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25 February 2015 - London Marriott Hotel, Grosvenor Square
Overall Sponsor Gold SponsorsPlatinum Sponsor
For the latest news and updates follow us @PAPensionAwards #PensionsAgeAwards
winners Brochure
25 February 2015 - London Marriott Hotel, Grosvenor Square
25 February 2015 - London Marriott Hotel, Grosvenor Square
PENSIONS AGE DIGITAL EDITION NOW AVAILABLE!
Pensions Age magazine is now also available as an e-edition for tablets (iPad and Android devices), and can also be read on a PC.
The new interactive digital format allows readers to easily search, browse and navigate the latest news stories, in-depth analysis, features, commentary and even adverts.
All content is hyperlinked for a richer online experience.
Through the print magazine, website, twitter, videos and now the digital edition, Pensions Age ensures that you always receive the latest news from the pensions industry, in the most convenient format for you.
To sign up, visit www.pensionsage.com
PA_mag-advert-House.indd 1 17/10/2013 15:23:20
25 February 2015 - London Marriott Hotel, Grosvenor Square
Contents 06 PensionsAgeAwards2015overview
08 PensionsAgeAwards2015winner’slist
09 Thejudgingpanel
Highlighted winners
10 PensionSchemeInnovationAwardoftheYear:BlueSky Pension Scheme
12 FiduciaryManagementFirmoftheYear: Aon Hewitt
14 PensionsTechnologyFirmoftheYear:Equiniti
16 At-RetirementSolutionsProvideroftheYear:JLT
18 PensionsLawFirmoftheYear:CMS
20 PensionsAccountancyFirmoftheYear:Crowe Clark Whitehill
22 PropertyManageroftheYear:LaSalle Investment Management
24 LDIManageroftheYear:SEI
26 IndexProvideroftheYear:MSCI
28 RiskManagementProvideroftheYear:PIC
30 HedgeFundManageroftheYear:Aurum
32 InnovationAwardoftheYear:Capita
34 AdministrationProvideroftheYear:Premier
25 February 2015 - London Marriott Hotel, Grosvenor Square
Growing upon the phe-nomenal success of its launch last year, the excitement in the air was palpable at the
2015 Pensions Age Awards. The amazing atmosphere was due to over 500 members of the industry elite gathering together in February at the glamorous London Marriott Hotel at Grosvenor Square to celebrate the
Oh what a night!
06
25 February 2015 - London Marriott Hotel, Grosvenor Square
innovation and success of the pensions sector.
It’s no secret that managing a pension scheme is more chal-lenging today than it has ever been, thanks to the earth shatter-ing reforms to the sector over the past couple of years. The prepa-ration and adaption to these changes is taking place against a backdrop of increasing pressure on pension schemes to produce adequate returns whilst managing risks and navigating choppy investment markets.
This is why events such as the Pensions Age Awards are so important, to recognise and appreciate the hard work occur-ring within the sector to generate the best results for members. The Pensions Age Awards aims to reward both the pension schemes and the pension providers across the UK that have proved them-selves worthy of recognition in these increasingly challenging economic times.
By putting themselves forward for these awards, the most dynamic, dedicated and innova-tive UK pension schemes were given the opportunity to show-case their successes and demon-strate the lengths they have gone to in meeting the investment, reg-ulatory and governance challeng-es facing all UK pension schemes today, whilst the providers that
work tirelessly to meet the needs of their clients and display innova-tion, vigour and a passion for UK pension provision were also able to highlight the important work they offer in support of pension schemes.
This excellent work was evi-dent with over 250 high quality entries received, so just making the shortlist was an achievement in itself.
Taking on the difficult task of deciding the winners was our prestigious judging panel, a col-lection of 21 of the industry’s fin-est (see page 9), which worked tirelessly to choose the right win-ners across all categories via a rigorous, transparent and totally independent judging process.
The champagne flowed during the mingling and music of the drinks reception, before the deserving winners were announced at the glittering Gala Dinner and Awards Ceremony hosted by comedian Fred MacAulay, who kept the laughter coming from both the winners and nominees.
Whilst the 30 winners have all excelled within their chosen cate-gories, some notable winners include M&G Investments, the only company to win two of these prestigious awards, for Active Manager of the Year and Fixed income Manager of the Year.
On the pension scheme side, Kingfisher Pension Scheme was named the DC Pension Scheme of the Year for its excellent gov-ernance set up and its real focus on member outcomes, according to the judges, whilst Essex Pension Fund took the accolade for DB Pension Scheme of the Year for its enhancements to its administration, funding, invest-ment and people aspects, coming together to deliver a strong offer-ing, the judges stated.
Two subjects that have been the focus for pension schemes in recent years are risk manage-ment and auto-enrolment. Therefore the winners of these categories were subject to much anticipation. The winners were Total UK Pension Plan for Best Risk Management Exercise, due to its mitigation of risks with its high quality proposition, and Prospects for Best Auto-Enrolment Implementation, which the judges said clearly under-stood the needs of its employees and the auto-enrolment process was managed with a dedication to excellence.
Other pension scheme win-ners included My LV= Pension Plan for the their pension scheme communications, ZPen – Zurich Insurance Group for their pen-sions administration, MacMillan Cancer Support Pension Scheme
25 February 2015 - London Marriott Hotel, Grosvenor Square
for their excellent investment strate-gy and BlueSky Pension Scheme for their innovative work (see page 10).
Meanwhile, other notable awards included the Pensions Administration Award, which went to ZPen – Zurich Insurance Group, while the Independent Trustee Firm of the Year award went to PS Independent Trustees.
The final award of the night, the Personality of the Year Award, was voted for by the readers of Pensions Age and went to Charles Cowling from JLT Employee Benefits.
Both the winners and those not so lucky celebrated in style after the prize-giving with the dual delights of a fun casino and DJ to dance the night away.
Our congratulations to the much-deserved winners on the night, along with our appreciation to all the pension schemes and pro-viders who took the time and effort to let us know of the quality work they are doing within their sectors in their submissions.
Our thanks go out to everyone who made these Pensions Age Awards such a success, including the judges who worked hard to evaluate the submissions, the sponsors who supported the event, and everyone who attended on the night to join in the celebration. We look forward to celebrating with you all again next year.
Pensions Age Awards winners 2015
08
DC Pension Scheme of the YearWinner: Kingfisher Pension Scheme
DB Pension Scheme of the YearWinner: Essex Pension Fund
Best Risk Management ExerciseWinner: Total UK Pension Plan
Pension Scheme Communication AwardWinner: My LV= Pension Plan
Best Auto-Enrolment Implementation AwardWinner: Prospects
Pensions Administration AwardWinner: ZPen – Zurich Insurance Group
Best Investment Strategy AwardWinner: MacMillan Cancer Support Pension Scheme
Pension Scheme Innovation Award of the YearWinner: BlueSky Pension Scheme
Pensions Consultancy of the YearWinner: LCPHighly Commended: Barnett Waddingham
Fiduciary Management Firm of the YearWinner: Aon Hewitt
Pensions Technology Firm of the YearWinner: EquinitiHighly Commended: SkyVal
At-Retirement Solutions Provider of the YearWinner: JLT
Independent Trustee Firm of the YearWinner: PS Independent Trustees
Pensions Law Firm of the YearWinner: CMS
Pensions Accountancy Firm of the YearWinner: Crowe Clark Whitehill
Passive Manager of the YearWinner: Legal & General Investment Managers
Active Manager of the YearWinner: M&G Investments
Equities Manager of the YearWinner: Majedie Asset Management
Fixed Income Manager of the YearWinner: M&G Investments
Alternatives Manager of the YearWinner: BlackRock
Emerging Markets Manager of the YearWinner: Ashmore GroupHighly Commended: SKAGEN Funds
Property Manager of the YearWinner: LaSalle Investment Management
LDI Manager of the YearWinner: SEI
Index Provider of the YearWinner: MSCI
Risk Management Provider of the YearWinner: Pension Insurance Corporation (PIC)
Hedge Fund Manager of the YearWinner: Aurum
Communications Provider of the YearWinner: SHILLING
Innovation Award of the Year Winner: Capita
Administration Provider of the YearWinner: Premier
Personality of the Year Winner: Charles Cowling, Director, JLT Employee Benefits
25 February 2015 - London Marriott Hotel, Grosvenor Square
BarbaraSaunders,Director, AssetSolutions,PSolve
StephenNichols,Trustee Director,ExpressPensionScheme
KevinLeGrand,Principal and Head of Pensions Policy,BuckConsultants
Terri-AnnHumphreys,Development Executive, PensionsManagementInstitute(PMI)
AlanStone,Pension Manager, BechtelLimited
IanMcQuade,Client Director, Muse
PeterTimberlake,Head of Communications, FinancialReportingCouncil
RajMody,Partner,Head of the UK Pensions Group, PwC
JamesWalsh,Senior Policy Adviser: EU and International, NationalAssociationofPensionFunds
DavidMorley,Business Development Director, UK Institutional, EatonVanceInvestmentManagers
JonathanWatts-Lay,Director, WEALTHAtWork
NigelMoore,Partner,CMSCameronMcKenna
AndrewCheseldine,Partner in the DC team,LCP
AdrianCooper,Head of Business Development, BarnettWaddingham
MarceloDellavedova,Senior Investment Consultant, TowersWatson
DebbieForbes,Consultant - Client Services, AHC
ShonaGoulds,Head of Business Development and Governance, CapitalCranfieldTrustees
RobertBranagh,Non Executive Director, CivilServicePensionSchemes
JohnBroker,Director,ITM
RichardButcher,Managing Director, PTL
LesleyCarline,Director, KimGublerConsulting
The judging panel
25 February 2015 - London Marriott Hotel, Grosvenor Square
Pension Scheme Innovation Award of the Year: BlueSky Pension Scheme
In today’s current landscape, and with the
influx of pension reforms over the past
year, innovation is key to keep up with this
ever-changing industry. This award looks to
reward a firm that has truly added value to
the pensions space with its originality and
innovation.
The Pension Scheme Innovation Award
of the Year went to BlueSky Pension Scheme
for displaying excellence and a true
commitment to the needs of its members.
The BlueSky Pension Scheme is a
master trust that has been operating for
almost 30 years, something that it has
achieved by adapting to the market; it was
the first scheme in the UK to offer target-date
funds and in 2014, in conjunction with
AllianceBernstein, they extended the product
with the launch of a new trust, Crystal, using
Retirement Bridge.
Having spent a significant amount of
careful planning in development, BlueSky
Pensions was proud to unveil the UK’s first
low-cost decumulation strategy that is
designed to be used as a default.
This dynamic product provides a
sustainable, growing income in the early
stages of decumulation, achieved by
investment in a range of age-based
retirement income funds. Unlike other
drawdown products in the UK, it is available
to defined contribution savers aged 55 to
75, regardless of the size of their pension
pots. Best of all, Retirement Bridge allows
customers to keep control of their
accumulated pension savings until they have
decided on their
retirement plans.
This simple and
intuitive product used
a target-date fund
structure to provide a
simple solution for
members to
understand,
administrators to
implement and for
trustees and
employers to
oversee. The target-
date fund’s age-
based multi-asset
structure means
investment risk is
reduced as members
move closer to drawing income from their
pension.
Actively managing the fund pre- and
post-retirement using the target-date fund
gives investors more sophistication than the
traditional lifestyle approach. It also provides
greater flexibility, with access to open
architecture and a huge choice of funds to
suit.
Crucially, this product gives members a
huge potential for growth because of the
attention for detail the investment manager
puts into the daily oversight of markets.
Research shows that, for a member retiring
at 65, Retirement Bridge will increase the
total income payout by the age of 75 to
more than 20 per cent above that of a
traditional non-escalating joint-life annuity.
This solution offers the ultimate flexibility
to members by giving members the time
they need to make decisions for their
retirement but allowing them to change their
mind tomorrow. This is key from the high
levels of uncertainty surrounding retirement
decisions.
Research by AllianceBernstein revealed
73 per cent of 55 year-old DC members do
not know what they want. For example, at 55
people tend to want cash but at the point of
retirement income becomes more important.
Furthermore, at 55, most people cannot
predict how their circumstances will change
in 10, 15 or 20 years.
It is this commitment to product
development that has lead the BlueSky
Pension Scheme to be awarded the Pension
Scheme Innovation of the Year award.
The Pension Scheme Innovation Award of the Year went to Bluesky Pension Scheme. Receiving the award was Paul Bannister, CEO, Bluesky Pension Scheme (centre). Presenting the award was awards judge James Walsh, EU and Policy Lead, NAPF (left) and awards host Fred MacAulay (right).
10
As one of the most forward thinking businesses in the UK, our knowledge and understanding of clients’ needs ensure innovative solutions which are tailored to each individual client.
Crystal is a new product launched by Bluesky, designed with the new fl exible income drawdown options in mind. Allowing the freedom to use your pension savings, full control of your fund, and the ability to change your decision at any time.
BlueSky Pensions UK Ltd provides a range of
workplace pension services to any employer,
trustee or consultant in the UK.
For further information please visit www.blueskypensions.uk or email info@blueskypensions.co.uk
INNOVATIVE SOLUTIONSINNOVATIVE SOLUTIONS
BlueSky_advert_idea1.indd 1 30/03/2015 10:13:49
25 February 2015 - London Marriott Hotel, Grosvenor Square
Fiduciary Management Firm of the Year: Aon Hewitt
As institutional investors now have to
choose from an ever-growing and
increasingly complex range of asset
classes and investment strategies, it is no
wonder that fiduciary management services
are now firmly embedded in the UK pensions
space.
The Pensions Age Awards 2015
recognises the increasingly important role
fiduciary managers play in the pensions
industry, and its Fiduciary Management Firm
of the Year award rewards the fiduciary
management or implemented/delegated
consultancy firm that truly adds value to the
pensions space, meeting the specific needs
of its clients whilst also displaying the key
requirement of strong performance.
Therefore it is of no surprise that the
winner of this prestigious accolade for 2015
is Aon Hewitt.
Launched in 2009, with its first client’s
assets invested in March 2010, Aon Hewitt’s
Delegated Consulting Services has grown by
100 per cent with over £6.3 billion in UK
fiduciary assets under management and 69
UK pension scheme clients, as at 30/6/14.
The company’s delegated consulting
services prides itself on helping trustees and
sponsors in a flexible and transparent
manner to improve scheme funding levels
and, ultimately, pension scheme member
security through delegation of the day-to-day
activities.
To achieve this aim, Aon Hewitt’s
Delegated Consulting Services is constantly
evolving to meet its clients’ need for flexibility
and solutions that
meet their individual
requirements. In fact
Aon Hewitt’s
fiduciary
management work
with clients can vary
significantly
depending on the
level of delegation
and targets the
client sets.
Listening to
pension funds’
needs is what
drives innovation for
Aon Hewitt’s
Delegated
Consulting Services.
For instance, in October 2014, it launched a
complete end-to-end investment solution –
the only provider to offer this. This extended
Aon Hewitt’s overall fiduciary offering with
flightplan and dynamic de-risking programme
to include implemented annuities, enabling
clients to be able to move quickly and
secure a bulk annuity deal when the time
and price is right.
The company also caters to more cost-
conscious pension funds by launching a full
fiduciary solution that has a greater focus on
beta. The growth fund has fully active asset
allocation and utilises passive equity
managers (meaning costs are lower) and
alternative beta, alongside investments in
other return seeking asset classes. The
liability matching element is fully bespoke.
The result of Aon Hewitt’s work? Over the
24 months to 30 June 2014, 100 per cent of
Aon Hewitt’s full fiduciary clients
outperformed their bespoke liability
benchmark and their investment objective.
With results like this, it is no wonder that
29 per cent of all UK full fiduciary
appointments in the 12 months to 30 June
2013 were won by Aon Hewitt’s Delegated
Consulting Services.
The Pensions Age Awards judges
agreed, describing Aon Hewitt’s Delegated
Consulting Service as standing out for its
high levels of service, innovation and
performance, while as a company Aon Hewitt
has contributed to the fiduciary management
debate through white papers, articles and
research.
Congratulations to an impressive winner.
The Fiduciary Management Firm of the Year award went to Aon Hewitt. Receiving the award was Sion Cole, Head of Client Solutions, Aon Hewitt (centre). Presenting the award was Lauren Weymouth, Reporter, Pensions Age (left) and awards host Fred MacAulay (right).
12
25 February 2015 - London Marriott Hotel, Grosvenor Square
A bespoke investment solution Sion Cole, partner & head of Client Solutions in Aon Hewitt’s fiduciary business, outlines why fiduciary management solutions vary and hence the importance of the selection process
Fiduciary management is an
established investment and
governance solution for UK defined
benefit pension schemes. It is very much
a bespoke solution where not only do the
elements and services vary significantly
between providers but they can also vary
within the solutions each provider can
offer. This means the right selection
process, with open/honest conversations
and asking the right questions to
understand the offerings available, is
critical to maximising the chances of
success.
Variations in the solution
Fiduciary solutions vary in a number of
ways. One of the key differences is in
the investment objective set as this will
have an impact on what the portfolio will
look like. For example, an investment
objective of liabilities +3% p.a. will have a
very different portfolio to a +1% p.a.
objective, and with very different growth/
matching splits.
If the trustees have some specific
investment beliefs, restrictions or
preferences this also affects the
underlying solution. For example, if the
scheme is close to buyout they may not
wish to hold any illiquid investments, or
they may want to put a restriction on
hedge funds. If there is a preference for
passive equities or a more cost conscious
solution (compromising on the volatility/
risk levels to achieve this), this will also
cause variations. As a result of all this, the
risk/return profile between different
solutions varies significantly.
Solutions also vary in terms of the
benchmark, use of internally or externally
managed funds, the fee levels charged
and their structure (bundled or unbun-
dled). The exact services included within a
fiduciary offering can be very different. For
example, some providers can include
flight planning and a dynamic de-risking
programme. The type of trigger used and
the speed of implementation of changes
also varies between providers.
Selection processSelecting the right fiduciary provider, and
the solution, is crucial and it is therefore
important to follow a section process that
works for your scheme and engages with
the fiduciary provider at the outset.
In a series of educational papers we
have previously released, we summarised
six key steps to selecting a provider,
drawing upon the best selection process
that we have experienced. These six key
steps are: establish the role; consider the
broad shape of the strategy; create a long
list; decide on a short list; work closely
with a couple of providers; perform a full
site visit.
Within the selection process it is
important to ask the right questions as
this will allow trustees to compare provid-
ers more easily through gaining a greater
understanding of the solutions on offer,
the merits of each and offer the chance to
flag any concerns. We believe it is impor-
tant for trustees to delve into the detail of
a provider’s offering, including the busi-
ness, the solution, performance measure-
ment, risk, operations and client service.
When we say bespoke we mean itWhen designed specifically to a scheme’s
unique needs, fiduciary management can
really add value and maximise the
chances of success. At Aon Hewitt we do
not just say bespoke, we mean it. Just as
no two schemes are the same, nor should
the solution put in place.
We are committed to listening to you,
your fellow trustees and company
representatives, in order to understand
your situation, your goals and your
investment beliefs or preferences. This
means we are able to create a truly
bespoke solution that helps you achieve
your objectives, that evolves over time to
ensure it meets your needs and reflects
our best ideas in the future too.
We are also the only fiduciary
provider in the UK that offers a complete
end-to-end investment solution that can
take you all the way to buyout through
our integrated annuities offering.
To find out more about fiduciary
management, watch our myth-busting
videos or download a copy of our survey
or educational papers. Please visit
our website: aonhewitt.co.uk/
delegatedconsulting. Alternatively, speak
to your usual Aon Hewitt contact or speak
to Sion Cole on 020 7086 9432 or email
at sion.cole.2@aonhewitt.com.
Free training from an award winnerOurfiduciarybusinesshaswontwoindependentindustryawardsinthepastsixmonths.Interestedinsomefreetrusteetrainingonwhatfiduciarymanagementisorhowitmightbenefityourscheme?
Contactusatkelly.twiddy@aonhewitt.comoron02070863553toarrange.
13
25 February 2015 - London Marriott Hotel, Grosvenor Square
Pensions Technology Firm of the Year: Equiniti
As pension funds grapple with rapid
reform to the sector and the ongoing
implementation of auto-enrolment,
now more than ever effective and reliable
pensions technology and data management
are essential for the successful running of
any pension scheme.
This is why the Pensions Age Awards
2015 recognises the vitally important role
technology plays for the industry with its
Pensions Technology Firm of the Year
accolade. This award recognises the
company that is a leader in the field of
pensions technology through providing
solutions tailored to its clients’ ever-changing
and increasingly complex requirements.
Rising to this challenge is the 2015 win-
ner of this accolade, Equiniti.
As specialists in providing complex pen-
sion administration, Equiniti uses leading
technology to offer a range of services to
help pension schemes with project manage-
ment, compliance, complex and bulk calcula-
tions and systems expertise.
And the numbers it helps are staggering.
The capabilities of Equiniti’s technology has
enabled it to provide services that benefit
over 30 million people around the world; pro-
cess £92 billion in payments a year; pay 20
per cent of UK pensioners and support 7.4
million pension scheme members.
This has been achieved through Equiniti’s
renewed focus on innovation to engage and
empower members.
According to TRW, 25 per cent of users
now access the web exclusively by tablet or
mobile phone and OurMobilePlanet.com
found that 61 per cent of users will leave a
non-mobile-friendly site. Equiniti therefore
responded to this growing trend by creating
an advanced, responsive self-service portal
that can be easily viewed across any device
a member chooses.
Going further, Equiniti achieved a sector-
first by creating a smartphone app that sends
push notifications to deliver real-time informa-
tion to members – a striking contrast to the
member having to search websites or await a
letter in the post for information.
Equiniti also overhauled the architecture
of its Compendia administration platform to
create the powerful self-service portal, which
now gives members unprecedented insight
into and control over their own pensions via
tablet/mobile. It also caters to members’
needs through enabling them to explore ‘what
ifs’ for their pension fund, and as the portal
saves all member activity, they are able to go
back and access previous information.
Equiniti has a clear member engagement
strategy that has seen member numbers reg-
istering for self-service increase from 8,329 in
January 2014 to over 28,000 by the end of
the year - a 238 per cent increase. On aver-
age, around 3,000 members now access
their pension each month (compared to 500
in 2013) - a 500 per cent increase.
However, it is not just the technology that
keeps bringing members back. Instead,
Equiniti’s Member Charter, contact centre and
presentations have helped it receive a 95 per
cent good/excellent customer service rating.
Along with its commitment to clients, it is
this excellent selection of new and innovative
products Equiniti has brought to the pension
market that caught the eye of the judges,
enabling them to declare Equiniti a worthy
winner. Congratulations to a richly deserved
winner.
The Pensions Technology Firm of the Year award went to Equiniti. Receiving the award was Ric Williams, Managing Director, Equiniti Pension Solutions (centre). Presenting the award was awards judge Richard Butcher, Managing Director, PTL (left) and awards host Fred MacAulay (right).
14
25 February 2015 - London Marriott Hotel, Grosvenor Square
It’s not what you do… it’s the way that you do itIn our world of technology, communication alone isn’t enough to guarantee engagement, as the pensions industry has discovered
Technology has radically transformed
the way we live our lives. From
online shopping to communicating
with our friends on the move, what you
get when you combine the internet with
mobile devices is nothing short of revolu-
tionary.
The 2013 Deloitte annual UK consum-
er media survey revealed that more than
80 per cent of people own laptop comput-
ers, 75 per cent own smartphones and
tablet ownership has increased by 25 per
cent to almost 60 per cent. What this
means is that the way people are consum-
ing content is changing. This presents a
challenge for the pensions industry, which
must factor all of this in when reaching
out to its members.
The considerations must, however,
reach beyond technology, as this alone
isn’t enough to drive up engagement.
Traditionally, pensions processes tend to
have been siloed, which no longer suits
today’s interconnected society. To over-
come this, a new approach is required to
improve member communications and
engagement.
Traditionally, pension schemes deliv-
ered infrequent communications to their
members. Recent regulatory changes
have brought about a new focus on com-
munications, with the result that schemes
need to communicate evermore frequently
with their members – and this can only be
effective if done in a more engaging and
interactive manner.
The permanent change in the way our
society engages with information allows
members to share information with whom-
ever they want to at the touch of a button.
In such circumstances, the user has effec-
tively taken the content provided and
made it their own. Factoring in social
media can greatly assist schemes in
engaging with members and transform
communications from a one-way conversa-
tion into a collaborative communications
experience.
As well as relationship building bene-
fits, taking communications down the elec-
tronic route generates additional data. This
can provide valuable information about
how a particular audience chooses to
interact with its engagement process. The
data can then be used not only to improve
the engagement process but also to give
an aggregated impression of the behav-
iour of a customer base. To reap such
benefits, the issues inherent in legacy sys-
tems must be addressed seriously.
A key feature of the pensions indus-
try’s reassessment of technology lies in
considering both mobile and cloud.
Although cloud has been around for a
while, initial concerns over security meant
that some industries were reluctant to
adopt it. Now, however, cloud has been
developed with security in mind, and more
industry sectors are realising its full bene-
fits. The use of cloud in the pensions envi-
ronment will be key for schemes, spon-
sors and providers to go beyond commu-
nicating with their member audience, and
truly engage with them.
Equiniti is leading the way in mobile
and cloud-based technology in the pen-
sions industry, which has allowed us to
deploy our enhanced and scalable suite
of self-service tools effectively. The recent
launch of our brand new member self-ser-
vice responsive website and Compendia
Mobile native iOS App (soon to be availa-
ble on Android) gives our clients the per-
fect platform on which to engage, inform
and educate their members both on their
retirement options and the value that their
pension scheme adds to their long-term
saving plans. This cutting-edge solution
satisfies the changes in user demand and
aims to improve the quality of member
engagement.
It’s not just member engagement
where mobile and cloud technology is
important, we are also deploying our new
administration platform Compendia Touch
in this manner. Compendia Touch has
been developed to allow the back-office
administration system to be reconfigured
without the need for a team of
programmers, and all from a touch-
based smart device.
A poor user experience results in little
or no engagement; if you make the user
experience an engaging one, you will
have an audience that is keen to under-
stand more. Schemes that can make the
most of what this new technology has to
offer will be better placed to satisfy both
their member’s demands and the ever-
increasing requirements of the regulator.
Written by Jason Hayes, product director, Equiniti
15
25 February 2015 - London Marriott Hotel, Grosvenor Square
At-Retirement Solutions Provider of the Year: JLT
The at-retirement market has experi-
enced a considerable shake up over
the past year. It was, at one point, rela-
tively neglected. But following the 2014
Budget, the entire marketplace has never
experienced so much attention.
The Pensions Age At-Retirement
Solutions Provider of the Year award aims to
recognise the firm that has shown innovation
and dedication to improving the retirement
experience of its clients and has worked hard
to help those entering the retirement phase to
make the most of their pension pot.
Described by the judges as putting for-
ward an excellent submission, which detailed
“excellence, innovation and market adaptabili-
ty”, the winner of this year’s At-Retirement
Solutions Provider of the Year award is JLT.
The Annuity Bureau (TAB) has been an
integral part of JLT Wealth Management and
has undertaken a significant rebranding to
reflect the 2014 Budget announcements.
Until this year, it provided advice to retirees
wishing to purchase an annuity in the open
market. However, in the last year, JLT has
expanded TAB to further enhance members’
outcome upon retirement through its Road to
Retirement proposition.
Part of what made JLT stand out in the
eyes of the judges was its dedication to
quickly transforming TAB to be ‘Budget ready’
as soon as the Chancellor made the decision
to offer freedoms to pension savers. Within
hours of the announcement, TAB had formu-
lated and implemented a communications
plan for all clients that were part way through
the annuity purchasing process to ensure that
all were made aware of the changes.
TAB carried out all administration work
necessary to deal with clients who were no
longer required to purchase an annuity
and in keeping with its fair treatment of
customers, decided to waive any fee for
work carried out where a product was
not purchased. Despite the increased
workload, the team efficiently handled
the sheer volume of calls and dealt with
all queries.
Throughout a difficult year, JLT has
showed continued unwavering commitment
to innovation. The firm addressed a clear
knowledge gap for those approaching
retirement by launching TAB’s Road to
Retirement proposition, bearing in mind the
needs and experiences of members who are
particularly tech-savvy.
However, JLT also acknowledged the
needs of all audiences, by providing
educational seminars run twice a year at
venues around the country, tailored
communications in the lead up to retirement
and guides on what to expect in retirement,
conventional annuities and alternatives to
conventional annuities.
These services, together with the
adaptation of pre-existing services meant JLT
has pushed themselves ahead of the game;
ensuring members not only understand the
options available to them, but also how to
prepare for making the decision.
Congratulations to JLT, a firm that has
shown dedication to working creatively in a
market, which after undergoing sudden
change, faced considerable criticism,
pressure and a high level of competition.
For rising to the challenge in this stormy
environment, JLT is a worthy winner.
The At-Retirement Solutions Provider of the Year award went to JLT. Receiving the award was Charles Cowling, Director of Employee Benefits, JLT (centre). Presenting the award was awards judge Lesley Carline, Director, Kim Gubler Consulting (left) and awards host Fred MacAulay (right).
16
9210 JLT EB Sunday Times Brand Advert_204x271mm.indd 1 08/04/2015 14:15
25 February 2015 - London Marriott Hotel, Grosvenor Square
Pensions Law Firm of the Year: CMS
In recent years more than ever, the
pensions sector has been subject to
industry-changing court cases and rapid
regulation reform adding to the maze that is
pensions law.
As understanding legal issues becomes
ever-more complicated for pension funds, the
Pensions Age Pensions Law Firm of the Year
award seeks out those law firms that not
only serve the pensions space, but do so
with the highest of standards, vigour and a
true dedication to meeting the needs of its
clients.
This year, the pension firm embodying
and exemplifying these criteria is CMS, a law
firm that makes service excellence and
innovation its top priorities.
Described by the judges as possessing
a clear understanding of the needs of the
whole pension market, with propositions
created to suit the needs of smaller-sized
schemes as well as larges ones, it is no
wonder CMS is regularly ranked the number
one law firm.
In fact, CMS proves its dedication to
pensions law by having one the largest
specialist pensions departments in the
country, with 39 lawyers practising in London
and Scotland.
Despite its impressive size, the firm’s
pensions department continues to innovate
and diversify to meet the complex needs of
its clients. For instance, it recently launched
five sub-groups within its practice. Along with
dispute resolution and longevity life risk it
now has dedicated, specific focuses on DC
pensions, asset-backed contributions and
investment.
However, with DB liabilities in the UK
estimated at £1.8 trillion, de-risking DB
schemes is becoming increasingly important,
resulting in the rapid development of the
market for longevity risk transfer.
CMS has therefore developed a
reputation at the forefront of these market
developments, acting on most of the
transactions announced to date. Over the
past 12 months CMS has advised on deals
worth over £10 billion to date, addressing
issues such as growing the capacity of the
longevity market, dis-intermediation and
making de-risking accessible to pension
schemes under £1 billion in size.
The skills of CMS is evident through its
work on major industry-affecting cases, such
as advising the trustee of the Monarch DB
pension scheme on the recent sale of the
company and the scheme’s entry into the
PPF and acting for P&O Ferries Limited in
the MNRPF case.
However, in the midst of this important
work, CMS never forgets to work closely with
clients, and to listen and respond to their
needs. The law firm’s full suite of
complementary services including regular
email updates, handbooks and topic guides,
along with regular trustee training seminars.
It is this leading combination of pensions
expertise and dedication to clients’ needs
that made CMS the clear winner of the
Pensions Law firm of the Year award in the
eyes of the judges.
Congratulations to a worthy winner.
The Pensions Law Firm of the Year award went to CMS. Receiving the award was CMS partner Simon Pilcher (centre). Presenting the award was awards judge Adrian Cooper, Head of Business Development, Barnett Waddingham (left) and awards host Fred MacAulay (right).
18
Leaders in pensions
www.cms-cmck.com/pensions
This ‘outstanding’ team … is ‘a really class act.’
The Legal 500
Please contact
Nigel MooreNigel.moore@cms-cmck.com
Simon PilcherSimon.pilcher@cms-cmck.com
Alistair HillAlistair.hill@cms-cmck.com
Pensions Experts
With 39 specialist pensions lawyers and litigators based across London and Scotland, we are one of the largest and most experienced pensions practices in the UK.
CMS, a global top 10 law fi rm, is proud to have been named as Pensions Law Firm of the Year 2015’ by Pensions Age and The Legal 500’s ‘Human Resources Firm of the Year 2014’.
CMS Longevity Team
Our market leading Life Pensions and Longevity Risk Team of 50 lawyers is dedicated to producing innovative products to provide value to our clients.
25 February 2015 - London Marriott Hotel, Grosvenor Square
Pensions Accountancy Firm of the Year: Crowe Clark Whitehill
After a wealth of regulatory changes
that have bombarded the pensions
industry and during a time of
increased financial risk, pension schemes
are under more pressure than ever to
operate as cost-effectively and efficiently as
possible.
The Pensions Age Accountancy Firm of
the Year award aims to reward the pension
scheme accounting firm that recognises the
needs of the pensions market and has
tailored its services accordingly, with a focus
on excellence. Showing commitment to all of
these criteria, the winner of the Pensions Age
Accountancy Firm of the Year award is
Crowe Clark Whitehill.
Described by the judges as having been
at the “forefront of the industry issues” and
demonstrating a “clear understanding” of
meeting clients’ needs, while also
demonstrating value for money, this firm has
showed all-round excellence in the
accountancy field.
Over the past 12 months, Crowe Clark
Whitehill’s Pension Funds team has
dedicated much of its time to future-proofing
schemes by planning for emerging issues,
listening to clients’ needs, actively seeking
involvement and influencing resolutions to
sector issues, by providing timely solutions
with cost-saving impacts.
As a result of rapidly changing
regulations, the firm impressed the judges by
quickly adapting and strengthening its team
to help cope with a surge of queries around
scheme governance arrangements and
assurance related
activities.
Crowe Clark
Whitehill has also
shown dedication
to controlling
emerging risk,
helping schemes
to future-proof and
operate effectively.
Last year, the firm
undertook a
survey to
understand the
processes in
place when
identifying risks
and the
associated
mitigating controls. This enabled them to
help explore and support clients
to prevent them from being open to
undue risks.
Education has also proved to be at the
top of Crowe Clark Whitehill’s priorities as
the firm continues to hold regular forums,
allowing trustee chairs to meet and discuss
topical issues and share concerns with
counterparts. The Pension Funds team has
also helped to mould sector changes
through its involvement in external bodies,
ensuring clients are fully guided through any
changes made to the industry.
As well as ramping up its educational
activities, Crowe Clark Whitehill has also
shown exemplary skills in simultaneously
innovating. Its continual innovation has
helped trustees plan for new investment risk
disclosures required in pension scheme
accounts, helped clients to achieve
significant VAT savings and led to the
introduction of governance and
administration benchmarking
for clients.
The firm has also been appointed as
Reporting Accountant to a number of major
master trusts, notably due to its involvement
in the new AAF assurance framework for
master trusts and its understanding of how
this impacts schemes.
It is for these reasons; for its constant
dedication to understanding the needs of
schemes during turbulent economic
conditions that Crowe Clark Whitehill has
excelled in the accountancy field.
Congratulations to a well-deserved winner.
The Pensions Accountancy Firm of the Year award went to Crowe Clark Whitehill. Receiving the award was Andrew Penketh, Head of National Pensions Group, Crowe Clark Whitehill (centre). Presenting the award was Adam Cadle, Deputy Editor, Pensions Age (left) and awards host Fred MacAulay (right).
20
Always at the forefront of the pensions industry, our award winningteam provide audit, tax and advisory services, covering:
} Pension scheme internal and statutory audits
} Pensions SORP and other accounting advice
} Rsk assessment, internal controls and assurance reporting
} AAF reporting for master trusts, relevant trustees and scheme administrators
} Support to independent governance committees
} VAT planning and advice
} Employer covenant reviews.
Negotiating the pensions maze
Find out more about us at
www.croweclarkwhitehill.co.uk
For more information, please contact:
Andrew Penketh andrew.penketh@crowecw.co.uk
+44 (0)20 7842 7355
25 February 2015 - London Marriott Hotel, Grosvenor Square
As pension schemes look to diversify
their assets, property has become a
popular choice, offering both capital
gains over a long-term period and the
possibility of regular income. This award
recognised a firm that has shown a true
understanding of the UK, European and
global property markets.
The Property Manager of the Year Award
went to LaSalle Investment Management for
being a committed, innovative and high
quality player in the property space. This firm
really understands the pension fund market
and the role property can play in helping
pension funds meet their needs.
Focused solely on investing in real
estate, LaSalle Investment Management is
able to combine its extensive property
knowledge with a disciplined investment
approach. Clients also benefit from its global
perspective, fostered by the insights of its
global research team.
With 27 per cent of its global assets
under management, managed on behalf of
UK pension clients, its commitment to
pension fund clients shines through. It is
highly responsive to the individual needs of
their clients, such as customising investment
strategies of their separate accounts to meet
each client’s investment objectives.
Realising that communication is
imperative, clients are able to meet with their
fund managers as often as they wish,
ensuring they are directly informed on
progress and initiatives in their programme.
In 2013, its UK IPD Benchmark Relative
Return Mandates (core, balanced, UK
property portfolios) outperformed the IPD
Pension Funds
benchmark over one,
three, five, 10 and 20
year periods.
Furthermore, LaSalle’s
UK Real Return
portfolios, all managed
on behalf of UK
pension funds have
also performed strongly.
LaSalle’s strong
performance track
record, client focus and
collaborative teams led
to the Greater
Manchester Pension
Fund awarding them a
new £750 million UK
separate account, the first time the fund has
outsourced its UK core real estate investment
management.
LaSalle Investment Management takes an
innovative approach to meet the needs of the
often dramatically changing needs of its
clients. Over the last few years LaSalle has
pursued a number of new initiatives to
ensure the portfolios under management are
best placed to take advantage of a changing
property landscape and continue to meet the
needs of its maturing pension fund clients.
These include targeting assets with Retail
Prices Index-linked leases, which are
attractive relative to index-linked bonds in
terms of pricing, control and the underlying
asset value, and are well-suited to matching
the liabilities of defined benefit UK pension
schemes. LaSalle has also invested £300
million in debt investments over the last 12
months. Their pension fund clients have
continued to benefit from the high, secure
income generated, which is meeting their
needs for increasing income to pay pensions
through an attractive risk-adjusted investment
class.
With an industry leading research team
and strong implementation skills, LaSalle
Investment Management is excellent at
adding value to property investments through
its 150 strong UK team, including 41 asset
managers.
Truly passionate about property
investment for its pension fund clients, well
done to LaSalle Investment Management
for winning the Property Manager of the
Year Award.
Property Manager of the Year: LaSalle Investment Management
The Property Manager of the Year award went to LaSalle Investment Management. Receiving the award was Tom Rose, director/fund manager LaSalle Investment Management (centre). Presenting the award was awards judge Jonathan Watts-Lay, director, WEALTH at work (left) and awards host Fred MacAulay (right).
22
Our active asset management teams worldwide are experts in maximising value. By employing a variety of management
strategies from acquisition through to sale, we are focused on driving returns and delivering value to our clients.
lasalle.com
Atlanta Amsterdam Baltimore Brisbane Chicago Hong Kong London Luxembourg Madrid Mexico City Milan Munich
New York Paris Prague San Diego San Francisco Seoul Shanghai Singapore Sydney Tokyo Toronto Vancouver
Focused solelyon our clients andinvesting in real estate
25 February 2015 - London Marriott Hotel, Grosvenor Square
LDI Manager of the Year: SEI
Liability Driven Investment (LDI) is of
paramount importance to pension
schemes, especially in the current
deficit stricken environment.
Understanding what LDI really means
and applying it to the benefit of pension
scheme clients requires true skill and
understanding of pension scheme needs.
This award rewarded a provider that excelled
in the LDI space despite the challenges.
This year’s winner demonstrated a true
understanding of LDI and the importance it
plays in the pension scheme sphere today.
For SEI, the LDI Manager of the Year award
was richly deserved. In 2014 SEI
implemented LDI solutions that significantly
enhanced its clients’ abilities to achieve their
funding objectives.
Innovation is a key component to
succeeding in the LDI area, especially with
the changing needs of the UK pension
market. SEI’s enthusiasm and energy in this
area resulted in a £350 million client seeing
their portfolio risk cut in half, whilst ensuring
a high probability of meeting its objectives.
SEI achieved this by crafting an options
strategy that took advantage of a market
which was paying a relatively high premium
for monetising interest rate upside relative
to the cost of obtaining downside
equity protection.
Furthermore, for a £400 million client,
SEI created a fully
customised hedging
strategy at a low
cost with a heavily
reduced governance
burden. This solution
has yielded a
month-on-month
reduction in tracking
error at a lower
overall management
cost than with the
previous provider.
Bespoke
services in
innovation is where
SEI truly excels,
which is what it did
for a £130 million
client when it
created a
customised relationship between investment
strategy and discount rate methodology.
Trustees were provided with an overall risk
budget and the ability to prioritise market
based decisions.
SEI takes client satisfaction seriously
and the results of its latest annual client
survey prove it. Ninety seven per cent of
clients who responded to the survey would
use SEI again. In describing their experience
as a client, one trustee praised SEI’s ability
to deliver, “new ideas and solutions” to meet
their requirements.
SEI’s solutions involve exploiting the
opportunities presented by market trends.
Whilst these are tailored to individual client
requirements, there were some general
themes in 2014 that contributed to its
success. In general SEI has advised clients
to reduce their exposure to equity markets
and increase asset allocation to alternative
assets to reduce risks. In a number of
cases, funding level improvements resulted
in clients hitting funding level de-risking
triggers and implementing de-risking trades.
The effort and attention to detail paid off
for SEI as it saw excellent results from the
aggregate funding level progression of its
clients.
The results are no surprise and stem
from treating every client as a unique entity,
so schemes of all sizes benefit. The judges
clearly recognised this at this year’s
Pensions Age Awards.
Congratulations to SEI on becoming the
winner of the LDI Manager of the Year
award.
The LDI Manager of the Year award went to SEI. Receiving the award was David Hickey, Managing Director, SEI, Institutional Advisory Team (centre). Presenting the award was Sam Ridley, Advertising Manager, Pensions Age (left) and awards host Fred MacAulay (right).
24
Request an information pack today
Email: sgriffin@seic.com
Visit: seic.com/institutionsuk
Call: 0207 297 6306
Issued by SEI Investments (Europe) Limited +44 (0)20 7518 8950, authorised and regulated by the Financial Conduct Authority.
For professional clients only. The value of an investment can fall as well as rise and is not guaranteed.© 2013-2015 SEI 150771 (04/15)
SEI: A trusted adviserto pension schemesfor over 20 years› Specialists in Investment Advice, Fiduciary Management, LDI, Dynamic De-riskingand Journey Planning› 482 Fiduciary Management/Implemented Consulting clients globally*› £162 billion in assets under management globally*›Winner of the Pensions Age LDI Manager of the Year award in 2015
*As at 31 December 2014. Calculatedwith an exchange rate of 1 USD to 0.64374 GBP.
Very few providers have a heritage in both Advice and Implementation.Find out how SEI could help you reach your funding level goals.
25 February 2015 - London Marriott Hotel, Grosvenor Square
Pensions Index Provider of the Year: MSCI
As pension funds seek to further
diversify their portfolios, it is ever-
more vital they have indices to help
them achieve their investment goals. Given
the increasingly important role indices play in
pension provision, this award recognises the
index provider that has led the way in
displaying innovation in their product design
and an understanding of what the UK
pensions market really needs.
Described by the judges as having an
“unrivalled understanding” of the pension
fund space, the winner of the Pensions Index
Provider of the Year award is MSCI for its
innovation in the market, which put it “a cut
above the rest” in this category.
MSCI has been a leader in index
construction and maintenance for over 40
years, showing uncompromising commitment
to aligning its business, to address the
complex investment issues faced by its
clients, with high quality research, data and
enhanced index products.
Given the challenges surrounding
globalisation and the rapid integration of
markets, MSCI has stepped up to explore
advanced approaches to categorising the
global equity universe. The company houses
a research team of over 160 people, who
regularly meet and consult with clients on
emerging trends in the global industry,
gathering feedback to further enhance and
tailor future products.
Over the past 12 months, MSCI has
launched the industry’s first Multi-Factor
Indexes, which offer pension funds a new
approach to seeking factor returns. As a
result of its extensive research surrounding
these new indexes, MSCI found higher levels
of diversification can be achieved by
combining two or more MSCI Factor Indexes,
subsequently reducing overall costs.
Another area where MSCI has been
heavily focusing, is on the environmental
pressures faced by investors to manage
carbon risk in their portfolios. As part of its
attention to the increasing challenges
surrounding ESG, MSCI launched its
innovative family of Low Carbon Indexes.
The MSCI Global Low Carbon Leaders
Indexes are the first in the industry to
address both carbon emissions and fossil
fuel reserves, providing clients with an
efficient tool for cutting the exposure to
carbon risk from their portfolios.
As well as positioning itself as a leading
provider of ESG research, MSCI has more
generally shown an overarching dedication to
the quality and reliability of all its data. The
company proved this attribution with close to
zero tracking error rates over the last 12
months and high accuracy rates over the last
five years for implemented corporate events
and dividends of 99.88 per cent and 99.83
per cent respectively.
The company has data centres
worldwide, enabling it to process and
analyse market data from hundreds of
different sources. MSCI’s dedication,
accuracy and reliability have all been
significant factors to its resounding success
and have subsequently enabled pension
funds to reach their full investment potential.
Congratulations to a worthy winner for
this category.
The Pensions Index Provider of the Year award went to MSCI. Receiving the award on behalf of the firm was Sarah Whittington, Marketing Manager, Perspective Publishing (centre). Presenting the award was awards judge Alan Stone, Pensions Manager, Bechtel Limited (left) and awards host Fred MacAulay (right).
26
in assets aRe benchmaRked to msci indexes*
oVeR
$9.5 tRillion
* As of June 30, 2014, as reported on September 30, 2014, by eVestment, Morningstar and Bloomberg
Client Focus | Quality | Innovation
msci.com
271x204mm-9.5trillion-ad-en.indd 1 30/03/2015 14:18
25 February 2015 - London Marriott Hotel, Grosvenor Square
Risk Management Provider of the Year: PIC
De-risking continues to be the long-term
goal of many defined benefit pension
schemes and this award rewards a
provider that has delivered innovative solu-
tions to truly help pension schemes manage
or remove their risks.
The Risk Management Provider of the
Year went to a company that demonstrated
excellence, innovation and is described by
judges as a true leader in its field. This year’s
winner, Pension Insurance Corporation (PIC),
refuses to stand still when it comes to pen-
sion fund risk management.
PIC’s high reputation in the risk manage-
ment field has drawn in blue chip clients such
as Total, EMI, NCR and Tate & Lyle. In June
2014, PIC completed a complex and innova-
tive pension insurance buy-in with the Total
UK Pension Plan, covering £1.6 billion of pen-
sioner liabilities, the second largest transac-
tion in the UK to date.
It included the design and implementation
of an additional innovative security structure,
due to the size of the transaction, building on
the existing high levels of security inherent to
the insurance regime. A key component to the
success of the buy-in was the close working
relationship PIC had with the company and
trustees, which is not a usual feature of such
a transaction, highlighting PIC’s commitment
and the great length it goes to for its clients.
The company has also proved its ability
to effectively manage scheme buyouts, as
done with EMI. In February 2014 PIC issued
annuity policies to individual members of the
EMI pension fund, just seven months after the
buyout; the buyout covered £1.5 billion of lia-
bilities and 20,000 members.
The company wrote to every member
within one week of the transaction happening
and dedicated helplines were set up.
However, due to the excellent written commu-
nications, fewer than 2 per cent of members
called the helpline, well below the industry
average.
PIC is exceptional in its approach to how
it treats its policyholders, offering unique com-
plementary events, which over the past 12
months have garnered almost 2,000 attend-
ees, across London, Birmingham and
Manchester.
The events give policyholders the chance
to reconnect with former colleagues and aim
to foster a community, building on the tradi-
tional values intrinsic to a defined benefit pen-
sion scheme. The events have been a triumph
for PIC, as some policyholders now meet up
outside these events.
Furthermore, in July 2014, PIC raised
around £300 million of subordinated debt
capital in its first ever foray into the capital
markets. The success demonstrates the confi-
dence investors have in PIC as a leading
brand in the wholesale pension insurance
sector. It has made around £300 million direct
investments in Manchester PFI, as well as
other investments in social housing and stu-
dent accommodation.
Over the year PIC has insured £2.7 billion
of defined benefit pension schemes and
transferred £1.5 billion EMI pension scheme
members to policy holders.
PIC is the epitome of good customer ser-
vice, reflected in the score of 99.8 per cent,
of satisfied and highly satisfied customers.
This combined with its dynamic market lead-
ing approach to de-risking make it a justifiable
winner of the Risk Management Provider of
the Year award.
The Risk Management Provider of the Year award went to PIC. Receiving the award was Anna Howlett, Corporate Communications Manager, PIC (centre left), Jay Shah, Head of Origination, PIC (centre right). Presenting the award was awards judge John Broker, Director, ITM, (left) and awards host Fred MacAulay (right).
28
Best Derisking Provider of the Year 2014
Pension Insurance Corporation
Pension Insurance Corporation plc is registered in England under registration number 05706720 with registered offices at 14 Cornhill, London EC3V 3ND. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. FRN 454345.
PIC is delighted to have won the Risk Management Provider of the Year award 2015, awarded in recognition of outstanding customer service.
Please contact:
Jay Shah: shah@pensioncorporation.com
Head of Business Origination
Telephone: 0207 105 2111
Or
David Collinson: collinson@pensioncorporation.com
Head of Strategic Development
Telephone: 0207 105 2110
Telephone: +44 (0)20 7105 2000www.pensioncorporation.com
14 Cornhill, London EC3V 3ND. Telephone: +44 (0)20 7105 2000
PIC specialises in innovative, bespoke bulk annuity transactions, offering superior client service to our policyholders and to the trustees and sponsors of UK defined benefit pension funds.
Our clients include:
Risks transferred, pensions insured
25 February 2015 - London Marriott Hotel, Grosvenor Square
Hedge Fund Manager of the Year: Aurum
Hedge funds have proved themselves a
worthy asset class profile for UK
pension funds over the years. As
schemes continue to weigh up their risk/
return options, many have included hedge
funds within their asset allocation structures
to help ride specific economic conditions.
The Pensions Age Hedge Fund Manager
of the Year award rewards the manager who
has proved themselves in the management of
this sophisticated asset class. Therefore, the
winner of this award is Aurum.
Founded in 1994, Aurum has developed
a range of commingled and bespoke multi-
manager portfolios with differing risk/return
objectives. Described by the judges as dis-
playing excellence, market participation, inno-
vation and meeting client needs, Aurum is
clearly highly recognised within the industry.
The company’s success is demonstrated
by its performance during periods of market
stress. In September last year, a month that
marked the 20th year managing hedge fund
portfolios for its clients, the Aurum funds
were positive despite global market
weakness. Furthermore, in September 1994,
Aurum launched the Aurum Investor Fund
amidst the massive bond rout, which hurt
both bond and equity markets globally. Not
only did the fund survive, it thrived and is
now Aurum’s longest running fund with a 20
year track record.
Aurum offers clients education on the
hedge fund industry, strategies and invest-
ment process such as the opportunity to
meet its CIO and analysts at manager meet-
ings and includes clients in aspects of the
‘due diligence’ process.
Advanced proprietary systems are at the
heart of Aurum’s research and investment
framework, facilitating thorough initial and
ongoing due diligence. This enables the com-
pany to manage port-
folios whilst mitigating
business risk and pro-
vide tailored reporting
that is current, relevant
and transactional.
In addition to this,
Aurum’s dynamic
transparency and
knowledge transfer
system, Proximity,
brings its investors
closer to the informa-
tion that affects their
investments and the
decision-making pro-
cesses. This includes up to date perfor-
mance, analysis and commentary, full trans-
parency of clients’ underlying investments
and fully customisable data and portfolio
modelling tools. This level of in-depth trans-
parency allows clients to effectively monitor
their investments and fully understand the
underlying portfolio and drivers of their
returns.
Aurum is also a business committed to
considering environmental, social and gov-
ernance issues and embraces the Ten
Principles of the United Nations Global
Compact and has signed the United Nations
Principles for Responsible Investment
Initiative.
In the field of innovation, Aurum has
delivered to the highest level. Identifying
where alpha can be found requires skill to
source the right managers with the talent to
produce returns that compound capital, irre-
spective of the movement of traditional mar-
kets. Recognising its capabilities in this area,
Aurum launched the Aurum Alpha Fund, one
of the first AIFMD-compliant fund of hedge
funds available to investors in Europe. The
company fully believes that an effective
hedge fund allocation can enhance long-
term performance and substantially limit the
downside risk of a portfolio. The right alloca-
tion provides diversification and capital pres-
ervation with low beta and low correlation to
traditional markets.
Congratulations to Aurum, a winner
dedicated to ensuring efficient and
sophisticated hedge fund management for
its pension fund clients.
The Hedge Fund Manager of the Year award went to Aurum. Receiving the award was Jason Sweidan, Director, Aurum (centre). Presenting the award was awards judge Peter Timberlake, Head of Communications, FRC (left) and awards host Fred MacAulay (right).
30
25 February 2015 - London Marriott Hotel, Grosvenor Square
Scepticism and open-mindedness Kevin Gundle, chief executive officer of Aurum Funds, explains the importance of getting the balance right on hedge funds
How do you nurture the pension fund
assets under your stewardship
when interest rates are at an all-
time low, bond rates are negative in some
cases, the almost six year equity bull-run is
potentially running out of steam and the
macro economic climate globally is, well,
uncertain?
One way is to follow the rising trends
and keep your fingers crossed that you get
out in time to capture all the upside and,
more importantly, not too much of the
downside. The other way is not to lose
money. This might sound obvious but few
stop to really think about what the asym-
metry of loss means. Put simply, you
always need to make back (a lot) more
than you lose to get back to breakeven.
So how do you avoid losses? Despite
performance that has left some investors
feeling short-changed, we still believe that
the arguments for hedge funds in a diver-
sified portfolio remain strong: they can
substantially limit the downside risk of a
portfolio. Long-term results from many
studies prove this point strongly.
There are, however, at least three
points to consider when allocating to
hedge funds for tomorrow. The first is to
look at the world now and not at the histor-
ic performance of yesterday. Although per-
formance over the long term looks good,
until recently hedge fund performance has
been in decline and over the same time
frame the number of hedge funds has bal-
looned.
This has resulted in investors becom-
ing over-awed with the industry and allo-
cating to the largest names, or other
untested opportunities. As the number of
funds has grown, the average industry per-
formance has converged to low or index-
like returns due to an increase in mediocre
managers. Applying some healthy scepti-
cism is in order.
The 2015 Deutsche Bank Annual
Alternative Investment Survey highlights
manager selection as a critical factor. This
is the second point to consider: identifying
the top-performing managers. “Manager
selection is becoming increasingly impor-
tant, as the gap between outperforming
and underperforming hedge funds widens.
While the average hedge fund returned
3.33 per cent in 2014, the top fifth percen-
tile generated returns greater than 22 per
cent,” the survey found.
When building a hedge fund portfolio,
manager selection is of paramount impor-
tance and this intensive task requires skill,
expertise and resources. It is not enough
to rely on past or current performance, or
to choose strategies because they are per-
forming now. The key is to identify manag-
ers that have a proven ability to generate
returns through the different market cycles
and the ability to adapt to changing envi-
ronments. To add to the complexity, regula-
tion that has been designed to protect
investors may in fact be limiting choice,
competition and opportunity.
The third point to consider is not to
look at hedge funds as an asset class but
as an asset management tool. Those that
view hedge funds as an asset class are
unlikely to put a meaningful amount to
work even though analysis suggests that
30 per cent might make more of a differ-
ence over time.
We are in a world of low interest rates
and low growth. Traditional fixed income
allocations may not provide the protection
and diversification enjoyed in the past,
whereas hedge funds have demonstrated
a differentiated return stream to traditional
portfolios. Investors should be open-mind-
ed about what some hedge funds can
offer and how to implement hedge funds
in their portfolios optimally.
Gone are the days where all funds of
funds offer catch-all products with high
fees. As a sector, funds of funds have
been driving transparency, greater disclo-
sure, better liquidity, lower fees from man-
agers and insisting on improved and more
accountable governance, comprehensive
reporting and effective communication.
Seeking the assistance of a fund of hedge
funds, particularly one that has applied les-
sons learned through the many market
cycles over the last 20 years, may be the
most sensible route forward. If there is one
group of investors who know how to apply
scepticism to hedge fund investing – it is
the fund of hedge funds.
31
25 February 2015 - London Marriott Hotel, Grosvenor Square
Innovation Award of the Year: Capita Employee Benefits
Innovation has been rife in the UK pensions
space, be that in the area of investment,
product design, de-risking or any other
area. Furthermore, innovation is needed for
companies and products to evolve with
industry development.
The Pensions Age Innovation Award of
the Year aims to reward those providers that
have truly added value to the pensions space
with originality and innovation.
The judges found Capita to have excelled
in this area. Described as a stand-out entry in
a very competitive category, Capita continues
to excel as an employee benefits consultancy
and its expertise ensures it continues to cre-
ate innovative consultancy and technology
solutions.
The firm has enhanced its Orbit benefits
portal using in-depth user experience pro-
cesses. Orbit allows clients to manage and
communicate pension and benefits and for
HR and finance, the system provides invalua-
ble management information and bespoke
reports, at the touch of a button that gives an
aggregated view of all pensions and benefits.
For members, Orbit creates a highly person-
alised experience allied with the supporting
Outer Orbit Communications to ensure they
feel special and engaged.
Capita believes in multi-channel commu-
nications strategies and added augmented
reality to its media options for clients; a first
in pensions and benefits communications. In
another industry first, Capita appointed Dr
Eric Tyree in January 2014 as chief data sci-
entist to build the firm’s quantitative analytics
capability – using
the mass of data
held on its proprie-
tary technologies to
build greater
insight into mem-
ber behaviours and
propensities.
On the diag-
nostic covenant
assessment side,
Capita in partner-
ship with Lincoln
International, has
developed a
unique covenant
service that
encompasses not
only the calculated
pension scheme liabilities but also the value
at risk inherent in the scheme’s investment
strategy so that the covenant, funding and
investment risks are looked at in context.
Using this methodology, Capita can quickly
identify cases of very strong or very weak
covenants, therefore making significant sav-
ings against the traditional desktop review
methodology.
The firm has also integrated its Orbit por-
tal and DB/DC administration platform. In
addition, Capita has launched Completetrace,
a seamless online tracing and verification
proposition and has launched Maestro, its
comprehensive DC consultancy proposition
delivering DC excellence.
Utilising the Completetrace portal,
scheme trustees can transfer all the existing
member data. Data is cleansed and tracing
and mortality commences. All results are
managed through the portal and correspond-
ence is automatically issued.
Traced members have the traditional
options of verifying by phone or post but they
are also able to use a simple electronic verifi-
cation online process to confirm their details.
By adding this online functionality Capita
has driven up verification rates to 60 to 65
per cent compared to an industry average of
25 to 30 per cent.
As genuine pioneers in the ever-chang-
ing pensions market, Capita’s submission
demonstrates an unrelenting commitment to
innovation and is a worthy winner.
Congratulations to all at the firm for winning
this category and for continuing to add value
in this field.
The Innovation Award of the Year went to Capita. Receiving the award was Susan Ring, Chief Executive, Capita (centre). Presenting the award was Francesca Fabrizi, Editor-in-Chief, Pensions Age (left) and awards host Fred MacAulay (right).
32
AD
1500
1
Capita Employee Benefi ts is a trading name of Capita Employee Benefi ts Limited and Capita Employee Benefi ts (Consulting) Limited. Part of Capita plc. www.capita.co.uk. Capita Employee Benefi ts Limited and Capita Employee Benefi ts (Consulting) Limited are registered in England & Wales No: 02260524 and 01860772 respectively. Registered Offi ce: 17 Rochester Row, Westminster, London, SW1P 1QT. Separately authorised and regulated by the Financial Conduct Authority.
Employee benefi ts
Data science
Our data science team, led by Dr Eric Tyree, is helping employersand trustees to apply consumer analytics to pension data.The outcome is better scheme design and better member engagement.
Technology solutions
Our tech team create innovative online solutions including:
• Tracing and ID verifi cation• Augmented reality communications• Online pension and benefi ts portal
To take your pension to the next level, come to Capita.
@Capita_EBCapitaEBCapita Employee Benefi ts
The Innovators
To fi nd out more, please email ceb.marketing@capita.co.ukor visit our website capita.co.uk/employeebenefi ts
AD15001_Capita EB PensionsAge_Ad_271x204_April2015.indd 1 27/03/2015 11:18
25 February 2015 - London Marriott Hotel, Grosvenor Square
Administration Provider of the Year: Premier
High quality administration is a key cog
in the smooth running of any pension
scheme and its importance within the
industry is growing all the time with
standards continually being driven up. With
increasing amounts of legislation sweeping
through the industry, trustees and employers
have never before been in greater need for
reliable, efficient and successful
administration providers.
The Pensions Age Administration
Provider of the Year award celebrates the
pension administration provider that offers
the strongest services to the market whilst
bringing with it both excellence and accuracy
to this vital role. Excelling in these criteria is
Premier.
Described by the judges as a firm that
has an almost unrivalled understanding of
the pensions administration space, Premier
has transformed the quality of administration
by setting a new standard for service and
delivery.
Over the past eight years, the firm has
managed to achieve a 99.9 per cent SLA
achievement rate, with remarkable average
process times of under two days. Combine
this with a very low error rate of 0.1 per cent
and the excellence of this firm becomes all
too clear.
Using Bizflow, the firm’s business
process, Premier has developed an
intelligent work processing solution that
adapts to individual scheme, member or
user experience. Through using a mixture of
past experience and management input, the
firm’s processes
now automatically
decide which work
cases require
escalation or
management review.
The processes
automatically adapt
by looking at the
past experience and
performance of each
user, scheme,
member or work
case to decide if the
work item is high
risk and requires
additional checking
or validation stages.
The system is now
so sophisticated it can look at individual
member records.
The Institute of Customer Service
measured client satisfaction levels at 74
compared to the market average of 69.
Premier’s unwavering focus on quality,
delivery and continuous innovation are just
some of the reasons why its administration
has never lost a single client and never
received a single complaint from a trustee or
employer.
Specifically within the DC retirement
outcome space, Premier’s web-based
education system, Gateway2Retirement,
helps members understand all pension
options and guides them to the right one for
them. If the annuity purchase is right for the
member, the service then provides a ‘whole
of market’ search engine where the annuity
takes into account the member/employee’s
lifestyle, health issues as well as post code.
This is particularly unusual as most
administrators currently only offer a panel
selection.
It comes as no surprise that the judges
were so impressed with the quality service
Premier offers and its dedication to the
industry. As the administration needs of UK
pension schemes intensify, the role Premier
plays as an administration provider will
become increasingly paramount. The
industry and judges have recognised the top
capabilities and achievements of this firm
and it should be seen as an exemplary
provider for all to see.
Congratulations to a much-deserved
winner.
The Administration Provider of the Year award went to Premier. Receiving the award was Dan Taylor, Head of Administration Services, Premier (centre). Presenting the award was awards sponsor Harpreet Badeshia, Marketing Executive, ITM (left) and awards host Fred MacAulay (right).
34
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Gold sponsor:
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