0161 236 1330Website: www.mitchellconsulting.co.uk

OFA TRUSTEE SERVICES LIMITED36 East Stockwell StreetColchesterEssexCO1 1STTel: 01206 761 252Website: www.offord-fenning.com

PENSION & BENEFIT SERVICES LIMITEDCyclops HouseLink Business ParkYorkYO10 3JBTel: 01904 422 702Website: www.pbslyork.com

THE PENSIONS TRUSTVerity House6 Canal WharfLeedsYorkshireLS11 5BQTel: 0113 234 5500Website: www.thepensionstrust.org.uk

LCP - THE PENSIONS TRUST

PREMIER PENSIONS MANAGEMENT LIMITEDPremierAMP HouseDingwall RoadCroydonCR0 2LXTel: 020 3727 9800Fax: 020 3014 8768Email: [email protected]: www.premiercompanies.co.uk






To Individuals: Financial PlanningTotal Employees (UK): 160



Associated Companies:Premier Pensions Management Ltd. Premier Benefit Solutions Ltd.

Other Offices: Bristol



For trustees, a full range of advisory and support services are offered including pensions consulting, secretary to the trustees, actuarial advice, administration, the insurance of risk benefits and all relevant communications. Our approach is to offer either a full range of services to manage the scheme or to allow the trustees to pick and choose from the range available.





PREMIER PENSIONS MANAGEMENT









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PROBIS SERVICES LTDChurchill House142-146 Old StreetLondonEC1V 9BWTel: 020 7490 4110 Website: www.probis.co.uk

P-SOLVE11 StrandLondonWC2N 5HRTel: 020 3327 5100Website: www.psolve.com


QUANTUM ADVISORYCypress HousePascal CloseSt. MellonsCardi� CF3 OLWTel: 029 2083 7900Website: www.quantumadvisory.co.uk



Cardi� /BristolStuart Price, PartnerDirect line: 029 2083 7902Email:[email protected]


Established in 2000, Quantum Advisory is an independent Financial Services Consultancy that provides solution based Pensions and Employee Benefi ts services to employers, scheme trustees and members.

We design, maintain and review pension schemes and related employee benefi ts so that they operate e� ciently and e� ectively, and are valued by employees. This means that you can get on with doing the things that you do best, therefore saving you time and money.

We o� er a range of services to companies and pension trustees, all designed to focus on your specifi c needs, including actuarial, administration (including accounts and payroll), communications, consultancy, investment, secretarial and trustee training.

We have o� ces in Amersham, Birmingham, Bristol, Cardi� and London. Call us to see how we can help with your pension and employee benefi t challenges.

RADCLIFFE & CO (LIFE & PENSIONS) LTDThomas House28-30 Bernard StreetSouthamptonSO14 3AYTel: 02380 222 444Website: www.radcli� e-ifa.co.uk

PROBIS SERVICES LTD – ROWANMOOR GROUP PLC

ROWANMOOR GROUP PLCRowanmoor House46-50 Castle StreetSalisburyWiltshireSP1 3TSTel: 03445 440 440Web: www.rowanmoor.co.uk

RPMIStooperdale O� cesBrinkburn RoadDarlingtonCo DurhamDL3 6EHTel: 01325 342 849Website: www.rpmi.co.uk

SOVEREIGN EMPLOYEE BENEFITS LTDSovereign House37 Middle RoadPark GateSouthamptonHampshire SO31 7GHTel: 01489 582 011Website: www.sovemp.co.uk

STC PENSION MANAGEMENT LTD1 King’s Arm YardLondonEC2R 7AFTel: 0845 872 0339Website: www.stcpm.co.uk

SUFFOLK LIFE ANNUITIES LIMITED153 Princes StreetIpswichSu� olkIP1 1QJTel: 0870 414 7000Website: www.su� olklife.co.uk

TRAFALGAR HOUSE PENSIONS ADMINISTRATIONTrafalgar HouseCheapside House138 CheapsideLondonEC2V 6BJWebsite: www.trafalgarhouse.co.uk

Contact: Joe AndersonTel: 0207 330 0778Email: [email protected]

At Trafalgar House we provide market-leading administration services to all types of occupational pension scheme. We are experts in the fi eld of administration and have built our services around providing a fi rst-class experience to pension scheme members and trustees. We have a long track record of excellent service delivery supported by state-of-the-art systems and a highly experienced team.

Our client-focused approach means we deliver services through a single team of named contacts; we do not operate functional teams or o� shore any services. This enables our clients and their scheme members to enjoy personal service from a team of UK-based experts, where quality and delivery are closely controlled. We are an AAF 01/06 accredited operation.

We give pension scheme members direct contact with our administration experts, supplemented with access to a cutting-edge self-service solution. Working in partnership with specialist communication consultants we have also crafted a suite of highly engaging core communications that are available to all of our clients.

RPMI – TRAFALGAR HOUSE PENSIONS







http://www.trafalgarhouse.co.uk



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WILLIS TOWERS WATSONWatson HouseLondon RoadReigateSurrey RH2 9PQTel: 01737 241144Website: www.willistowerwatson.com

WILLIS TOWERS WATSON

The Professional


To ensure yourinclusion in the

2018 Handbook

contact Nita HulmeNOW on

+44 (0)20 7316 9309 or

[email protected]

HANDBOOK 2017


HANDBOOK 2017


HANDBOOK 2017


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Strategy InsightEmergingMarketsAsset-backed

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Unrivalled coverage

Professional Pensions continues to be the market leading source for those in the occupational pensions industry.

Following an extensive, independent audience research study, Professional Pensions has been further improved to include greater depth of analysis, insight and content.

Professional Pensions has taken into account your information needs which can be accessed whether in print, in person, online or via any smart device.

Print Online Events Tablet


Pensions BuzzShould investmentconsultants be fullyregulated? page 22

CommentGovernance incontract-basedschemes page 25

Walking in the shoesof a TPAS adviser

How three volunteers conduct their rolespage 26

www.professionalpensions.com20 February 2014

foto

aloja

Financial Assistance SchemeFAS regulations offer ‘last chance’ entry

to ineligible schemes page 4

DB Code of PracticeRegulator’s code branded ‘garbage’ due

to lack of guiding principlespage 6

FCA annuity reviewDid the Financial Conduct Authority’s

review into annuity markets go far enough?page 14

FeatureReclassifyingmoney purchasebenefits page 28

Is it time for a newperspective on your administration?

towerswatson.com

Copyright © 2013 Towers Watson. All rights reserved.TW-EU-2012-28548c. April 2013.

+44 1737 [email protected]

Towers Watson is represented in the UK by Towers Watson Limitedand Towers Watson Capital Markets Limited.

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UK Pensions Awards 2017 – the winners

How the MNOPF uses fiduciary management

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ALTERNATIVE INVESTMENT MANAGERS

LGPS raises exposure to alternatives

Local government pension funds have increased allocation to alternative assets over the past three years while their exposure to equities has fallen.

Research by State Street based on Pension Funds Online data for 105 local authorities across England, Scotland, Wales, and Northern Ireland shows

allocation to alternatives increased from 4.6% in 2014 to 6.6% (£16.6bn) in 2016 as a proportion of total assets.

Meanwhile, equity allocation dropped from 50% in 2014 to 47.9% (£120.7bn) in 2016, and total bond allocation rose from 11.9% to 13.8%.

State Street Asset Owner Solutions head of UK pensions and banks Andy Todd said from his conversations with investment committees, there is willingness to engage in more alternative asset classes. This is being driven by a search for return in a low yield environment, as well as diversification, he said.

Also, alternatives are a good fit given LGPS funds are still open defined benefit schemes with a very long-term investment time horizon.

“When looking at asset portfolio beyond the monthly cash flow requirements, then the attractiveness of long-term investments that diversify core investments around bonds and equities and are a good match to liabilities, is a positive thing,” Todd added.

The pooling of investments across 89 English and Welsh funds into eight vehicles is expected to enable greater accessibility to alternative asset classes, particularly small funds.

While Todd has not seen any evidence to suggest that asset allocation strategy has been restricted through lack of access to alternatives, buying power at the pool level will have a “very positive factor” particularly for those smaller funds.

This comes as the Royal County of Berkshire Pension Fund has decided to take a 20% shareholding worth £8.2m in Gresham House, alongside plans to invest in the asset manager’s new alternative investment fund.

It is part of Berkshire’s plans to have a long-term strategic relationship with Gresham House in order to develop investments in alternative and illiquid assets.

The company is rolling out a platform to allow both large pension funds and pools from across the private and public sectors to access niche alternative and local impact investments.

The first fund on the platform will be the British Strategic Investment Fund, which will focus on renewable infrastructure, housing and innovation. Berkshire will be the cornerstone investor in this fund, which has a target size of £300m and will be managed by Gresham House Asset Management (GHAM).

Berkshire had been seeking a strategic partnership with a specialist asset manager to support its long-term investment objectives.

Chairman of the Berkshire Pension Fund and its advisory panels John Lenton said the platform will enable it to reduce costs and obtain diversity in its investments.

“We will be targeting niche areas and make investments which are smaller and usually longer term than those that interest the major investment houses.”

Leading the way in alternative investing

Pfaeffikon | New York | Dublin | London | Vaduz | Dubai | Beijing | Hong Kong | Tokyo | Sydney | [email protected] | www.lgtcp.com

LGT Capital Partners Ltd. is a leading alternative investment specialist with over USD 55 billion in

assets under management and more than 450 institutional clients in 37 countries. An international

team of over 370 professionals is responsible for managing a wide range of investment programs

focusing on private markets, liquid alternatives, and multi-asset class solutions. Headquartered in

Pfaeffikon (SZ), Switzerland, the firm has offices in New York, Dublin, London, Vaduz, Dubai, Beijing,

Hong Kong, Tokyo and Sydney.

55+USD billion AuM

450+institutional investors

370+employees globally

10offices worldwide

http://[email protected]

http://www.lgtcp.com


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ALLENBRIDGE EPIC INVESTMENT ADVISERS26th Floor125 Old Broad StreetLondonEC2N 1ARTel: 020 7079 1000Website: www.allenbridgeis.com

AMUNDI ALTERNATIVE INVESTMENT41 LothburyLondonEC2R 7HFTel: 020 7074 9300Website: www.amundi-ai.com

AVIVA INVESTORSNo1 PoultryLondonEC2R 8EJTel: 020 7809 6000Website: http://www.avivainvestors.com

AXA ROSENBERG INVESTMENT MANAGEMENT LTD7 Newgate StreetLondonEC1A 7NXTel: 020 7003 1000Website: www.axarosenberg.com

BDO LLP55 Baker StreetLondon W1U 7EUTel: 020 7486 5888Website: www.bdo.co.uk/investmentmanagement

BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED12 Throgmorton AvenueLondonEC2N 2DLTel: 020 7743 3000Website: www.blackrock.co.uk

BLUECREST CAPITAL MANAGEMENT40 Grosvenor PlaceLondonSW1X 7AWTel: 020 3180 2000Website: www.bluecrestcapital.com

DARWIN PROPERTY INVESTMENT MANAGEMENT LTDStanmore House29/30 St James’s StreetLondonSW1A 1HBTel: 020 7930 7788Website: www.darwinpim.com

F&C ASSET MANAGEMENT PLCExchange HousePrimrose StreetLondon EC2A 2NYTel: 020 7628 8000Website: www.fandc.com

GOLDMAN SACHS INTERNATIONALPeterborough Court133 Fleet StreetLondon EC4A 2BBTel: 020 7774 1000Website: www.gs.com

ALLENBRIDGE EPIC – GOLDMAN SACHS

HERMES INVESTMENT MANAGEMENTLloyds Chambers1Portsoken StreetLondonE1 8HZTel: 020 7702 0888Website: www.hermes-investment.com

HSBC GLOBAL ASSET MANAGEMENT (UK) LIMITED8 Canada SquareLondonE14 5HQTel: 020 7991 0756Website: www.assetmanagement.hsbc.com

INSIGHT INVESTMENT MANAGEMENT (GLOBAL) LTD160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 4000Website: www.insightinvestment.com

J.P. MORGAN ASSET MANAGEMENTFinsbury Dials20 Finsbury StreetLondonEC2Y 9AQTel: 020 7742 4000Website: www.jpmorganassetmanagement.co.uk/institutional

WINNER

LASALLE INVESTMENT MANAGEMENTOne Curzon StreetLondonW1J 5HDTel: 020 7852 4200Fax: +44 (0) 20 7852 4404Website: www.lasalle.com

Contact:Head of UKAlan Tripp ([email protected])UK CIOJulian Agnew ([email protected])Client Executive, Client Capital GroupAnne Lucking ([email protected])

Main services: LaSalle Investment Management is one of the world’s leading real estate investment managers with over 35 years of experience. LaSalle manages US$58bn of assets on behalf of institutions and private investors across the world, investing in private real estate equity and debt, and public real estate through a complete range of investment vehicles. Our products include separate accounts, open and closed-end commingled funds, joint ventures, and public securities.

From the London office of 165 people we manage £12.5bn assets of which £12.2bn are located within the UK. We have extensive successful experience of managing portfolios to both MSCI relative and real return performance targets as well as assets and strategies targeting index-linked and absolute returns.We have 700 people located in 23 offices around the world, as well as access to JLL’s 300 offices in 80 countries worldwide.

HERMES INVESTMENT – LASALLE INVESTMENT


http://www.lasalle.com





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LGT CAPITAL PARTNERSSchuetzenstrasse 6PO Box 8808 Pfaeffikon SwitzerlandTel: +41 55 415 9600Fax: +41 55 415 9698Website: www.lgtcp.com

Contact: Raphael PagliaEmail: [email protected]: +41 55 415 96 29

• Outstanding track record – 19 years experience in generating attractive risk-adjusted returns

• Significant asset base – Over USD 55 billion in assets under management

• Strong alignment of interests – Team and shareholder invest in own programs

• Large, international team – 370 people representing 41 nationalities

• Global client base – 450 sophisticated institutional investors in 37 countries

MAN INVESTMENTS LTDRiverbank House2 Swan LaneLondonEC4R 3ADTel: 020 7144 1000Website: www.maninvestments.com

MORGAN STANLEY25 Cabot SquareCanary WharfLondon E14 4QATel: 020 7425 8000Website: www.morganstanley.co.uk

NGAM UK LTDOne Carter LaneLondonEC4V 5ERTel: 020 3405 2173Website: www.ngam.natixis.co.uk

PIMCO EUROPE LIMITED11 Baker StreetLondonW1U 3AHTel: 020 3640 1000Website: www.pimco.co.uk

SCM PRIVATE LLP2 Eaton GateWestminsterLondonSW1W 9BJTel: 020 7838 8650Website: www.scmprivate.com

STANDARD LIFE INVESTMENTS (PRIVATE EQUITY) LTD1 George StreetEdinburghEH2 2LLTel: 0131 245 8565Website: www.standardlifeinvestments.com

STENHAM ASSET MANAGEMENT180 Great Portland StreetLondonW1W 5QZUnited KingdomTel: +44 (0) 20 7079 6600Website: www.stenhamassetmanagement.com

LGT CAPITAL PARTNERS – STENHAM ASSET MANAGEMENT ANNUITY PROVIDERS

LTA rethink needed in light of ‘gloomy’ annuity outlook

Cuts to the lifetime allowance (LTA) should be reversed, or the limit scrapped altogether, in light of the bleak outlook for annuity rates, an adviser has said.

The Bank of England’s (BoE) move to cut interest rates to 0.25% in August 2016 has negatively affected annuity rates - already at record lows - as they are based on government bond yields or gilts.

The LTA, the total limit people can save into a pension fund, was reduced to £1m in April this year.

Tilney financial planner Gary Smith said at present, a £1m purchase of a joint life annuity for a 65-year-old, increasing by RPI inflation will currently provide a £25,120 annual income or £18,843 if the saver takes their 25% tax-free cash.

This was well below the average UK salary, Smith added. He urged the government to consider reversing the LTA cut or scrapping the limit completely to make it easier for people to save towards a decent retirement income.

Smith said people approaching retirement who wanted to buy an annuity - which provides a guaranteed income for life - instead of going into drawdown had been badly hit by the BoE decision.

Smith said the outlook for annuity rates was “bleak” as the BoE signalled the potential for future rate cuts.

“This will adversely affect those either at, or who are approaching retirement, and who want to avoid the investment risk and charges associated with keeping a pension portfolio invested in the markets through drawdown.

“Those affected could find that they will receive a much lower income than they were expecting or having to increase contributions ahead of retirement to offset the reduction in annuity rates, although this could prove quite a costly exercise and this may not be an option because of the unhelpful recent reduction in the lifetime allowance, a decision which the reconstituted government really should reappraise.”

The adviser said people looking to buy an annuity could go into drawdown first and buy a guaranteed income for life later in retirement, however, predicting interest rate rises is very difficult. Other commentators have said now is “probably the worst ever time to retire” due to the latest interest rate cut and its consequences for annuities.

Smith said people with health conditions should look at enhanced annuities for higher rates. Though data released from consultant Willis Towers Watson has pointed to falling sales of the product as people look for annuity alternatives.

“Ultimately the attractiveness of annuities has gradually been reduced due to a combination of the introduction of pension freedoms legislation and a prolonged period of low interest rates and gilt yields. With little expectation of an increase in interest rates in the short term, the future for annuities seems very gloomy indeed,” said Smith.





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AEGON Edinburgh ParkEdinburgh EH12 9SETel: 0870 600 337Website: www.aegonse.co.uk


FIDELITY RETIREMENT SERVICEPascall HouseWestridge Business ParkCothey WayRydeIsle of WightPO33 1QTTel: 0500 50 65 75 (freephone)Website: www.fidelity.co.uk

JUSTVale HouseRoebuck CloseBancroft RoadReigateSurreyRH2 7RUTel: 0345 302 2287Website: www.justadviser.com

Just is one of the UK’s leading providers of financial solutions meeting the needs of people approaching or in retirement. We believe everyone deserves a fair, secure and fulfilling retirement, and that financial intermediaries are best placed to help people with the choices they need to make.

Provided by a pension annuity, our Guaranteed Income for Life (GIfL) offers security and stability for life by using some, or all, of a client’s pension fund to create a regular guaranteed income. Flexible options can ensure income keeps pace with inflation or loved ones are catered for after death.

Our Immediate Care Plans help provide peace of mind for people requiring long term care through knowing a regular payment will be made to the Registered Care Provider, for the rest of their life.

We are able to provide these personalised solutions through our unparalleled individual underwriting expertise and research on health and lifestyle.

AEGON – JUST LEGAL & GENERAL ASSURANCE SOCIETY – SCOTTISH WIDOWS

LEGAL & GENERAL ASSURANCE SOCIETY LTDLegal & General HouseSt Monica’s RoadKingswoodTadworthSurreyKT20 6EUTel: 01737 370 370Website: www.landg.com

LONDON & COLONIAL SERVICES LIMITEDPerrymount House38-42 Perrymount RoadHaywards HeathWest SussexRH16 3DNTel: 0203 479 5505Website: www.londoncolonial.com


PARTNERSHIP110 BishopsgateLondon2N 4AYTel: 0845 108 7240Website: www.partnership.co.uk

PREMIER COMPANIES LTDPremierAMP HouseDingwall RoadCroydonCR0 2LXTel: 020 3727 9800Website: www.premiercompanies.co.uk

PRUDENTIALStirlingFK9 4UETel: 020 7004 9621Website: www.prudential.co.uk

ROTHESAY LIFE25th FloorThe Leadenhall Building122 Leadenhall StreetLondonEC3V 4ABTel: 020 770 5300Website: www.rothesaylife.co.uk

SCOTTISH WIDOWSPO Box 1703669 Morrison StreetEdinburghEH3 8YHTel: 0131 655 6000Website: www.scottishwidows.co.uk

HANDBOOK 2017


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http://www.justadviser.com



ASSET MANAGEMENT

Spotlight shines on active managers

Active managers are having a difficult time as markets are being driven much more by politics than the economy.While uncertain times can present opportunities, surprise events including the UK’s vote to leave the EU and Donald Trump’s US election victory were

like none seen before.Active managers’ struggle is underlined by research by Lyxor Asset Management,

which reveals very few outperformed their benchmarks in 2016, with results far below the previous year.

Analysing the performance of 3,871 active funds (including equity and fixed income) domiciled in Europe totalling €1.3trn (£1.1trn) compared with their benchmarks, it found just 28% outperformed in 2016 - far below the 47% that did so in 2015.

The study attributes this marked change to market conditions being devoid of significant trends.

Head of exchange traded fund (ETF) research Marlene Hassine, whose team carried out the analysis, says while 2015 was a “very good year” for active managers, 2016 presented challenges in generating performance and taking advantage of trends.

“The start of 2016 was very difficult for active managers with questions over China’s growth, warning signs of a US recession, and the oil price fall. Managers then struggled to maintain strong confidence due to the move away from economics towards politics.”

When broken down between asset classes, 27% of equity active funds outperformed on average, which is just half of the figure for 2015.

Active managers are under pressure to prove their value to investors who want to ensure they are paying fair fees and charges.

However, separate research by bfinance shows global active equity management fees for the largest investors have managed to withstand growing pricing pressures in the last few years.

In its report, entitled Investment Management Fees: New Savings and Challenges, the consultant found global active equity fees for institutional investors had fallen by a “meaningful” 8% since 2010. Average fees quoted by global equity managers have decreased from 62 basis points (bps) between 2006-2009 to 57bps between 2015-2017. Some firms were able to negotiate an average discount of 12%, reaching as high as 46%.

But this reduction was significantly less than in other sectors such as smart-beta, where fees were down 25%, and low volatility strategies, which were 24% lower. The median quoted fee on the most recent smart-beta searches is around 30bps for a €100m mandate.

Bfinance also found that despite the fee cuts, the average large pension fund is paying out a higher proportion of its AUM in investment costs than ten years ago.

Lothbury Investment Management Limited is authorised and regulated by The Financial Conduct Authority.

The dynamic and responsive approach of our team has ensured continued performance in an ever-changing world.

A commitment into the student accommodation and residential sectors has helped to grow the FUM to £1.8bn over the last 7 years, diversifying risk and delivering consistent returns for our investors.

www.lothburyim.com

InvestmentManagement

Lothbury Investment Management Limited is authorised and

regulated by The Financial Conduct Authority.

Former Town Hall, Camberwell

LOTHBURY Broadening Our Horizons

http://www.lothburyim.com


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AB (FORMERLY ALLIANCEBERNSTEIN)50 Berkeley StreetLondonW1J 8HATel: 020 7470 0100Website: www.abglobal.com

ABERDEEN ASSET MANAGEMENT PLCBow Bells House1 Bread StreetLondonEC4M 9HHTel: 020 7463 6000Website: www.aberdeen-asset.com

ADAM & CO. GROUP PLC25 St Andrew SquareEdinburghEH2 1AFTel: 0131 225 8484Website: www.adambank.com

ALCHEMY PARTNERS LLP21 Palmer StreetLondonSW1H 0ADTel: 020 7240 9596Website: www.alchemypartners.co.uk

ALLIANZ GLOBAL INVESTORS EUROPE GmbH199 BishopsgateLondonEC2M 3TYTel: 020 7859 9000Website: www.allianzgi.com

AMP CAPITAL INVESTORS (UK) LTDFourth FloorBerkeley Square HouseBerkeley SquareLondonW1J 6BXTel: 020 7659 9252Website: www.ampcapital.com


ARTEMIS INVESTMENT MANAGEMENT LTDCassini House57 St James’s StreetLondonSW1A 1LDTel: 020 7399 6000Website: www.artemisonline.co.uk

ASHMORE INVESTMENT MANAGEMENT LIMITED61 AldwychLondonWC2B 4AEUnited KingdomTel: +44 (0)20 3077 6000Website: www.ashmoregroup.com/

www.ashmoreemm.com


AXA INVESTMENT MANAGERS LTD7 Newgate StreetLondonEC1A 7NXTel: 020 7003 1000Website: www.axa-im.co.uk

AB – AXA INVESTMENT

AXA ROSENBERG INVESTMENT MANAGEMENT LTD8th Floor155 BishopsgateLondonEC2M 3XJTel: 020 7003 1800Website: www.axarosenberg.com

BAILLIE GIFFORD & COCalton Square1 Greenside RowEdinburghEH1 3ANTel: 0131 275 2000Website: www.bailliegifford.com

BARCLAYS WEALTHBarclays Bank PLC1 Churchill PlaceCanary WharfLondon E14 5HPTel: 020 7116 9000Website: www.barclayswealth.com

BARING ASSET MANAGEMENT LIMITED155 BishopsgateLondon EC2M 3XYTel: 020 7628 6000Website: www.barings.com

BDO INVESTMENT MANAGEMENT LTD55 Baker StreetLondon W1U 7EUTel: 020 7486 5888Website: www.bdo.co.uk

BLACKROCK12 Throgmorton AvenueLondonEC2N 2DLTel: 020 7743 3000Website: www.blackrock.co.uk

BLUEBAY ASSET MANAGEMENT LTD77 Grosvenor StreetLondonW1K 3JRTel: 020 7389 3700Website: www.bluebay.com

BMO GLOBAL ASSET MANAGEMENTExchange HousePrimrose StreetLondon EC2A 2NYTel: 020 7628 8000Website: www.bmogam.com

BNP PARIBAS INVESTMENT PARTNERS5 Aldermanbury SquareLondonEC2V 7BPTel: +020 7595 2000Website: www.bnpparibas-ip.com

BRAMDEAN ASSET MANAGEMENT LLP42 Bruton PlaceLondonW1J 6PHTel: 020 7052 9272Website: www.bramdean.com

BREWIN DOLPHIN12 Smithfield StreetLondonEC1A 9BDTel: 020 7246 1000Website: www.brewin.co.uk

AXA ROSENBERG INVESTMENT – BREWIN DOLPHIN



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CAIRN CAPITAL LIMITED27 KnightsbridgeLondonSW1X 7LYTel: 020 7259 4800Website: www.cairncapital.com

CALAMOS INVESTMENTS LLP62 Threadneedle StreetLondonEC2R 8HPTel: +44 (0) 20 3744 7024Website: www.calamos.co.uk

Contact: Terry O’MalleyEmail: [email protected]

CAPITAL DYNAMICS LTD21 Sackville StreetLondon W1S 3DNTel: 020 7297 0200Website: www.capdyn.com

CAPITAL INTERNATIONAL LTD40 Grosvenor PlaceLondon SW1X 7GGTel: 020 7864 5000Website: www.capgroup.com

CARMIGNAC GESTIONNo 29-30 CornhillLondonECV3 3NFTel: 020 7360 6100Website: www.carmignacgestion.com

CAZENOVE CAPITAL MANAGEMENT LIMITED12 MoorgateLondonEC2R 6DATel: 020 3479 1000Website: www.cazenovecapital.com

CBPE CAPITAL2 George YardLondonEC3V 9DHTel: 020 7065 1115Website: www.cbpel.com

CBRE GLOBAL INVESTORSThird FloorOne New ChangeLondonEC4M 9AFTel: 020 7809 9000Website: www.cbreglobalinvestors.com

CCLA INVESTMENT MANAGEMENT LIMITEDSenator House85 Queen Victoria StreetLondonEC4V 4ETTel: 0800 022 3505Website: www.ccla.co.uk

CHARLES STANLEY & CO LTD25 Luke StreetLondonEC2A 4ARTel: 020 7739 8200Website: www.charles-stanley.co.uk

CAIRN CAPITAL – CHARLES STANLEY & CO

CLOSE BROTHERS ASSET MANAGEMENTNelson HouseGadbrook Business CentreGadbrook RoadNorthwichCheshireCW9 7TNTel: 01606 810100Website: www.closebrothersam.com

COHEN & STEERS, INC21 Sackville Street4th FloorLondonW1S 3DNTel: 020 7460 6350Website: www.cohenandsteers.com


CORDIUM2nd Floor130 Jermyn StreetLondonSW1Y 4URTel: 020 7408 2448Website: www.cordium.com

CREDIT SUISSE ASSET MANAGEMENT LIMITEDOne Cabot SquareLondonE14 4QJTel: 020 7888 8888Website: www.credit-suisse.com/uk

DEUTSCHE BANK1 Great Winchester StreetLondonEC2N 2DBTel: 020 7545 8000Website: www.db.com

DIMENSIONAL FUND ADVISORS LTD20 Triton StreetRegent’s PlaceLondonNW1 3BFTel: 020 3033 3300Website: www.dimensional.com

Contact: Tim BrownEmail: [email protected]

For more than 35 years, institutional investors have relied on Dimensional to address complex investment challenges.Guided by a strong belief in markets, we offer strategies to help institutional clients pursue higher expected returns. We have a long history of incorporating rigorous academic research into practical investment strategies.

Our clients include corporations, consultants, nonprofits, DB and DC pension funds, sovereign wealth funds and other institutions worldwide. The longevity of Dimensional’s client relationships—many dating back decades—demonstrates our commitment to client service and the consistency of our investment approach.

Our goal is to implement the great ideas in finance through portfolios that target higher expected returns in a cost-effective manner. We consistently apply our integrated, market-driven approach across a full suite of global and regional equity and fixed income strategies.

CLOSE BROTHERS – DIMENSIONAL FUND ADVISORS


http://www.calamos.co.uk

http://www.dimensional.com

http://www.dimensional.com



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DUNCAN LAWRIE LTD1 Hobart PlaceLondon SW1W 0HUTel: 020 7245 1234Website: www.duncanlawrie.com

ECM ASSET MANAGEMENT LIMITED34 Grosvenor StreetLondonW1K 4QUTel: 020 7529 7400Website: www.europeancredit.com

EUROPA CAPITAL PARTNERS15 Sloane SquareLondonSW1W 8ERTel: 020 7881 6800Website: www.europacapital.com

FIDELITY WORLDWIDE INVESTMENTS25 Cannon StreetLondonEC4M 5TATel: 020 7283 9911Website: www.fidelity.co.ukinstitutional

FIRST STATE INVESTMENTS UK LTD154 Finsbury SquareLondonEC2M 7EBTel: 020 7332 6500Website: www.firststate.co.uk

FPP ASSET MANAGEMENT LLP34 Brook StreetLondonW1K 5DNTel: 020 7647 9100Website: www.fpictet.com

FRANKLIN TEMPLETON INVESTMENTSCannon Place78 Cannon StreetLondonEC4N 6HLTel: 020 7073 8500Website: www.franklintempletoninstitutional.com

FULCRUM ASSET MANAGEMENTMarble Arch House66 seymour StreetLondonW1H 5BTTel: 020 7016 6450Website: www.fulcrumasset.com

GAM20 King StreetLondonSW1Y 6QYTel: 020 7493 9990Website: www.gam.com

GLG PARTNERS LP1 Curzon StreetLondonW1J 5HBTel: 020 7016 7000Website: www.glgpartners.com

GMO1 London BridgeLondonSE1 9BGTel: 020 7814 7600Website: www.gmo.com

DUNCAN LAWRIE – GMO

GOLDMAN SACHS ASSET MANAGEMENTChristchurch Court10 - 15 Newgate StreetLondonEC1A 7HDTel: 020 7774 1000Website: www.gsam.com

HERMES INVESTMENT MANAGEMENTLloyds Chambers1 Portsoken StreetLondonE1 8HZTel: +44 (0)20 7702 0888Website: www.hermes-investment.com

HSBC GLOBAL ASSET MANAGEMENT (UK) LIMITED8 Canada SquareLondonE14 5HQTel: 020 7991 0756Website: www.assetmanagement.hsbc.com

IMPAX ASSET MANAGEMENT GROUP PLCNorfolk House31 St James’s SquareLondonSW1Y 4JRTel: 020 7434 1122Website: www.impax.co.uk

INSIGHT INVESTMENT MANAGEMENT (GLOBAL) LTD160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 4000Website: www.insightinvestment.com

INVESCOFirst Floor43-45 Portman SquareLondonW1H 6LYTel: 020 7543 3534Website: www.invesco.co.uk/institutional

Contact: Stephen MessengerEmail: [email protected]

INVESTEC ASSET MANAGEMENTWoolgate Exchange25 Basinghall Street London EC2V 5HATel: 020 7597 2000Website: www.investecassetmanagement.com

Contact:Frank DoyleInstitutional Sales DirectorTel: 020 7597 2075Email: [email protected]

Investec Asset Management provides investment products and services to institutions, advisory clients and individuals. Our clients include pension funds, central banks, sovereign wealth funds, insurers, foundations, financial advisers and individual investors.

It all began in South Africa in 1991. We were a small start-up offering domestic

GOLDMAN SACHS – INVESTEC ASSET


http://www.invesco.co.uk/institutional


http://www.investecassetmanagement.com



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strategies in an emerging market. Over two decades of growth later and we’re an international business managing approximately £95 billion* for clients based all over the world.

*As at 31 March 2017

JAGGER & ASSOCIATESGround Floor14 Exchange QuaySalford QuaysManchesterM5 3EQTel: 0161 873 9350Website: www.jaggerandassociates.co.uk

JANUS HENDERSON INVESTORS201 BishopsgateLondonEC2M 3AETel: 020 7818 1818Website: www.janushenderson.com

J. P. MORGAN ASSET MANAGEMENTFinsbury Dials20 Finsbury StreetLondonEC2Y 9AQTel: 020 7742 6000Website: www.jpmorganassetmanagement.co.uk/institutional

JUPITER ASSET MANAGEMENT1 Grosvenor PlaceLondon SW1X 7JJTel: 020 7412 0703Website: www.jupiteronline.co.uk

KAMES CAPITALKames House3 Lochside CrescentEdinburghEH12 9SATel: 0870 609 0101Website: www.kamescapital.com




From the London office of 165 people we manage £12.5bn assets of which £12.2bn are located within the UK. We have extensive successful experience of managing portfolios to both MSCI relative and real return

INVESTEC ASSET – LASALLE INVESTMENT

performance targets as well as assets and strategies targeting index-linked and absolute returns.

We have 700 people located in 23 offices around the world, as well as access to JLL’s 300 offices in 80 countries worldwide.

LAZARD ASSET MANAGEMENT50 Stratton StreetLondonW1J 8LLTel: 020 7588 2721Website: www.uk.lazardnet.com

LEGAL & GENERAL INVESTMENT MANAGEMENTOne Coleman StreetLondonEC2R 5AATel: 020 3124 3000Website: www.lgim.com

LEGG MASON GLOBAL ASSET MANAGEMENT201 BishopsgateLondonEC2M 3APTel: 020 7392 1929Website: www.leggmason.co.uk

LONGVIEW PARTNERSThames Court1 QueenhitheLondonEC4V 3RLTel: 020 7809 4100Website: www.longview-partners.com

LOTHBURY INVESTMENT MANAGEMENT LIMITED155 BishopsgateLondonEC2M 3TQSwitchboard: 020 3551 4900Website: www.lothburyim.com

Contact: Barbara O’RiordanTitle: Associate Director Email: [email protected]

We are an independent UK real estate investment manager, formed in 2010. Ourstrong and cohesive senior fund management team has worked together for nearly 20 years and has a track record of delivering outperformance for investors.

LIM manages unlisted property vehicles on behalf of institutional investors seekingindirect exposure to the UK. Lothbury Property Trust (LPT) is our flagship fund. We also manage the Clarendon Unit Trust and a segregated secure income portfolio for a UK pension fund. We offer an innovative solution to clients, through our core/active strategy. Our predominantly core portfolio of prime assets provides stable returns, while our active management initiatives create additional value and enhance returns. Since LIM’s launch, we have progressively grown our funds under management to over £1.8 billion. We have attracted new investors to our Funds and significantly diversified our robust base of UK and overseas institutional clients, the majority of which are corporate and public sector pension funds. Our clients also include treasury investors, collective investment schemes, insurance companies and charities. Further information on our company, strategy and products can be found at www.lothburyim.com

LASALLE INVESTMENT – LOTHBURY INVESTMENT



http://[email protected]






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M&G INVESTMENTSGovernor’s HouseLaurence Pountney HillLondonEC4R 0HHTel: 020 7548 3414Fax: 020 7548 3419Email: [email protected]: www.mandg.co.uk/institutions

Contacts:Andrew Swan, Director (Fixed Income)Tel: 020 7548 2375Email: [email protected]

Nick Robert-Nicoud, Business Development Director – Equities and Multi AssetTel: 020 3790 1331Email: [email protected]

Lucy Williams, Director of Institutional Business, UK & Europe (M&G Real Estate)Tel: 020 7548 6585Email: [email protected]

M&G Investments is the European asset management arm of Prudential plc. We are an active investment-led manager and have a long-standing reputation for forward thinking strategies, market-leading performance and excellent client service.

• We invest £265 billion* across fixed income, equity, real estate and multi-asset strategies• We are a long-term investor via our parent company, Prudential plc, for whom we invest £128 billion*• Our clients include 49* local authority pension funds and 68% of the top 50 UK pension schemes*.

M&G Investments is the European asset management arm of Prudential plc, operating in the UK, Europe and Asia. As a trusted partner, our clients’ individual needs are at the heart of our business. We align our interests with those of our clients and develop value-based strategies to generate strong and consistent returns. Our goal is to help our clients meet their long-term liabilities regardless of the market environment.

With £265 billion* of assets under management (including £128 billion* on behalf of Prudential) across fixed income, equities, real estate and multi-asset strategies, and over 400* investment professionals (including what we believe to be one of Europe’s largest credit research teams), we have the scale and expertise to offer tailored investment solutions across a wide range of risk and return requirements.

M&G is an active investor – both in terms of how we manage our assets, and how we innovate and develop our offering to ensure that we continue to meet evolving investor requirements.

* As at 30 December 2016

M&G Investments and M&G Real Estate are business names of M&G Investment Management Limited and are used by other companies within the Prudential Group. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. M&G Investment Management Limited and M&G Real Estate Limited are registered in England and Wales under numbers 936683 and 3852763 respectively with their registered office at Laurence Pountney Hill, London EC4R 0HH.

M&G INVESTMENTS

MAJEDIE ASSET MANAGEMENT10 Old Bailey London EC4M 7NG Tel: 020 7618 3900Website: www.majedie.com

Majedie Asset Management, established in 2002, is an independent investment boutique that actively manages equities for institutional investors, wealth managers and endowments across a range of UK and Global strategies.

Majedie was founded by a team from Mercury Asset Management with a clear aim: simply to make money for our clients. We are proud of our distinctive, long-term track record — but remain as hungry to perform today as we were on day one.

Importantly, every Majedie employee owns equity in the business; we are in partnership with our clients and here to stay. Similarly, our fund managers all invest in Majedie funds, further aligning our interests with those of our clients.

We view our capacity as scarce; we believe investment performance suffers from diseconomies of scale if assets under management grow too large. We are determined to maintain the size advantage for our clients and therefore limit the available capacity in each of our funds.

Assets under management total approximately £14bn ($17bn).

MARATHON ASSET MANAGEMENTOrion House5 Upper St Martin’s LaneLondon WC2H 9EATel: 020 7497 2211Website: www.marathon.co.uk

MARTIN CURRIE INVESTMENT MANAGEMENT LTDSaltire Court20 Castle TerraceEdinburghEH1 2ESTel: 0131 229 5252Website: www.martincurrie.com/ukinstitutional

MFS INTERNATIONAL (UK) LTDOne Carter LaneLondonEC4V 5ERTel: 020 7429 7200Website: www.mfs.com

A leading global asset managerFor almost a century, investors have trusted MFS to achieve their investment goals because we stay true to our convictions and to who we are as active managers. We take the long view. We favour the strongest idea over the strongest individual. Our employees are aligned with what matters most to our clients: long-term vision, powerful risk-managed results and good decisions born from collaborative thinking.

MFS manages £351 billion1 globally across long-only equities and fixed income.

MAJEDIE ASSET MANAGEMENT – MFS INTERNATIONAL



http://www.mandg.co.uk/institutions




http://www.majedie.com

http://www.mfs.com


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A differentiated approachRobust integrated research is in our heritage, and combining it with uncompromised information sharing is how we turn good ideas into great outcomes. We actively debate our diverse viewpoints and collectively make the best investment decisions for our clients. Risk management isn’t part of our investment process; it is our process. We won’t add a security to our portfolios until we fully understand its return stream, liquidity and potential for long-term value.

Doing what’s right for clients is not a choice we make each day; it’s who we are. We take a long-term view, focusing not on quick returns, but on aligning with client objectives and building more sustainable wealth. Our equity, fixed income and quantitative teams work collectively, examining opportunities and actively debating the best ways to invest client capital. Through our commitment to patient investing and flexibility to tap a broader opportunity set, we seek to deliver greater long-term value to our clients.

We pride ourselves on being the resource clients depend on to help them navigate market change and complexity.

* As at 31 March 2017.

Issued in the United Kingdom by MFS International (U.K.) Limited (“MIL UK”), a private limited company registered in England and Wales with the company number 03062718, and authorised and regulated in the conduct of investment business by the UK Financial Conduct Authority. MIL UK, an indirect subsidiary of MFS, has its registered office at One Carter Lane, London, EC4V 5ER and provides products and investment services to institutional investors globally. This material shall not be circulated or distributed to any person other than to professional investors (as permitted by local regulations) and should not be relied upon or distributed to persons where such reliance or distribution would be contrary to local regulation. Unless otherwise indicated, logos and product and service names are trademarks of MFS® and its affiliates and may be registered in certain

countries.

FOR INSTITUTIONAL AND INVESTMENT

PROFESSIONAL USE ONLY

MIRABAUD ASSET MANAGEMENT LIMITED33 Grosvenor PlaceLondonSW1X 7HYTel: 020 7878 3411Website: www.mirabaud.com

MITSUBISHI UFJ ASSET MANAGEMENT (UK) LTDRopemaker Place25 Ropemaker StreetLondonEC2Y 9ANTel: 020 7577 2149Website: www.uk.am.mufg.jp

MOMENTUM GLOBAL INVESTMENT MANAGEMENTThe Rex Building62 Queen StreetLondonEC4R 1EBTel: 020 7489 7223

MONDRIAN INVESTMENT PARTNERS LTD10 Gresham StreetLondonEC2V 7JDTel: 020 7477 7000Website: www.mondrian.com

MORGAN STANLEY INVESMENT MANAGEMENT LTD 25 Cabot SquareCanary WharfLondon E14 4QATel: 020 7425 8000Website: www.morganstanley.co.uk

MFS INTERNATIONAL – MORGAN STANLEY INVESMENT

MUZINICH & CO LTD8 Hanover StreetLondonW1S 1YQTel: 020 7614 8755Website: www.muzinich.com

NGAM UK LTD1 Carter laneLondonEC4V 5ERTel: 020 3405 2162Fax: 020 3405 2178Website: www.ngam.natixis.co.uk

Contact: Euan MacLarenTitle: Head UK & Ireland Institutional BusinessEmail: [email protected]

Natixis Global Asset Management, one of the largest Asset Management companies in the world, brings best in class investment capabilities to our clients through a multi-affiliate model. The result is a diversified roster of investment managers that can address the specific needs of institutional investors worldwide through the philosophy of Durable Portfolio Construction, which seeks to produce consistent long-term risk adjusted returns by managing risk, volatility, and enhancing diversification. Excellence across asset classes with more than 200 discrete strategies to institutions – managed by some of the most talented investors in the world including Harris Associates, Loomis Sayles, H2O, AEW UK and Natixis Asset Management.

Cerulli Quantitative Update: GlobalMarkets 2016 ranked Natixis GlobalAsset Management, S.A. as the 16th

largest asset manager in the worldbased on assets under management($895.6Bn/€837.5B/£716.1Bn) as of 31 March 2017.

NEPTUNE INVESTMENT MANAGEMENT LTD3 ShortlandsLondonW6 8DATel: 020 3249 0163Website: www.neptune-im.co.uk

NEUBERGER BERMANLansdowne House57 Berkeley SquareLondonW1J 6ERTel: 020 3214 9000Website: www.nb.com

NEWTON INVESTMENT MANAGEMENTThe Bank of New York Mellon Centre160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 9000Website: www.newton.co.uk

NIKKO GLOBAL ASSET MANAGEMENT (UK) LTD1 London WallLondonEC2Y 5ADTel: 020 7796 9866Website: www.nikkoam.com

NN INVESTMENT PARTNERS Tower 42254 Old Broad StreetLondonEC2N 1HQTel: 020 7382 1330Website: www.nnip.com

MUZINICH & CO – NN INVESTMENT PARTNERS


http://www.ngam.natixis.co.uk



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NOMURA ASSET MANAGEMENT UK LIMITED1 Angel LaneLondonEC4R 3ABTel: 020 7521 3333Website: www.nomura-asset.co.uk

NORTHERN TRUST GLOBAL INVESTMENTS (EUROPE) LIMITED50 Bank StreetLondonE14 5NTTel: 020 7982 2000Website: www.ntrs.com

NORWICH & PETERBOROUGH BUILDING SOCIETYPeterborough Business ParkLynch WoodPeterboroughCambridgeshirePE2 6WZTel: 01733 372 372Website: www.npbs.co.uk


PAYDEN & RYGEL GLOBAL LTD1 Bartholomew LaneLondonEC2N 2AXTel: 020 7621 3000Website: www.payden.com

PICTET ASSET MANAGEMENT LTDMoor House120 London WallLondonEC2Y 5ETUnited KingdomTel: 020 7847 5000Website: www.pictet.com

PIMCO EUROPE LIMITED11 Baker StreetLondonW1U 3AHTel: 020 7872 1300Website: www.pimco.com

PRINCIPAL GLOBAL INVESTORS (EUROPE) LIMITED1 Wood StreetLondonEC2V 7JBTel: 020 7710 0220Website: www.principalglobal.com

P-SOLVE INVESTMENTS LTD11 StrandLondon WC2N 5HRTel: 020 3327 5100 Website: www.psolve.com

P-Solve Investments Limited is part of the River and Mercantile Group PLC and provides advice to institutional investors, such as pension schemes and charities. We strive to serve our clients well by developing and implementing solutions tailored to their specific investment needs either advising schemes on how to manage their investments and risks - investment consulting - or manage their investments and risks on their behalf - fiduciary management - or a mixture of these. We have a strong focus on person-to-person

NOMURA ASSET MANAGEMENT – P-SOLVE INVESTMENTS

relationships and matching the right solution to the client at the right time. We regard this ability, offering expertise and advice together with tailored solutions, as the reason why we have such strong and longstanding relationships with so many clients.

PUTNAM INVESTMENTS LIMITEDCassini House57-59 St. James’s PlaceLondonSW1A 1LDUnited KingdomTel: 020 7907 8200Website: www.putnam.com/institutional

PYRAMIS GLOBAL ADVISORS (UK) LTD1 St Martins-le-GrandLondonEC1A 4ASTel: 020 7184 3560Website: www.pyramis.com

PYRFORD INTERNATIONAL PLC95 Wigmore StreetLondonW1U 1FDTel: 020 7495 4641Website: www.pyrford.co.uk

RATHBONE UNIT TRUST MANAGEMENT LIMITED1 Curzon StreetLondonW1J 5FBTel: 020 7399 0476Website: www.rutm.com

R.C. BROWN INVESTMENT MANAGEMENT PLC1 The SquareTemple QuayBristolBS1 6DGTel: 0117 925 6073Website: www.rcbim.co.uk

RCM (UK) LTD199 BishopsgateLondonEC2M 3TYTel: 020 7859 9000Website: www.rcm.co.uk

RECORD CURRENCY MANAGEMENT LIMITEDMorgan HouseMadeira WalkWindsorBerkshireSL4 1EP Tel: 01753 852 222Website: www.recordcm.co.uk

RIVER AND MERCANTILE ASSET MANAGEMENT30 Coleman StreetLondonEC2R 5ALTel: 020 7601 6262 Website: www.riverandmercantile.com

River and Mercantile Asset Management LLP is part of River and Mercantile Group Plc (“R&M”), an advisory and investment solutions provider to DB and DC pension schemes and other investors. River and Mercantile Asset Management LLP is a UK based investment boutique specialising in the management of UK and Global equities. As part of the River and Mercantile Group we also offer multi-asset investment strategies and bespoke risk management solutions such as LDI and structured equity.

P-SOLVE INVESTMENTS – RIVER AND MERCANTILE


http://www.psolve.com

http://www.riverandmercantile.com


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ROYAL LONDON ASSET MANAGEMENT LTD55 Gracechurch StreetLondonEC3V 0RLTel: 020 7506 6500Website: www.rlam.co.uk

Royal London Asset Management is one of the UK’s leading investment companies. RLAM has built a strong reputation as an innovative manager, investing across all major asset classes. RLAM manages over £99 billion of assets (at 31/12/16), split between equities, fixed interest, multi asset investing, property and cash, with a market leading capability in sustainable investing. Products include funds and segregated accounts investing in government bonds, investment grade, high yield and unrated credit, equity income and growth strategies across global developed markets, as well as UK property and cash and short-term money market instruments.

Our institutional business development team and Fund Managers understand the particular needs of pension fund trustees and work with them and their consultants to develop the right investment solution for their scheme. We wholeheartedly believe in the added long-term value of active fund management and are widely recognised for the wealth of experience we bring to managing our clients’ funds. Our focus is firmly set on achieving the best possible returns for those who entrust us with their assets.

RUFFER LLP80 Victoria StreetLondonSW1E 5JLTel: 020 7963 8100Website: www.ruffer.co.uk

RUSSELL INVESTMENTSRex House10 Lower Regent StreetLondon SW1Y 4PETel: 020 7024 6000Website: www.russell.com/uk

SANLAMFOUR INVESTMENTS UK LIMITED1 Ely PlaceLondonEC1N 6RYTel: 020 3116 4000Website: www.sanlamfour.com

SARASIN & PARTNERS LLPJuxon House100 St Paul’s ChurchyardLondon EC4M 8BUTel: 020 7038 7000Website: www.sarasin.co.uk

SCHRODER INVESTMENT MANAGEMENT LIMITED31 Gresham StreetLondon EC2V 7QATel: 020 7658 6000Website: www.schroders.com

SLATER INVESTMENTS LTDNicholas House3 Lauerence PoutneyLondonEC4R 0EUTel: 020 7220 9460Website: www.slaterinvestments.com

ROYAL LONDON – SLATER INVESTMENTS

SMITH & WILLIAMSON INVESTMENT MANAGEMENT25 MoorgateLondonEC2R 6AYTel: 020 7131 4000Website: www.smith.williamson.co.uk

SPEIRS & JEFFREY LIMITED50 George SquareGeorge HouseGlasgowG2 1EHTel: 0141 248 4311Website: www.speirsjeffrey.co.uk

STAMFORD ASSOCIATES (UK) LTD19-21 Old Bond StreetLondon W1S 4PXTel: 020 7629 5225Website: www.stamfordassociates.com

STANDARD LIFE INVESTMENTS1 George StreetEdinburghEH2 2LLTel: 0131 225 2345Website: www.standardlifeinvestments.co.uk

STATE STREET GLOBAL ADVISORS20 Churchill PlaceCanary WharfLondonE14 5HJTel: 020 3395 6000Website: www.ssga.com

STENHAM ASSET MANAGEMENT180 Great Portland StreetLondonW1W 5QZUnited KingdomTel: +44 (0) 20 7079 6600Website: www.stenhamassetmanagement.com

SUMITOMO MITSUI ASSET MANAGEMENT (SMSM)3rd Floor90 Basinghall StreetLondonEC2V 5AYTel: 020 7397 3970Website: www.smam-jp.com/english

T. ROWEPRICE60 Queen Victoria StreetLondonEC4N 4TZTel: 020 7651 8200Website: www.troweprice.com

UBS GLOBAL ASSET MANAGEMENT21 Lombard StreetLondonEC3V 9AHTel: 020 7901 5000Website: www.ubs.com

VANGUARD ASSET MANAGEMENT LIMITED25 WalbrookLondonEC4N 8AFTel: 020 7489 5600Website: www.vanguard.co.uk

SMITH & WILLIAMSON – VANGUARD


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VENCAP INTERNATIONAL PLCKing Charles HousePark End StreetOxford OX1 1JDTel: 01865 799 300Website: www.vencap.com

VONTOBEL ASSET MANAGEMENTThird Floor22 Sackville StreetLondonW1S 3DNTel: 020 7255 8300Website: www.vontobel.com/am

WESTERN ASSET10 Exchange SquarePrimrose StreetLondonEC2A 2ENTel: 020 7422 3000Website: www.westernasset.com

VENCAP INTERNATIONAL – WESTERN ASSET ASSOCIATIONS & OFFICIAL BODIES

PLSA conducts governance review to ‘reinvent’ itself

The Pensions and Lifetime Savings Association (PLSA) has launched a year-long review of its internal governance procedures.

The move, which was announced in October 2016, a year after the association rebranded from the National Association of Pension Funds (NAPF), aims to improve

its work for members and stakeholders, and ensure it operates effectively.Speaking at the PLSA’s annual conference, chairwoman Lesley Williams (pictured) said the

association needed to be able to “reinvent” itself.She said: “We have to make sure we talk the talk of 21st century governance. At our last

annual conference, we announced that we were reinventing the association. We have made great process but there is more to do.

“In a world that changes as quickly as ours, we want to make sure we can reinvent ourselves when we need to. Not just when it comes to conference programmes, publications, and policy work, but in the fabric of the association.

“That’s why the PLSA is undertaking a comprehensive review of its own governance to make sure we have the right structure to deliver our strategy and purpose, the right people within that structure, and the right selection processes for those people.

“And if we don’t have them, we have to reinvent the way we do things.”The review is expected to run until October this year.PLSA independent non-executive director John Dembitz added engaging members in the

review would lead to better retirement outcomes.He said: “A year after the launch of the PLSA, it’s the right time to look at how our structure

can best support our mission to help everyone achieve a better income in retirement and how we can best represent our members.”

He added: “This is a hugely important project and a great opportunity to engage members in the way their association works and to establish governance fit for purpose now and years ahead.”

During the year, Joanne Segars also announced she was stepping down as chief executive of the Pensions and Lifetime Savings Association (PLSA) after leading it for more than 10 years.

During her tenure the organisation and wider pensions sector has been through considerable change, including a major rebrand in October 2015 when changing its name from the NAPF.

This was to recognise a market where pensions only make up a portion of people’s retirement income, and other products such as ISAs are part of the mix.

Segars said: “My proudest achievements have included creating the Pension Quality Mark, establishing the Pensions Infrastructure Platform, increasing the association’s income by 40% and making our conferences and events the best in the industry.

“Working with the PLSA’s members I have given the association a new and wider focus, reflecting the realities of retirement saving today, culminating in the rebranding of the NAPF as the PLSA in 2015.”

The Professional



2018 Handbook


+44 (0)20 7316 9309 or

[email protected]

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THE ANNUITY BUREAU3rd FloorBond HouseThe BourseBoar LaneLeedsLS1 5ENTel: 0845 850 8550Website: www.annuity-bureau.co.uk

ASSOCIATION OF BRITISH INSURERS51 Gresham StreetLondonEC2V 7HQTel: 020 7600 3333Website: www.abi.org.uk

ASSOCIATION OF CONSULTING ACTUARIESRegis HouseFirst Floor45 King William StreetLondonEC4R 9ANTel: 020 3102 6761Email: [email protected]: www.aca.org.uk

Contact: David RobertsonEmail: [email protected]

Services: The Association draws its membership from individual consulting actuaries working in over 80 consulting firms. Members of the Association are all qualified actuaries with the major part of members’ work being as advisers to UK Pension Funds. Members also advise on scheme design and administration; investment strategy; the pension aspects of mergers; acquisitions and sales;

pensions for controlling directors; pensions on divorce; and many also offer personal financial planning services.

THE ASSOCIATION OF CORPORATE TRUSTEES3 Brackerne CloseCoodenBexhill-on-SeaE. SussexTN39 3BTTel: 01424 844144Website: www.trustees.org.uk

ASSOCIATION OF MEMBER-DIRECTED PENSION SCHEMES (AMPS)Andrew RobertsChairman of AMPSBarnett Waddingham LLPPort of Liverpool BuildingPier HeadLiverpoolL3 1BTel: 0151 235 6600lWebsite: www.ampsonline.co.uk

ASSOCIATION OF PENSION LAWYERSRoom 10Pmi House4-10 Artillery LaneLondonE1 7LSTel: 0845 680 9889Website: www.apl.org.uk

ASSOCIATION OF REAL ESTATE FUNDS (AREF)65 KingswayLondonWC2B 6TDTel: 020 7269 4677Website: www.aref.org.uk

THE ANNUITY BUREAU – ASSOCIATION OF REAL ESTATE FUNDS

COMBINED PENSION FORECASTING TEAMThe Pension ServiceRoom TB001Tyneview ParkNewcastle upon TyneNE98 1BATel: 0870 010 1684Website: www.thepensionservice.gov.uk

FINANCIAL CONDUCT AUTHORITY25 The North ColonnadeCanary WharfLondonE14 5HSTel: 020 7066 1000Website: www.fca.org.uk

GOVERNMENT ACTUARY’S DEPARTMENTFinlison House15-17 Furnival StreetLondonEC4A 1ABTel: 020 7211 2600Website: www.gad.gov.uk

INLAND REVENUE PENSIONS SCHEMES OFFICEYorke HousePO Box 62Castle Meadow RoadNottingham NG2 1BGTel: 0115 974 0000Website: www.hmrc.gov.uk

THE INSTITUTE OF ACTUARIESStaple Inn HallHigh HolbornLondon WC1V 7QJTel: 020 7632 2100Website: www.actuaries.org.uk

INSTITUTIONAL MONEY MARKET FUNDS ASSOCIATION 65 KingswayLondonWC2B 6TDTel: 020 7269 4669Website: www.immfa.org

INVESTMENT MANAGEMENT ASSOCIATION65 KingswayLondon WC2B 6TDTel: 020 7831 0898Website: www.investmentuk.org

PENSIONS & LIFETIME SAVINGS ASSOCIATIONCheapside House138 CheapsideLondonEC2V 6AETel: 020 7601 1700Website: www.plsa.co.uk

THE PENSIONS ADVISORY SERVICE (TPAS)11 Belgrave RoadLondon SW1V 1RBTel: 0845 601 2923Website: www.pensionsadvisory

service.org.uk

THE PENSION FUND INVESTMENT FORUMFulling Mill BarnFulling Mill LaneWelwynHerts AL6 9NPTel: 01438 712 345Website: www.spsconferences.com

COMBINED PENSION – THE PENSION FUND



http://www.aca.org.uk


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THE PENSIONS MANAGEMENT INSTITUTE (PMI)PMI House4-10 Artillery LaneLondon E1 7LSTel: 020 7247 1452Website: www.pensions-pmi.org.uk

PENSIONS OMBUDSMAN6th Floor11 Belgrave RoadLondon SW1V 1RBTel: 020 7630 2200Website: www.pensions-ombudsman.org.uk

THE PENSIONS REGULATORNapier HouseTrafalgar PlaceBrightonBN1 4DWTel: 0870 606 3636Website: www.thepensionsregulator.gov.uk

THE PENSION SERVICEFuture Pension CentreCombined Forecasting and Pension TracingRoom TB201Tyneview ParkWhitley RoadNewcastle Upon TyneNE98 1BATel: 0191 218 7967

0845 606 0265 (Combined Pension Forecasting)

Website: www.thepensionservice.gov.uk

THE PERSONAL FINANCE SOCIETY42-48 High RoadSouth WoodfordLondonE18 2JPTel: 020 8989 8464Website: www.thepfs.org

THE SOCIETY OF PENSION PROFESSIONALSSt. Bartholomew House92 Fleet StreetLondonEC4Y 1DGTel: 020 7353 1688Website: www.the-spp.co.uk

PMI – THE SOCIETY OF PENSION AUDITORS & ACCOUNTANTS

Pension accounting changes - the what, when, who and how

The International Accounting Standards Board is expected to finalise new guidance on applying IAS19 which will recognise that while it provides a broadly consistent measurement approach, the disclosures can often bear little resemblance to the obligation sponsors have to their defined benefit (DB) pension plans.

Currently, where employers have a “right” to recover a surplus from their DB scheme (which is not the case for all schemes) they may recognise a pension accounting surplus as an asset even if they actually have a liability to make further payments to their scheme.

The updated guidance will narrow the definition of this right to recover a surplus and, even where a scheme is not currently in surplus on an accounting basis, the sponsor will still need to reduce the value of the scheme’s assets to reflect future committed contributions.

This will mean that many more schemes will need to recognise a deficit equal to their minimum funding requirement (usually interpreted as their Schedule of Contributions (SoC) if it is greater than their IAS19 liability.

Although the changes may improve transparency by bringing the accounting disclosure closer to the reality of pension scheme obligations, which may lead to potentially massive increases in on-balance sheet liabilities, their impact may vary significantly based on small technicalities in the scheme’s trust deed and rules.

The new guidance is expected to be confirmed in the second half of this year and will become effective for accounting periods commencing 1 January 2019.

Companies that recognise their SoC will experience an immediate increase in their deficit, recorded as a charge in Other Comprehensive Income (i.e. not against profit). This will worsen some key ratios (e.g. leverage) but improve others (e.g. return on capital employed).

In entity accounts this will reduce distributable reserves and so may restrict dividends. This is likely to be more pronounced for sponsors with weaker covenants that are more reliant on funding from their sponsor.

The accounting dynamics of the scheme will fundamentally change. The accounting deficit will be less affected by annual changes in IAS19 assumptions but may change materially following agreement of a new schedule of contributions following triennial valuation negotiations with trustees.

As an unintended consequence, sponsors may target a greater level of investment return from their scheme’s investments to justify a higher discount rate on the liabilities as this would imply a lower requirement for cash contributions and therefore a smaller balance sheet liability.

Trustees will need to be aware that these changes could alter the approach their sponsor takes.

Accounting based on the SoC may also become associated with underfunding and driving risk-taking behaviour and trustees and sponsors will need to behave carefully.

Trustees may also be approached by sponsors to request changing the wording of scheme rules to produce a better accounting outcome.

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ASH SHAW LLP180 PiccadillyLondonW1J 9HFTel: 020 7917 2987Website: www.ashshaw.com

BARBER HARRISON & PLATT2 Rutland ParkSheffield S10 2PDTel: 0114 266 7171Website: www.bhp.co.uk

BDO LLP2 City PlaceBeehive Ring RoadGatwickWest SussexRH6 0PATel: 01293 591000Website: www.bdo.co.uk

BISHOP FLEMINGStratus HouseEmperor WayExeter Business ParkExeterEX1 3QSTel: 01392 448800Website: www.bishopfleming.co.uk

CROWE CLARK WHITEHILL LLPSt Bride’s House10 Salisbury SquareLondonEC4Y 8EHTel: 020 7842 7100Fax: 020 7583 1720Email: [email protected]: www.croweclarkwhitehill.co.uk

Contact: Andrew Penketh, Partner and Head of Pension FundsEmail: [email protected]

The Crowe Clark Whitehill award winning National Pension Funds Team is a dedicated, specialist team providing independent audit, tax and advisory services. We advise trustees of large and complex pension schemes, master trusts, scheme administrators and independent trustees in navigating the increasingly challenging areas of accounting, administration, risk, governance, stewardship and internal controls.

DELOITTE2 New StreetLondonEC4R 3BZ Tel: 020 7936 3000Website: www.deloitte.co.uk

ASH SHAW – DELOITTE


GRANT THORNTON UK LLP Grant Thornton House 202 Silbury Boulevard Milton Keynes MK9 1LWTel: 01908 660666 Website: www.grant-thornton.co.uk

HAYSMACINTYRE26 Red Lion SquareLondonWC1R 4AGTel: 020 7969 5500Website: www.haysmacintyre.com

HILLIER HOPKINS LLPRadius HouseHertfordshireWD17 1HPTel: 01923 232 938Website: www.hillierhopkins.co.uk

HW FISHER & COMPANYAcre House11-15 William RoadLondonNW1 3ERTel: 020 7388 7000Website: www.hwfisher.co.uk

KPMG LLPArlington Business ParkTheale, ReadingBerkshireRG7 4SDTel: 0118 373 1369Website: www.kpmg.com/uk/pensions

MAZARS LLP Tower Bridge HouseSt. Katharine’s WayLondonE1W 1DDTel: 020 7063 4000Website: www.mazars.co.uk

MENZIES LLPVictoria House50-58 Victoria RoadFarnboroughHampshireGU14 7PGTel: 01252 541244Website: www.menzies.co.uk

MOORE STEPHENS LLP150 Aldersgate StreetLondonEC1A 4ABTel: 020 7334 9191Website: www.moorestephens.co.uk

PKF COOPER PARRYSky ViewEast Midland AirportCentral EnglandDE74 2SATel: 01332 411163Website: www.cooperparry.com

PRICEWATERHOUSECOOPERS LLP7 Moor LondonRiversideLondonSE1 2RTTel: 020 7804 0953Website: www.pwc.co.uk/pensions

REEVES & CO37 St. Margaret’s StreetCanterburyCT1 2TUTel: 01227 768231Website: www.reeves-neylan.com

EY LLP – REEVES & CO



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RSM25 Farringdon StreetLondonEC4A 4ABTel: 020 3201 8000Website: www.rsmuk.com

SAFFERY CHAMPNESSLion HouseRed Lion StreetLondon WC1R 4GBTel: 020 7405 2828Website: www.saffery.com

SAVANTS COVENANT ADVISORY83 Victoria StreetLondonSW1H 0HWTel: 020 8819 2159Website: www.savantscovenantconsultancy.co.uk

RSM – SAVANTS COVENANT ADVISORY AUTO-ENROLMENT CONSULTANTS

Should AE rate hikes be in line with staging dates?

Automatic enrolment (AE) has been rolling out for nearly six years and the programme is ongoing, with many small and micro-business being scheduled to enrol as late as February 2018.

However, this is being undertaken alongside a programme of increasing the contributions for employees, with total minimum contributions to increase from 2% to 5% in April next year, and to 8% in 2019.

For small firms only staging in February 2018, the final staging date, this means they will have just two months before moving to the 5% rate, and fourteen months to prepare for 8%.

On the other hand, businesses who staged in 2012 will have had six years to get ready and are more likely to have enough cash to cover the uplift.

But should the government consider moving the rate hikes to be more in-line with staging dates?

Punter Southall Aspire principal Alan Morahan believes such a phased approach should have been legislated for, even if it does prove bureaucratically problematic. In particular, he worries that employees of these small firms will feel the hit hardest.

“The largest employers will have had five and a half years to get used to paying pension contributions at the minimum level,” he says. “The planned increases have always struck me as being pretty harsh on small employers and their employees.

“There is a danger we will start to see people saying ‘I can’t afford that level of deduction in such a short space of time so I might as well opt out right at the outset’.

“It does pose the question of ‘why was not the whole process phased for every employer?’ It may take a bit more policing but a period of time greater than is currently being granted doesn’t seem to be an unreasonable request.”

However, Willis Towers Watson senior consultant David Robbins believes a staged ap-proach would not be fair for larger employers in a free market economy.

Furthermore, if such a phased approach did come into play, it could see small businesses playing catch up with their larger counterparts until tinkering with minimum contribution levels ended.

“Businesses competing with each other ought to be subject to the same laws,” Robbins argues. “If the government is saying one business ought to enrol people at a default contri-bution rate, that must be the same for all businesses.”

The People’s Pension head of policy Darren Philp also worries such a proposal could create an unnecessary communications and administrative headache.

“If you have different profile and contribution rates, then the communications challenge for The Pensions Regulator [TPR] and the industry does increase quite significantly,” he says.

“You’d have different communications depending on the employer’s staging date and it could lead to a recipe for confusion. You would have advisers and payroll operating different rules for different people.

“The administrative burden could outweigh any benefit.”

The Professional



2018 Handbook


+44 (0)20 7316 9309 or

[email protected]

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ARTHUR J. GALLAGHERThe Walbrook Building25 WalbrookLondon EC4N 8AWTel: +44 (0)20 7204 6195 Website: www.gallaghereb.com

BARNETT WADDINGHAM LLPCheapside House138 CheapsideLondonEC2V 6BWTel: 0333 11 11 222Email: [email protected]: www.barnett-waddingham.co.uk/auto-enrolment

Contact: Rob Thomas


Our streamlined auto-enrolment solution A>E is specifically for small and medium enterprise (SME) employers with staging dates from 2014 onwards. It’s designed for employers who want more than basic compliance with the legislation; for those who want a solution that will address employees’ priorities and ease the employer’s processes, with consultancy

guidance through set up, ongoing compliance and governance beyond.

Our solution is ‘decision-light’ for the employer, as various aspects of design are pre-packaged, in particular the choice of pension provider and default investment. This ensures that A>E is affordable and can be up scaled to meet the demand for pension advice and services arising due to auto-enrolment.

A>E comprises a five step process to guide the employer right through from application to compliance:

• Apply• Build• Configure• Deliver• End


CAPITA EMPLOYEE BENEFITS65 Gresham StreetLondonEC2V 7NQTel: 020 7709 4500Website: www.capita.co.uk/employeebenefits


AON HEWITT – HYMANS ROBERTSON


JLT has the experience and skills to deliver a wide ranging set of Defined Contribution services for employers of all sizes and sectors. We offer transparent fees, clear communication and the ability to change or develop the services to ensure they remain relevant to your developing scheme and your employees.



PREMIER COMPANIES LIMITEDPremierAMP HouseDingwall RoadCroydonCR0 2LXTel: 020 8663 5800Fax: 020 3014 8768Website: www.premiercompanies.co.uk



QUANTUM ADVISORYSummers HousePascal CloseSt. MellonsCardiffCF3 OLWTel: 029 8083 7900Website: www.quantumadvisory.co.uk

RUSSELL INVESTMENT LTDRex House10 Lower Regent StreetLondon SW1Y 4PETel: 020 7024 6000Website: www.russell.com/uk

JLT EMPLOYEE BENEFITS – RUSSELL INVESTMENT



http://www.barnett-waddingham.co.uk/auto-enrolment

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WORDSHOPTilton CourtDigby RoadSherbourneDorsetDT9 3NLTel: 01935 817 738Website: www.wordshop.co.uk


AUTO-ENROLMENT PROVIDERS

Why are opt-out rates much higher among older workers?

Since the introduction of auto-enrolment (AE) there has been a curious phenomenon: opt-out rates for workers appear to increase with age. In January, the Pensions Policy Institute (PPI) published a paper on AE that shed light on this very subject.

It cited a 2014 Department for Work and Pensions (DWP) study, which examined why workers opted out. It found opt-out rates for people over the age of 50 were 23%, while the rate for ages 30-49 was 9%, and for workers under 30 it was just 7%.

The PPI study noted “DWP’s analysis suggested that age was the main demographic characteristic that influenced the opt-out rate” and further research is needed to fully understand what is happening.

There is a debate about how important these figures are and what policy consequences flow from them. However, they should at least give the industry and government pause for thought.

Opt-out rates, which are 25-50 percentage points higher for over 50s compared to under-50s, take some of the shine off AE. It is important for the government to find out why opt-out rates are higher for older people if wants to lower them.

For Now Pensions policy director Adrian Boulding, the industry carries a lot of responsibility for higher opt-out rates among older workers.

“Providers have failed to communicate with older people effectively about the benefits of AE and this is especially true since the pension freedoms kicked in”, he says.

“They have forgotten about older members and need to improve their communications as a result. We have had a failure of communication on behalf of the industry.”

However, PPI head of policy research Daniela Silcock thinks the overall picture is more nuanced.

She says: “A lot of people over 50 opt out because they feel that it is too late to adjust their retirement planning. In some cases, people are secure about meeting required retirement income through other savings and investments already in progress.”

Also, she does not believe it is always a bad thing when people opt out as there can be good reasons for doing so.

She says: “Those who are renting in retirement might lose out through the means-tested benefits system if they accrue only a small amount of private pension savings,”

Silcock adds: “The opt-out mechanism is designed to allow those for whom saving in a private pension is not a good idea to choose not to participate in AE. Not all opt-out decisions are made in error.”

Hargreaves Lansdown senior pensions analyst Nathan Long argues it is too early to make a definitive value judgement about opt-out rates for older workers.

“It is important not to be too judgemental until AE is more strongly established.”

The Professional



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+44 (0)20 7316 9309 or

[email protected]

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BENEFEXEastgate HouseTown QuaySouthamptonSO14 2NYTel: 0845 129 8636Website: www.benefex.co.uk

CAREY CORPORATE PENSIONS UK LIMITED1st FloorLakeside HouseShirwell Crescent Furzton LakeMilton KeynesMK4 1GATel: +44 (0) 1908 336010Website: www.careypensions.co.uk

DELOITTE TOTAL REWARD & BENEFITS LTDHill House1 Little New StreetLondonEC4A 3TRTel: 020 7936 3000Website: www.deloitte.co.uk/pensions


JOHNSON FLEMING LIMITEDFleming HouseBromsgrove Enterprise ParkBromsgroveB60 3ALTel: 01527 571 300Website: www.johnsonfleming.com


LEGAL & GENERAL-WORKPLACE SAVINGSSt. Monica RoadKingswoodTadworthSurreyKT20 6EUTel: 0845 273 0001Website: www.legalandgeneral.com/workplace benefits/advisers/help-support

MERCER1 Tower Place WestLondonEC3R 5BUTel: 020 7626 6000Website: www.uk.mercer.com/ukdc

NEST CORPORATIONRiverside House2a Southwark Bridge roadLondonSE1 9HATel: 020 3056 3600Website: www.nestpensions.org.uk

THE PENSIONS ADVISORY SERVICE (TPAS)11 Belgrave RoadLondonSW1V 1RBTel: 0845 601 2923Website: www.pensionsadvisoryservice.org.uk

BENEFEX – THE PENSIONS ADVISORY SERVICE

THE PEOPLE’S PENSION FROM B&CEManor RoyalCrawleyWest SussexRH10 9QPTel: 0800 612 8080Website: www.thepeoplespension.co.uk

PRICEWATERHOUSECOOPERS LLPHays Galleria1 Hays LaneLondonSE1 2RDTel: 020 7583 5000Website: www.pwc.co.uk


STAFFCARE LTDLeatherhead HouseStation RoadLeatherheadSurreyKT22 7FGTel: 0845 372 6644Website: www.staffcare.net

STANDARD LIFEStandard Life House30 Lothian RoadEdinburghEH1 2DHTel: 0131 245 2552Website: www.standardlife.co.uk

STATE STREET GLOBAL ADVISORS20 Churchill PlaceCanary WharfLondonE14 5HJTel: 020 7698 6000Website: www.ssga.com/uk

WILLIS TOWERS WATSONThree Brindley PlaceBirminghamB1 2LNTel: 0121 631 1889Website: www.willistowerwatson.com


ZURICH ASSURANCE LTDTri Centre 1New Bridge SquareSwindonSN1 1HNTel: 01793 514514Website: www.zurich.co.uk/life

THE PEOPLE’S PENSION FROM B&CE – ZURICH ASSURANCE



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AMMATTI Park House10 Park StreetBristolBS1 5HXTel: 0117 934 9016Email: [email protected]: www.ammatti.co.uk

ANTHONY HODGES CONSULTING LTDHeath HallHeathWakefieldWF1 5SLTel: 01924 203 900Website: www.ahc.com

AON HEWITTParkside HouseAshley RoadEpsomKT18 5BSTel: 020 7086 1890Website: www.aonhewitt.co.uk

B2E TECHNOLOGIESPortsoken House155/157 MinoriesLondonEC3N 1LJTel: 020 3475 3398Website: www.b2e-technologies.co.uk


BROADGATEMAINLAND15 Basinghall StreetLondonEC2V 5BRTel: 020 7776 6111Website: www.BroadgateMainland.com

BROADSTONE COPRORATE BENEFITS LTD55 Baker StreetLondon W1U 7EUTel: 020 7893 3456Website: www.broadstoneltd.co.uk

CAPITA EMPLOYEE BENEFITS65 Gresham StreetLondonEC2V 7NQTel: 020 7709 4500Website: www.capitaemployeebenefits.co.uk

CONCERT CONSULTING18-21 Queen Square HouseQueen SquareBristolAvonBS1 4NHTel: 07958 173698Website: www.concertconsult.co.uk

AMMATTI – CONCERT CONSULTING

Learning lessons from the EU referendum

Defined contribution pension providers can learn useful lessons from the UK’s recent referendum. Voters were asked to evaluate the short and long-term legal, political and economic implications of life inside and outside the European Union, and then decide which option they preferred.

This is a similar challenge to the one facing defined contribution pensions providers: how do they help members to make complex decisions with long-term implications?

It behoves pension providers to look carefully at the failures of the remain campaign so they avoid making similar mistakes.

The government made a series of critical errors according to Like Minds communications specialist Sarah Hollingworth who says “there was an overload of information with a high volume of facts and figures”.

Not only did the government provide an overwhelming level of data but it gave the voters little time to digest these facts. The referendum campaign only lasted four months, giving the public insufficient time to debate and analyse the facts and figures.

The pensions industry is also guilty of overloading its members with too much information over too short a time period. The abolition of the requirement to purchase an annuity at retirement means pensioners can now choose how they invest their pot.

LCP senior consultant Hayley Williams, says: “Six months before retirement, a member will suddenly receive a large pack of complex information about how to take their benefits and the tax implications.” Up to that point, members have received limited on-going pension education other than their annual benefit statement.

Williams says: “It would be much better for pension scheme to educate members throughout their career so they can digest the information slowly and be well prepared for retirement.”

Willis Towers Watson senior consultant John Cockerton agrees: “This allows members to make an informed and rational choice rather than one which is clouded by fear and negative emotion.”

Not only did the referendum deliver too much information but it was also not communicated in a coherent manner. Hollingworth says: “There was no attempt to show what this data meant for the individual voter.”

Hollingworth says the lack of pertinent individual information meant people ended up making a decision based on intuition rather than logic – and she believes DC schemes can be guilty of doing similar.

“The pensions industry is very good at providing lots of information on how it works and why it is important but often fails to address what is fundamentally important - what this means for the member,” she says.

Emotions play an important role in all decision making processes so it’s vital to ensure these responses are helping rather than hindering us from making the best decision.

Hollingworth says: “Providers are starting to realise they have to focus on the outcomes of retirement planning rather than the mechanics of a pension.”



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FERRIER PEARCE – PRICEWATERHOUSECOOPERS

FERRIER PEARCECounty House, 14-15 Hatton Garden, London EC1N 8ATTel: 020 3772 5384Website: www.ferrierpearce.com

GR COMMUNICATIONS24 Greville StreetLondonEC1N 8SSTel: 020 3159 5001Website: www.grcomms.co.uk

HR TRUSTEES LIMITEDPhoenix House, 1 Station HillReadingRG1 1NBTel: 0118 958 3683Website: www.hrtrustees.com

HYMANS ROBERTSONOne London WallLondonEC2Y 5EATel: 020 7082 6000Fax: 020 7082 6082Website: www.hymans.co.uk



LCP95 Wigmore Street London W1U 1DQWebsite: www.lcp.uk.com

Contact: Mark Smith Title: PartnerTel: +44 (0)20 7439 2266Fax: +44 (0)20 7439 0183Email: [email protected]


MHP6 Agar StreetLondonWC2N 4HNTel: 020 3128 8100Website: www.mhpc.com


PRICEWATERHOUSECOOPERS LLP7 More London RiversideLondonSE1 2RTTel: 020 7583 5000Website: www.pwc.co.uk

PUNTER SOUTHALL – WORDSHOP


RPMIStooperdale OfficesBrinkburn RoadDarlingtonCounty DurhamDL3 6EHTel: 01325 342901Website: www.rpmi.co.uk

RUBICON BENEFIT COMMUNICATIONS LTDHomestead HouseTuesley LaneGodalmingSurrey GU7 1SGTel: 01475 727717Website: www.rubicon-benefit.com

SHILLING COMMUNICATION LTDLiss MillMill RoadLissHampshireGU33 7BDTel: 01730 891 212Website: www.shilling.co.uk

STRAIT LOGICS LTDSoftware House20 Chapel StreetBillericayEssexCM12 9LUTel: 0845 543 8415Website: www.straitlogics.com


WORDSHOPTilton CourtDigby RoadSherbourneDorsetDT9 3NLTel: 01935 817 738Website: www.wordshop.co.uk

HANDBOOK 2017


HANDBOOK 2017


HANDBOOK 2017












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BNP PARIBAS SECURITIES SERVICES55 MoorgateLondonEC2R 6PATel: 020 7595 2000Website: www.securities.bnpparibas.com

BNY MELLON ASSET SERVICINGThe Bank of New York Mellon Centre160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 5566Website: www.bnymellon.com/assetservicing

BROWN BROTHERS HARRIMAN LIMITEDPark House16-18 Finsbury CircusLondonEC2M 7EBTel: 020 7588 6166Website: www.bbh.com

CITIGROUP GLOBAL SECURITIES SERVICESCitigroup Centre33 Canada SquareCanary WharfLondonE14 5LBTel: 020 7500 5043Website: www.citigroup.com

CLEARSTREAM INTERNATIONAL11 Westferry Circus2nd FloorLondonE14 4HDTel: 020 7862 7000Website: www.clearstream.com

EUROCLEARCRESTCO Limited33 Cannon StreetLondonEC4M 5SBTel: 020 7849 0000Website: www.euroclear.com

HSBC SECURITIES SERVICESLevel 288 Canada SquareLondonE14 5HQTel: 0117 302 0080Website: www.hsbcnet.com/ifs

J.P. MORGAN INVESTOR SERVICES25 Bank StreetLondonE14 5JPTel: 020 7742 0131Website: www.jpmorgan.com

KAS BANK N.V.5th Floor10 Old Broad StreetLondon EC2N 1AATel: 020 7153 3600Website: www.kasbank.com

NORTHERN TRUST50 Bank StreetCanary WharfLondon E14 5NTTel: 020 7982 2000Website: www.ntrs.com

UBS LTD1 Finsbury AvenueLondonEC2M 2PPTel: 020 7567 8000Website: www.ubs.com

BNP PARIBAS SECURITIES SERVICES – UBS LTD DC PROVIDERS

Designing a gold standard DC scheme

There has been huge change in pensions over the past four years following the implementation of auto-enrolment in 2012, the introduction of the pension freedoms and a raft of other regulatory change.

These changes have forced employers to make significant changes to their pensions offering to ensure it remains fit for purpose in a freedom and choice world. But what makes for a gold standard defined contribution (DC) pension offering today? How can employers know they are offering the best possible scheme to their staff?

The Pensions Regulator’s DC Code - the latest version of which was released this summer - sets out the key standards it expects trust-based schemes to achieve.

And the Pensions and Lifetime Savings Association’s Pension Quality Mark - which requires schemes to demonstrate quality across three key areas: contributions, governance and communication - is also useful in determining whether a scheme is of sufficient quality.

But what does all this really mean in practice? And is it really as straightforward as completing a tick box list from the regulator or achieving an external accreditation?

PP decided to ask a number of leading investment managers about what makes a gold standard scheme. This is what they said.

Stephen Bowles, head of defined contribution at Schroders says: “A gold standard DC scheme should deliver value for money for the members but also for the sponsoring employer.

“Members should have a glide path which allows them to access sufficient growth in the early years (to build their pot) but that moves them into risk managed strategies (not bonds and cash) in the later years.

“The end point of the glide path should also provide members with the flexibility to use their DC pot according to their circumstances when they actually retire. Assumptions shouldn’t be made about what members will do at retirement.”

Alistair Byrne, senior DC investment strategist at State Street Global Advisors says: “A gold standard pension scheme is one that reliably delivers good outcomes for members.

“Good governance will help to ensure the scheme provides value for money for members. Engagement and education of members are worthwhile activities, but well-chosen defaults are more important.”

He adds: “We have seen the power of automatic enrolment in raising participation rates and behavioural insights can be effective in other areas such as automatic escalation of contributions to raise savings rates. High-quality default investment strategies are more important than encouraging members to make their own investment choices.”

Catherine Doyle, UK head of DC pensions at Newton Investment Management says that defining a single gold standard in DC is not straightforward, but says there are “basic attributes” indicating excellence.

She says: “The DC scheme should be given prominence by the employer, reflected in attractive contribution rates with an incentive for members to top up their contributions.

“Administration should be seamless using robust and state-of-the-art technology while communications should be targeted and accessible.



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AB (FORMERLY ALLIANCEBERNSTEIN)50 Berkeley StreetLondonW1J 8HATel: 020 7470 0100Website: www.abglobal.com

AEGONEdinburgh ParkEdinburghEH12 9SETel: 0870 6000 337Website: www.aegonse.co.uk

AON HEWITTThe Aon Centre 122 Leadenhall Street London EC3V 4ANTel: 0800 279 5588 Email: [email protected]: www.aonhewitt.co.uk

Aon Hewitt empowers organizations and individuals to secure a better future through innovative human capital solutions. We advise and design a wide range of solutions that enable our clients’ success. Our teams of experts help clients navigate the risks and opportunities to optimize financial security; redefine health solutions for greater choice, affordability, and wellbeing; and achieve sustainable growth by driving business performance through people performance. We serve more than 20,000 clients through our 15,000 professionals located in 50 countries around the world.

AXA WEALTHWinterthur WayBasingstokeHampshireRG21 6SZTel: 01256 470 707Website: www.axa.co.uk

BAILLIE GIFFORD & COCalton Square1 Greenside RowEdinburghEH1 3ANTel: 0131 275 2000Website: www.bailliegifford.com

BARCLAYS CORPORATE & EMPLOYER SOLUTIONS1 Churchill Place Canary WharfLondonE14 5HPTel: 020 7116 9000Website: www.barclayswealth.com



BNY MELLON ASSET MANAGEMENTThe Bank of New York Mellon Centre160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 4300Website: www.bnymellonam.com

AB – BNY MELLON ASSET MANAGEMENT




FIDELITY INTERNATIONAL25 Cannon StreetLondonEC4M 5TATel: 020 7283 9911Website: www.fidelityinstitutional.com

FRIENDS LIFECastle StreetSalisburySP1 3SHTel: 0845 602 9189Website: www.friendslife.com

HSBC WORKPLACE RETIREMENT SERVICES1st FloorNorwich HouseNelson GateCommercial RoadSouthamptonSO15 GXTel: 02380 722169Website: www.hsbc.co.uk

INSIGHT INVESTMENT LTD160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 4000Website: www.insightinvestment.com


JP MORGANFinsbury Dials20 Finsbury StreetLondonEC2Y 9 AQTel: 020 7742 6000Website: www.jpmorgan.com

LEGAL & GENERAL ASSET MANAGEMENTOne Coleman StreetLondonEC2R 5AATel: 020 3124 3000Website: www.lgim.com

BROADSTONE CORPORATE BENEFITS – LEGAL & GENERAL AM



http://www.aonhewitt.co.uk



Ad page

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NEWTON FUND MANAGERS LIMITED160 Queen Victoria StreetLondon EC4V 4LATel: 020 7163 9000Website: www.newton.co.uk

THE PENSION TRUSTVerity House6 Canal WharfLeedsLS1 5BQTel: 0113 234 5500Website: www.thepensionstrust.org.uk

PRUDENTIALDC SolutionsCraigforthStirlingFK9 4UETel: 0118 968 6951Website: www.pru.co.uk/employers/corp_pensions

ROYAL LONDON ASSET MANAGEMENT LTD55 Gracechurch StreetLondon EC3V 0UFTel: 020 7506 6500Website: www.rlam.co.uk

SCOTTISH WIDOWS INVESTMENT PARTNERSHIP Edinburgh One60 Morrison StreetEdinburghEH3 8BETel: 0131 655 8500Website: www.swip.com

STANDARD LIFEStandard Life HouseEdinburgh EH15 1ETTel: 0131 225 2552Website: www.standardlife.co.uk

UBS GLOBAL ASSET MANAGEMENT21 Lombard StreetLondon EC3V 9AHTel: 020 7901 5000Website: www.ubs.com


ZURICH LTDThe GrangeBishop’s CleeveCheltenhamGloucestershireGL52 8XXTel: 01242 511227Website: www.zurich.co.uk

MERCER – ZURICH LTD





001_PP_110517.indd 1 08/05/2017 13:11

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EMPLOYEE BENEFITS

How employee benefits for SMEs are changing

Small and medium sized enterprises (SMEs) account for 99.9% of all private sector businesses and employ 15.7 million people, approximately 60% of all private sector employment.

Furthermore, according to the data from the Department for Business, Energy & Industrial Strategy, SMEs’ combined annual turnover was £1.8trn, or 47% of all private sector turnover.

Yet for many years, for one reason or another, they have been locked out of offering the full range of workplace benefits which have customarily been available to larger firms.

This has been changing and the last year or so has seen a particularly rapid expansion of interest from SMEs and availability from benefits providers.

As Benefex director of ecosystems Gethin Nadin explains, pensions auto-enrolment reaching the SME sector has been important in this growth.

“SMEs have to provide a benefit they may have never had before and have to ensure they communicate and engage with their employees when doing so,” he says. “As a result they are doing some of the work that would need to be done for a benefit scheme anyway. So some are looking into it and providers are often able to add benefits when doing pensions.”

However, it is not the sole driver. Smaller employers are increasingly aware of the need to attract and retain a skilled, motivated workforce, especially where they may not be able to compete with larger businesses on pay or business profile.

In this regard workplace benefits, when correctly tailored and communicated to employees, can make a significant difference.

Jelf Employee Benefits head of benefits strategy Steve Herbert agreed and said he believes smaller firms have never had it so good in the benefits arena.

“I genuinely think that if a smaller employer has the appetite, budget and understanding of what’s available then they can pretty much have whatever bigger employers have - so that has changed quite significantly from the past,” he says.

Typically the options for most SMEs have been limited to shopping discounts, cash back schemes and perhaps salary sacrifice but technology is increasingly meaning a broader range of benefits can be offered – including group life and flexible benefit schemes.

Research shows that employees do appreciate benefits provided by their employer.A study conducted by group risk provider Ellipse, almost two thirds (63%) of the 1005

SME employees polled said they felt workplace benefits were either a valuable or extremely valuable part of their employment package.

Despite this, when Ellipse asked 500 SME business leaders what benefits they offered, 43% offered nothing beyond the pension scheme – citing the actual and perceived cost as the main reason for not offering an expanded range of benefits.

Grid spokeswoman Katharine Moxham notes that when cost is put forward as an issue, employers are really saying they do not understand the value of the service.

“The value is there to be had and it is important that it is communicated,” Moxham says. Conduent HR Services is a trading name in the UK for Buck Consultants Limited (registered number 1615055). ©2017 Conduent Business Services, LLC. All Rights Reserved. Conduent™ is a trademark of Conduent Business Services, LLC in the United States and/or other countries.

Advancing pensions and benefits every day.In an ever-shifting pensions and investment landscape, we give our clients the ability to elevate decision-making and navigate change to their advantage.

Conduent HR Services (formerly Buck Consultants/Xerox HR Services) offers the latest innovative technology and advanced analytics to successfully manage anything from trust-based DB pension arrangements to insured DC plans. For decades, our clients in the UK and around the world have trusted our customised solutions, including pensions administration, actuarial, and investment consulting.

In a world where modern, digital and personalised interactions are expected every day, businesses turn to Conduent.

0800 066 5433

[email protected] | conduent.co.uk/hrservices

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ARTHUR J. GALLAGHERThe Walbrook Building25 WalbrookLondon EC4N 8AWTel: +44 (0)20 7204 6195Website: www.gallaghereb.com

AWD CHASE DE VERE CONSULTING LIMITED60 New Broad StreetLondonEC2M 1JJTel: 020 7065 1700Website: www.awdcdv.com

BARNES & SHERWOODHighbridgeOxford RoadUxbridgeGreater LondonUB8 1HRTel: 020 7474 3700Website: www.barnsher.co.uk


Contact: Damian Stancombe


We follow our ACDC philosophy when working with our clients around employee benefits:

Analytics – looking at the employee cohorts and any issues there may be in particular areasConsultancy – solutions for addressing the issuesDelivery – options on how to implement any solutions and communication with the workforceCheck – reviewing and monitoring any advice and delivery

This philosophy helps us to have a holistic approach to benefits advice, with the wellbeing of the employee at the centre of what we do: be it financial, mental or physical. We work with employers to set wellbeing strategies to include pensions, wider workplace savings, risk, wellbeing and lifestyle benefits.

AEGON – BARNETT WADDINGHAM

We look at the most efficient ways to implement changes (for example, whether to operate salary sacrifice arrangements, impact upon internal processes etc.) and also how best to engage employees with these and the overall reward strategy.

With our Me2 technology and other in-house consultancy tools (such as GEM and BWell) we are able to help employers understand their workforce and set benefit and engagement strategies to ensure a return on investment.


B&CE, PROVIDER OF THE PEOPLE’S PENSIONManor RoyalWest SussexRH10 9QPTel: 0800 612 8080Website: www bandce.co.uk

CAPITA EMPLOYEE BENEFITS65 Gresham StreetLondonEC2V 7NQTel: 020 7709 4500Email: [email protected]: www.capitaemployeebenefits.co.uk


Conduent HR Services is an established, leading provider of consulting, administration and outsourcing services to fulfil the pensions and benefits needs of you and your employees/scheme members. We work with our clients to deliver tailored, innovative solutions across health, risk and wellbeing, flexible benefits, share plans, and DB and DC pension schemes for both trustees and corporates alike.



CS FINANCIAL SOLUTIONS LIMITED20 Chapel StreetLiverpoolL3 9AGTel: 0151 255 2630Website: www.csfinancialsolutions.co.uk

BARNETT WADDINGHAM – CS FINANCIAL SOLUTIONS





http://www.capita.co.uk/employeebenefits




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DELOITTE TOTAL REWARD AND BENEFITS66 Shoe LaneLondonEC4A 3BQTel: 020 7936 3000Website: www.deloitte.co.uk

EQUINITI LTDAspect HouseSpencer RoadLancingWest SussexBN99 6DATel: 0117 905 6841Website: www.equiniti.com

HAMISHWILSON & CO LLPThe ByreWheelers LaneBrockhamBetchworthSurrey RH3 7HJTel: 0870 160 5700Website: www.hamishwilson.com

HARGREAVES LANSDOWN CORPORATE SOLUTIONS1 College Square SouthAnchor RoadBristolBS1 5HLTel: 0117 317 1637Website: www.h-l.co.uk

HS ADMINISTRATIVE SERVICES LTD3300 Daresbury ParkDaresbury CheshireWA4 4HSTel: 01928 707 900Website: www.hsadmin.com



As one of the UK’s leading pension and employee benefit consultancies, we inform, consult and deliver to be a single central provider of solutions which meet the needs of employers, trustees and individuals.

We recognise the ever changing dynamics of the Pensions, Savings and Benefits landscape. We know that things are changing at pace and we respond to this by adapting the way we provide our services to help our clients meet the challenges of this new world

JLT is part of JLT – a global provider of insurance, reinsurance, employee benefits,brokerage and associated services

JOHNSON FLEMING LIMITEDFleming HouseBromsgrove Enterprise ParkBromsgroveB60 3ALTel: 01527 571 300Website: www.johnsonfleming.com

DELOITTE TOTAL – JOHNSON FLEMING

KPMG PENSIONSArlington Business ParkTheale, ReadingBerkshireRG7 4SDTel: 0118 373 1369Website: www.kpmg.com/uk/pensions


Contact: Aiden ColoeTitle: Partner & Head of Employee Benefits ConsultingTel: +44 (0)20 7439 2266Fax: +44 (0)20 7439 0183Email: [email protected]

LEMONADE REWARD Postford Mill, Mill Ln, Chilworth, Guildford GU4 8RTTel: 01483 617010Email: [email protected]: www.lemonadereward.comLinkedin: www.linkedin.com/company/lemonaderewardTwitter: @LemonadeReward

Contact: David Pugh, Managing Partner

The world of pensions can be pretty dull. Let’s face it; it could do with a little fizz. At Lemonade, we take a fresh approach. We’re here to turn the sour complexity into something sweet. Give us lemons and

we’ll make lemonade, that’s our motto. From pension communication to advice at retirement, we provide a wide range of services. But it’s the way we deliver them that makes us, and you, stand out from the crowd. We don’t believe in complicated jargon and stuffy stereotypes. Instead, we design innovative communication programmes that truly engage. We’ll work with you to develop a handpicked solution that’s right for your business, helping you to motivate your staff and improve communications.


MICHAEL J. FIELD CONSULTING ACTUARIES8 St Stephen StreetManchester M3 6AYTel: 0161 834 3297Website: www.michaeljfield.com

MITCHELL CONSULTING ACTUARIES LIMITEDAlbion WharfAlbion StreetManchesterM1 5LNTel: 0161 236 1330Website: www.mitchellconsulting.co.uk

NIGEL SLOAM & CORoman House296 Golders Green RoadLondon NW11 9PYTel: 020 8209 1222Website: www.nigelsloam.co.uk

KPMG PENSIONS – NIGEL SLOAM & CO





http://www.lemonadereward.com

http://www.linkedin.com/company/lemonadereward

http://www.linkedin.com/company/lemonadereward

http://@LemonadeReward


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PARTRIDGE MUIR & WARREN LTDTolworth TowerEwell RoadSurbitonSurreyKT6 7ELTel: 020 8339 9900Website: www.pmw.co.uk

PREMIER COMPANIES LIMITEDPremierAMP HouseDingwall RoadCroydonCR0 2LXTel: 020 8663 5800Website: www.premierpensions.co.uk

PRICEWATERHOUSECOOPERS LLPHays Galleria1 Hays LaneLondonSE1 2RDTel: 020 7583 5000Website: www.pwc.co.uk


QUANTUM ADVISORYSummers HousePascal CloseSt. MellonsCardiffCF3 OLWTel: 029 8083 7900Website: www.quantumadvisory.co.uk

RUSSELL INVESTMENT LTDRex House10 Lower Regent StreetLondonSW1Y 4PETel: 020 7024 6000Website: www.russell.com

SMITH & WILLIAMSON EMPLOYEE BENEFIT CONSULTANTS25 MoorgateLondonEC2R 6AYTel: 020 7131 4000Website: www.smith.williamson.co.uk

STAMFORD ASSOCIATES LIMITED19-21 Old Bond StreetLondon W1S 4PXTel: 020 7629 5225Website: www.stamfordassociates.com

TOWRY GROUPTowry HouseWestern RoadBracknellBerkshire RG12 1TLTel: 01344 828 000Website: www.towrylaw.com

UBS AG3 Finsbury AvenueLondonEC2M 2ANTel: 020 7567 5757Website: www.ubs.com/uk

ORIGEN FINANCIAL SERVICES – UBS AG WEALTH AT WORK – XAFINITY CONSULTING

WEALTH AT WORK5 Temple SquareTemple StreetLiverpoolL2 5RHTel: 0800 234 6880Website: www.wealthatwork.co.uk



The Professional



2018 Handbook


+44 (0)20 7316 9309 or

[email protected]

HANDBOOK 2017


HANDBOOK 2017


HANDBOOK 2017






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EMPLOYER COVENANT

FTSE 350 schemes supported by weak covenants doubles

Twice as many FTSE 350 companies with defined benefit (DB) schemes are supported by a weak sponsor covenant than in 2006 according to PwC.

The consultant’s Pensions Support Index for 2016 tracked the relationship between the financial strength of FTSE 350 companies and their defined

benefit (DB) pension obligations.It showed no overall improvement in FTSE 350 companies’ ability to support their

defined benefit (DB) pension obligations. This is despite billions of pounds being paid into schemes and extensive protections being put in place by the Pensions Regulator.

The report revealed a number of adverse factors affecting schemes. These included average life expectancy increasing by two years since 2006 and 15-year gilt yields falling sharply from 4.1% in January 2006 to 1.4% in June 2016. This included a 0.4% fall in yields following Brexit. As a result, the report also showed scheme deficits had grown more than ten-fold since 2006 from £23bn to £244bn.

The report concluded if the covenant supporting the scheme was strong enough, and the scheme was not making material cash payments in the short- to medium-term, the scheme could ride out medium-term interest rate risk.

However, the ongoing question for companies and trustees to explore was how much interest rate risk a covenant could bear and whether a scheme could afford to hedge particularly if gilts fell further.

PwC pensions credit advisory leader Jonathon Land said: “Trustees and companies need to decide how strong their covenant is and how Brexit has affected that. There will be winners and losers - you need to know which group you are in. If you’re producing in the UK and selling overseas you might see an opportunity. If you’re importing a lot of goods it could get harder.”

In a separate report, Hymans Robertson warned only one in three defined benefit (DB) schemes would reach buyout funding by 2036 – noting it was concerned too many were still failing to integrate long-term covenant risk into their decision making process.

The consultant said some 43% of schemes were not integrating long-term covenant risk currently.

It said the number of schemes reaching buyout by 2036 could increase by 50% to one in two if they adopt a fully integrated approach that incorporates sponsor default risk.

Having a fully integrated strategy also decreases the chance of a scheme not seeing an improvement in deficit in 20 years’ time from one in four to just one in 12.

Hymans Robertson head of trustee consulting Calum Cooper said: “For too long now schemes have tried to view an increasingly complex web of investment, funding and strategy decisions through the narrow filter of deficits and discount rates. While this is a good starting point for schemes to calculate how far they will need to travel in order to secure their member’s benefits, more is needed to provide better outcomes for pensioners.”

ARGYLL COVENANT ADVISORYDavidson HouseForbury SquareReadingBerkshireRG1 3EUTel: 0118 900 1201Website: www.argyllcovenant.com

BARBER HARRISON & PLATT2 Rutland ParkSheffield S10 2PDTel: 0114 266 7171Website: www.bhp.co.uk

BDO LLP55 Baker streetLondonW1U 7EUTel: 020 7486 5888Website: www.bdo.co.uk

CLASHSTREETCO LLPNo1 Leeds26 Whitehall RoadLeedsWest YorkshireLS12 1BETel: 0113 8000 250Website: www.clashstreetco.com

CVR GLOBALNew Fetter Place West55 Fetter LaneLondonEC4A 1AATel: 0203794 8750Website: www.cvr.global

CROWE CLARK WHITEHILL LLPSt Bride’s House10 Salisbury SquareLondonEC4Y 8EHTel: 020 7842 7100Website: www.croweclarkwhitehill.co.uk

Contact: Bob Alsop, PartnerEmail: [email protected]

Crowe Clark Whitehill’s team of advisory specialists provide individually tailored covenant reviews of the sponsoring employer so as to support and guide trustees in respect of their integrated approach to risk management. Based on latest guidance set out by the Pensions Regulator we will consider the financial aspects of, and provide insight into, the employer covenant and report to the trustees using one of the four measures of covenant grade referred to by the Regulator.

DELOITTE2 New StreetLondonEC4R 3BZ Tel: 020 7936 3000Website: www.deloitte.co.uk


ARGYLL COVENANT ADVISORY – EY LLP


http://www.croweclarkwhitehill.co.uk



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FRP Advisory LLPPrincipal Office110 Cannon StreetLondonEC4N 6EUWebsite: www.frppensions.com

Contact: Gerald SmithTel: +44 (0) 121 710 1680Email: [email protected]

GAZELLE PENSIONS ADVISORY41 Devonshire StreetLondonW1G 7AJTel: 020 7182 7220Fax: 020 7182 7230Website: www.gazellegroup.co.uk

Contacts: Simon Willes, Deborah Gudgeon, Paula Lee

GRANT THORNTON UK LLP30 Finsbury SquareLondonEC2P 2YUTel: 020 7728 2433Website: www.grant-thornton.co.uk

HAYSMACINTYRE26 Red Lion SquareLondonWC1R 4AGTel: 020 7969 5500Website: www.haysmacintyre.com

HYMANS ROBERTSON1 London WallLondonEC2Y 5EATel: 020 7082 6000Website: www.hymans.co.uk

INSIGHT PENSIONS3rd Floor54-56 Victoria StreetSt AlbansHertfordshireAL1 3HZTel: 01727 733150Website: www.insidepensions.com

JACKAL ADVISORYLevel 19Portland HouseBressenden PlaceLondonSW1E 5RSTel: 020 8282 6008Website: www.jackaladvisory.co.uk


FRP ADVISORY LLP – KPMG LLP


Contact: James AthertonTitle: PartnerContact: Jonathan WolffTitle: Partner Tel: +44 (0)20 7439 2266Fax: +44 (0)20 7439 0183Email: [email protected]

LINCOLN PENSIONS9th Floor6 Bevis MarksLondonEC3A 7BATel: 020 3889 6300Website: www.lincolnpensions.com

Contact: Darren RedmayneTitle: CEOEmail: [email protected]

MERCER1 Tower Place WestLondonEC3R 5BUTel: 020 7626 6000Website: www.mercer.com

MOORE STEPHENS LLP150 Aldersgate StreetLondonEC1A 4ABTel: 020 7334 9191Website: www.moorestephens.co.uk

PENFIDA PARTNERS LLP1 Carey LaneLondonEC2V 8AETel: 020 7337 4100Website: www.penfida.co.uk

PENSION GEEKS LIMITED4 The HollowsLegbourneLouthLincolnshireLN11 8NFWebsite: www.pensiongeeks.com

PRICEWATERHOUSECOOPERS LLP7 Moor LondonRiversideLondonSE1 2RTTel: 020 7804 0953Website: www.pwc.co.uk/pensions

RENDLE & CONo 9 Hockley CourtHockley HeathSolihullB94 6NWTel: 01564 783777Website: www.rpendle.com

RSM25 Farringdon StreetLondonEC4A 4ABTel: 020 3201 8000Website: www.bakertilly.co.uk

LCP – RSM


http://www.frppensions.com


http://www.gazellegroup.co.uk



http://www.lincolnpensions.com



Ad page

ESG MANAGER

Putting ESG at the heart ofinvestment decision making

Environmental, social and governance (ESG) can be put at the heart of investment decisions with the right approach, two schemes say. Ian Brindley, a member nominated trustee (MNT) at the Environment Agency Pension Fund (EAPF), explained trustees could make a real difference to where members’

money is put.But he said they have to adopt a number of strategies for ESG to be put on their scheme’s

investment agenda – including better communication through annual member meetings which convey the importance of climate risk and where money is invested.

In addition governance would be improved by having a third of trustee boards composed of members. Carbon audits can also be used to screen investments.

Brindley said: “It has been worth sitting at the table and you can achieve things in the end. You have got to get the engagement of the members and boost communication with them as the relationship is a two way street [between members and trustees].”

Australia’s seventh biggest superfund, the A$54.7bn (£33.37bn) UniSuper, puts ESG is-sues at the very heart of its investment decision process.

Its philosophy is that ESG risks are business risks and should therefore be considered along with economic and financial risks. This ethos has been part of UniSuper’s investment process for many years, partly driven by its members who are highly engaged on ESG issues and view them as very important.

Sybil Dixon, a senior investment analyst within UniSuper’s governance and sustainable in-vestment team, explained the superfund’s approach to ESG: “At a high level, climate change adaptation and governance are areas that are a continual focus, both for our investment analysts and our members. We need to make sure that companies have strategies in place to manage to a two degree Celsius future. Governance is a continual source of risk and op-portunity, as without effective governance there are often failures in management - leading to greenwashing and poor stakeholder management.”

While ESG has been a core focus at UniSuper for many years, its approach has evolved considerably. Internal management has enabled it to have greater levels of interaction with the companies that it invests in, allowing it to engage directly about ESG issues, Dixon said.

She explained the biggest change in the past five years has been the development of portfolio analysis tools – tools which allow the fund to review the risks most relevant to a portfolio rather than taking a more thematic approach.

UniSuper has long considered ESG risks both in a quantitative and qualitative man-ner – and uses a range of different data sources to identify ESG risks. It subscribes to the MSCI IVA ratings tool, which enables it to do portfolio and stock analysis. It also uses other information from the company, proxy adviser reports, broker research and media to inform about company behaviour.

For professional investors only. 1 This is calculated by Hermes, using published benchmarks and for open products only. If a product doesn’t have an offi cial benchmark a performance target is used. A representative portfolio for each strategy has been used and not all portfolios are included in these calculations. It excludes closed products, private equity and infrastructure, as well as other open products that do not have the required track record. All data as at 31.03.17 excluding Real Estate, which is as at 31.12.16. 2 Hermes, since inception 01.01.10, gross of fees in sterling to 31.12.16. Issued and approved by Hermes Investment Management Limited which is authorised and regulated by the Financial Conduct Authority. Registered address: Lloyds Chambers, 1 Portsoken Street, London E1 8HZ.

100%of our strategies

outperformed theirbenchmarks over

five years1

78% over three years1

Past performance is not a guide to the future. The value of investments can fall as well as rise and you may not get back the original amount invested.

Our investment in King’s Cross has a strong ethos of community provision: new schools,

public parks and open spaces.

Call today 020 7702 0888 or visit www.hermes-investment.com

At Hermes we believe that excellent investment performance goes hand-in-hand with contributing to society. Creating outcomes for all clients that go beyond strong fi nancial performance and positively impact society, the environment and the wider world.

Our investment in the redevelopment of King’s Cross has achieved 25%2 annualised performance while creating a sustainable and community-centred asset.

OUR APPROACH TO HOLISTIC RETURNS MEANS WE ARE COMMITTED TO DELIVERING EXCELLENT LONG-TERM INVESTMENT PERFORMANCE AND STEWARDSHIP, WHILE IMPROVING THE LIVES OF MANY

OUTCOME #11

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ABERDEEN ASSET – J. P. MORGAN



BLUEBAY ASSET MANAGEMENT LTD77 Grosvenor StreetLondonW1K 3JRTel: 020 7389 3700Website: www.bluebay.com

BMO GLOBAL ASSET MANAGEMENTExchange HousePrimrose StreetLondonEC2A 2NYTel: 020 7628 8000Website: www.bmogam.com


FIRST STATE INVESTMENTS UK LTD154 Finsbury SquareLondonEC2M 7EBTel: 020 7332 6500Website: www.firststate.co.uk


IMPAX ASSET MANAGEMENT GROUP PLCNorfolk House31 St James’s SquareLondonSW1Y 4JRTel: 020 7434 1122Website: www.impax.co.uk

J. P. MORGAN ASSET MANAGEMENTFinsbury Dials20 Finsbury StreetLondonEC2Y 9AQTel: 020 7742 6000Website: www.jpmorganassetmanagement.co.uk/institutional










MARTIN CURRIE INVESTMENT MANAGEMENT LTDSaltire Court20 Castle TerraceEdinburghEH1 2ESTel: 0131 229 5252Website: www.martincurrie.com/ukinstitutional

NEWTON INVESTMENT MANAGEMENTThe Bank of New York Mellon Centre160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 9000Website: www.newton.co.uk

PANTHEON4th Floor10 Finsbury SquareLondonEC2A 1AFTel: 020 3356 1800Website: www.pantheon.com RBC GLOBAL ASSET MANAGEMENT (UK) LTDRiver Bank House2 Swan LaneLondonEC4R 3BFTel: 020 7653 8944Website: www.rbcgam.com

ROYAL LONDON ASSET MANAGEMENT LTD55 Gracechurch StreetLondonEC3V 0RLTel: 020 7506 6754Website: www.rlam.co.uk


LEGAL & GENERAL – SCHRODER





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VONTOBEL ASSET MANAGEMENTThird Floor22 Sackville StreetLondonW1S 3DNTel: 020 7255 8300Website: www.vontobel.com/am

Contact: Sheridan Bowers - Head of UK/Ireland BusinessTel: 020 7255 8321Email: [email protected]

STANDARD LIFE - VONTOBEL

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FIDUCIARY MANAGEMENT

Reinventing the investment platform

Investment platforms can provide enormous benefits for pension schemes by reducing costs and increasing efficiencies through tapping into scale but, while they have become commonplace in the defined contribution world, there are very few in the defined benefit space.

The market is now undergoing a shake-up, with Willis Towers Watson launching its Asset Management Exchange (AMX) in February, to enable schemes to invest in external asset managers through a centralised back office and standardised fund infrastructure.

Willis Towers Watson is the first consultant to enter the marketplace and compete with existing platforms, and now other consultants are sitting up and taking notice. Aon Hewitt recently published a report on how investment platforms can be useful for large DB schemes.

Interestingly, the AMX will be open to schemes (both DB and DC) that aren’t clients of Willis Towers Watson, so in theory other consultants could feed their own clients into it.

The exchange’s head Oliver Jaegemann explained: “In the past, investors had to go and outsource the investment decisions and infrastructure decisions to the investment manager. With a platform you can hopefully split those two apart.”

The fundamental change is the contract that used to be between the manager and trading counterparty, is now between the platform and the trading counterparty.

Platforms can generate significant cost savings for DB schemes through a number of ways including reviewing legal documents and negotiating terms, reducing the administrative burden, and having legal operational and administrative experts in one place.

When trustees want to move money between funds, they fill out a simple dealing form, while the platform does everything else. “Standardisation really helps, as in today’s system each manager runs its own infrastructure and does it slightly differently,” said Jaegemann.

Another benefit is speedier implementation of investment decisions, easier rebalancing of their portfolio and streamlined asset transfers.

Due to bulk purchasing power via platforms, they can generate significant cost savings for schemes. For example, the AMX has predicted it could help schemes save between 40 basis points (bps) and 100bps each year. Although a £3bn scheme already has negotiating power, partnering with a platform which has £100bn assets gives it even more power to negotiate not just fees but also contractual and legal terms.

Now, Aon Hewitt is talking about how its large segregated clients can use the operational aspect of its fiduciary management platform to implement decisions, without having to outsource manager selection and investment strategy.

Aon’s delegated consulting services partner Mike Rogers said: “We’ve effectively been doing this for fiduciary clients for the last 10 years or so, but what’s been missing is taking that same platform and allowing larger clients to make their own investment choices, and give them complete flexibility.

“We’re seeing a lot of interest from DB schemes with £1bn assets plus, which have in-house investment teams and so don’t want to go down the fiduciary route, but may want to focus on things that make a difference. Such schemes may want help with operational due diligence, which can be time consuming and expensive.”

Fiduciary Managementperformance can be transparent

In the 12 months to March 2017, our clients have beaten their liability benchmark by 11.3%, successfully navigating

a volatile year for pension schemesSource: P-Solve Investments Ltd. P-Solve Growth Portfolio is a composite of our actual client performance net

of fees, including liability hedging. As at 31 March 2017 this represented all clients (36) which have given us full discretion on investment decisions and have liability hedging levels within the same ranges. The liabilitiesbenchmark is a composite of bespoke gilt portfolios for each of these clients that match their specific liabiltiy

profiles. Past performance is not a reliable indicator of future results and should not be relied upon.

To hear more get in touch at [email protected]

Fiduciary Management • Investment Consultancy • Structured Equity • DCAsset Management • LDI • Multi-Asset • Insurance Investement Consultancy

P-Solve Investments Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority (FCA Registration No. 195028).Its registered office is 11 Strand, London, WC2N 5HR, and it is registered in England and Wales (No. 3359127). It is part of River and Mercantile Group.

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ALLIANZ GLOBAL INVESTORS EUROPE GmbH199 BishopsgateLondonEC2M 3TYTel: 020 7859 9000Website: www.allianzgi.com



BNP PARIBAS INVESTMENTPARTNERS UK LTD5 Aldermanbury SquareLondonEC2V 7BPTel: 020 7595 2000Website: www.bnpparibas-ip.com

CARDANO RISK MANAGEMENT B.V.9th Floor6 Bevis MarksLondonEC3A 7BATel: 020 3170 5910Website: www.cardano.com

GOLDMAN SACHS ASSET MANAGEMENTChristchurch Court10 - 15 Newgate StreetLondonEC1A 7HDWebsite: www.gsam.com


JLT Fiduciary Management brings together the expertise of JLT Investment Consulting and JLT Investment Management. We have a proven track record of helping clients make the right decisions to keep their scheme on track, as well as saving them time and improving their efficiency. We work with pension schemes that have liabilities totalling anything from £3million to more than £1billion. So whatever your goals, we can help you make the decisions that will get you closer to reaching them.

ALLIANZ GLOBAL INVESTORS – JLT EMPLOYEE BENEFITS KEMPEN FIDUCIARY MANAGEMENT – SEI INVESTMENTS

KEMPEN FIDUCIARY MANAGEMENT60 Cannon StreetLondonEC4N 6NPTel: 0207 002 1422Website: www.kempen.nl/uk/fiduciarymanagement

NORTHERN TRUST50 Bank StreetCanary WharfLondonE14 5NTTel: 020 7982 2000Website: www.northerntrust.com

RIVER AND MERCANTILE GROUP11 StrandLondonWC2N 5HRTel: 020 3327 5100 Website: www.psolve.com


SEI INVESTMENTS LTD1st FloorAlphabeta14-18 Finsbury SquareLondonEC2A 1BRTel: 020 3810 8000Website: www.seic.com

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HEDGE FUND PROVIDERS

Picking winning hedge fund managers

In the past few years, many hedge funds have failed to deliver their promise of strong absolute returns with low correlation to more traditional asset classes, says James Balcombe, a solutions specialist at Cardano.

Instead, investors have seen lacklustre returns that, at times, have been highly correlated to both equity and bond markets, and so it has become increasingly difficult for managers to justify their fees.

And, while fees have been falling over recent years, hedge funds are still significantly more expensive than more traditional investments.

The disappointing returns and increased scepticism over whether these high fees are justified has led a number of large US and UK pension funds to completely redeem their hedge fund allocations.

Some also decided that the resources and expertise needed to manage these allocations was simply not worth their time and effort, particularly larger schemes.

However, Balcombe says there are still some truly talented managers, generating consistent outperformance with little to no correlation to more traditional assets.

Key to success, he says, is a manager’s ability to produce ‘alpha’, which represents the return produced over and above the markets they operate in.

Talented managers have been more astute at producing alpha by taking advantage of hedge funds’ flexible nature to better implement their strategies.

Skilful implementation of risk management techniques has also allowed the best managers to limit downside risks. Even at the industry level, drawdowns have often been shorter and shallower than those experienced by equity markets.

Balcombe says it is clear that good hedge fund managers can benefit schemes – and by investing a portion of a traditional portfolio in good quality hedge funds, overall downside risks can be greatly reduced, especially in more challenging environments, such as a recession or period of high inflation.

Surprise events such as Brexit, the Trump presidency and the ongoing European political risk are opportunities for a good manager.

The hedge fund industry can be a daunting place. It contains thousands of funds running a multitude of different strategies that exhibit a huge dispersion of returns every year. Good manager selection is crucial.

The problem is most managers are very experienced at writing good marketing documents and answering standard questions about investment objectives or fund liquidity.

But those that look good on paper can often turn out to be poor investments over the long term.That’s why a more unconventional approach can often better identify those who are likely to deliver

consistent outperformance over time.Gaining a firm grasp of how a strategy works and when it will both outperform and underperform is

a must.However, it is also essential to understand the individual behind the strategy, as the best managers

share a number of character traits. It’s true to say the hedge fund industry has not lived up to its promises in recent years, says

Balcombe. But he believes there remains a select group of truly talented managers that have. You just need to know how to find them.

ALLENBRIDGE IS26th Floor125 Old Broad StreetLondonEC2N 1ARTel: 020 7079 1000Website: www.allenbridgeis.com


ASPECT CAPITAL LTD10 Portman SquareLondonW1H 6AZTel: 020 7170 9700Website: www.aspectcapital.com



CAZENOVE CAPITAL MANAGEMENT LIMITED12 Moorgate London EC2R 6DA Tel: 020 3479 1000 Website: www.cazenovecapital.com

DEUTSCHE BANKWinchester House1 Great Winchester StreetLondonEC2N 2DBTel: 020 7545 8000Website: www.deutsche-bank.com

GOLDMAN SACHS INTERNATIONALChristchurch Court10 - 15 Newgate StreetLondonEC1A 7HDTel: 020 7774 1000Website: www.gs.com


INTERNATIONAL ASSET MANAGEMENT LTD11A Regent StreetLondonSW1Y 4LRTel: 020 7734 8488Website: www.iam.uk.com

KEY ASSET MANAGEMENT2-6 Cannon StreetLondonEC4M 2XXTel: 020 7246 5700Website: www.keyhedge.com

ALLENBRIDGE IS – KEY ASSET MANAGEMENT



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MAN INVESTMENTSRiverbank House2 Swan LaneLondonEC4R 3ADTel: 020 7144 1000Website: www.maninvestments.com

MARTIN CURRIE INVESTMENT MANAGEMENT LTDSaltire Court20 Castle TerraceEdinburgh EH1 2ESTel: 0131 229 5252Website: www.martincurrie.com/ukinstitutional

MESIROW FINANCIAL INTERNATIONAL UK LTDSackville HouseFifth Flour40 PiccadillyLondonW1J 0DRTel: 020 7851 1700Website: www.mesirowfinancial.com

MOMENTUM GLOBAL INVESTMENT MANAGEMENTThe Rex Building62 Queen StreetLondonEC4R 1EBTel: 020 7489 7223

MORGAN STANLEY INVESTMENT MANAGEMENT25 Cabot SquareCanary WharfLondon E14 4QATel: 020 7425 8000Website: www.morganstanley.co.uk

NEWEDGE GROUP (UK BRANCH)10 Bishops SquareLondonE1 6EGTel: 020 7676 8000Website: www.newedgegroup.com


LGT CAPITAL – NGAM UK

NORTHERN TRUST GLOBAL INVESTMENTS (EUROPE) LTD 50 Bank StreetLondonE14 5NTTel: 020 7982 2000Website: www.ntrs.com

OLD MUTUAL ASSET MANAGERS (UK) LIMITED2 Lambeth HillLondonEC4P 4WRTel: 020 7332 7500Website: www.omam.co.uk

OLYMPIA CAPITAL MANAGEMENT4 th Floor2 Duke StreetSt James’sLondonSW1Y 6BJTel: 020 7389 9900Website: www.olympiagroup.com

PAAMCO25 Victoria StreetLondonSW1H 0EXTel: 020 7593 5360Website:: www.paamco.com

RASINI & CO LIMITED32 Duke StreetSt James’sLondon SW1Y 6DFTel: 020 7766 7600Website: www.rasini.co.uk

SCHRODERS PLC31 Gresham StreetLondon EC2V 7QATel: 020 7658 6000Website: www.schroders.com

SLATER INVESTMENTS LTDNicholas House3 Lauerence PoutneyLondonEC4R 0EUTel: 020 7220 9460Website: www.slaterinvestments.com

NORTHERN TRUST – SLATER INVESTMENTS

HANDBOOK 2017


HANDBOOK 2017


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INDEPENDENT TRUSTEES

21st century trusteeship

Over the past 18 months, The Pensions Regulator has been considering how to ensure trustees are fit for purpose in the 21st century. But what should a 21st century trustee look like?

BESTrustees chairman Alan Pickering says: “Even though trusteeship is six centuries old, we can make it fit in the 21st century. The challenges have changed tremendously and that’s why we really want good quality people serving on our trustee boards and people drawn from a variety of backgrounds so we drive out groupthink.”

Pensions and Lifetime Savings Association (PLSA) policy lead for stewardship and corporate governance Luke Hildyard believes 21st century trustees should be more diverse, dedicated, and accountable.

“The collective capacity of the board is very important. They should be diverse in backgrounds, skill-sets and demographics. Around 83% of trustees are male; hopefully they will be less overwhelmingly male in future.”

TPR’s research highlighted the varying levels of time commitments that trustees contribute to different types of schemes.

“Committing time to trustee duties and also developing skills through training and other process are important,” says Hildyard.

The regulator’s research last year revealed half of schemes with non-professional trustees did not believe all of these trustees had the requisite level of knowledge and understanding. So what should be done to help trustees up their game?

Hildyard says the PLSA has no issue with the quality of guidance but the issue is “there’s a lot of it and people aren’t always aware of it.”

It supports compulsory completion of the trustee toolkit within six months, but cautions against anything that makes it seem this is sufficient to qualify as a trustee.

Also, a six-month probation period could be misleading. It should be possible to remove under-performing or uncommitted trustees at any time, not just during their first six months, said the PLSA.

The Association of Member-Nominated Trustees (AMNT) says its members would support the requirement, provided it was not applied, either in theory or practice, only to MNTs and MNDs. Also, provided the standard of knowledge initially required was not raised so as to risk narrowing the range of participants that the best schemes now have.

Pickering believes ongoing training is much more important than upfront training, and suggests new components to be added to the toolkit syllabus.

“These components should be about managing sub-contractors, managing contracts, and transferring modern business acumen from the world of business to the world of pensions. The real danger is we look at pension scheme governance in a vacuum; it’s but one form of governance in Britain, and we can all compare and contrast between those governance bodies that run businesses and schools etc.”

Many respondents said trustee boards should have a process and framework for reviewing the competence and effectiveness of its members.

It seems the two main reasons why trustees do not complete the toolkit are either that they do not realise the importance of doing so or do not have the time.

2020 TRUSTEE SERVICES LTDSt Nicholas Court25-27 Castle GateNottinghamNG1 7ARTel: 0115 941 1031Website: www.2020trustees.co.uk

ATKIN TRUSTEES LTDCornwall HouseBlythe GateBlythe Valley ParkSolihullWest MidlandsB90 8AFTel: 0121 506 8200Website: www.atkintrustees.com

B & CE BENEFIT SCHEMES(The People’s Pension)Manor RoyalCrawleyWest SussexRH10 9QPTel: 08457 41 41 42Website: www.bandce.co.uk

BERKELEY BURKEBerkeley Burke HouseRegent StreetLeceisterLE1 7BRTel: 0116 204 2988Website: www.berkeleyburke.com

BESTRUSTEES PLCFive Kings House1 Queen Street PlaceLondonEC4R 1QSTel: 020 7332 4100Website: www.bestrustees.co.uk

BLAKE LAPTHORNNew Kings CourtTollgateChandler’s FordEastleighSouthamptonSO53 3LGTel: 023 8090 8090Website: www.bllaw.co.uk

BRIDGE TRUSTEES LIMITED115 Colmore RowBirminghamB3 3ALTel: 0845 497 9797Website: www.bridgetrustees.com

CAPITA ASSET SERVICES4th Floor40 Dukes PlaceLondonEC3A 7NHTel: 020 3367 8200Website: www.capitaassetservices.com

CAPITAL CRANFIELD TRUSTEES5th FloorNew Liverpool House15-17 Eldon StreetLondonEC2M 7LD Tel: 020 7012 8700Website: www.cctl.co.uk

DALRIADA TRUSTEES LIMITED1 Berkeley StreetLondonW1J 8DJTel: 020 7495 5515Website: www.dalriadatrustees.co.uk

DENTONS UKMEA LLP1 Fleet PlaceLondonEC4M 7WSTel: 020 7242 1212Website: www.dentons.com

2020 TRUSTEE SERVICES – DENTONS UKMEA



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MICHAEL J. FIELD CONSULTING ACTUARIES8 St Stephen StreetManchesterM3 6AYTel: 0161 834 3297Website: www.michaeljfield.com

HANOVER TRUSTEE CO LTD824 Salisbury HouseLondon WallLondonEC2M 5QQTel: 020 7588 8406Website: www.hanover-pensions.co.uk

HR TRUSTEES LTDPhoenix House, 1 Station HillReadingRG1 1NBTel: 0118 958 3683Website: www.hrtrustees.com

INDEPENDENT TRUSTEE LIMITED6th Floor20 Gresham StreetLondonEC2V 7JETel: 020 7329 6699Website: www.sackers.com

INDEPENDENT TRUSTEE SERVICESThe St.Botolph Building138 HoundsditchLondonEC3A 7AWTel: 020 7558 3163Website: www.itslimited.co.uk


IPM TRUSTEES LTD3 Victoria CourtBank SquareMorleyLeedsLS27 9SETel: 0845 130 3223Website: www.ipm-pensions.co.uk

LAWDEB PENSION TRUSTEESFifth Floor100 Wood StreetLondonEC2V 7EXTel: 020 7606 5451Website: www.lawdeb.com

LYONS DAVIDSON TRUSTEE COMPANY LIMITEDVictoria House51 Victoria StreetBristolBS1 6ADTel: 0117 904 6000Website: www.lyonsdavidson.co.uk

OFA TRUSTEE SERVICES LIMITED36 East Stockwell StreetColchesterEssexCO1 1STTel: 01206 761 252Website: www.offord-fenning.com

MICHAEL J. FIELD – OFA TRUSTEE SERVICES

OPEN TRUSTEES LTD2 Temple Back EastTemple QuayBristolBS1 6EGTel: 0117 917 3000Website: www.openrtrustees.com

PAN TRUSTEES LTD3 Castlefield CourtChurch StreetReigate RH2 0AHTel: 01737 222402Website: www.pantrustees.co.uk

PITMANS TRUSTEES LIMITED47 Castle StreetReadingBerkshireRG1 7SRTel: 0118 957 0610Website: www.pitmanstrustees.com

PS INDEPENDENT TRUSTEES LIMITEDAlbionFishponds RoadWokinghamBerksRG41 2QETel: 0845 313 0024Fax: 0118 313 0701Website: www.psitl.com

Contact: Suzi LowtherEmail: [email protected]

RADCLIFFE & CO (LIFE & PENSIONS) LTDThomas House28-30 Bernard StreetSouthamptonSO14 3AYTel: 02380 222 444Website: www.radcliffe-ifa.co.uk

REEDSMITH LLPThe Broadgate Tower20 Primrose StreetLondonEC2A 2RSTel: 020 3116 3000Website: www.reedsmith.com

ROWANMOOR GROUP PLCRowanmoor House46-50 Castle StreetSalisburyWiltshireSP1 3TSTel: 03445 440 440Web: www.rowanmoor.co.uk

NIGEL SLOAM & CORoman House296 Golders Green RoadLondonNW11 9PYTel: 020 8209 1222Website: www.nigelsloam.co.uk

TEMPLE TRUSTEES LIMITEDOne Glass WharfBristolBS2 0ZXTel: 0117 939 2000Website: www.burges-salmon.com

OPEN TRUSTEES – TEMPLE TRUSTEES


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TRUSTEE SOLUTIONS LIMITED3 Colmore CircusBirminghamB4 6BHTel: 0121 623 8686Website: www.trusteesolutions.co.uk

WEDLAKE BELL PENSION TRUSTEES LIMITED52 Bedford RowLondonWC1R 4LRTel: 020 7395 3000Website: www.wedlakebell.com

WILLIS TOWERS WATSONWatson HouseLondon RoadReigateSurreyRH2 9PQTel: 01737 241144Website: www.willistowerwatson.com

TRUSTEE SOLUTIONS – WILLIS TOWERS WATSON INSURANCE COMPANIES

Dashboard one step closer to launch as ABI unveils prototype

The Association of British Insurers – the body leading the pensions dashboard project – has unveiled a first prototype of the product.

It is the first major step forward for the project, which aims to eventually unify private pension and state pension data in a central online service, allowing savers to know

exactly how much they will have for retirement.The project, which was delegated to the ABI by the Treasury, has been developed by 17

pension firms and six technology companies, alongside a number of government and industry working groups.

The Treasury first announced plans for a dashboard in 2016 before appointing providers to work on the project. The full product is pencilled in to launch in March 2019.

ABI director of long-term savings and protection policy Yvonne Braun said the latest step showed the dashboard was feasible.

“It sounds obvious that in 2017 everyone should have easy online access to all their pension information in one single place of their choice,” she said. “Yet, the practicalities of making that happen are very complex. The prototype demonstrates once and for all that the technological hurdles can be overcome.

“Giving people access to clear information about all their pensions has the potential to revolutionise how they think about saving for their retirement. Now, we must ensure the industry, government and regulators continue this close collaboration so the excellent work done so far can be developed into a valuable service the public can use.”

Pensions minister Richard Harrington said the dashboard would transform the way savers interact with their retirement plans.

He said: “This project has enormous potential to help people keep track of their pension and make the most of their hard-earned savings, and I believe will be a transformational tool in providing the necessary information to people throughout their working lives to plan their retirement.”

Origo, which worked on the prototype, said it was committed to ensuring the dashboard was functional by 2019. The firm developed a ‘pension finder service’ for the prototype, providing a system to retrieve data for the dashboard from providers.

Managing director Paul Pettitt said: “Origo was always confident that the technology required for the prototype and, ultimately, the dashboards to happen would be delivered on time.

“The government wants live dashboards in place for consumers to use in 2019, and as the pensions dashboard project moves from prototype to reality, Origo will do all it can to help the industry deliver what is needed to ensure a positive outcome for the consumer.”

The People’s Pension director of policy and market engagement Darren Philp said fundamental issues still needed resolving.

He said: “Crucial decisions remain around compulsion, a public good dashboard and the wider governance and funding of the project. If the government wants to maintain the momentum needed to deliver the dashboard by 2019, then it needs to press ahead urgently with resolving these fundamental issues.”

The Professional



2018 Handbook


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[email protected]

HANDBOOK 2017


HANDBOOK 2017


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AEGONEdinburgh ParkEdinburghEH12 9SETel: 0870 60 00 337Website: www.aegon.co.uk

AVIVAPO Box 4Surrey StreetNorwichNR1 3NGTel: 0800 068 6800Website: www.aviva.co.uk

AXASun Life CentrePO Box 1810BristolBS99 5SNTel: 0117 989 9000Website: www.axa.co.uk

CANADA LIFE LIMITEDCanada Life PlacePotters BarHertfordshire EN6 5BATel: 01707 651 122Website: www.canadalife.co.uk

CLERICAL MEDICAL INVESTMENT GROUP LIMITEDPO Box 2812115 Dalkeith RoadEdinburghEH16 9ASTel: 0845 603 6770Website: www.clericalmedical.co.uk

CO-OPERATIVE GROUP PENSIONS DEPARTMENT (CIS)PO Box 35New Century HouseManchesterM60 4ESTel: 0161 834 1212Website: www.co-op.co.uk

FRIENDS LIFEPixham EndDorkingSurreyRH4 1QATel: 0845 600 3122Website: www.friendslife.co.uk

LEGAL & GENERAL ASSURANCE SOCIETYLegal & General HouseSt Monica’s RoadKingswoodTadworthSurrey KT20 6EUTel: 01737 370 370Website: www.legalandgeneral.com

LUCIDA PLC84 Grosvenor StreetLondonW1K 3JZ Tel: 020 7647 1600Website: www.lucidaplc.com

PHOENIX LIFE GROUP301 St. Vincent StreetGlasgowG2 5ADTel: 0845 002 0350Website: www.phoenixgroup.co.uk

AEGON – PHOENIX LIFE GROUP

PRUDENTIALDC SolutionsStirlingFK9 4UETel: 01786 448 844Website: www.pru.co.uk/risk

REASSURE LTDWindsor HouseIronmasters WayTown CentreTelfordShropshireTF3 4NBTel: 0800 073 1777Website: www.reassure.co.uk

SCOTTISH WIDOWS PLC PO Box 1703669 Morrison StreetEdinburghEH3 8YHTel: 0131 655 6000Website: www.scottishwidows.co.uk

SKANDIA LIFE ASSURANCE COMPANY LIMITEDPO Box 37Skandia HousePortland TerraceSouthampton SO14 7EJTel: 023 8033 4411Website: www.skandia.co.uk

STANDARD LIFE30 Lothian RoadEdinburgh EH1 2DHTel: 0131 225 2552Website: www.standardlife.co.uk

UNUMMilton CourtDorkingSurrey RH4 3LZTel: 01306 887 766Website: www.unum.co.uk

ZURICH ASSURANCE LTDUK Life CentreStation RoadSwindonSN1 1ELTel: 01793 511227Website: www.zurich.co.

PRUDENTIAL – ZURICH ASSURANCE

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INVESTMENT CONSULTANCY

‘Big three’ consultancies set sights on change

The top three investment consultants have joined forces in calling for measures to tackle the transparency and competition issues raised by the Financial Conduct Authority (FCA).When it was published in November 2016, the Financial Conduct Authority’s

(FCA’s) Asset Management Market Study pointed to a lack of competition in the investment consultancy market with 60% of business held by just three firms - Aon Hewitt, Mercer and Willis Towers Watson.

These firms are also active in the fiduciary management space and the study expressed concerns around the conflicts of interest in acting as an investment adviser and asset allocator.

The findings of the study led the FCA to consider referring the market to the Competition and Markets Authority (CMA) for investigation.

In a bid to avert this, Aon Hewitt, Mercer and Willis Towers Watson have worked together to submit a package of measures to the FCA designed to advance competitiveness and transparency in the investment consultancy and fiduciary management industries.

While the firms have not yet publicly revealed what the measures would entail, they said these will have regard to review of services, transparency of performance and fees, and conflicts of interest.

The move by the firms is significant given they have a large share of the fiduciary management market and account for 60% of the investment consultancy market.

While more needs to be done to stoke competition, it would seem that many would like to avoid a CMA investigation if at all possible.

Financial Inclusion Centre director Mick McAteer says: “The FCA has a whole range of conduct of business powers it can utilise and maybe it is time asset allocation advice given by consultants came under the remit of the FCA. There are plenty of smaller investment consultants snapping at the heels of the big three and a better regulated market would help them.”

However, Hymans Robertson head of investment consultancy John Walbaum disagrees that this strategic advice should be brought under the remit of the FCA as it is already heavily regulated by other bodies. He also believes the level of competition among consultants is growing.

“We adhere to codes of practice and professional standards bodies and we believe that level of oversight is sufficient,” he says. “I also believe that over the last few years we have seen more competition in the market, with several new players and less concentration in the top three players. Of course that’s not to say more competition wouldn’t be welcome but I feel that is the direction of travel as we see increased focus on governance and the professionalisation of trustee boards. These boards often have both formal and informal ways of measuring their consultants to make sure they are getting what they need.”



BARKER TATHAMDingwall ToadCroydonSurreyCR0 2LXTel: 020 8603 7131Website: www.barkertatham.com

BARNETT WADDINGHAM LLPCheapside House138 CheapsideLondon EC2V 6BWTel: 020 7776 2200Website: www.barnett-waddingham.co.uk

BFINANCE UK LIMITEDClareville House26-27 Oxendon StreetLondonSW1Y 4ELTel: 020 7747 8600Website: www.bfinance.co.uk

CAPITA EMPLOYEE BENEFITS65 Gresham StreetLondonEC2V 7NQTel: 020 7709 4500Website: www.capita.co.uk/employeebenefits



AON HEWITT – JLT EMPLOYEE BENEFITS






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KPMG LLPArlington Business Park Theale Reading Berkshire RG7 4SDTel: 0118 373 1369Fax: 0118 373 1373Website: www.kpmg.com/uk/pensions

Contact: Ray PygottEmail: [email protected]

Our pension team of over 400 people advise all sizes of pension funds and our clients include some of the biggest pension schemes in the UK right through to small and medium sized pension schemes. We have offices in London, Reading, Bristol, Birmingham, Manchester, Leeds, Edinburgh and Glasgow

We offer services to both trustees and scheme sponsors on the full range of pension services for Defined Benefit (DB), Defined Contribution (DC) and hybrid pension schemes. We provide full services to trustees covering, administration, actuarial, investment and covenant support. Our advice and solutions extend to the areas of scheme funding, risk management, insurance solutions, benefit design, asset backed funding, communications, member options, liability management, transactions & restructuring, PPF levy mitigation and public sector pensions.

Our investment consultants are focused on delivering proactive and strategic advice. They do this through the production of insightful investment research, implemented in a pragmatic manner, avoiding over-complexity and

excessive cost. We have no competing fund management or fiduciary management products to sell. Impartial investment advice is our only priority, meaning we avoid the conflict of managing clients’ assets.

LCP95 Wigmore StreetLondonW1U 1DQWebsite: www.lcp.uk.com

Contact: Ken WillisTitle: Investment PartnerTel: +44 (0)20 7439 2266Fax: +44 (0)20 7439 0183Email: [email protected]

QUANTUM ADVISORYCypress HousePascal CloseSt. MellonsCardiffCF3 OLWTel: 029 2083 7900Website: www.quantumadvisory.co.uk



KPMG LLP – QUANTUM ADVISORY

Cardiff/BristolStuart Price, PartnerDirect line: 029 2083 7902Email:[email protected]


Established in 2000, Quantum Advisory is an independent Financial Services Consultancy that provides solution based Pensions and Employee Benefits services to employers, scheme trustees and members.

We design, maintain and review pension schemes and related employee benefits so that they operate efficiently and effectively, and are valued by employees. This means that you can get on with doing the things that you do best, therefore saving you time and money.

We offer a range of services to companies and pension trustees, all designed to focus on your specific needs, including actuarial, administration (including accounts and payroll), communications, consultancy, investment, secretarial and trustee training.

We have offices in Amersham, Birmingham, Bristol, Cardiff and London. Call us to see how we can help with your pension and employee benefit challenges.

REDINGTONAustin Friars House2-6 Austin FriarsLondonEC2N 2HDTel: 020 7250 3331Website: www.redington.co.uk

QUANTUM ADVISORY - REDINGTON

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RIVER AND MERCANTILE GROUP11 StrandLondonWC2N 5HR Tel: 020 7601 6262 Website: www.riverandmercantile.com

River and Mercantile Asset Management LLP is part of River and Mercantile Group Plc (“R&M”), an advisory and investment solutions provider to DB and DC pension schemes and other investors. River and Mercantile Asset Management LLP is a UK based investment boutique specialising in the management of UK and Global equities. As part of the River and Mercantile Group we also offer multi-asset investment strategies and bespoke risk management solutions such as LDI and structured equity.

P-Solve Investments Limited is part of the River and Mercantile Group PLC and provides advice to institutional investors, such as pension schemes and charities. We strive to serve our clients well by developing and implementing solutions tailored to their specific investment needs either advising schemes on how to manage their investments and risks - investment consulting - or manage their investments and risks on their behalf - fiduciary management - or a mixture of these. We have a strong focus on person-to-person relationships and matching the right solution to the client at the right time. We regard this ability, offering expertise and advice together with tailored solutions, as the reason why we have such strong and longstanding relationships with so many clients.


LIABILITY-DRIVEN INVESTMENT

LDI must evolve

Over the past 20 years, schemes have shifted from focusing solely on growth towards liabilities. This has been crucial as interest rates have fallen to historical lows on the back of quantitative easing since the 2008 crisis, thereby reducing discount rates and increasing the value of liabilities.

Liability-driven investment (LDI) paved the way for fiduciary management, marrying up the liability side with the multi-manager side, and has undergone huge growth to now cover around 10% of the DB universe.

The Pension and Lifetime Savings Association’s head of investment Joe Dabrowski says: “For schemes that got into LDI early it’s worked out pretty well, and they probably got a better deal than those who got in late.”

However, total deficits have only increased. Yet, there is a belief that if schemes had not done what they have, they would be in a much worse position now.

Hymans Robertson head of investment consultancy John Walbaum says: “From one point of view it’s a disaster as we’re in a worse funding position, which suggests we’ve failed, but that’s purely because of a lack of hedging and low rates. Schemes that took a more pragmatic view and hedged are in a much better position.”

Schemes’ experience around last year’s EU referendum clearly shows how the level of hedging was a differentiating factor. Dabrowski says: “Schemes that were well-hedged before the Brexit vote probably did quite well, and those that weren’t were left on the other side of the fence trying to recover.”

CREATE Research chief executive officer Professor Amin Rajan believes without hedging, more schemes would have gone into the Pension Protection Fund (PPF) and deficits would be higher. But he points out: “If long-term rates don’t rise then hedging has been a very good investment but if they do rise, many of these hedges will prove very expensive.”

While LDI has been a helpful tool for schemes to de-risk, there are concerns it has become an expensive commodity. With the prospect of rates being lower for longer, LDI clearly must evolve.

JPMorgan Asset Management pensions solutions managing director Rupert Brindley is critical of the traditional strategy where schemes pursue LDI with rigid barbell allocations to growth and hedging asset baskets.

“Barbell portfolios are pretty inefficient because everyone thinks to do the hedging I need to buy index-linked gilts with negative yields and then invest in some equities.”

He believes this has resulted in some assets being effectively orphaned as they neither match liabilities perfectly nor offer equity-like returns.

The use of value-at-risk models has encouraged LDI implementation regardless of the level of gilt yields. Given historically low yields, should there be a re-think of how the benchmark or target is defined?

Brindley says: “If you define your liabilities as valued off gilts, then gilts are the only perfect answer to your problem. There’s absolute clarity on how you value your assets because it’s mark-to-market value, but the open question now is how should you be valuing your liabilities?

RIVER AND MERCANTILE GROUP – WILLIS TOWERS WATSON

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AVIVA1 PoultryLondonEC2R 8EJTel: 020 7809 6000Website: www.avivainvestors.com

AXA INVESTMENT MANAGERS7 Newgate StreetLondonEC1A 7NXTel: 020 7003 1000Website: www.axa-im.com


BMO GLOBAL ASSET MANAGEMENTExchange HousePrimrose StreetLondonEC2A 2NYTel: 020 7628 8000Website: www.bmogam.com

BNP PARIBAS INVESTMENT PARTNERS5 Aldermanbury SquareLondonEC2V 7BPTel: 0230 759 2000Website: www.bnpparibas-ip.com


CREDIT SUISSEOne Cabot SquareLondon E14 4QJTel: 020 7888 8888Website: www.credit-suisse.com

GOLDMAN SACHS ASSET MANAGEMENTRiver Court120 Fleet StreetLondonEC2A 2BETel: 020 7774 1000Website: www.gs.com

IGNIS ASSET MANAGEMENT150 CheapsideLondonEC2V 6ETTel: 020 3003 3000Website: www.ignisasset.com

INSIGHT INVESTMENT LTD160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 4000Website: www.insightinvestment.co.uk

JANUS HENDERSON INVESTORS201 BishopsgateLondonEC2M 3AETel: 020 7818 1818Website: www.janushenderson.com

ABERDEEN AM – JANUS HENDERSON INVESTORS

JPMORGAN25 Bank StreetLondonE14 5JPTel: 020 7742 6000Website: www.jpmorgan.com



M&GGovernor’s HouseLaurence Pountney HillLondon EC4R 0HHTel: 020 7626 4588Fax: 020 7548 3495Website: www.mandg.co.uk

MORGAN STANLEY INVESMENT MANAGEMENT LTD25 Cabot SquareLondonE14 4QATel: 020 7425 8000Website: www.morganstanley.co.uk

NORTHERN TRUST GLOBAL INVESTMENTS (EUROPE) LIMITED50 Bank StreetLondonE14 5NTTel: 020 7982 2000Website: www.ntrs.com

PIMCO EUROPE LTD11 Baker StreetLondonW1U 3AHTel: 020 3640 1000Website: www.pimco.co.uk

RIVER & MERCANTILE GROUP11 StrandLondonWC2N 5HRTel: 020 3327 5100Website: www.riverandmercantile.com



JPMORGAN – UBS GLOBAL



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AXA ROSENBERG INVESTMENT MANAGEMENT LTD8th Floor155 BishopsgateLondonEC2M 3XJTel: 020 7003 1800Website: www.axarosenberg.com


CLOSE INVESTMENTS10 Exchange SquarePrimrose StreetLondonEC2A 2BYTel: 020 7426 4000Website: www.closeinvestments.com


CREDIT SUISSEOne Cabot SquareLondon E14 4QJTel: 020 7888 8888Website: www.credit-suisse.com

FIDELITY WORLDWIDE INVESTMENTS25 Cannon StreetLondonEC4M 5TATel: 020 7283 9911Website: www.fidelity.co.ukinstitutional

FUNDQUESTBNP PARIBAS GROUP5 Aldermanbury SquareLondonEC2V 7BPUnited KingdomTel: 020 7595 1000Website: www.fundquest.com

GOODHART PARTNERS LLPQueensland House393 StrrandLondonWC2R 0LTTel: 020 7379 3000Website: www.goodhartpartners.com

JANUS HENDERSON INVESTORS201 BishopsgateLondonEC2M 3AETel: 020 7818 1818Website: Website: www.janushenderson.com

LEGAL & GENERAL INVESTMENT MANAGEMENTOne Coleman StreetLondonEC2R 5AATel: 020 3124 2000Website: www.legalandgeneral.com

AXA ROSENBERG – LEGAL & GENERAL MULTI-MANAGERS

MERCER1 Tower Place WestTower PlaceLondonEC3R 5BUTel: 020 7626 6000Website: www.mercer.com

MOMENTUM GLOBAL INVESTMENT MANAGEMENTThe Rex Building62 Queen StreetLondonEC4R 1EBTel: 020 7489 7223Website: www.momentumgim.com

NORTHERN TRUST GLOBAL ADVISERS LIMITED50 Bank StreetCanary WharfLondonE14 5NTTel: 020 7982 2000Website: www.ntrs.com


SEI INVESTMENTS LTD1st FloorAlphabeta14-18 Finsbury SquareLondonEC2A 1BRTel: 020 3810 8000

MERCER – SEI INVESTMENTS

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PENSIONS MASTER TRUSTS

Gap in investment quality

Master trusts have been operating within the constraint of the 0.75% default fund charge cap since April 2015. While it keeps a lid on charges for members, there have been concerns it could also lead to watered-down services.

A study by the Defi ned Contribution Investment Forum (DCIF) – Master Trusts: Investment Designs, A Comprehensive Study, which examined investment off erings of 17 providers – concluded investment is a low priority and little innovation is underway.

It found a gap between the investment quality off ered by auto-enrolment (AE) master trusts and those targeting larger employers. Also, there are diff erent interpretations of value for money, and environmental, social and governance (ESG) issues are a secondary consideration.

The report says: “The majority of master trusts have designed very low-cost standard propositions. Disclosures and interviews showed the investment costs of many of these propositions are in the range of four basis points (bps) to 20 bps. This leaves very little room for allocations to actively-managed or illiquid assets, which can be perceived as being higher in price than passive components.”

Capital Group head of DC strategy David Calfo, also part of the DCIF’s master trust steering group, says: “You could argue there is a so called ‘race to the bottom’ in terms of cost. That is partially or largely refl ected in their investment strategies. So if there are 70 master trusts, what is going to determine the winners from the losers?

There is a risk that providers could ignore asset classes by exclusively focusing on cost, he added.

It comes as the National Employment Savings Trust (NEST) has made changes to its investment strategy, including reducing its default fund’s exposure to climate change risk.

The government-backed master trust will assign £130m of its UBS Life World Equity Fund into a new UBS climate aware fund, representing about 20% of its current developed equities portfolio and 10% of its default strategy’s total investments.

Positive tilts will apply to fi rms that support or use renewable technology, and are performing in line with the Paris Agreement which aims to restrict global temperature increases to below two degrees Celsius above pre-industrial levels.

Meanwhile negative tilts will hit companies that have worse than average greenhouse gas emissions, are producing energy from coal, or have reserves of coal, oil and gas.

The master trust has also picked JP Morgan Asset Management to run its fi rst high yield bond mandate after an open tender.

The high yield opportunities fund, which will aim to generate returns in a low yield environment, will be added to NEST’s retirement date fund range. An initial allocation of £40m - roughly 3% of NEST’s portfolio - will be reviewed over time.

Deputy chief investment offi cer John St. Hill says this is a “long-term strategic move”, adding: “Diversifying our members’ portfolios across a range of asset classes is the best way to manage risks and deliver returns.”

Bringing together the best of our DC and investment expertise to drive better member outcomes.

The Aon MasterTrust can help employers to meet their pension governance and performance responsibilities, as well as minimise administrative workloads and costs. By combining flexible investment design with a service delivered by experts, The Aon MasterTrust supports employers to address their DC challenges – now and in the future.

To learn more, call +44 (0)800 279 5588, visit theaonmastertrust.co.uk or email [email protected]

EXPERT GUIDANCE

The Aon MasterTrust

gives your DC journey the direction it needs

Risk. Reinsurance. Human Resources.Aon Hewitt Limited is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales. Registered No: 4396810. Registered Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN.

a05694-01 AON Mechanical Data Trust A5.indd 1 24/05/2017 16:51

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Powered by Capita

ATLAS MASTER TRUST From Capita65 Gresham StreetLondonEC2V 7NQTel: 020 7709 4500Email: [email protected]: www.capitaemployeebenefits.co.uk/what-we-do/integrated-solutions/atlas-master-trust

We have brought together our consultancy skills, administrative know-how and proprietary technology propositions to

create Atlas Master Trust, a professionally governed, multi-employer, trust-based pension plan. Atlas Master Trust is designed to meet the exacting requirements of the Pensions Regulator and the needs of employers, while providing the opportunity for its members to accumulate assets in a quality pension arrangement with access to all of the new flexibilities on drawing pension benefits easily, engagingly and on competitive terms. Our approach is founded on three pillars to ensure that the plan delivers the best possible value for members:

Service – plan delivery through robust, proven and scalable technology, supported by an experienced team of administrators. Governance – a strong, expert and independent trustee board adds value and insight through its management of the plan.Engagement – a structured and focused framework of member support and guidance. Through our plan, employers and employees receive a complete end-to-end service, from contribution collection through to benefits’ payment.

Atlas Master Trust has achieved the Pension Quality Mark and is committed to achieving the Master Trust Assurance Framework.

B&CE THE PEOPLE’S PENSIONManor RoyalCrawleyWest SussexRH10 9QPTel: 0800 612 8080Website: www.thepeoplespension.co.uk

AON HEWITT – B&CE THE PEOPLE’S PENSION

THE BLACKROCK MASTER TRUST12 Throgmorton AvenueLondonEC2N 2DLTel: 020 7743 3000Website: www.blackrock.co.uk

THE CAREY WORKPLACE PENSION TRUSTCarey Corporate Pensions UK Limited1st FloorLakeside HouseShirwell Crescent Furzton LakeMilton KeynesMK4 1GATel: +44 (0) 1908 336010Website: www.careypensions.co.uk

DELOITTE PENSIONS MASTER PLANc/o Deloitte Pensions Services LimitedHill House1 Little New StreetLondonEC4A 3TRTel: 020 7007 3687Email: [email protected]: www.deloitte.co.uk/DeloittePensionsMasterPlan

The Deloitte Pensions Master Plan is a defined benefit pension scheme designed to cater for pension benefits for many unrelated employers. Employers can transfer their existing schemes into the Plan with each employer having its own fully segregated section. Joining the Plan has a number of key benefits:• Lower costs – As a single trust with assets from many schemes in different

sections, the Plan enables sections to benefit from economies of scale.• High quality advice – Deloitte provides scheme actuarial and pensions administration services to the sections.• Retain control – The company and trustees remain in control. On transfer into the Plan, there are no changes to members’ benefits, the scheme’s investments, the employer’s responsibilities or to the trustees and their key powers.

FIDELITY RETIREMENT SERVICEPascall HouseWestridge Business ParkCothey WayRydeIsle of WightPO33 1QTTel: 0500 50 65 75 (freephone)Website: www.fidelity.co.uk


NEST CORPORATIONRiverside House2a Southwark Bridge roadLondonSE1 9HATel: 020 3056 3600Website: www.nestpensions.org.uk

BLACKROCK MASTER TRUST – NEST CORPORATION




http://www.capitaemployeebenefits.co.uk/what-we-do/integrated-solutions/atlas-master-trust

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http://www.deloitte.co.uk/DeloittePensionsMasterPlan


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NOW PENSIONS 3rd Floor164 BishopsgateLondonEC2M 4LXTel: 0333 332 2222Website: www.nowpensions.com



THE PREMIER DB SOLUTION, THE PREMIER LIFE MASTER TRUST & THE PREMIER RETIREMENT SAVERPremierAMP HouseDingwall RoadCroydonCR0 2LXTel: 020 3727 9800Fax: 020 3014 8768Email: [email protected]: www.premiercompanies.co.uk






To Individuals: Financial Planning

Total Employees (UK): 160



Associated Companies: Premier Pensions Management Ltd. Premier Benefit Solutions Ltd.

Other Offices: Bristol



For trustees, a full range of advisory and support services are offered including pensions consulting, secretary to the trustees, actuarial advice, administration, the insurance of risk benefits and all relevant communications. Our approach is to offer either a full range of services to manage the scheme or to allow the trustees to pick and

NOW PENSIONS - PREMIER PREMIER - XAFINITY CONSULTING

choose from the range available.





SEI INVESTMENTS LTD1st FloorAlphabeta14-18 Finsbury SquareLondonEC2A 1BRTel: 020 3810 8000Website: www.seic.com


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PERFORMANCE MEASUREMENT

Why schemes need to look beyond total returns when measuring success

The performance of a defined benefit (DB) pension scheme is often measured in terms of the investment returns that it achieves over the life of the fund.

However, a paper published by the 300 Club - a group of leading global investment professionals – has suggested that a different focus should

be adopted.The paper – Using wealth, not returns, to set objectives and measure success –

suggested that using total returns in isolation is no longer sufficient. Instead, asset owners such as pension funds should also look at the level of absolute wealth needed to achieve the scheme’s objective as well as the impact different paths of return may have on this wealth during both the accumulation and decumulation phases of the fund.

The paper used the following example. “Consider a closed DB pension fund with assets of £1bn that needs to pay its expected pensions over the next 10 years. It needs an average real required rate of return of 2% a year to do so. Assuming the fund has the same annual outflow over the next 10 years, there will be exactly the right amount of money to meet all its payments.

“Poor performance early on may result in the fund not being able to make the pension payments towards the end of its expected life as the strong performance years will be working on a smaller pot of assets. Strong returns early on may, by contrast, result in the fund having more money than it needed.”

The message is the ability to meet an overall wealth target should be considered a key measure for success, not just the investment returns.

Report author Stefan Dunatov, the chief investment officer at Coal Pension Trustees, said that, while such issues have been discussed over the years, now might be the right time for schemes to take another look at this approach.

“This is an issue that has been discussed over the years but we are at a real tipping point right now in that we are seeing more DB schemes start to shift from an accumulation to decumulation phase,” he explained. “As more DB schemes are closed then issues like this start to bubble to the top.”

Cardano client director Tony Baily agreed that this is an issue that needs more focus: “We are at a point where more schemes are becoming cashflow negative. When we work with clients we would encourage them to look at whether their funding level is improving over time rather than focusing on total returns.

“If a scheme has had poor returns early on then having goo;d returns at a later stage might not be enough to get them where they need to be. That is why we encourage clients to place more emphasis on funding level and then ask themselves whether what they are doing is adding or detracting from this.”

AMACES LTD10-11th Floor88 Wood StreetLondonEC2V 7RSTel: 0870 240 1314

BERKELEY BURKEBerkeley Burke House Regent StreetLeicester LE1 7BRTel: 0116 204 2988Website: www.berkeleyburke.com

BNY MELLON ASSET SERVICINGPerformance & Risk AnalyticsBNY Mellon Centre160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 5566Website: www.bnymellon.com/

assetservicing

HR TRUSTEES LTDXafinity House42-62 Greyfriars RoadReadingRG1 1NNTel: 0118 958 3683Website: www.hrtrustees.com

INALYTICS LTD12th FloorEmerald House15 Lansdowne RoadCroydonSurreyCR0 2BXTel: 020 8666 0656Website: www.inalytics.com

INTERACTIVE INVESTOR2 West Regent StreetGlasgowG2 1RWTel: 0845 200 3637Website: www.iii.co.uk/funds

INVESTMENT PROPERTY DATABANK (IPD)1 St. John’s LaneLondonEC1M 4BLTel: 020 7336 9200Website: www.ipdglobal.com

JP MORGAN25 Bank StreetLondonE14 5JPTel: 020 7742 6000Website: www.jpmorgan.com


PORTFOLIO EVALUATION LIMITEDThe BourseBoar LaneLeedsLS1 5ENTel: 0113 242 9381Website: www.portfolioevaluation.net

STATPRO GROUP PLCStatpro House81-87 Hartfield RoadWimbledonLondonSW19 3TJTel: 020 8410 9876Website: www.statpro.com

AMACES LTD – STATPRO GROUP PLC



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WILSHIRE ASSOCIATES23 Austin FriarsLondonEC2N 2QPTel: 020 7920 3100Website: www.wilshire.com

WM COMPANY525 Ferry RoadEdinburgh EH5 2AWTel: 0131 315 2000Website: www.statestreet.com

WILLIS TOWERS WATSON – WM COMPANY PROPERTY SERVICES

What did we learn from real estate markets in 2016?

The property market went through a turbulent time during 2016, with the shock Brexit vote prompting mass redemption requests, which led to several funds suspending trading. However, this activity was largely confined to retail investors with institutional investors holding firm.

So how has the past year treated UK pension schemes invested in the property sector and what can they expect going forward?

While 2016 brought turbulence to real estate investors it is important to realise that this also came off the back of several years of strong returns, according to M&G Real Estate chief investment officer Tony Brown: “If we cast our minds back to 2013-2015, we saw record numbers of transactions. These were not just institutional inves-tors but also from overseas. Then we saw things start to slow down in early 2016 in anticipation of the EU referendum, but it is important to remember that up until that point all parts of the real estate market had been doing well.”

While many column inches were given over to the resulting wave of redemption requests and the subsequent suspension of several funds, Brown insists that things were carried out in an orderly manner.

“We did see redemption requests leading to some retail funds suspending trading,” he says. “However, this was done to ensure the sale of assets was done in an orderly way and that we did right by all clients - those who wanted to remain within the fund as well as those who wanted to exit. It was reassuring that the majority of sales were done at pre-Brexit prices.”

CBRE Global Investors head of UK research Andrew Angeli agrees that while there was short-term disruption, calm was restored incredibly quickly.

“We had peak fear in July, with retail investors asking for redemptions, but a lot of the assets were sold at pre-referendum prices, which was interesting,” he says. “Then by Q4 it was almost a case of business as usual. I think that demonstrates the redeeming feature of this market, which is its deep and diverse investor base. A lot of the concern we saw came from overseas investors, rather than local ones and we actually received new allocations from institutional investors in the wake of the referendum.”

However, Hermes Investments head of private markets Chris Taylor says the shifts in the market are in-keeping with the real estate cycle.

“If we can put the EU referendum result to one side for a moment then our view as a long-term investor is to look at it as part of the real estate cycle,” he says. “We had a peak in July 2014 when the UK market was looking expensive - this was partly down to factors such as quantitative easing creating a bubble. We then had Brexit and the retail funds looking for redemptions but this was a correction that we would have seen happening anyway as part of the cycle.

The Professional



2018 Handbook


+44 (0)20 7316 9309 or

[email protected]

HANDBOOK 2017


HANDBOOK 2017


HANDBOOK 2017





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BARINGS REAL ESTATE ADVISERSSouthwest House11A Regent StreetLondonSW1Y 4LRTel: +44 (0)20 7297 0900Website: www.barings.com

BLACKROCK 12 Throgmorton AvenueLondonEC2N 2DLTel: 020 7743 3000Website: www.blackrock.co.uk

BMO REAL ESTATE PARTNERS5 Wigmore StreetLondonW1U 1PBTel: 020 7499 2244Website: www.bmorep.com

BNP PARIBAS REAL ESTATE UK5 Aldermanbury SquareLondonEC2V 7BPTel: +020 7595 1000Website: www.relestate.bnpparibas.co.uk

BROWN & COGranta HallFinkin StreetGranthamLincolnshireNG31 6QZTel: 01476 591991Website: www.brown-co.com

CAPA37 Duke StreetLondonW1U 1LNTel: 020 7224 7222Website: www.capa.uk.com

CBRE GLOBAL INVESTORSThird FloorOne New ChangeLondonEC4M 9AFTel: 020 7809 9000Website: www.cbreglobalinvestors.com

CLUTTONSPortman House2 Portman StreetLondonW1H 6DUTel: 020 7408 1010Website: www.cluttons.com

COLLIERS INTERNATIONAL50 George StreetLondonW1U 7GATel: 020 7935 4499Website: www.colliers.com


CREDIT SUISSE PROPERTY INVESTMENT MANAGEMENT LTDOne Cabot SquareLondonE14 4QJTel: 020 7888 1000Website: www.credit-suisse.com/uk

AVIVA INVESTORS – CREDIT SUISSE PROPERTY INVESTMENT


DTZ INVESTMENT MANAGEMENT125 Old Broad Street London EC2N 1ARTel: 020 3296 3269Website: www.dtzinvestors.com

EDWARD SYMMONS & PARTNERS2 Southwark StreetLondon SE1 1TQTel: 020 7955 8454Website: www.edwardsymmons.com

FLETCHER KING SERVICES LIMITED61 Conduit StreetLondonW1S 2GBTel: 020 7493 8400Website: www.fletcherking.co.uk

GERALD EVE CHARTERED SURVEYORS72 Welbeck StreetLondonW1G 0AYTel: 020 7493 3338Website: www.geraldeve.com

GREENOAK REAL ESTATE ADVISORS LLP4 Sloane TerraceLondonSW1X 5DQTel: 020 7866 8800Website: www.greenoakrealestate.com

GVA10 Stratton StreetLondonW1J 8JRTel: 08449 02 03 04Website: www.gva.co.uk


JANUS HENDERSON INVESTORS 201 BishopsgateLondonEC2M 3AETel: 020 7818 1818Website: www.janushenderson.com

JONES LANG LASALE INVESTMENT ADVISORY22 Hanover SquareLondonW1S 1JATel: 020 7493 6040Website: www.joneslanglasalle.co.uk

KENETH PETERS56 Queen Anne StreetLondonW1G 8LATel: 020 7317 3104Website: www.keneth-peters.co.uk

KNIGHT FRANK INVESTORSWoolgate Exchange25 Basinghall StreetLondonEC2V 5HATel: 020 7861 1220Website: www.knightfrankinvestors.co.uk

DEUTSCHE BANK – KNIGHT FRANK INVESTORS



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From the London office of 165 people we manage £12.5bn assets of which £12.2bn are located within the UK. We have extensive successful experience of managing portfolios to both MSCI relative and real return performance targets as well as assets and strategies targeting index-linked and absolute returns.

We have 700 people located in 23 offices around the world, as well as access to JLL’s 300 offices in 80 countries worldwide.

LEGAL & GENERAL PROPERTYOne Coleman StreetLondonEC2R 5AATel: 020 3124 2700Website: www.lgim.co.uk

LOTHBURY INVESTMENT MANAGEMENT LIMITED155 BishopsgateLondonEC2M 3TQSwitchboard: 020 3551 4900Website: www.lothburyim.com

Contact: Barbara O’RiordanTitle: Associate Director Email: [email protected]

We are an independent UK real estate investment manager, formed in 2010. Ourstrong and cohesive senior fund management team has worked together for nearly 20 years and has a track record of delivering outperformance for investors.

LIM manages unlisted property vehicles on behalf of institutional investors seekingindirect exposure to the UK. Lothbury Property Trust (LPT) is our flagship fund. We also manage the Clarendon Unit Trust and a segregated secure income portfolio for a UK pension fund. We offer an innovative solution to clients, through our core/active strategy. Our predominantly core portfolio of prime assets provides stable returns, while our active management initiatives create additional value and enhance returns. Since LIM’s launch, we have progressively grown our funds under management to over £1.8 billion. We have attracted new investors to our Funds and significantly diversified our robust base of UK and overseas institutional clients, the majority of which are corporate

LASALLE INVESTMENT – LOTHBURY INVESTMENT

and public sector pension funds. Our clients also include treasury investors, collective investment schemes, insurance companies and charities. Further information on our company, strategy and products can be found at www.lothburyim.com

MATTHEWS & GOODMAN33 Robert Adams StreetLondonW1U 3HRTel: 020 7747 8847Website: www.matthews-goodman.co.uk

M&G REAL ESTATECity Place House55 Basinghall StreetLondonEC2V 5DUTel: 020 7548 6600Website: www.mandg.co.uk


PGIM REAL ESTATEGrand Buildings, 1-3 StrandTrafalgar SquareLondonWC2N 5HRTel: 020 7766 2400Website: www.pgimrealestate.com

PRINCIPAL GLOBAL INVESTORS (EUROPE) LIMITED1 Wood StreetLondonEC2V 7JBTel: 020 7710 0220Website: www.principalglobal.com

ROCKSPRING PROPERTY INVESTMENT MANAGERS LTD166 Sloane StreetLondonSW1X 9QFTel: 020 7761 3300Website: www.rockspringpim.com

RUGBY ESTATES4 Farm StreetMayfairLondonW1J 5RDTel: 020 7016 0050Website: www.rugbyestates.plc.uk

SAVILLS FUND MANAGEMENT33 Margaret StreetLondonW1G 0JDTel: 020 7499 8644Website: www.savills.co.uk

SCHRODER PROPERTY INVESTMENT MANAGEMENT LTD31 Gresham StreetLondon EC2V 7QATel: 020 7658 6000Website: www.schroderproperty.com

STRUTT & PARKER13 Hill StreetLondon W1J 5LQTel: 020 7629 7282Website: www.struttandparker.com


LOTHBURY INVESTMENT – UBS GLOBAL ASSET









Ad page

RISK REDUCTION PROVIDERS

The next de-risking innovation?

The first longevity swap in 2009 for Babcock International was ground-breaking for the de-risking market, paving the way for schemes to hedge their longevity risk.After eight years of more than 30 swap deals totalling around £61.2bn, and recent breakthroughs in opening up to smaller schemes, the market is undergoing its

next innovation.Trustees have been concerned that entering longevity swaps could later pose challenges to

going to the bulk annuity market, while unwinding a swap to turn into a bulk annuity has been perceived as very complex.

However, this mentality is starting to change, with Phoenix Life being the first to successfully unwind an existing swap and convert into a £1.2bn buy-in for the PGL Pension Scheme, whose sponsor is Phoenix Group.

The scheme was able to get beneficial pricing for the annuity conversion, partly from the original 2014 longevity swap undertaken with Phoenix, according to the group’s senior corporate pensions actuary Richard Zugic.

While the PGL deal is unique because the insurer is part of the wider sponsoring employer, it proves longevity swaps can be converted, and has given rise to a lot of interest.

Many believe it can be achieved for other schemes and expect to see it become more common, but this will depend on appetite.

Zugic says: “To the extent that the longevity swap providers have appetite to take on assets and the associated market risks, along with the desire to work constructively with pension scheme trustees to deliver a valuable solution, then it’s reasonable to expect that longevity swap conversions will become another source of bulk annuity transactions in years to come.”

It is important to look at the original reasons for schemes putting in longevity swaps rather than going down the buy-in route. Many needed the asset returns and could not afford to hand them over to an insurer.

So it’s not obvious that all schemes would want to convert into a buy-in, and it depends on the progress made since the hedges were put in place.

But given there are a lot of challenges and legal complexities in converting a swap into a bulk annuity, why would insurers want to do this, and why now?

The biggest factor at play is Solvency II, the new capital regime for insurers, which came into force in January 2016. Buy-in providers are now incentivised to put in longevity reinsurance because Solvency II requires them to hold a risk margin.

So, a scheme that has already hedged longevity risk could look very attractive now. “If a pension scheme comes to market with a longevity hedge, some of the work has already been done for the insurer,” says Aon Hewitt principal consultant Michael Walker.

Another driver for conversions is that providers which have pulled back from the longevity swap market - such as Deutsche Bank and Credit Suisse - may want to wind down their existing swaps.





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AEGON TRUSTEE SOLUTIONSEdinburgh ParkEdinburghEH12 9SETel: 08456 100 056Website: www.aegonts.co.uk

AON HEWITT10 Devonshire SquareLondonEC2M 4YPTel: 0800 279 5588Website: www.aonhewitt.co.uk/derisking




GOLDMAN SACHS INTERNATIONALPeterborough Court133 Fleet StreetLondonEC4A 2BBTel: 020 7774 1000Website: www.goldmansachs.com

GRANT THORNTON UK LLP30 Finsbury SquareLondonEC2P 2YUTel: 020 77865 2402Website: www.grant-thornton.co.uk


JUSTVale HouseRoebuck CloseBancroft RoadReigateSurreyRH2 7RUTel: 0345 302 2287Website: www.justadviser.com`

LEGAL & GENERALLegal & General HouseKingswoodTadworthSurreyKT20 6EUTel: 01737 370370Website: www.legalandgeneral.com

LONGACRE LIFE2nd Floor77 KingswayLondonWC2B 6SRTel: 020 7632 9400Website: www.longacrelife.com

AEGON TRUSTEE SOLUTIONS – LONGACRE LIFE


MOODY’S ANALYTICS7 Exchange CrescentConference SquareEdinburghEH3 8RDTel: 0131 625 0203Website: www.moodysanalytics.com

PENSION INSURANCE CORPORATION14 CornhillLondonEC3V 3NDTel: 020 7105 2000Website: www.pensioncorporation.com

PRUDENTIALDC SolutionsCraigforthStirlingFK9 4UETel: 0118 968 6951Website: www.pru.co.uk/employers/corp_pensions/


RIVER & MERCANTILE GROUP11 StrandLondonWC2N 5HRTel: 020 3327 5100Website: www.riverandmercantile.com

RISKFIRST90 Long AcreLondonWC2E 9RATel: 020 7632 9100Website: www.riskfirst.com

ROTHESAY LIFE25th FloorThe Leadenhall Building122 Leadenhall StreetLondonEC3V 4ABTel: 020 770 5300Website: www.rothesaylife.co.uk


UBS GLOBAL ASSET MANAGEMENT21 Lombard StreetLondonEC3V 4TZTel: 020 7901 5000Website: www.ubs.com

UNUMMilton CourtDorkingSurreyRH4 3LZTel: 01306 887766Website: www.unum.co.uk

MERCER – UNUM



SIP

Ps

SIPPs

Concerns over interest skimming ‘overstated’

Concern some self-invested personal pension (SIPP) providers rely on creaming interest from their clients’ bank accounts is ‘overstated’ and actually part of a well-established SIPP business model, providers have said.

Speaking at a forum last year, Finalytiq’s Abraham Okusanya told delegates that SIPP providers are currently taking up to £50m a year in interest from their clients’ cash accounts and may struggle to stay afloat without the income.

However, Dentons Pensions director of technical services Martin Tilley argued SIPP providers taking a percentage of this income are acting fairly because they have negotiated better interest rates with a bank than an individual client would ever have done.

“SIPP providers may be putting £100m of client funds into one bank and, as a result, they are awarded better interest rates. The rates will be determined by the weight of the SIPP provider’s commercial business,” he said.

He explained: “Concerns around this practice are overstated and often part of a viable business model.”

Tilley added that even though some providers may rely on the income, interest rates have been low for some time meaning these providers are making very small amounts compared with income from interest in the past.

“The base rate has been fixed at a low 0.5% since 2009, and banks are still reducing fees - as a result, SIPP providers aren’t making nearly as much from this as they did even a couple of years ago,” he explained.

TISA policy director Adrian Boulding concurred that SIPP providers taking interest from client accounts is no longer an important issue for the industry.

“It used to be the way many SIPP providers made their profits, but the 5% to 7% provided by bank deposits in 2008 doesn’t exist any longer.”

Fewer SIPP providers ‘creaming’ this interest has the net effect of creating more transparency around pricing, according to Boulding.

He said: “It means more of the SIPP providers’ profits come direct from client fees, and those clients see even more clearly what they are paying for.”

Rowanmoor head of technical pensions Robert Graves said that SIPPs are by their nature transparent, unlike the old personal pensions which had a “complicated black box” charging structure.

“Personal pensions had lots of charging mechanisms including value adjustors, allocation rates and capital account charges whereas SIPPs savers pay the provider a fee, then choose and pay the adviser, they can see how much their investment managers charge too.”

He added that despite this transparency it can be quite difficult for a client to work out how much a SIPP will cost throughout its lifetime.

“A SIPP is built to be flexible and a client may not know at the start of the plan whether they will want to take draw down in the future or move into more high-risk funds. But this is the nature of a SIPP and an issue that is difficult to resolve,” said Graves.


A J BELL LIMITEDTrafford HouseChester RoadManchesterM32 0RSTel: 0845 40 89 100Website: www.ajbell.co.uk

AVIVA PLCPO Box 4Surrey StreetNorwichNR1 3NGTel: 01603 622 200Website: www.aviva.co.uk

BARNETT WADDINGHAM (BW SIPP LLP)Decimal PlaceChilton AvenueAmershamBuckinghamshireHP6 5FGTel: 01494 788 100Website: www.bwsipp.co.uk

BDO LLP55 Baker StreetLondon W1U 7EUTel: 020 7486 5888Website: www.bdo.co.uk/

investmentmanagement

CANADA LIFE LTDCanada Life PlacePotters BarHertfordshireEN6 5BATel: 0845 606 708Website: www.canadalife.co.uk

CAREY PENSIONS UK LLP1st FloorLakeside HouseShirwell Crescent Furzton LakeMilton KeynesMK4 1GATel: +44 (0) 1908 336010Website: www.careypensions.co.uk

CLERICAL MEDICAL INVESTMENT GROUP LIMITEDPO Box 2812115 Dalkeith RoadEdinburghEH16 9ASTel: 0845 603 6770Website: www.clericalmedical.co.uk

DENTONS PENSION MANAGEMENTSutton HouseWeyside ParkCattleshall LaneGodalmingSurreyGU7 1XETel: 01483 521521Website: www.dentonspensions.co.uk

EBS (MANAGEMENT) PLC25 Luke StreetLondonEC2A 4ARTel: 020 7149 6560Website: www.ebsmanagement.co.uk

AEGON – EBS



SIP

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SIP

Ps

FRIENDS LIFEPO Box 1550MilfordSalisburyWiltshireSP1 2TWTel: 0845 602 0624Website: www.friendslife.co.uk

HORNBUCKLETyman House42 Regent RoadLeicesterLE1 6YJTel: 0845 345 2555Website: www.hornbuckle.co.uk

IPM TRUSTEES LTD3 Victoria CourtBank SquareMorleyLeedsLS27 9SETel: 0845 230 3553Website: www.ipm-pensions.co.uk

JAMES HAY PARTNERSHIPDunn’s HouseSt Paul’s RoadSalisburySP2 7BFTel: 0845 850 4455Website: www.jameshay.co.uk



MAC ROBINS 40 Great Portland StreetLondonW1W 7NDTel: 08456 300 740Website: www.macrobins.co.uk


POINTON YORK SIPP SOLUTIONS LIMITEDPointon York HouseWelland Business ParkValley wayMarket HarboroughLeicestershireLE 16 7PSTel: 01858 419300Website: www.sippsolutions.com

PREMIER COMPANIES LTDPremierAMP HouseDingwall RoadCroydonCR0 2LXTel: 020 8663 5800Website: www.premiercompanies.co.uk

FRIENDS LIFE – PREMIER COMPANIES


SCOTTISH LIFERoyal London HouseAlderley RoadWilmslowCheshireSK9 1PFTel: 0845 60 50 050Website: www.scottishlife.co.uk


STANDARD LIFESipps CentreEdinburghEH15 1ETTel: 0845 0845 000Website: www.standardlife.co.uk

SUFFOLK LIFE ANNUITIES LIMITED153 Princes StreetIpswichSuffolkIP1 1QJTel: 0870 414 7000Website: www.suffolklife.co.uk

WEALTH AT WORK5 Temple SquareTemple StreetLiverpoolL2 5RHTel: 0800 234 6880Website: www.wealthatwork.co.uk

ROWANMOOR – WEALTH AT WORK

HANDBOOK 2017


HANDBOOK 2017


HANDBOOK 2017









Ad page

SOFTWARE & SYSTEMS

Can the dashboard develop with patchy data?

a lot of the discussion about the pensions dashboard centres on the accuracy of scheme data and if it can be used securely. Yet a majority of providers are missing invaluable customer information necessary for it to succeed, according to research by ITM.

In the first study of its kind, the firm examined information from over 440 pension providers and schemes with more than 20 million members. Specifically, it investigated whether the quality of existing data could be used for matching data to an individual in the final working dashboards.

Postcode data is an issue with 60% inaccurate or missing among defined benefit schemes from before 2000 with a value of £100,000-£200,000. Pension products set up before 2000 account for more than three-fifths of member pots found to have the highest average levels of inaccurate or missing data.

The findings inspire this question: how far can dashboards develop with patchy information?There are three opinions here. The first is that cleaning data should be a greater priority than

the roll-out of the dashboard, which might slow the pace of development but would ensure the end-product works.

The second recognises the data is imperfect but points out that waiting until it is better could cause too much delay.

The third suggests there can be a compromise between these positions. Pressure to establish the dashboard is a catalyst for cleaning up data, which then improves the dashboard.

ITM chairman Duncan Howorth thinks the accuracy of data needs to be up to standard and says the industry must collaborate.

“Whatever data is to be presented on dashboards, it needs to be wholly or substantially accurate. Providers and schemes need to take a methodical approach to data improvement. There needs to be a coordinated approach.”

This comes as data protection laws and the penalties for non-compliance are set to go up under the European Union’s (EU) General Data Protection Regulation (GDPR). It will put more obligations on third-party administrators (TPA) and trustees to protect member data with a maximum fine of €20m (£17m) for a company in breach.

Irwin Mitchell partner Joanne Bone says: “While I appreciate that data is rarely 100% accurate, starting the dashboard with inaccurate data is potentially in breach of data protection legislation and also, to me it seems, may impact on customer trust and confidence. I would always advise from a data protection point of view that the data is as clean and accurate as possible.”

Redington head of DC and financial well-being Lydia Fearn believes the industry has to push forward regardless.

“Even if the data isn’t as clean as we would like, we need to start somewhere. Over time, usage and data will improve and ultimately people will have more control and understanding about their pension savings, rather than having limited emotional connection as is often the case currently,” she explains.






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AQUILAAquila House35 London RoadRedhillSurrey RH1 1NJTel: 01737 859 859Website: www.aquilauk.co.uk

BENPALThe St Botolph Building138 HoundsditchLondonEC3A 7AWTel: 020 7528 4000Website: www.jltgroup.com/eb

BENPAL is the next generation employee benefi ts platform from JLT, designed to help you attract, retain, engage and reward your valuable workforce.

BENPAL provides you with a seamless user experience for managing your employee reward and benefi t programme and is designed with user and employer input to help both you and your employees get the most out of your company’s benefi t package now and in the future.

BNY MELLON ASSET SERVICINGPerformance & Risk AnalyticsBNY Mellon Centre160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 5566Website: www.bnymellon.com/assetservicing

BROADRIDGE FINANCIAL SOLUTIONSThe ISIS Building193 Marsh WallLondonE14 9SGTel: 020 7551 3000Website: www.broadridge.com

CAPITA EMPLOYEE BENEFITS65 Gresham StreetLondonEC2V 7NQTel: 020 7709 4500Email: [email protected]: www.capitaemployeebenefi ts.co.uk

CASHFAC PLC50 Mark LaneLondonEC3R 7QRTel: 0844 871 8717Website: www.cashfac.com

CIVICA UK LTDVanguard HouseDewsbury RoadLeedsLS11 5DDTel: 0113 244 1404Email: [email protected]: www.civica.com

Our robust and fl exible Pensions administration software is used by pension managers and third party administrators to streamline the provision of more than 100 schemes with over £43 billion of funds invested.

We support schemes large or small, public or private and provide clear and tangible

AQUILA – CIVICA UK

benefi ts in processing effi ciencies, risk control, member communications and fl exible working.

Contact us to fi nd out more;Twitter: @CivicaUKLinkedin: www.linkedin.com/company/civica

DST SYSTEMSDST HouseSt Mark’s HillSurbitonSurreyKT6 4QDTel: 020 8412 5000Website: www.dstsystems.com

DUNSTAN THOMAS HOLDINGS LIMITEDRawlings Offi ceGunwharf QuaysPortsmouthPO1 3TTTel: 023 9282 2254 Website: www.dthomas.co.uk

EQUINITI PENSION SOLUTIONSSutherland HouseRussell WayCrawleyWest Sussex RH10 1UHTel: 01293 601 880Website: www.equiniti.com

ESHARE1 Oxford RoadNewburyBerkshireRG14 1PDTel: 0845 200 7829Website: www.eshareuk.com

EURAPLAN LTD2nd FloorAlexandra House55A Catherine PlaceLondonSW1E 6DYTel: 020 7963 4080Website: www.euraplan.co.uk

HEYWOOD LIMITED1st FloorHamilton HouseChurch StreetAltrinchamCheshireWA14 4DRTel: 0161 613 4200Website: www.heywood.co.uk

HS ADMINISTRATIVE SERVICES LIMITEDDaresbury ParkDaresburyCheshireWA4 4HSTel: 01928 707 900Website: www.hsadmin.com

IDEA GROUP LTD2 Kingsbourne Court96-100 Luton RoadHarpendenHertfordshireAL5 3BLTel: 01582 766 899Website: www.ideagroup.co.uk

IRESS1 Kingmaker CourtGallows HillWarwickCV354 6DYTel: 0845 068 8000Website: www.iress.co.uk

CIVICA UK – IRESS




http://www.civica.com

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ITM LIMITED2nd FloorMinster House42 Mincing LaneLondonEC3R 7AETel: 020 7648 9990Website: www.itmlimited.com

L&P SYSTEMSNew Oxford House75 Dale StreetLiverpoolL2 2HTUnited KingdomTel: 0151 255 1553Website: www.lpsystems.com

LINEDATA SERVICES (UK) LTDBishopsgate Court4/12 Norton FolgateLondonE1 6DBTel: 020 7360 1800Website: www.ldsam.com

MSCI10 Bishops SquareLondonE1 6EGTel: 020 7618 2222Website: www.msci.com

OBJECTWAY LTD25 Canada SquareCanary WharfLondonE14 5LQTel: 020 7071 3000Website: www.objectway.com

PENSIONPAL LIMITED9 The DellKingsclereNewburyBerkshireRG20 5NLTel: 01635 297400Website: www.pensionpal.co.uk

PENSIONS FIRST LTD90 Long AcreLondonWC2E 9RATel: 020 7632 9100Website: www.pensionsfirst.com

PROCENTIA LTD8 Brook Office ParkEmersons GreenBristolBS16 7FLTel: 0117 332 7800Website: www.procentia.co.uk

ITM LIMITED – PROCENTIA

PROFUNDThe St Botolph Building138 HoundsditchLondonEC3A 7AWTel: 020 7528 4000Website: www.jltgroup.com/eb

Profund are a leading provider of pension software.

Since 1984 we have been developing, implementing and supporting systems specifically designed for those with the responsibility for running pension schemes.

With 7 million members on our software, whether you run a Defined Contribution (DC), Defined Benefit (DB), Career Average (CARE) or Hybrid scheme, you can use our software for all the processes and functionality a modern pensions department requires

RETIRE EASY20 Manor CourtyardHughenden AvenueHigh WycombeBuckinghamshireHP13 5RETel: 020 3434 0000Website: www.retireeasy.co.uk

SCORPEO3rd Floor24 Threadneedle StreetLondonEC2R 8AYTel: 020 3598 2000Web: www.scorpeo.com

SCOTTISH LIFE 19 St Andrew SquareEdinburghEH2 1YETel: 0131 470 1365Website: www.scottishlife.co.uk

SOURCE PENSIONS80 Coleman StreetLondonEC2R 5B7Tel: 020 7104 2220Website: www.sourcepensions.co.uk

SS&C TECHNOLOGIES DST HouseSt Marks HillSurbitonSurreyKT6 4QDTel: 020 8390 5000Website: www.ssctech.com

SSP2nd FloorG MillDean CloughHalifaxWest YorkshireHX3 5AXTel: 01422 330 022Website: www.ssp-uk.com

STAFFCARE LTDLeatherhead HouseStation RoadLeatherheadSurreyKT22 7FGTel: 0845 372 6644Website: www.staffcare.net

PROFUND – STAFFCARE




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STRAIT LOGICS LTDSoftware House20 Chapel StreetBillericayEssexCM12 9LUTel: 01277 634844Website: www.straitlogics.com

SUNGARD25 Canada SquareLondonE14 5LQTel: 020 8081 2000Website: www.sungard.com


SOLICITORS & LEGAL ADVISERS

Should it be mandatory for schemes to appoint a lawyer?

The Pensions Act 1995 introduced the requirement for schemes to be audited annually and valued triennially.

This largely stemmed from Professor Roy Goode’s 1993 report, which recommended a statutory obligation for scheme audits and actuarial valuations,

but did not extend to scheme lawyers. Instead, he said it was sufficient to let trustees decide to appoint lawyers where they deemed necessary.

Since then, the volume of legislation and case law has steadily increased and the demands on trustees have risen accordingly.

Some argue trustees need a lawyer to help them do their job and that it should be mandatory to appoint one. Such a reform would require primary legislation and a decision on how often schemes would need to review the lawyer they have hired.

It is claimed this would reassure members they are in a well-run scheme, and allow trustees to keep abreast of the latest case law. Also, it could prevent an increase in what the regulator calls “second class pension savers”, who are in schemes that are small, poorly governed and bad at delivering value for money.

However, others argue such a requirement would be very costly for schemes and that trustees should not be forced to get legal advice if there is no need for it.

Irwin Mitchell partner Penny Cogher, who thinks it should be mandatory to appoint lawyers in a similar way to actuaries, highlights the consequences of not taking good legal advice.

“It is astonishing in this climate of increasing regulation that there is no legal requirement for pension trustees, the guardians of billions of pounds of pension savings, to have legal advisers. There is a saying, ‘legal advice can be expensive but the cost of not taking legal advice can be even more expensive!’ she says.

However, Pinsent Masons consultant Robin Ellison is firmly against the idea, partly based on his view of the current regulatory environment.

He says: “There are now around 160,000 pages of legislation and counting. There is no evidence that more legislation would make life better for members - which is what this is about. We are now supposed to have evidence-based rule making and one-in three-out rule-making. If we bring in a new rule, what are the three rules that need to go? And where is the evidence that we need lawyers permanently?”

Ellison says a parallel might be that every household is legally required to appoint plumber and electrician.

Aside from concerns there are too many regulations already, the main objection to having mandatory lawyers comes down to money.

Barnett Waddingham senior consultant Malcolm McLean warns says. “I am told it can cost schemes up to £1,000 an hour to appoint a lawyer from one of the big firms. Most small schemes would not want to pay that.”

The arguments for appointing a lawyer are compelling but making it mandatory is unnecessary and too costly.

STRAIT LOGICS – WILLIS TOWERS WATSON

The Professional



2018 Handbook


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ADDLESHAW GODDARDMilton Gate60 Chiswell StreetLondonEC1Y 4AGTel: 020 7606 8855Website: www.addleshawgoddard.com

ALLEN & OVERYOne Bishops SquareLondonEC1 6ADTel: 020 3088 0000Website: www.allenovery.com

ARC PENSIONS LAW80 Coleman StreetLondonEC2R 5BJTel: 020 7653 8970Website: www.arcpensionslaew.com

BAKER & MCKENZIE100 New Bridge StreetLondonEC4V 6JATel: 020 7919 1000Website: www.bakermckenzie.com

BLAKE MORGANNew Kings CourtTollgateChandler’s FordEastleighSO53 3LGTel: 023 8090 8090Website: www.blakemorgan.co.uk

BOND DICKINSONSt Ann’s Wharf112 QuaysideNewcastle upon TyneNE1 3DXTel: 0844 984 1500Website: www.bonddickinson.com

BURGES SALMON LLPOne Glass WharfBristolBS2 0ZXTel: 0117 939 2000Website: www.burges-salmon.com

BURNESS50 Lothian RoadFestival SquareEdinburgh EH3 9WJTel: 0131 473 6000Website: www.burness.co.uk

CHARLES RUSSELL SPEECHLYS5 Fleet PlaceLondonEC4M 7RDTel: 020 7203 5000Website: www.charlesrussellspeechlys.co.uk

CLIFFORD CHANCE10 Upper Bank StreetLondonE14 5JJTel: 020 7006 1000Website: www.cliffordchance.com

CLYDE & CO LLPBeaufort House15 St. Botolph StreetLondonEC3A 7NJTel: 020 7247 2277Website: www.clydeco.com

CMS CAMERON MCKENNA Mitre House160 Aldersgate StreetLondon EC1A 4DDTel: 020 7367 3000Website: www.law-now.com

ADDLESHAW GODDARD – CMS CAMERON MCKENNA

DECHERT LLP160 Queen Victoria StreetLondonEC4V 4QQTel: 020 7184 7000Website: www.dechert.com

DENTONS UKMEA LLP1 Fleet PlaceLondonEC4M 7WSTel: 020 7242 1212Website: www.dentons.com

DLA PIPER UK LLP3 Noble StreetLondonEC2V 7EETel: 08700 111 111Website: www.dlapiper.com

DWF1 Scott place2 Hardman StreetManchesterM3 3AATel: 0161 603 5000Website: www.dwf.co.uk

EVERSHEDS SUTHERLAND1 Wood StreetLondonEC2V 7WSTel: 020 7919 4500Website: www.eversheds-sutherland.com

FIELD FISHER WATERHOUSE SOLICITORSRiverbank House2 Swan LaneLondonEC4R 3TTTel: 020 7861 4000Website: www.ffw.com

FOX WILLIAMS10 Dominion StreetLondon EC2M 2EETel: 020 7628 2000Website: www.foxwilliams.com

FRESHFIELDS BRUCKHAUS DERINGER65 Fleet StreetLondon EC4A 1HTTel: 020 7936 4000Website: www.freshfields.com

GORDONS LAW GROUPForward House8 Duke StreetBradfordBD1 3QXTel: 01274 2502202Website: www.gordonsllp.co.uk

GREENWOODS SOLICITORS LLPMonkstone HouseCity RoadPeterborough PE1 1JETel: 01733 887 700Website: www.greenwoods.co.uk

HERBERT SMITH FREEHILLS LLPExchange HousePrimrose StreetLondonEC2A 2EGTel: 020 7374 8000Website: www.hsf.com

DECHERT LLP – HERBERT SMITH FREEHILLS LLP



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HOGAN LOVELLS INTERNATIONAL LLPAtlantic HouseHolborn ViaductLondonEC1A 2FGTel: 020 7296 2000Website: www.hoganlovells.com

Contact: Katie BanksEmail: [email protected]

LINKLATERS One Silk StreetLondon EC2Y 8HQTel: 020 7456 2000Website: www.linklaters.com

MACFARLANES20 Cursitor StreetLondonEC4A 1LTTel: 020 7831 9222Website: www.macfarlanes.com

MACLAY MURRAY & SPENS1 George SquareGlasgowG2 1ALTel: 0141 248 5011Website: www.mms.co.uk

MACROBERTS SOLICITORSCapella60 York StreetGlasgowG2 8JXTel: 0141 303 1100Website: www.macroberts.com

MAYER BROWN INTERNATIONAL LLP201 BishopsgateLondonEC2M 3AFTel: 020 3130 3000Website: www.mayerbrown.com

MCDERMOTT WILL & EMERYHeron Tower110 BishopsgateLondonEC2N 4AYTel: 020 7577 6900Website: www.mwe.com

MILLS & REEVE1 St James CourtWhitefriarsNorwichNR3 1RUTel: 01603 660 155Website: www.mills-reeve.com

NABARRO LLP125 London WallLondonEC2Y 5ALTel: 020 7524 6000Website: www.nabarro.com

NORTON ROSE FULBRIGHT LLP3 More London RiversideLondon SE1 2AQTel: 020 7283 6000Website: www.nortonrose.com

OSBORNE CLARKE2 Temple Back EastTemple QuayBristolBS1 6EGTel: 0117 917 3000Website: www.osborneclarke.com

HOGAN LOVELLS – OSBORNE CLARKE

PINSENT MASONS LLPCrown PlaceEarl Street LondonEC2A 4ESTel: 020 7418 7000Website: www.pinsentmasons.com

PITMANS47 Castle StreetReadingBerkshire RG1 7SRTel: 0118 957 0610Website: www.pitmans.com

REED SMITHBroadgate Tower20 Primrose StreetLondonEC2A 2RSTel: 020 7247 6555Website: www.reedsmith.com

REYNOLDS PORTER CHAMBERLAINTower Bridge HouseSt Katharine’s WayLondonE1W 1AATel: 020 3060 6000Website: www.rpc.co.uk

SACKER & PARTNERS LLP6th Floor20 Gresham StreetLondonEC2V 7JETel: 020 7329 6699Website: www.sackers.com

SHEPHERD & WEDDERBURN1 Exchange CrescentConference SquareEdinburghEH3 8ULTel: 0131 228 9900Website: www.shepwedd.co.uk

SHOOSMITHSWitan Gate House500-600 Witan Gate WestMilton KeynesMK9 1SHTel: 03700 868300Website: www.shoosmiths.co.uk

SIMMONS & SIMMONSCity Point1 Ropemaker StreetLondon EC2Y 9SSTel: 020 7628 2020Website: www.simmons-simmons.com

SLAUGHTER AND MAY1 Bunhill RowLondonEC1Y 8YYTel: 020 7600 1200Website: www.slaughterandmay.com

SPEECHLY BIRCHAM6 New Street SquareLondon EC4A 3LXTel: 020 7427 6400Website: www.speechlys.com

SQUIRE PATTON BOGGS7 Devonshire SquareCutlers GardensLondon EC2M 4YHTel: 020 7655 1000Website: www.squirepattonboggs.com

STEPHENSON HARWOOD LLP1 Finsbury CircusLondonEC2M 7SHTel: 020 7809 2261Website: www.shlegal.com

PINSENT MASONS – STEPHENSON HARWOOD



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TRAVERS SMITH10 Snow HillLondon EC1A 2ALTel: 020 7295 3000Website: www.traverssmith.com

WEDLAKE BELL52 Bedford RowLondonWC1R 4LRTel: 020 7395 3000Website: www.wedlakebell.com

WRAGGE LAWRENCE GRAHAM & CO LLPTwo Snow HillBirminghamB4 6WRTel: 0870 903 1000Website: www.wragge-law.com

TRAVERS SMITH – WRAGGE LAWRENCE GRAHAM & CO

AVIVA PLCPO Box 4Surrey StreetNorwichNR1 3NGTel: 01603 622 200Website: www.aviva.co.uk


CANTWELL GROVE LIMITEDThe Old Registry6 Derby RoadBelperDerbyshireDE56 1UUTel: 01773 307200Website: www.cantwellgrove.co.uk


EBS (MANAGEMENT) PLC25 Luke StreetLondonEC2A 4ARTel: 020 7149 6560Website: www.ebsmanagement.co.uk

HORNBUCKLETyman House42 Regent RoadLeicesterLE1 6YJTel: 0845 345 2555Website: www.hornbuckle.co.uk

IPM TRUSTEES LTD3 Victoria CourtBank SquareMorleyLeeds LS27 9SETel: 0845 230 3553Website: www.ipm-pensions.co.uk

JAMES HAY PARTNERSHIPDunn’s HouseSt Paul’s RoadSalisburySP2 7BFTel: 0845 850 4455Website: www.jameshay.co.uk



SSASs AVIVA PLC – LEGAL & GENERAL ASSURANCE

The Professional



2018 Handbook


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[email protected]

HANDBOOK 2017


HANDBOOK 2017


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PREMIER COMPANIES LTDCorinthian House17 Lansdowne RoadCroydonCR0 2BXTel: 020 8663 5800Website: www.premiercompanies.co.uk


SCOTTISH LIFERoyal London HouseAlderley RoadWilmslowCheshireSK9 1PFTel: 0845 60 50 050Website: www.scottishlife.co.uk


SKANDIA LIFE ASSURANCE COMPANY LTDPO Box 37Skandia HousePortland TerraceSouthampton SO14 7EJTel: 023 8033 4411Website: www.skandia.co.uk

STANDARD LIFESipps CentreEdinburghEH15 1ETTel: 0845 0845 000Website: www.standardlife.co.uk

LONDON & COLONIAL SERVICES – STANDARD LIFE

ACCURATE DATA SERVICES LTDSuite 2, The Old DairyElm FarmNorwich CommonWymondhamNR18 0SWTel: 01603 813366Website: www.accurate data.co.uk

ATMOS DATA SERVICES LIMITEDAquila House35 London RoadRedhillSurreyRH1 1NJTel: 01737 857 187Website: www.atmosdataservices.co.uk

CAPITA EMPLOYEE BENEFITS65 Gresham StreetLondonEC2V 7NQTel: 0800 731 1267Email: [email protected] Website: www.capitatracing.co.uk

EXPERIANPO Box 9501Nottingham NG80 1WDTel: 0844 481 8180Website: www.experian.co.uk/pensionsolutions www.uar.co.uk

FARADAY TRACING BUREAU LTDChristopher Wren Yard119 High StreetCroydon SurreyCR0 1QGTel: 020 8667 2444Website: www.ftb-ltd.com

GB GROUP PLCThe FoundationHerons WayChester Business ParkChesterCH4 9GBTel: 01244 657333Website: www.gb.co.uk

LEXIS NEXISGlobal ReachDunleavy DriveCardiff CF11 0SNTel: 029 2067 8555Website: www.lexisnexis.com/risk/tracesmart

NATIONAL FRAUD INITIATIVE1 Horse Guards RoadLondonSW1A 2HQTel: 07977 340 550Website: www.gov.uk/national-fraud-initiative-private-sector-services

THE PENSION TRACING SERVICEThe Pension ServiceTyneview ParkWhitley RoadNecastle upon TyneNE98 1BATel: 0845 6002 537Website: www.thepensionservice.gov.uk

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BNY MELLON ASSET SERVICINGPerformance & Risk AnalyticsBNY Mellon Centre160 Queen Victoria StreetLondonEC4V 4LATel: 020 7163 5566Website: www.bnymellon.com/assetservicing

LCP95 Wigmore StreetLondonW1U 1DQTel: +44 (0) 20 7439 2266Fax: +44 (0) 20 7439 0183Email: [email protected]: www.lcp.uk.com


NATIONAL ASSOCIATION OF PENSION FUNDS LTD (NAPF)Cheapside House138 CheapsideLondonEC2V 6AETel: 020 7601 1700Website: www.napf.co.uk

THE OCCUPATIONAL PENSIONS DEFENCE UNION90 Fenchurch StreetLondonEC3M 4STTel: 0207 204 2432Website: www.opdu.com

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CREDIT SUISSEOne Cabot SquareLondonE14 4QJTel: 020 7888 0802Website: www.credit-suisse.com

DEUTSCHE BANKWinchester House1 Great Winchester StreetLondonEC2N 2DBTel: 020 7545 8000Website: www.deutsche-bank.com

GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONALPeterborough Court133 Fleet StreetLondonEC4A 2BBTel: 020 7774 1000Website: www.gs.com

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TRUSTEE TRAINING

How trustees can improve record-keeping ahead of TPR’s new rules

Poor scheme data can result in money not being paid out to members on time and in the right way.

The Pensions Regulator (TPR) is concerned that too many trustees are not giving enough attention to what it sees as the two most important types of data -

conditional and common data. Common data is used to identify scheme members while conditional data is scheme-specific

data to calculate member benefits. According to the watchdog’s 2016 survey, 30% of members are in schemes where conditional data is not measured. Larger schemes are significantly more likely to have measured their data. Administrators and trustees are engaging with common data but are less engaged on conditional.

These figures explain why the watchdog is now taking a much firmer approach. Conditional and common must now be included in scheme returns for defined benefit schemes from January 2018 and defined contribution plans from June 2018.

KGC Associates director Kim Gubler explains there is not a problem with trustees looking at both common and conditional data; the fact is a number of them simply do not examine it. “Often these are trustees of very small schemes. Our research and TPR’s research shows these schemes have less engagement with their administrator and a smaller governance budget.

“So you have the combined impact of potentially poorer data and lack of connection between trustees and administrator. Making it mandatory to include the scores in the return is a strategy to change trustees’ behaviour.”

While many welcome the regulator’s more muscular approach, will it actually improve the performance of trustees and is it enough?

Even if trustees do develop a healthier attitude towards common and conditional data, there are concerns these will not improve data to the necessary standard to be truly effective.

Trafalgar House senior business analyst Claire Montgomery says there are two issues with TPR’s new requirement:

“Firstly, conditional data is a gap analysis - it tells you whether something you expect to be in a field is there or not, the same goes for common data. Determining whether the data in that field is accurate is a whole different ball game.

“The other problem with ‘conditional data’ is that it’s a catch-all term for solutions that vary significantly across the market. There are some specialist providers who have highly sophisticated analysis and interrogation tools who can bring a great deal of insight and quality analysis to data as part of their ‘conditional data’ analysis suite.”

While these conditional data solutions cover a gap analysis in a few basic fields, they are not comprehensive and could lull trustees into a false sense of security, she argues.

Trustees might know areas where data gaps are most likely to occur, but if these are not on the records because they are lost or the trustees do not know where to look for them, solutions are limited.




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AON HEWITTParkside House Ashley Road Epsom Surrey KT18 5BS Tel: 013 7273 3907Website: www.aonhewitt.co.uk/pensionstraining

BARNETT WADDINGHAM LLPCheapside House 138 Cheapside London EC2V 6BW Tel: 020 7776 2200 Email: trusteeseminars@barnett-

waddingham.co.uk Website: www.barnett-waddingham.co.uk


BOND DICKINSONSt Ann’s Wharf112 QuaysideNewcastle upon TyneNE1 3DXTel: 0844 984 1500Website: www.bonddickinson.com

BUCK CONSULTANTS AT XEROX160 Queen Victoria StreetLondonEC4V 4ANTel: 020 7429 1000Website: www.xerox.co.uk/consulting

BURGES SALMON LLPOne Glass WharfBristolBS2 0ZXTel: 0117 939 2000Website: www.burges-salmon.com

CAPITA EMPLOYEE BENEFITS65 Gresham StreetLondonEC2V 7NQTel: 020 7709 4500Website: www.capitaemployeebenefits.co.uk

CMS CAMERON MCKENNA Mitre House160 Aldersgate StreetLondonEC1A 4DDTel: 020 7367 3000Website: www.law-now.com

EVERSHEDS LLP1 Wood StreetLondonEC2V 7WSTel: 0845 497 9797Website: www.eversheds.com


ABERDEEN ASSET – GODDARD PERRY


ICSA (INSTITUTE OF CHARTERED SECRETARIES AND ADMINISTRATORS)Seminars Policy and Development Department16 Park CrescentRegents ParkLondonW1B 1AHTel: 020 7612 7033Website: www.icsaevents.com


INVESTMENT EDUCATION PLC4th FloorOddfellows House40 Fountain StreetManchesterM2 2BETel: 0161 832 3800Website: www.investmenteducation.net



LCP95 Wigmore StreetLondon W1U 1DQWebsite: www.lcp.uk.com

Contact: Chris GreenTitle: Partner & Head of Trustee Training Tel: +44 (0)20 7439 2266Fax: +44 (0)20 7439 0183Email: [email protected]


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NABARRO LLP125 London WallLondonEC2Y 5ALTel: 020 7524 6000Website: www.nabarro.com

OAC ACTUARIES AND CONSULTANTS141-142 Fenchurch StreetLondonEC3M 6BLTel: 020 7278 9500Website: www.oac.co.uk

PINSENT MASONS LLPCrown PlaceEarl Street LondonEC2A 4ESTel: 020 7418 7000Website: www.pinsentmasons.com




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