www.professionalpensions.com HANDBOOK 2017

PP Handbook_Cover 2017.indd 1 5/23/17 11:55 AM A changing landscape KPMG Pensions 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 Trustee Services pension schemes have shown – and we have had reports from the Work and Ad page 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. Helping trustees manage all sizes of Yet, at the same time as all this change, schemes, trustees and sponsoring employers continue to face the challenges of ongoing scheme management and pension fund by balancing people, funding – and rely on the support and expertise of their consultants, advisers and service providers to do this. technology, breadth and quality. 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

Handbooks Advertising Manager: Nita Hulme, [email protected] Editor-in-chief: Jonathan Stapleton Published by Incisive Business Media Ltd © Incisive Business Media (IP) Ltd Editorial & Advertising offices: 28-29 Haymarket, , SW1Y 4RX, Tel: +44 (0) 7316 9000 Time to change your adviser? Printed by Stephens & George Ltd Call the KPMG Trustee Services team today on 0118 373 1369 or visit www.kpmg.com/uk/trusteeservices 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. © 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. www.professionalpensions.com 2 The KPMG name and logo are registered trademarks or trademarks of KPMG International Cooperative.

PP Handbook_Covers.indd 2 6/5/17 10:46 AM CONTENTS

6 Actuaries & Consultants 75 DC Providers Smaller schemes getting improved Designing a gold standard DC value for money on actuarial fees scheme

17 Administration Services 80 Employee Benefits What schemes are looking for How employee benefits for in administration SMEs are changing

28 Alternative Investment 88 Employer Covenant JLT EMPLOYEE BENEFITS LGPS raises exposure to FTSE 350 schemes supported by alternatives weak covenants doubles HERE TO HELP

33 Annuity Providers 92 ESG Manager YOUR WORKFORCE LTA rethink needed in light of Putting ESG at the heart of AND ORGANISATION ‘gloomy’ annuity outlook investment decision making TO THRIVE. 36 Asset Management 98 Fiduciary Management Spotlight shines on active Reinventing the investment managers platform

55 Associations & Official Bodies 102 Hedge Fund Providers PLSA conducts governance Picking winning hedge fund review to ‘reinvent’ itself managers

59 Auditors & Accountants 106 Independent Trustees Pension accounting changes - 21st century trusteeship the what, when, who and how 111 Insurance Companies 63 Auto-Enrolment Consultants Dashboard one step closer to As a trustee, it was reassuring to Should AE rate hikes be in line with launch as ABI unveils prototype know that JLT have people who staging dates? understand and care about what 1 14 Investment Consultancy I wanted to achieve for our scheme 67 Auto-Enrolment Providers ‘Big three’ consultancies set Why are opt-out rates much higher sights on change and our members among older workers? 119 Liability-Driven Investment Go to jltemployeebenefits.com 70 Communications LDI must evolve Learning lessons from the EU

referendum 122 Multi-Managers 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. 74 Custodians Registered Office: The St Botolph Building, 138 , London EC3A 7AW. VAT No. 244 2321 96. © May 2017 273494 3 Professional Pensions Handbook 2017

Untitled-2 1 5/23/17 1:10 PM CONTENTS

1 24 Pensions Master Trusts 1 46 Software & Systems Gap in investment quality Can the dashboard develop with patchy data? 1 30 Performance Measurement Why schemes need to look beyond 1 53 Solicitors & Legal Advisors total returns when measuring Should it be mandatory for success schemes to appoint a lawyer?

1 33 Property Services 159 SSASs What did we learn from real estate markets in 2016? 161 Tracing Companies Independent providers 1 38 Risk Reduction Providers 164 Training Provider Guide The next de-risking innovation? of innovative actuarial, 165 Transition Management Ad page 142 SIPPs administration and Concerns over interest skimming 1 66 Trustee Liability Insurance ‘overstated’ consultancy services 169 Trustee Training How trustees can improve record- keeping ahead of TPR’s new rules for over 25 years

CONSULTING ACROSS: www.professionalpensions.com HANDBOOK 2017www.professionalpensions.com HANDBOOK 2017 RISK | PENSIONS | INVESTMENT | INSURANCE www.professionalpensions.com HANDBOOK The 2017 Professional www.barnett-waddingham.co.uk [email protected] Pensions 0333 11 11 222 Handbook 2017 To ensure your inclusion in the 2018 Handbook contact Nita Hulme NOW on +44 (0)20 7316 9309 or [email protected]

5 Professional Pensions Handbook 2017

Untitled-2 1 5/24/17 11:36 AM ACTUARIES & CONSULTANTS ALLENBRIDGE – BARNETT WADDINGHAM

ALLENBRIDGE INVESTMENT Smaller schemes getting improved SOLUTIONS LLP 26th Floor value for money on actuarial fees 125 Old Broad Street London he money smaller schemes pay in actuarial fees is going further on a like-for-like EC2N 1AR BARNETT WADDINGHAM LLP basis, research from KGC Associates revealed. Tel: 020 7079 1000 House The consulting firm’s 7th annual actuarial fees survey looked at the actuarial Website: www.allenbridgeis.com 138 Cheapside fees schemes pay for core tasks such as triennial evaluations alongside those London Tadditional services charged at an hourly rate. ALLIANCE TRUST EC2V 6BW While there has not been much movement in how much schemes pay in actuarial PO Box 164 Tel: 0333 11 11 222 Actuaries & Consultants Email: [email protected] fees, this year’s report found the fees small schemes pay for core services went further 8 Westmarket Gait Dundee Website: www.barnett-waddingham.co.uk compared to last year’s survey. DD1 9YP KGC said this showed actuaries have responded to the needs of trustees when it comes to Tel: 01382 321000 costs of services. Website: www.alliancetrust.co.uk Contact: Paul Houghton 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.” AON HEWITT Founded in 1989, Barnett Waddingham She said, similarly positive, the analysis of meeting costs, included in the report for the first 10 Devonshire Square has grown to become the UK’s largest time this year, found small schemes not disadvantaged by their size. London independent provider of actuarial, Therefore small schemes pay lower average cost per meeting than large schemes. EC2M 4YP administration and consultancy services. So a 200 member scheme which has two meetings a year paid an average cost of Tel: 0800 279 5588 From small beginnings with just 20 people, our total headcount is now over 850 £1,537 per meeting. Website: www.aonhewitt.co.uk (including 64 partners and 97 associates) Meanwhile a 20,000 member scheme that has four meetings a year paid an average cost ATKIN & CO – with offices in seven locations around the of £2,306 per meeting. UK. We act for a wide range of clients, large Cornwall House Gubler added: “We don’t know what the explanation for this is. It could be that the and small, in both the private and public Blythe Gate meetings are of a shorter duration contrasted with larger schemes or the trustees of small sectors including 15% of FTSE350 firms Blythe Valley Park schemes could be meeting the actuaries at their offices. This could reduce the cost of the with a DB scheme. Solihull We continue to grow through referrals from meeting when it occurs.” West Midlands professional contacts and our existing The report also revealed that fees paid in terms of the unit cost per member (UCM) were B90 8AF clients. Our primary focus is to continue very different for large and small schemes. Tel: 0121 506 8200 to provide the personal, quality, tailored The UCM is derived by dividing the total cost by the total number of members and shows Website: www.atkin.uk.com approach that has made us successful the highest, average and lowest fees for all scheme sizes. and has led to our high level of client So a plan with 200 members had the highest UCM (maximum fee that could be paid in a retention. We seek to build stable and year) of £213.50 while the equivalent for a 20,000 member scheme was £6.43. long-term working relationships with clients, Similarly the lowest UCM (smallest fee that could be paid in a year) was £66.17 for a 200 supported by our low staff turnover. member plan and £3.53 for a 20,000 member plan. Authorised and regulated by the Financial Gubler said she believed such a discrepancy meant there had to be further discussion Conduct Authority and licensed by the about value for money going forward. Institute and Faculty of Actuaries for a She said: “For trustees it is important that they do not just focus on absolute cost but range of investment business activities. 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.

6 Professional Pensions Handbook 2017 www.professionalpensions.com 7 BATH ACTUARIAL – CAPITA CARTWRIGHT CONSULTING – DELOITTE TOTAL

BATH ACTUARIAL CONSULTING LTD CARTWRIGHT CONSULTING LTD with our clients to deliver tailored, innovative

Actuaries & Consultants Actuaries PO Box 5110 Mill Pool House solutions across health, risk and wellbeing, Bath Mill Lane flexible benefits, share plans, and DB and CAPITA EMPLOYEE BENEFITS BA1 0QY Godalming DC pension schemes for both trustees and 65 Gresham Street Tel: 01225 481 450 Surrey corporates alike. London Website: www.bathactuarial.com GU7 1EY EC2V 7NQ Tel: 01483 860201 We aim to help you effectively manage Tel: 020 7709 4500 BBS CONSULTANTS & Website: www.cartwrightconsulting.co.uk the full range of your HR, pension, and Email: [email protected] benefits programmes, whilst engaging your ACTUARIES LTD Website: employees/scheme members in their health, 23-25 St Georges’ Road www.capitaemployeebenefits.co.uk CHASE DE VERE wealth, and career. We integrate our years of Canard Court 60 New Broad Street Actuaries & Consultants experience with current day expertise and a Bristol Contact: Lynne Stewart London customer partnership approach, to help you BS1 5UU Twitter: @Capita_EB W1G 0PW overcome your challenges. Tel: 0117 937 8700 Facebook: Capita Employee Benefits Tel: 020 7065 1700 Website: www.bbs-actuaries.co.uk Linkedin: www.linkedin.com/groups/ Website: www.chasedevere.co.uk Our consultants are proactive, commercial, Capita-Employee-Benefits-4681308 BRIAN TATCH & CO CLUB VITA balanced, and professional, focused on meeting and exceeding the needs of our 14 Branscombe Gardens Employee Benefits Consultancy of One clients. By harnessing technology of the London the Year: London future, and the power of Conduent’s global N21 3BN UK Pensions Awards 2016 EC2Y 5EA reach, we can help you to achieve your goals. Tel: 020 8882 6466 Firm of the Year: Tel: 020 7082 6060 Corporate Adviser Awards 2015 & 2017 Website: www.clubvita.co.uk BROADSTONE CORPORATE Pensions Consultancy of the Year: BENEFITS LTD Pensions Age Awards 2014 COLUMBIA THREADNEEDLE 55 INVESTMENTS DELOITTE TOTAL REWARD AND London Capita Employee Benefits is the largest 60 St Mary Axe BENEFITS W1U 7EU UK-owned employee benefits consultancy London Hill House Tel: 020 7893 3456 servicing over 1,200 clients and more than EC3A 8JQ 1 Little New Street Website: www.broadstone.co.uk 4 million scheme members. Tel: 020 7464 5000 London With offices across the UK, we are part of Website: www.columbiathreadneedle.co.uk EC4A 3TR Capita plc. Tel: 020 7007 3687 Website: www.deloitte.co.uk We offer a fully integrated service. Our actuaries, investment consultants and Our actuaries and pensions consultants pension consultants work closely together provide a full range of specialist pensions CONDUENT HR SERVICES actuarial services to scheme trustees and to support our sponsor, trustee and 160 Queen Victoria Street sponsoring employers on both defined pension manager clients. London benefit and defined contribution schemes. EC4V 4AN We use our skills and the best technology Tel: 0800 066 5433 These include: on the market to help schemes navigate Email: [email protected] •Trustee services, including formal Scheme the path to fully managing their risk and Website: www.conduent.co.uk/hrservices fully meeting their obligations. Actuary and Administration appointments, trustee advisory services and the Deloitte Conduent HR Services is an established, Pensions Master Plan, our comprehensive leading provider of consulting, administration solution to defined benefit pension provision and outsourcing services to fulfil the for employers and trustees. pensions and benefits needs of you and your employees/scheme members. We work

8 Professional Pensions Handbook 2017 www.professionalpensions.com 9 DELOITTE TOTAL – HARSANT PENSIONS HS ADMINISTRATIVE SERVICES – KPMG LLP

•Defined Contribution strategy, scheme EY LLP HS ADMINISTRATIVE SERVICES LTD JOHNSON FLEMING LIMITED

Actuaries & Consultants Actuaries design, implementation and governance 1 More London Place 3300 Daresbury Park Fleming House advice. London Warrington Bromsgrove Enterprise Park SE1 2AF WA4 4HS Worcestershire •Corporate advisory services, including Tel: 020 7951 2000 Tel: 01928 707 900 B60 3AL pensions strategy and funding negotiation Tel: 0118 928 1100 Website: www.hsadmin.com Tel: 0870 242 8600 support for employers, as well as specialist Website: www.ey.com/uk Website: www.johnsonfleming.com advice on funding deficits, including asset HUGHES PRICE WALKER LTD backed contributions (e.g. Deloitte’s FIRST ACTUARIAL PLC Pembroke House KGC CONSULTING Pension Funding Partnerships). Mayesbrook House 15 Pembroke Road Woodpecker Lodge

Lawnswood Business Park Clifton 15, Ford Lane Actuaries & Consultants •Preparation of accounting disclosures and Leeds Bristol Roxton pensions accounting advice. LS16 6QY BS8 3BA Bedfordshire Tel: 0113 818 7300 Tel: 0117 946 7269 MK44 3EL •Scheme funding strategy advice, including Website: www.firstactuarial.co.uk Website: www.hughespricewalker.co.uk Tel: 01234 871010 pensions derisking strategies, liability Website: www.kgcconsulting.com management, pension scheme buyouts and GATEMORE CAPITAL HUNTSWOOD funding negotiation support for employers. MANAGEMENT LLP Abbey Gardens 33 Cavendish Square Abbey Street •Developing, implementing and monitoring London Reading investment strategies for trustees and W1G 0PW RG1 3BA sponsoring employers. Tel: 020 7580 0300 Tel: 0844 875 120 KPMG LLP Website: www.gatemore.com Website: www.huntswood.com •M&A and Transaction support, including Arlington Business Park due diligence and post-transaction Theale HYMANS ROBERTSON implementation. HAMISHWILSON LIMITED Reading The Byre One London Wall Berkshire London DENTONS PENSION MANAGEMENT Wheelers Lane RG7 4SD Brockham EC2Y 5EA Tel: 0118 373 1369 Sutton House Betchworth Tel: 020 7082 6000 Fax: 0118 373 1373 Weyside Park Surrey Website: www.hymans.co.uk Website: www.kpmg.com/uk/pensions GU7 1XE RH3 7HJ Tel: 01483 521521 Tel: 0870 160 5700 JAGGER & ASSOCIATES Contact: Ray Pygott Website: www.dentonspensions.co.uk Website: www.hamishwilson.com Ground Floor Email: [email protected] 14 Exchange Quay ESHARE HARSANT PENSIONS Salford Quays Our pension team of over 400 people 1 Oxford Road 321 Pensby Road Manchester advise all sizes of pension funds and our Newbury Heswall M5 3EQ clients include some of the biggest pension Berkshire Wirral Tel: 0161 873 9350 schemes in the UK right through to small RG14 1PD CH61 9ND Website: www.jaggerandassociates.co.uk and medium sized pension schemes. Tel: 0845 200 7829 Tel: 0151 648 7615 We have offices in London, Reading, Website: www.eshareuk.com Website: www.harsantpensions.co.uk JAMES HAY PARTNERSHIP Bristol, Birmingham, Manchester, Leeds, Dunn’s House Edinburgh and Glasgow St Paul’s Road Salisbury We offer services to both trustees and SP2 7BF scheme sponsors on the full range of Tel: 0845 850 44 55 pension services for Defined Benefit (DB), Website: www.jameshaypartnership.com Defined Contribution (DC) and hybrid

10 Professional Pensions Handbook 2017 www.professionalpensions.com 11 KPMG LLP – MERCER MICHAEL J. FIELD – PREMIER PENSIONS

pension schemes. We provide full services indemnity societies, local authorities, MICHAEL J. FIELD Actuaries & Consultants Actuaries to trustees covering, administration, government bodies, brokers and auditors. CONSULTING ACTUARIES actuarial, investment and covenant 8 St Stephen Street PREMIER PENSIONS support. Our advice and solutions 3. Investment Manchester MANAGEMENT LIMITED extend to the areas of scheme funding, Our investment team provides high M3 6AY Premier risk management, insurance solutions, quality investment advice to trustees and Tel: 0161 834 3297 AMP House benefit design, asset backed funding, sponsors of pension schemes, as well as Website: www.michaeljfield.com Dingwall Road communications, member options, advice to clients in the broader area of risk Croydon liability management, transactions & management. MITCHELL CONSULTING CR0 2LX restructuring, PPF levy mitigation and ACTUARIES LTD Tel: 020 3727 9800 public sector pensions. 4. Energy Analytics Albion Wharf Fax: 020 3014 8768 Actuaries & Consultants We combine in-depth knowledge of the Albion Street Email: energy sector with modelling expertise Manchester [email protected] developed over many years of engagement M1 5LN Website: www.premiercompanies.co.uk

with government and industry to help our Tel: 0161 236 1330 clients make informed decisions. LCP Website: www.mitchellconsulting.co.uk Contacts: Ian Gutteridge 95 Wigmore Street Title: Sale & Marketing Director Our core consulting services include the London NIGEL SLOAM & CO Email: following areas of expertise: W1U 1DQ Roman House [email protected] Tel: +44 (0)20 7439 2266 296 Golders Green Road • Strategic consulting for trustees and Fax: +44 (0)20 7439 0183 London Paul Couchman corporate sponsors Email: [email protected] NW11 9PY Title: Managing Director • Employee benefits Website: www.lcp.uk.com Tel: 020 8209 1222 Email:  • Executive pensions Website: www.nigelsloam.co.uk [email protected] LCP is a firm of financial, actuarial and business • Covenant services • Pension scheme administration consultants, specialising in the areas of ORIGEN FINANCIAL SERVICES LTD Association Memberships: NAPF, ACA pensions, investment and business analytics. • Defined contribution services 1st Floor, Infor House • Trustee governance 1 Lakeside Road Services offered: To Trustees: Consultant, We advise more than 30 of the FTSE 100 and • Pension buyout and de-risking Farnborough Actuarial, Administration Services, Risk our clients include 3i, Barnado’s, Lenovo, NM • Corporate financial reporting Hampshire Benefits and I.F.A Services Rothschild & Sons, Smith & Nephew, Tate & • Merger and Acquisitions GU14 6XP Lyle, UNISON, Volkswagen and Whitbread. • Public Sector outsourcing Tel: 0844 209 3000 To Companies: Strategic Consulting • Multinational consulting Website: www.origenfs.co.uk and Actuarial advice and on-site support. The firm has more than 600 staff based at • Setting investment strategy Advice on contract based pension and locations in London, Winchester, Ireland, and • Investment manager research and flexible benefit plans. - operating under licence - the Netherlands. performance monitoring ORTEC FINANCE LTD 23 Austin Friars • Solvency II To Individuals: Financial Planning 1. Pensions • Reserving London EC2N 2QP We have 70 years of experience of advising • Business modelling and risk appraisal Total Employees (UK): 160 on complex pensions issues in the UK and Tel: 020 3178 3913 Website: www.ortec-finance.com internationally. MERCER Number of Pensions Fund Clients: 300 1 Tower Place West 2. Insurance London Value of Funds Advised: £15bn We provide a full range of actuarial and EC3R 5BU consulting advice to insurance clients Tel: 020 7626 6000 Associated Companies: including Lloyd’s managing agents, Website: www.mercer.com Premier Pensions Management Ltd. insurance companies, captives, medical Premier Benefit Solutions Ltd.

12 Professional Pensions Handbook 2017 www.professionalpensions.com 13 PREMIER PENSIONS – QUANTUM ADVISORY QUANTUM ADVISORY – ROYAL LONDON

Premier Benefit Solutions Ltd. PRICEWATERHOUSECOOPERS LLP Cardiff/Bristol QUATTRO PENSIONS

Actuaries & Consultants Actuaries Other Offices: Bristol Hays Galleria Stuart Price, Partner CONSULTING LTD 1 Hays Lane Direct line: 029 2083 7902 Prospect House Company Profile: London Email: Fishing Line Lane Premier was established to challenge the SE1 2RD [email protected] Redditch status quo in the pensions industry and to Tel: 020 7583 5000 Worcestershire offer a range of services which actually meet Website: www.pwc.co.uk London B97 6EW customer needs at competitive costs. Phil Farrell, Partner Tel: 01527 598688 P-SOLVE Direct line: 020 3008 7197 Website: www.quattropensions.com Premier clients will be either trustees, 11 Strand Email: employers or individuals and our services are [email protected] London ROWANMOOR GROUP PLC Actuaries & Consultants focussed on their particular requirements. WC2N 5HR Rowanmoor House Tel: 020 3327 5100 Established in 2000, Quantum Advisory For trustees, a full range of advisory and 46-50 Castle Street Website: www.psolve.com is an independent Financial Services Salisbury support services are offered including Consultancy that provides solution based pensions consulting, secretary to the Wiltshire PUNTER SOUTHALL Pensions and Employee Benefits services trustees, actuarial advice, administration, SP1 3TS 11 Strand to employers, scheme trustees and the insurance of risk benefits and all relevant Tel: 03445 440 440 London members. communications. Our approach is to offer Website: www.rowanmoor.co.uk WC2N 5HR either a full range of services to manage the Tel: 020 3327 5000 We design, maintain and review pension scheme or to allow the trustees to pick and Website: www.puntersouthall.com schemes and related employee benefits so choose from the range available. that they operate efficiently and effectively, and are valued by employees. This means For individuals, independent advice can be that you can get on with doing the things provided on a fully FSA regulated basis to that you do best, therefore saving you time ROYAL LONDON ensure impartiality and a focus on individual and money. needs. QUANTUM ADVISORY CONSULTING ACTUARIES 57 Henderson Row Cypress House We offer a range of services to companies For companies, we can provide strategic Edinburgh Pascal Close and pension trustees, all designed to focus benefits advice, the management of group EH3 5DL St. Mellons on your specific needs, including actuarial, personal pension plans including selection and Tel: 0131 652 5550 Cardiff administration (including accounts and on-going governance support, the insurance Email: CF3 OLW payroll), communications, consultancy, of benefits such as private medical cover, [email protected] Tel: 029 2083 7900 investment, secretarial and trustee disability and critical illness cover, salary Website: www.quantumadvisory.co.uk training. Website: www.royallondonconsulting.co.uk sacrifice and high earners’ support. In addition, actuarial support for pensions’ accounting or Contacts: We have offices in Amersham, We provide straightforward, pragmatic actuarial funding negotiations with trustees is Amersham Birmingham, Bristol, Cardiff and London. advice. We have the expertise and agility to also offered. Rhidian Williams, Partner Call us to see how we can help with your develop the best solution, giving you time to Direct line: 01494 582 024 concentrate on your business. Significant on-going investment in technology pension and employee benefit challenges. Email: ensures that our service is responsive, [email protected] Our pension consulting services are built relevant and accurate and assists us greatly around the needs of small to medium sized with the communication of our consulting Birmingham pension schemes and their employers. support. Premier are fully committed to long Robert Palmer, Partner standing relationships with clients, Direct line: 0121 632 2190 Email: Experience the difference…. See change. [email protected]

14 Professional Pensions Handbook 2017 www.professionalpensions.com 15 RUSSELL INVESTMENT– XAFINITY CONSULTING ADMINISTRATION SERVICES

RUSSELL INVESTMENT LTD XAFINITY CONSULTING

Actuaries & Consultants Actuaries Rex House Phoenix House What schemes are looking for 10 Lower 1 Station Hill London Reading in administration SW1Y 4PE Berkshire Tel: 020 7024 6000 RG1 1NB his years’ PP Administration Survey revealed what schemes are looking for in Website: www.russell.com/uk Tel: 0118 918 500 administration systems and third-party administrators, and highlights the key providers. Website: www.xafinity.com This survey gathered data from respondents in both the public and private sector; and STAMFORD ASSOCIATES LIMITED across a range of different scheme types - with 81% of respondents outsourcing the 19-21 Old Tadministration for their main scheme and 19% keeping their administration in-house. London PP received responses across a whole spectrum of schemes in terms of assets under W1S 4PX management. Almost one-quarter (23%) of those who responded to this year’s survey ran assets of Tel: 020 7629 5225 more than £1bn; a further 10% of schemes were worth somewhere between £500m and £1bn; and Website: www.stamfordassociates.com 21% of schemes were worth between £100m and £500m. TOWRY GROUP Smaller schemes also responded to the survey – with around 46% of responses coming from Towry House schemes worth less than £100m. Western Road So what are the reasons behind the decision to keep scheme administration in-house? There are Bracknell many it would seem but this year cost control was cited as the primary driver, having a weighted Berkshire importance score of 68. The next most important factors were quality of service (51), level of RG12 1TL expertise (40) and flexibility (35). Tel: 01344 828 000 However, while many schemes wish to keep their administration in-house they often need to Website: www.towrylaw.com 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 TRIANGLE PENSIONS arrangements and communication. Unit 7 Assessing how well administration systems work is important and the results of this year’s Sandown Road Industrial Estate survey shows there are many ways schemes are employing to do this. Just over two-thirds (67%) Sandown Road Watford of schemes managed in-house said they assessed the efficacy of their administration through WD24 74B benchmarking. Tel: 01923 253 464 The next most popular method was having a regular review - 47% of scheme participants said Website: www.triangle-pensions.co.uk they held quarterly reviews and 40% said they held these annually.

www.professionalpensions.com HANDBOOK www.professionalpensions.com 2017 HANDBOOK 2017 www.professionalpensions.com Complaint levels were also a popular way to judge performance with 42% of scheme participants HANDBOOK 2017 WILLIS TOWERS WATSON To ensure your choosing this option, while 40% of those who answered the question said they gauged the efficacy 71 High Holborn inclusion in the of their administration by using member surveys. London Surprisingly perhaps, 40% of survey participants said they had no process in place to measure WC1V 6TP 2018 the performance of their administration. Tel: 020 7170 2000 The survey then went on to ask those who kept scheme administration largely in-house to let us Website: www.willistowerwatson.com Professional Pensions Handbook 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 contact Nita Hulme not important at all and five being essential. An average of these scores was then produced to put NOW on together a ranking of the most important features of administration systems. +44 (0)20 7316 9309 or 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 [email protected] 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. 16 Professional Pensions Handbook 2017 www.professionalpensions.com 17 AON HEWITT – BARNETT WADDINGHAM BARNETT WADDINGHAM – CAPITA EMPLOYEE BENEFITS

AON HEWITT our administration clients achieve their goals particularly where data originates from CANTWELL GROVE LIMITED 10 Devonshire Square by striking an appropriate balance between multiple sources The Old Registry

Administration Services London technology and people skills. • comprehensive internet functionality and 6 Derby Road EC2M 4YP links to other systems (such as HM Belper Tel: 0800 279 5588 We are extremely proud to have been Revenue & Customs) Derbyshire Website:  awarded the PASA Accreditation. This award • trustee secretarial services including DE56 1UU www.aonhewitt.co.uk/administration recognises the organisations in our industry meeting management Tel: 01773 307200 which have evidenced compliance with the • consultancy services Website: www.cantwellgrove.co.uk ARTHUR J. GALLAGHER PASA Standards and affirms our position as The Walbrook Building one of the leading Third-Party Administrators Authorised and regulated by the Financial 25 Walbrook in the UK. Conduct Authority and licensed by the London EC4N 8AW Institute and Faculty of Actuaries for a range Tel: +44 (0)20 7204 6195 Our well trained and qualified staff are highly of investment business activities. ServicesAdministration Website: www.gallaghereb.com motivated and, perhaps more importantly, CAPITA EMPLOYEE BENEFITS take pride in their work aiming to achieve the BARTLETT GROUP 65 Gresham Street very highest standards. All our administration Broadway Hall London services for each client are provided by one Horsforth EC2V 7NQ of our administration teams, dedicated to Leeds Tel: 020 7709 4500 that client, who take responsibility for all LS18 4RS Email: [email protected] aspects of the administration of the scheme. Tel: 0113 258 5711 Website: Website: www.bartlettgroup.com www.capitaemployeebenefits.co.uk Technology has an important role to play in providing an accurate, efficient and BATH ACTUARIAL CONSULTING LTD Contact: Debbie White secure service which is risk managed and PO Box 5110 Twitter: @Capita_EB cost effective. Our pension administration Bath Facebook: Capita Employee Benefits BARNETT WADDINGHAM LLP software, Penstream, is being continually BA1 0QY Linkedin: www.linkedin.com/groups/ Cheapside House developed by IT experts with a pensions Tel: 01225 470 036 Capita-Employee-Benefits-4681308 138 Cheapside background and driven by experienced Website: www.bathactuarial.com London administrators in order to meet these goals. Communications Innovation of the EC2V 6BW BERKELEY BURKE Year: Tel: 0333 11 11 222 We provide the full range of administration Berkeley Burke House UK Pensions Awards 2016 Email: [email protected] services for group occupational pension Regent Street Third Party Administrator of the Year: Website: www.barnett-waddingham.co.uk schemes - defined benefit, defined Leicester PIPA Awards 2015 contribution, career average revalue earnings LE1 7BR Firm of the Year: Contact: Paul Latimer (CARE), hybrid, open, closed and those Tel: 0116 204 2988 Corporate Adviser Awards 2015 & 2017 transferring to the Financial Assistance Website: www.berkeleyburke.com Barnett Waddingham LLP is the UK’s Scheme and the Pension Protection Fund. Capita Employee Benefits is the largest largest independent provider of actuarial, BROADSTONE CORPORATE UK-owned employee benefits consultancy administration and consultancy services. These services include: BENEFITS LTD servicing over 1,200 clients and more than 4 Founded in 1989 our headcount has grown • membership record keeping 55 Baker Street million scheme members. from 20 to over 850 today based in seven • member communications London offices throughout the UK. • benefit calculations and payments W1U 7EU With offices across the UK, we are part of including electronic payments Tel: 020 7893 3456 Capita plc. Developing client relationships at all levels • all regulatory reporting including e-filing Website: www.broadstoneltd.co.uk and ‘knowing our client’ is an extremely • full cash and accounting services including We offer clients a blend of experience, scale important part of Barnett Waddingham’s drafting the annual report and accounts and expertise in the administration market. personal service based approach. We help • data audits and data cleansing exercises,

18 Professional Pensions Handbook 2017 www.professionalpensions.com 19 CAPITA EMPLOYEE BENEFITS – EQUINITI PENSION SOLUTIONS GO PENSIONS – KPMG PENSIONS

Our Hartlink administration platform is a with our clients to deliver tailored, innovative GO PENSIONS HYMANS ROBERTSON proven performer with excellent automation, solutions across health, risk and wellbeing, The Belfrey One London Wall

Administration Services outstanding member communications, flexible benefits, share plans, and DB and 237 Queens Road London precise workflow management and DC pension schemes for both trustees and Wimbledon EC2Y 5EA the flexibility to manage DB, DC, Cash corporates alike. London Tel: 020 7082 6000 Balance and CARE schemes and all points SW19 8NY Website: www.hymans.co.uk in between. The platform has been fully We aim to help you effectively manage Tel: 020 8213 5860 updated to cope with all aspects of the new the full range of your HR, pension, and Website: www.go-pensions.co.uk pension freedoms and is capable of handling benefits programmes, whilst engaging your one-off, regular and ad hoc payments. employees/scheme members in their health, GODDARD PERRY CONSULTING wealth, and career. We integrate our years of 8th Floor Our implementation and transition teams experience with current day expertise and a Corinthian House JLT EMPLOYEE BENEFITS Administration ServicesAdministration work closely together to ensure scheme are customer partnership approach, to help you 17 Lansdowne Road The St Botolph Building brought on board in a timely and seamless overcome your challenges. Croydon 138 Houndsditch fashion while our operations and client Surrey London management team will work closely with you Our consultants are proactive, commercial, CR0 2BX EC3A 7AW throughout the lifetime of the scheme. balanced, and professional, focused on Tel: 020 8603 3700 Tel: 020 7528 4000 meeting and exceeding the needs of our Website: www.goddardperry.com Website: www.jltgroup.com/eb Supported by secretarial, data, tracing and clients. By harnessing technology of the scheme wind-up experts, we are your perfect future, and the power of Conduent’s global THE HANOVER TRUSTEE Our straightforward, member-focused partner for scheme administration. reach, we can help you to achieve your goals. COMPANY LTD approach takes away the hassle from 824 Salisbury House running your schemes which is why CAREY PENSIONS UK LLP DBC PENSIONS SERVICES LIMITED London Wall JLT are the largest provider of pensions 1st Floor 1D Mitre Court EC2M 5QQ administration to the private sector. Lakeside House Lichfield Road Tel: 020 7585 8406 Shirwell Crescent Furzton Lake Sutton Coldfield Website: www.hanover-pensions.co.uk KPMG PENSIONS Milton Keynes West Midlands Arlington Business Park MK4 1GA B74 2LZ HARSANT PENSIONS Theale, Reading Tel: +44 (0) 1908 336010 Tel: 0121 362 8550 321 Pensby Road Berkshire Website: www.careypensions.co.uk Website: www.dbcpensions.co.uk Heswall RG7 4SD Wirral Tel: 0118 373 1369 EQUINITI PENSION SOLUTIONS CH61 9ND Website: www.kpmg.com/uk/pensions Sutherland House Tel: 0151 648 7615 Russell Way Website: www.harsantpensions.co.uk CONDUENT HR SERVICES Crawley 160 Queen Victoria Street West Sussex HS ADMINISTRATIVE London RH10 1UH SERVICES LIMITED EC4V 4AN Tel: 01293 560 999 25 Goodlass Road Tel: 0800 066 5433 Website: www.equiniti.com Liverpool Email: [email protected] L24 9HJ Website: www.conduent.co.uk/hrservices Tel: 0151 448 5400 Website: www.hsadmin.com 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

20 Professional Pensions Handbook 2017 www.professionalpensions.com 21 LCP - THE PENSIONS TRUST PREMIER PENSIONS MANAGEMENT

MERCER Other Offices: Bristol 1 Tower Place West Company Profile:

Administration Services Tower Place PREMIER PENSIONS LCP London Premier was established to challenge the MANAGEMENT LIMITED St Paul’s House EC3R 5BU status quo in the pensions industry and to Premier St Paul’s Hill Tel: 020 7626 6000 offer a range of services which actually meet AMP House Winchester Website: www.mercer.com customer needs at competitive costs. Dingwall Road S022 5AB Croydon Premier clients will be either trustees, Website: www.lcp.uk.com MITCHELL CONSULTING ACTUARIES LIMITED CR0 2LX employers or individuals and our services are Tel: 020 3727 9800 focussed on their particular requirements. Contact: Daren Newman Albion Wharf Fax: 020 3014 8768 Title: Partner Albion Street Email: For trustees, a full range of advisory and ServicesAdministration Tel: +44 (0)1962 870060 Manchester [email protected] support services are offered including Fax: +44 (0)1962 870086 M1 5LN Website: www.premiercompanies.co.uk pensions consulting, secretary to the Email: [email protected] Tel: 0161 236 1330 Website: www.mitchellconsulting.co.uk trustees, actuarial advice, administration, Contacts: Ian Gutteridge the insurance of risk benefits and all relevant LOCAL PENSIONS PARTNERSHIP OFA TRUSTEE SERVICES LIMITED Title: Sale & Marketing Director communications. Our approach is to offer LTD Email: either a full range of services to manage the 2nd Floor 36 East Stockwell Street Colchester [email protected] scheme or to allow the trustees to pick and 169 Union Street choose from the range available. London Essex CO1 1ST Paul Couchman SE1 0LL Title: Managing Director For individuals, independent advice can be Tel: 020 7369 6000 Tel: 01206 761 252 Website: www.offord-fenning.com Email:  provided on a fully FSA regulated basis to ensure Website: [email protected] impartiality and a focus on individual needs. www.localpensionspartnership.org.uk PENSION & BENEFIT For companies, we can provide strategic SERVICES LIMITED Association Memberships: NAPF, ACA LONDON PENSIONS FUND benefits advice, the management of group Cyclops House AUTHORITY personal pension plans including selection and Link Business Park Services offered: To Trustees: Consultant, Dexter House on-going governance support, the insurance York Actuarial, Administration Services, Risk 2 Royal Mint Court of benefits such as private medical cover, YO10 3JB Benefits and I.F.A Services London disability and critical illness cover, salary Tel: 01904 422 702 EC3N 4LP sacrifice and high earners’ support. In addition, Website: www.pbslyork.com To Companies: Strategic Consulting Tel: 0207369 2687 and Actuarial advice and on-site support. actuarial support for pensions’ accounting or Website: www.lpfa.org.uk actuarial funding negotiations with trustees is THE PENSIONS TRUST Advice on contract based pension and flexible benefit plans. also offered. MCHARDY & BURNETT (FINANCIAL Verity House 6 Canal Wharf Significant on-going investment in technology SERVICES) LTD To Individuals: Financial Planning Leeds ensures that our service is responsive, 5-7 Bon Accord Crescent Total Employees (UK): 160 Aberdeen Yorkshire relevant and accurate and assists us greatly LS11 5BQ with the communication of our consulting AB11 6DN Number of Pensions Fund Clients: 300 Tel: 01224 578250 Tel: 0113 234 5500 support. Premier are fully committed to long Website: www.thepensionstrust.org.uk standing relationships with clients, Website: www.machardyandburnett.com Value of Funds Advised: £15bn Experience the difference…. See change. Associated Companies: Premier Pensions Management Ltd. Premier Benefit Solutions Ltd.

22 Professional Pensions Handbook 2017 www.professionalpensions.com 23 PROBIS SERVICES LTD – ROWANMOOR GROUP PLC RPMI – TRAFALGAR HOUSE PENSIONS

PROBIS SERVICES LTD Cardi /Bristol ROWANMOOR GROUP PLC Churchill House Stuart Price, Partner Rowanmoor House

Administration Services 142-146 Old Street Direct line: 029 2083 7902 46-50 Castle Street London Email: Salisbury TRAFALGAR HOUSE PENSIONS EC1V 9BW [email protected] Wiltshire ADMINISTRATION Tel: 020 7490 4110 SP1 3TS Trafalgar House Website: www.probis.co.uk London Tel: 03445 440 440 Cheapside House Phil Farrell, Partner Web: www.rowanmoor.co.uk 138 Cheapside P-SOLVE Direct line: 020 3008 7197 London 11 Strand Email: RPMI EC2V 6BJ London [email protected] Stooperdale O ces Website: www.trafalgarhouse.co.uk WC2N 5HR Brinkburn Road Tel: 020 3327 5100 Established in 2000, Quantum Advisory Darlington Contact: Joe Anderson ServicesAdministration Website: www.psolve.com is an independent Financial Services Co Durham Tel: 0207 330 0778 Consultancy that provides solution based DL3 6EH Email: [email protected] PUNTER SOUTHALL Pensions and Employee Benefi ts services to Tel: 01325 342 849 11 Strand employers, scheme trustees and members. Website: www.rpmi.co.uk At Trafalgar House we provide market- London leading administration services to all types of WC2N 5HR We design, maintain and review pension SOVEREIGN EMPLOYEE occupational pension scheme. We are experts Tel: 020 3327 5000 schemes and related employee benefi ts so BENEFITS LTD in the fi eld of administration and have built Website: www.puntersouthall.com that they operate e ciently and e ectively, Sovereign House our services around providing a fi rst-class and are valued by employees. This means 37 Middle Road experience to pension scheme members that you can get on with doing the things Park Gate and trustees. We have a long track record of that you do best, therefore saving you time Southampton excellent service delivery supported by state- and money. Hampshire of-the-art systems and a highly experienced SO31 7GH team. QUANTUM ADVISORY We o er a range of services to companies Tel: 01489 582 011 Cypress House and pension trustees, all designed to focus Website: www.sovemp.co.uk Our client-focused approach means we deliver Pascal Close on your specifi c needs, including actuarial, services through a single team of named St. Mellons administration (including accounts and STC PENSION MANAGEMENT LTD contacts; we do not operate functional teams Cardi payroll), communications, consultancy, 1 King’s Arm Yard or o shore any services. This enables our CF3 OLW investment, secretarial and trustee training. London clients and their scheme members to enjoy Tel: 029 2083 7900 EC2R 7AF personal service from a team of UK-based Website: www.quantumadvisory.co.uk We have o ces in Amersham, Birmingham, Tel: 0845 872 0339 experts, where quality and delivery are closely Bristol, Cardi and London. Call us to see Website: www.stcpm.co.uk controlled. We are an AAF 01/06 accredited Contacts: how we can help with your pension and operation. Amersham employee benefi t challenges. SUFFOLK LIFE ANNUITIES LIMITED Rhidian Williams, Partner 153 Princes Street We give pension scheme members direct Direct line: 01494 582 024 RADCLIFFE & CO Ipswich contact with our administration experts, Email: (LIFE & PENSIONS) LTD Su olk supplemented with access to a cutting-edge [email protected] Thomas House IP1 1QJ self-service solution. Working in partnership 28-30 Bernard Street Tel: 0870 414 7000 with specialist communication consultants Birmingham Southampton Website: www.su olklife.co.uk we have also crafted a suite of highly engaging Robert Palmer, Partner SO14 3AY core communications that are available to all of Direct line: 0121 632 2190 Tel: 02380 222 444 our clients. Email: Website: www.radcli e-ifa.co.uk [email protected]

24 Professional Pensions Handbook 2017 www.professionalpensions.com 25 WILLIS TOWERS WATSON WILLIS TOWERS WATSON Watson House London Road Administration Services The Reigate Surrey Professional RH2 9PQ Tel: 01737 241144 Website: www.willistowerwatson.com Pensions Handbook 2017 www.professionalpensions.com HANDBOOK 2017 www.professionalpensions.com HANDBOOK 2017 Ad page www.professionalpensions.com HANDBOOK 2017 www.professionalpensions.com | 11 May 2017 Pensions Buzz Comment Feature Should investment Governance in Reclassifying Will slowing longevity consultants be fully contract-based money purchase rises reduce deficits? regulated? page 22 schemes page 25 benefits page 28 UK Pensions Awards 2017 – the winners How the MNOPF uses fiduciary management 20 February 2014 www.professionalpensions.com Walkingintheshoes ofaTPASadviser How three volunteers conduct their roles page 26 Financial Assistance Scheme FAS regulations offer ‘last chance’ entry to ineligible schemes page 4 DB Code of Practice Regulator’s code branded ‘garbage’ due to lack of guiding principles page 6 FCA annuity review Did the Financial Conduct Authority’s reviewintoannuitymarketsgofarenough? page 14 To ensure your fotoaloja Is it time for a new towerswatson.com +44 1737 241144 [email protected] Unrivalled coverage perspective on your administration? Copyright©2013TowersWatson.Allrightsreserved. TW-EU-2012-28548c. April 2013. TowersWatsonisrepresentedintheUKbyTowersWatsonLimited and Towers Watson Capital Markets Limited. inclusion in the 001_PP_110517.indd 1 08/05/2017 13:11 2018 Professional Pensions continues to be the market leading source Handbook for those in the occupational pensions industry. Print Online Events Tablet Following an extensive, independent audience research study, contact Nita Hulme Professional Pensions has been further improved to include NOW on greater depth of analysis, insight and content. Professional Pensions has taken into account your information +44 (0)20 7316 9309 or needs which can be accessed whether in print, in person, online or via any smart device. [email protected]

www.professionalpensions.com 26 Professional Pensions Handbook 2017

PPPP14-AD145x210-launchPP house ad 2017.indd 1 ad.indd 1 20/03/20145/23/17 1:41 14:45 PM ALTERNATIVE INVESTMENT MANAGERS Leading the way in alternative investing LGPS raises exposure to alternatives

ocal 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 Lallocation 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 55+ 450+ 370+ 10 investor in this fund, which has a target size of £300m and will be managed by Gresham USD billion AuM institutional investors employees globally offices worldwide House Asset Management (GHAM). Berkshire had been seeking a strategic partnership with a specialist asset manager to LGT Capital Partners Ltd. is a leading alternative investment specialist with over USD 55 billion in support its long-term investment objectives. assets under management and more than 450 institutional clients in 37 countries. An international Chairman of the Berkshire Pension Fund and its advisory panels John Lenton said the team of over 370 professionals is responsible for managing a wide range of investment programs platform will enable it to reduce costs and obtain diversity in its investments. focusing on private markets, liquid alternatives, and multi-asset class solutions. Headquartered in “We will be targeting niche areas and make investments which are smaller and usually longer term than those that interest the major investment houses.” Pfaeffikon (SZ), Switzerland, the firm has offices in New York, Dublin, London, Vaduz, Dubai, Beijing, Hong Kong, Tokyo and Sydney. 28 Professional Pensions Handbook 2017 Pfaeffikon | New York | Dublin | London | Vaduz | Dubai | Beijing | Hong Kong | Tokyo | Sydney | [email protected] | www.lgtcp.com ALLENBRIDGE EPIC – GOLDMAN SACHS HERMES INVESTMENT – LASALLE INVESTMENT

ALLENBRIDGE EPIC BLACKROCK INVESTMENT HERMES INVESTMENT INVESTMENT ADVISERS MANAGEMENT (UK) LIMITED MANAGEMENT 26th Floor 12 Throgmorton Avenue Lloyds Chambers 125 Old Broad Street London 1Portsoken Street WINNER Alternative Investment Managers Investment Alternative London EC2N 2DL London EC2N 1AR Tel: 020 7743 3000 E1 8HZ Tel: 020 7079 1000 Website: www.blackrock.co.uk Tel: 020 7702 0888 LASALLE INVESTMENT Website: www.allenbridgeis.com Website: www.hermes-investment.com MANAGEMENT BLUECREST CAPITAL One Curzon Street AMUNDI ALTERNATIVE MANAGEMENT HSBC GLOBAL ASSET London W1J 5HD INVESTMENT 40 Grosvenor Place MANAGEMENT (UK) LIMITED Tel: 020 7852 4200 41 Lothbury London 8 Fax: +44 (0) 20 7852 4404 London SW1X 7AW London Website: www.lasalle.com EC2R 7HF Tel: 020 3180 2000 E14 5HQ Tel: 020 7074 9300 Website: www.bluecrestcapital.com Tel: 020 7991 0756 Website: www.amundi-ai.com Website: www.assetmanagement.hsbc.com Contact: Head of UK

DARWIN PROPERTY INVESTMENT Alternative Investment Managers AVIVA INVESTORS INSIGHT INVESTMENT Alan Tripp ([email protected]) MANAGEMENT LTD UK CIO No1 Poultry MANAGEMENT (GLOBAL) LTD Stanmore House Julian Agnew ([email protected]) London 160 Queen Victoria Street 29/30 St James’s Street Client Executive, Client Capital Group EC2R 8EJ London London Anne Lucking ([email protected]) Tel: 020 7809 6000 SW1A 1HB EC4V 4LA Website: http://www.avivainvestors.com Tel: 020 7163 4000 Tel: 020 7930 7788 Main services: LaSalle Investment Website: www.insightinvestment.com Website: www.darwinpim.com Management is one of the world’s leading AXA ROSENBERG INVESTMENT real estate investment managers with over MANAGEMENT LTD F&C ASSET MANAGEMENT PLC J.P. MORGAN ASSET MANAGEMENT 35 years of experience. LaSalle manages 7 Newgate Street Exchange House Finsbury Dials US$58bn of assets on behalf of institutions London Primrose Street 20 Finsbury Street and private investors across the world, EC1A 7NX London London investing in private real estate equity and Tel: 020 7003 1000 EC2A 2NY EC2Y 9AQ debt, and public real estate through a Website: www.axarosenberg.com Tel: 020 7628 8000 Tel: 020 7742 4000 complete range of investment vehicles. Our Website: www.fandc.com Website: products include separate accounts, open BDO LLP www.jpmorganassetmanagement.co.uk/ and closed-end commingled funds, joint 55 Baker Street GOLDMAN SACHS INTERNATIONAL institutional ventures, and public securities. London Peterborough Court W1U 7EU 133 From the London office of 165 people we Tel: 020 7486 5888 London manage £12.5bn assets of which £12.2bn Website:  EC4A 2BB are located within the UK. We have extensive www.bdo.co.uk/investmentmanagement Tel: 020 7774 1000 successful experience of managing Website: www.gs.com 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.

30 Professional Pensions Handbook 2017 www.professionalpensions.com 31 LGT CAPITAL PARTNERS – STENHAM ASSET MANAGEMENT ANNUITY PROVIDERS

NGAM UK LTD LTA rethink needed in light of ‘gloomy’ One Carter Lane London LGT CAPITAL PARTNERS EC4V 5ER annuity outlook Alternative Investment Managers Investment Alternative Schuetzenstrasse 6 Tel: 020 3405 2173 PO Box 8808 Pfaeffikon Website: www.ngam.natixis.co.uk uts to the lifetime allowance (LTA) should be reversed, or the limit Switzerland scrapped altogether, in light of the bleak outlook for annuity rates, an Tel: +41 55 415 9600 PIMCO EUROPE LIMITED adviser has said. Fax: +41 55 415 9698 11 Baker Street The ’s (BoE) move to cut interest rates to 0.25% in August Website: www.lgtcp.com London C2016 has negatively affected annuity rates - already at record lows - as they are based W1U 3AH on government bond yields or gilts. Contact: Raphael Paglia Tel: 020 3640 1000 The LTA, the total limit people can save into a pension fund, was reduced to £1m in Email: [email protected] Website: www.pimco.co.uk Tel: +41 55 415 96 29 April this year. SCM PRIVATE LLP Tilney financial planner Gary Smith said at present, a £1m purchase of a joint life • Outstanding track record – 19 years 2 Eaton Gate annuity for a 65-year-old, increasing by RPI inflation will currently provide a £25,120 experience in generating attractive risk- Westminster annual income or £18,843 if the saver takes their 25% tax-free cash. adjusted returns London This was well below the average UK salary, Smith added. He urged the government to • Significant asset base – Over USD 55 SW1W 9BJ consider reversing the LTA cut or scrapping the limit completely to make it easier for billion in assets under management Tel: 020 7838 8650 people to save towards a decent retirement income. • Strong alignment of interests – Team and Website: www.scmprivate.com Smith said people approaching retirement who wanted to buy an annuity - which shareholder invest in own programs provides a guaranteed income for life - instead of going into drawdown had been badly • Large, international team – 370 people STANDARD LIFE INVESTMENTS hit by the BoE decision. representing 41 nationalities (PRIVATE EQUITY) LTD • Global client base – 450 sophisticated Smith said the outlook for annuity rates was “bleak” as the BoE signalled the potential 1 George Street institutional investors in 37 countries for future rate cuts. Edinburgh “This will adversely affect those either at, or who are approaching retirement, and EH2 2LL who want to avoid the investment risk and charges associated with keeping a pension MAN INVESTMENTS LTD Tel: 0131 245 8565 Riverbank House Website: www.standardlifeinvestments.com portfolio invested in the markets through drawdown. 2 Swan Lane “Those affected could find that they will receive a much lower income than they were London STENHAM ASSET MANAGEMENT expecting or having to increase contributions ahead of retirement to offset the reduction EC4R 3AD 180 Great Portland Street in annuity rates, although this could prove quite a costly exercise and this may not be Tel: 020 7144 1000 London an option because of the unhelpful recent reduction in the lifetime allowance, a decision Website: www.maninvestments.com W1W 5QZ which the reconstituted government really should reappraise.” United Kingdom The adviser said people looking to buy an annuity could go into drawdown first and buy MORGAN STANLEY Tel: +44 (0) 20 7079 6600 a guaranteed income for life later in retirement, however, predicting interest rate rises 25 Website: www.stenhamassetmanagement.com is very difficult. Other commentators have said now is “probably the worst ever time to London retire” due to the latest interest rate cut and its consequences for annuities. E14 4QA Smith said people with health conditions should look at enhanced annuities for higher Tel: 020 7425 8000 rates. Though data released from consultant Willis Towers Watson has pointed to falling Website: www.morganstanley.co.uk 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.

32 Professional Pensions Handbook 2017 www.professionalpensions.com 33 AEGON – JUST LEGAL & GENERAL ASSURANCE SOCIETY – SCOTTISH WIDOWS

AEGON LEGAL & GENERAL PRUDENTIAL Edinburgh Park ASSURANCE SOCIETY LTD Stirling Edinburgh Legal & General House FK9 4UE EH12 9SE St Monica’s Road Tel: 020 7004 9621 JUST Tel: 0870 600 337 Kingswood Website: www.prudential.co.uk Vale House Annuity Providers Annuity Website: www.aegonse.co.uk Tadworth Roebuck Close Surrey ROTHESAY LIFE Bancroft Road AVIVA INVESTORS KT20 6EU 25th Floor Reigate No1 Poultry Tel: 01737 370 370 The Leadenhall Building Surrey London Website: www.landg.com RH2 7RU EC2R 8EJ London Tel: 0345 302 2287 Tel: 0800 068 6800 EC3V 4AB Website: www.justadviser.com LONDON & COLONIAL SERVICES Website: http://www.avivainvestors.com LIMITED Tel: 020 770 5300 Annuity Providers Website: www.rothesaylife.co.uk Just is one of the UK’s leading providers Perrymount House FIDELITY RETIREMENT SERVICE of financial solutions meeting the needs of 38-42 Perrymount Road Pascall House SCOTTISH WIDOWS people approaching or in retirement. We Haywards Heath Westridge Business Park PO Box 17036 believe everyone deserves a fair, secure West Sussex Cothey Way 69 Morrison Street and fulfilling retirement, and that financial RH16 3DN Ryde Edinburgh intermediaries are best placed to help Tel: 0203 479 5505 Isle of Wight EH3 8YH people with the choices they need to make. Website: www.londoncolonial.com PO33 1QT Tel: 0131 655 6000 Tel: 0500 50 65 75 (freephone) Website: www.scottishwidows.co.uk Provided by a pension annuity, our ORIGEN FINANCIAL SERVICES LTD Website: www.fidelity.co.uk Guaranteed Income for Life (GIfL) offers 1st Floor, Infor House security and stability for life by using some, 1 Lakeside Road or all, of a client’s pension fund to create Farnborough a regular guaranteed income. Flexible Hampshire options can ensure income keeps pace GU14 6XP with inflation or loved ones are catered for Tel: 0844 209 3000 after death. Website: www.origenfs.co.uk

Our Immediate Care Plans help provide PARTNERSHIP peace of mind for people requiring long 110

www.professionalpensions.com HANDBOOK www.professionalpensions.com 2017 HANDBOOK term care through knowing a regular London 2017 www.professionalpensions.com HANDBOOK 2017 payment will be made to the Registered 2N 4AY To ensure your Care Provider, for the rest of their life. Tel: 0845 108 7240 inclusion in the Website: www.partnership.co.uk We are able to provide these personalised 2018 solutions through our unparalleled PREMIER COMPANIES LTD Professional Pensions individual underwriting expertise and Premier research on health and lifestyle. AMP House Handbook Dingwall Road contact Nita Hulme Croydon CR0 2LX NOW on Tel: 020 3727 9800 +44 (0)20 7316 9309 or Website: www.premiercompanies.co.uk [email protected]

34 Professional Pensions Handbook 2017 www.professionalpensions.com 35 LOTHBURY ASSET MANAGEMENT Broadening Our Horizons Spotlight shines on active managers

ctive 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 Alike 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 Former Town Hall, Camberwell 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 The dynamic and responsive approach of our team has ensured continued performance in a “meaningful” 8% since 2010. Average fees quoted by global equity managers have an ever-changing world. decreased from 62 basis points (bps) between 2006-2009 to 57bps between 2015- A commitment into the student accommodation and residential sectors has helped to grow 2017. Some firms were able to negotiate an average discount of 12%, reaching as high the FUM to £1.8bn over the last 7 years, diversifying risk and delivering consistent returns as 46%. But this reduction was significantly less than in other sectors such as smart-beta, for our investors. where fees were down 25%, and low volatility strategies, which were 24% lower. The www.lothburyim.com median quoted fee on the most recent smart-beta searches is around 30bps for a Lothbury Investment Management Limited is authorised €100m mandate. and regulated by The Financial Conduct Authority. Bfinance also found that despite the fee cuts, the average large pension fund is Lothbury Investment Management Limited is authorised and paying out a higher proportion of its AUM in investment costs than ten years ago. regulated by The Financial Conduct Authority.

36 Professional Pensions Handbook 2017 Investment Management AB – AXA INVESTMENT AXA ROSENBERG INVESTMENT – BREWIN DOLPHIN

AB (FORMERLY AMUNDI ALTERNATIVE AXA ROSENBERG INVESTMENT BLACKROCK ALLIANCEBERNSTEIN) INVESTMENT MANAGEMENT LTD 12 Throgmorton Avenue 50 Berkeley Street 41 Lothbury 8th Floor London London London 155 Bishopsgate EC2N 2DL W1J 8HA EC2R 7HF London Tel: 020 7743 3000 Tel: 020 7470 0100 Tel: 020 7074 9300 EC2M 3XJ Website: www.blackrock.co.uk Website: www.abglobal.com Website: www.amundi-ai.com Tel: 020 7003 1800 Asset Management Website: www.axarosenberg.com BLUEBAY ASSET MANAGEMENT ABERDEEN ASSET ARTEMIS INVESTMENT LTD MANAGEMENT PLC MANAGEMENT LTD BAILLIE GIFFORD & CO 77 Grosvenor Street Bow Bells House Cassini House Calton Square London 1 Bread Street 57 St James’s Street 1 Greenside Row W1K 3JR London London Edinburgh Tel: 020 7389 3700 EC4M 9HH SW1A 1LD EH1 3AN Website: www.bluebay.com Tel: 020 7463 6000 Tel: 020 7399 6000 Tel: 0131 275 2000 Management Asset Website: www.aberdeen-asset.com Website: www.artemisonline.co.uk Website: www.bailliegifford.com BMO GLOBAL ASSET MANAGEMENT Exchange House ADAM & CO. GROUP PLC ASHMORE INVESTMENT BARCLAYS WEALTH Primrose Street 25 St Andrew Square MANAGEMENT LIMITED Barclays Bank PLC London Edinburgh 61 1 Churchill Place EC2A 2NY EH2 1AF London Canary Wharf Tel: 020 7628 8000 Tel: 0131 225 8484 WC2B 4AE London E14 5HP Website: www.bmogam.com Website: www.adambank.com United Kingdom Tel: 020 7116 9000 Tel: +44 (0)20 3077 6000 Website: www.barclayswealth.com BNP PARIBAS INVESTMENT ALCHEMY PARTNERS LLP Website: www.ashmoregroup.com/ PARTNERS 21 Palmer Street www.ashmoreemm.com BARING ASSET 5 Aldermanbury Square London MANAGEMENT LIMITED London SW1H 0AD AVIVA INVESTORS 155 Bishopsgate EC2V 7BP Tel: 020 7240 9596 No1 Poultry London Tel: +020 7595 2000 Website: www.alchemypartners.co.uk London EC2M 3XY Website: www.bnpparibas-ip.com EC2R 8EJ Tel: 020 7628 6000 ALLIANZ GLOBAL INVESTORS Tel: 020 7809 6000 Website: www.barings.com BRAMDEAN ASSET MANAGEMENT EUROPE GmbH Website: http://www.avivainvestors.com LLP 199 Bishopsgate BDO INVESTMENT 42 Bruton Place London AXA INVESTMENT MANAGERS LTD MANAGEMENT LTD London EC2M 3TY 7 Newgate Street 55 Baker Street W1J 6PH Tel: 020 7859 9000 London London Tel: 020 7052 9272 Website: www.allianzgi.com EC1A 7NX W1U 7EU Website: www.bramdean.com Tel: 020 7003 1000 Tel: 020 7486 5888 AMP CAPITAL INVESTORS (UK) LTD Website: www.axa-im.co.uk Website: www.bdo.co.uk BREWIN DOLPHIN Fourth Floor 12 Smithfield Street Berkeley Square House London Berkeley Square EC1A 9BD London Tel: 020 7246 1000 W1J 6BX Website: www.brewin.co.uk Tel: 020 7659 9252 Website: www.ampcapital.com

38 Professional Pensions Handbook 2017 www.professionalpensions.com 39 CAIRN CAPITAL – CHARLES STANLEY & CO CLOSE BROTHERS – DIMENSIONAL FUND ADVISORS

CAIRN CAPITAL LIMITED CAZENOVE CAPITAL CLOSE BROTHERS ASSET DEUTSCHE BANK 27 Knightsbridge MANAGEMENT LIMITED MANAGEMENT 1 Great Winchester Street London 12 Moorgate Nelson House London SW1X 7LY London Gadbrook Business Centre EC2N 2DB Tel: 020 7259 4800 EC2R 6DA Gadbrook Road Tel: 020 7545 8000 Website: www.cairncapital.com Tel: 020 3479 1000 Northwich Website: www.db.com Website: www.cazenovecapital.com Cheshire Asset Management CW9 7TN CBPE CAPITAL Tel: 01606 810100 2 George Yard Website: www.closebrothersam.com CALAMOS INVESTMENTS LLP London DIMENSIONAL FUND ADVISORS 62 Threadneedle Street EC3V 9DH COHEN & STEERS, INC LTD London Tel: 020 7065 1115 21 Sackville Street 20 Triton Street EC2R 8HP Website: www.cbpel.com 4th Floor Regent’s Place Tel: +44 (0) 20 3744 7024 London London Management Asset Website: www.calamos.co.uk CBRE GLOBAL INVESTORS W1S 3DN NW1 3BF Third Floor Tel: 020 7460 6350 Tel: 020 3033 3300 Contact: Terry O’Malley Website: www.cohenandsteers.com Website: www.dimensional.com Email: [email protected] London EC4M 9AF COLUMBIA THREADNEEDLE Contact: Tim Brown CAPITAL DYNAMICS LTD Tel: 020 7809 9000 INVESTMENTS Email: [email protected] 21 Sackville Street Website: www.cbreglobalinvestors.com 60 St Mary Axe For more than 35 years, institutional London London investors have relied on Dimensional to W1S 3DN CCLA INVESTMENT EC3A 8JQ address complex investment challenges. Tel: 020 7297 0200 MANAGEMENT LIMITED Tel: 020 7464 5000 Guided by a strong belief in markets, Website: www.capdyn.com Senator House Website: www.columbiathreadneedle.co.uk 85 Queen Victoria Street we offer strategies to help institutional clients pursue higher expected returns. CAPITAL INTERNATIONAL LTD London CORDIUM We have a long history of incorporating 40 Grosvenor Place EC4V 4ET 2nd Floor rigorous academic research into practical London Tel: 0800 022 3505 130 investment strategies. SW1X 7GG Website: www.ccla.co.uk London Tel: 020 7864 5000 SW1Y 4UR Our clients include corporations, CHARLES STANLEY & CO LTD Website: www.capgroup.com Tel: 020 7408 2448 consultants, nonprofits, DB and DC 25 Luke Street Website: www.cordium.com pension funds, sovereign wealth funds and London CARMIGNAC GESTION other institutions worldwide. The longevity EC2A 4AR No 29-30 Cornhill CREDIT SUISSE ASSET of Dimensional’s client relationships— Tel: 020 7739 8200 London MANAGEMENT LIMITED many dating back decades—demonstrates Website: www.charles-stanley.co.uk ECV3 3NF One Cabot Square our commitment to client service and the Tel: 020 7360 6100 London consistency of our investment approach. Website: www.carmignacgestion.com E14 4QJ Tel: 020 7888 8888 Our goal is to implement the great ideas Website: www.credit-suisse.com/uk 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.

40 Professional Pensions Handbook 2017 www.professionalpensions.com 41 DUNCAN LAWRIE – GMO GOLDMAN SACHS – INVESTEC ASSET

DUNCAN LAWRIE LTD FRANKLIN TEMPLETON GOLDMAN SACHS 1 Hobart Place INVESTMENTS ASSET MANAGEMENT London Cannon Place Christchurch Court SW1W 0HU 78 Cannon Street 10 - 15 Newgate Street Tel: 020 7245 1234 London London Website: www.duncanlawrie.com EC4N 6HL EC1A 7HD Tel: 020 7073 8500 Tel: 020 7774 1000 INVESCO Asset Management ECM ASSET MANAGEMENT LIMITED Website:  Website: www.gsam.com First Floor 34 Grosvenor Street www.franklintempletoninstitutional.com 43-45 Portman Square London HERMES INVESTMENT London W1K 4QU FULCRUM ASSET MANAGEMENT MANAGEMENT W1H 6LY Tel: 020 7529 7400 House Lloyds Chambers Tel: 020 7543 3534 Website: www.europeancredit.com 66 seymour Street 1 Portsoken Street Website: www.invesco.co.uk/institutional London London EUROPA CAPITAL PARTNERS W1H 5BT E1 8HZ Contact: Stephen Messenger Management Asset 15 Tel: 020 7016 6450 Tel: +44 (0)20 7702 0888 Email: [email protected] London Website: www.fulcrumasset.com Website: www.hermes-investment.com SW1W 8ER Tel: 020 7881 6800 GAM HSBC GLOBAL ASSET Website: www.europacapital.com 20 King Street MANAGEMENT (UK) LIMITED London FIDELITY WORLDWIDE SW1Y 6QY London INVESTEC ASSET MANAGEMENT INVESTMENTS Tel: 020 7493 9990 E14 5HQ Woolgate Exchange 25 Cannon Street Website: www.gam.com Tel: 020 7991 0756 25 Basinghall Street London Website: www.assetmanagement.hsbc.com London EC4M 5TA GLG PARTNERS LP EC2V 5HA Tel: 020 7283 9911 1 Curzon Street IMPAX ASSET MANAGEMENT Tel: 020 7597 2000 Website: www.fidelity.co.ukinstitutional London GROUP PLC Website: W1J 5HB Norfolk House www.investecassetmanagement.com FIRST STATE INVESTMENTS UK LTD Tel: 020 7016 7000 31 St James’s Square 154 Finsbury Square Website: www.glgpartners.com London Contact: London SW1Y 4JR Frank Doyle EC2M 7EB GMO Tel: 020 7434 1122 Institutional Sales Director Tel: 020 7332 6500 1 Website: www.impax.co.uk Tel: 020 7597 2075 Website: www.firststate.co.uk London Email: [email protected] SE1 9BG INSIGHT INVESTMENT FPP ASSET MANAGEMENT LLP Tel: 020 7814 7600 MANAGEMENT (GLOBAL) LTD Investec Asset Management provides 34 Brook Street Website: www.gmo.com 160 Queen Victoria Street investment products and services London London to institutions, advisory clients and W1K 5DN EC4V 4LA individuals. Our clients include pension Tel: 020 7647 9100 Tel: 020 7163 4000 funds, central banks, sovereign wealth Website: www.fpictet.com Website: www.insightinvestment.com funds, insurers, foundations, financial advisers and individual investors.

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

42 Professional Pensions Handbook 2017 www.professionalpensions.com 43 INVESTEC ASSET – LASALLE INVESTMENT LASALLE INVESTMENT – LOTHBURY INVESTMENT

strategies in an emerging market. Over KAMES CAPITAL performance targets as well as assets and two decades of growth later and we’re Kames House strategies targeting index-linked and absolute an international business managing returns. 3 Lochside Crescent LOTHBURY INVESTMENT approximately £95 billion* for clients Edinburgh MANAGEMENT LIMITED based all over the world. EH12 9SA We have 700 people located in 23 offices 155 Bishopsgate Tel: 0870 609 0101 around the world, as well as access to JLL’s London *As at 31 March 2017 Website: www.kamescapital.com 300 offices in 80 countries worldwide. Asset Management EC2M 3TQ Switchboard: 020 3551 4900 JAGGER & ASSOCIATES LAZARD ASSET MANAGEMENT Website: www.lothburyim.com Ground Floor 50 Stratton Street 14 Exchange Quay London Contact: Barbara O’Riordan Salford Quays W1J 8LL Title: Associate Director Manchester LASALLE INVESTMENT Tel: 020 7588 2721 Email: [email protected] M5 3EQ MANAGEMENT Website: www.uk.lazardnet.com Tel: 0161 873 9350 Management Asset One Curzon Street We are an independent UK real estate Website: www.jaggerandassociates.co.uk London LEGAL & GENERAL investment manager, formed in 2010. Our W1J 5HD INVESTMENT MANAGEMENT strong and cohesive senior fund management JANUS HENDERSON INVESTORS Tel: 020 7852 4200 One Coleman Street team has worked together for nearly 20 201 Bishopsgate Fax: +44 (0) 20 7852 4404 London years and has a track record of delivering London Website: www.lasalle.com EC2R 5AA outperformance for investors. EC2M 3AE Tel: 020 3124 3000 Tel: 020 7818 1818 Contact: Website: www.lgim.com LIM manages unlisted property vehicles on Website: www.janushenderson.com Head of UK behalf of institutional investors seeking Alan Tripp ([email protected]) LEGG MASON GLOBAL ASSET indirect exposure to the UK. Lothbury J. P. MORGAN ASSET MANAGEMENT UK CIO MANAGEMENT Property Trust (LPT) is our flagship fund. We Finsbury Dials Julian Agnew ([email protected]) 201 Bishopsgate also manage the Clarendon Unit Trust and a 20 Finsbury Street Client Executive, Client Capital Group London segregated secure income portfolio for a UK London Anne Lucking ([email protected]) EC2M 3AP pension fund. We offer an innovative solution EC2Y 9AQ Tel: 020 7392 1929 to clients, through our core/active strategy. Tel: 020 7742 6000 Main services: LaSalle Investment Website: www.leggmason.co.uk Our predominantly core portfolio of prime Website:  Management is one of the world’s leading assets provides stable returns, while our active www.jpmorganassetmanagement.co.uk/ real estate investment managers with over LONGVIEW PARTNERS management initiatives create additional value 35 years of experience. LaSalle manages institutional Thames Court and enhance returns. US$58bn of assets on behalf of institutions 1 Queenhithe and private investors across the world, JUPITER ASSET MANAGEMENT London Since LIM’s launch, we have progressively investing in private real estate equity and 1 Grosvenor Place EC4V 3RL grown our funds under management to over debt, and public real estate through a London Tel: 020 7809 4100 £1.8 billion. We have attracted new investors complete range of investment vehicles. Our SW1X 7JJ Website: www.longview-partners.com to our Funds and significantly diversified our Tel: 020 7412 0703 products include separate accounts, open robust base of UK and overseas institutional Website: www.jupiteronline.co.uk and closed-end commingled funds, joint clients, the majority of which are corporate and ventures, and public securities. public sector pension funds. Our clients also include treasury investors, collective investment From the London office of 165 people we schemes, insurance companies and charities. manage £12.5bn assets of which £12.2bn are located within the UK. We have extensive Further information on our company, strategy successful experience of managing portfolios and products can be found at to both MSCI relative and real return www.lothburyim.com

44 Professional Pensions Handbook 2017 www.professionalpensions.com 45 M&G INVESTMENTS MAJEDIE ASSET MANAGEMENT – MFS INTERNATIONAL

M&G Investments is the European asset MARATHON ASSET MANAGEMENT management arm of Prudential plc, Orion House operating in the UK, Europe and Asia. As 5 Upper St Martin’s Lane a trusted partner, our clients’ individual London needs are at the heart of our business. We WC2H 9EA M&G INVESTMENTS align our interests with those of our clients Tel: 020 7497 2211 and develop value-based strategies to MAJEDIE ASSET MANAGEMENT Website: www.marathon.co.uk Asset Management Governor’s House 10 Laurence Pountney Hill generate strong and consistent returns. London London Our goal is to help our clients meet their MARTIN CURRIE INVESTMENT EC4M 7NG EC4R 0HH long-term liabilities regardless of the MANAGEMENT LTD Tel: 020 7618 3900 Tel: 020 7548 3414 market environment. Saltire Court Website: www.majedie.com Fax: 020 7548 3419 20 Castle Terrace Email: [email protected] With £265 billion* of assets under Edinburgh Majedie Asset Management, established Website: www.mandg.co.uk/institutions management (including £128 billion* on EH1 2ES

in 2002, is an independent investment Management Asset behalf of Prudential) across fixed income, Tel: 0131 229 5252 boutique that actively manages equities Contacts: equities, real estate and multi-asset Website:  for institutional investors, wealth managers Andrew Swan, Director (Fixed Income) strategies, and over 400* investment www.martincurrie.com/ukinstitutional and endowments across a range of UK and Tel: 020 7548 2375 professionals (including what we believe to Global strategies. Email: [email protected] be one of Europe’s largest credit research teams), we have the scale and expertise to Majedie was founded by a team from Nick Robert-Nicoud, Business Development offer tailored investment solutions across a Mercury Asset Management with a clear Director – Equities and Multi Asset wide range of risk and return requirements. aim: simply to make money for our clients. Tel: 020 3790 1331 We are proud of our distinctive, long-term Email: [email protected] M&G is an active investor – both in terms of how we manage our assets, and how we track record — but remain as hungry to MFS INTERNATIONAL (UK) LTD perform today as we were on day one. Lucy Williams, Director of Institutional innovate and develop our offering to ensure One Carter Lane Business, UK & Europe (M&G Real Estate) that we continue to meet evolving investor London Importantly, every Majedie employee Tel: 020 7548 6585 requirements. EC4V 5ER owns equity in the business; we are in Email: [email protected] Tel: 020 7429 7200 * As at 30 December 2016 partnership with our clients and here Website: www.mfs.com to stay. Similarly, our fund managers all M&G Investments is the European asset M&G Investments and M&G Real Estate are business invest in Majedie funds, further aligning our management arm of Prudential plc. We A leading global asset manager names of M&G Investment Management Limited and are interests with those of our clients. are an active investment-led manager used by other companies within the Prudential Group. For almost a century, investors have and have a long-standing reputation for M&G Investment Management Limited is authorised trusted MFS to achieve their investment and regulated by the Financial Conduct Authority. M&G We view our capacity as scarce; we believe forward thinking strategies, market-leading goals because we stay true to our Investment Management Limited and M&G Real Estate investment performance suffers from performance and excellent client service. Limited are registered in England and Wales under numbers convictions and to who we are as active 936683 and 3852763 respectively with their registered diseconomies of scale if assets under managers. We take the long view. We office at Laurence Pountney Hill, London EC4R 0HH. management grow too large. We are • We invest £265 billion* across fixed favour the strongest idea over the determined to maintain the size advantage income, equity, real estate and multi-asset strongest individual. Our employees for our clients and therefore limit the strategies are aligned with what matters most to available capacity in each of our funds. • We are a long-term investor via our our clients: long-term vision, powerful parent company, Prudential plc, for whom risk-managed results and good decisions Assets under management total we invest £128 billion* born from collaborative thinking. approximately £14bn ($17bn). • Our clients include 49* local authority pension funds and 68% of the top 50 UK MFS manages £351 billion1 globally across pension schemes*. long-only equities and fixed income.

46 Professional Pensions Handbook 2017 www.professionalpensions.com 47 MFS INTERNATIONAL – MORGAN STANLEY INVESMENT MUZINICH & CO – NN INVESTMENT PARTNERS

A differentiated approach MIRABAUD ASSET MANAGEMENT MUZINICH & CO LTD largest asset manager in the world Robust integrated research is in our heritage, LIMITED 8 Hanover Street based on assets under management and combining it with uncompromised 33 Grosvenor Place London ($895.6Bn/€837.5B/£716.1Bn) as of 31 information sharing is how we turn good London W1S 1YQ March 2017. ideas into great outcomes. We actively SW1X 7HY Tel: 020 7614 8755 debate our diverse viewpoints and Tel: 020 7878 3411 Website: www.muzinich.com NEPTUNE INVESTMENT collectively make the best investment

Asset Management Website: www.mirabaud.com MANAGEMENT LTD decisions for our clients. Risk management 3 Shortlands isn’t part of our investment process; it is MITSUBISHI UFJ ASSET London our process. We won’t add a security to our MANAGEMENT (UK) LTD W6 8DA portfolios until we fully understand its return Ropemaker Place NGAM UK LTD Tel: 020 3249 0163 stream, liquidity and potential for long-term 25 Ropemaker Street 1 Carter lane Website: www.neptune-im.co.uk value. London London EC2Y 9AN EC4V 5ER NEUBERGER BERMAN Doing what’s right for clients is not a choice Management Asset Tel: 020 7577 2149 Tel: 020 3405 2162 Lansdowne House we make each day; it’s who we are. We take Website: www.uk.am.mufg.jp Fax: 020 3405 2178 57 Berkeley Square a long-term view, focusing not on quick Website: www.ngam.natixis.co.uk London returns, but on aligning with client objectives W1J 6ER and building more sustainable wealth. Our MOMENTUM GLOBAL INVESTMENT MANAGEMENT Contact: Euan MacLaren Tel: 020 3214 9000 equity, fixed income and quantitative teams Title: Head UK & Ireland Institutional The Rex Building Website: www.nb.com work collectively, examining opportunities Business 62 Queen Street and actively debating the best ways to invest Email: [email protected] client capital. Through our commitment London NEWTON INVESTMENT EC4R 1EB MANAGEMENT to patient investing and flexibility to tap a Natixis Global Asset Management, broader opportunity set, we seek to deliver Tel: 020 7489 7223 The Bank of New York Mellon Centre one of the largest Asset Management 160 Queen Victoria Street greater long-term value to our clients. companies in the world, brings best in MONDRIAN INVESTMENT London class investment capabilities to our clients EC4V 4LA We pride ourselves on being the resource PARTNERS LTD through a multi-affiliate model. clients depend on to help them navigate 10 Gresham Street Tel: 020 7163 9000 The result is a diversified roster of Website: www.newton.co.uk market change and complexity. London investment managers that can address EC2V 7JD the specific needs of institutional investors NIKKO GLOBAL ASSET * As at 31 March 2017. Tel: 020 7477 7000 worldwide through the philosophy of MANAGEMENT (UK) LTD Website: www.mondrian.com Durable Portfolio Construction, which Issued in the United Kingdom by MFS International (U.K.) 1 London Wall Limited (“MIL UK”), a private limited company registered in seeks to produce consistent long-term London England and Wales with the company number 03062718, MORGAN STANLEY INVESMENT risk adjusted returns by managing risk, and authorised and regulated in the conduct of investment EC2Y 5AD MANAGEMENT LTD volatility, and enhancing diversification. business by the UK Financial Conduct Authority. MIL UK, an Tel: 020 7796 9866 indirect subsidiary of MFS, has its registered office at One Website: www.nikkoam.com Carter Lane, London, EC4V 5ER and provides products and Canary Wharf Excellence across asset classes with more investment services to institutional investors globally. This material shall not be circulated or distributed to any person London than 200 discrete strategies to institutions other than to professional investors (as permitted by local E14 4QA – managed by some of the most talented NN INVESTMENT PARTNERS regulations) and should not be relied upon or distributed Tel: 020 7425 8000 to persons where such reliance or distribution would be investors in the world including Harris contrary to local regulation. Unless otherwise indicated, Website: www.morganstanley.co.uk Associates, Loomis Sayles, H2O, AEW UK 254 Old Broad Street logos and product and service names are trademarks of and Natixis Asset Management. London MFS® and its affiliates and may be registered in certain EC2N 1HQ countries. Cerulli Quantitative Update: Global Tel: 020 7382 1330 FOR INSTITUTIONAL AND INVESTMENT Markets 2016 ranked Natixis Global Website: www.nnip.com PROFESSIONAL USE ONLY Asset Management, S.A. as the 16th

48 Professional Pensions Handbook 2017 www.professionalpensions.com 49 NOMURA ASSET MANAGEMENT – P-SOLVE INVESTMENTS P-SOLVE INVESTMENTS – RIVER AND MERCANTILE

NOMURA ASSET MANAGEMENT PICTET ASSET MANAGEMENT LTD relationships and matching the right solution RCM (UK) LTD UK LIMITED Moor House to the client at the right time. We regard this 199 Bishopsgate 1 Angel Lane 120 London Wall ability, offering expertise and advice together London London London with tailored solutions, as the reason why EC2M 3TY EC4R 3AB EC2Y 5ET we have such strong and longstanding Tel: 020 7859 9000 Tel: 020 7521 3333 United Kingdom relationships with so many clients. Website: www.rcm.co.uk Tel: 020 7847 5000

Asset Management Website: www.nomura-asset.co.uk Website: www.pictet.com PUTNAM INVESTMENTS LIMITED RECORD CURRENCY NORTHERN TRUST GLOBAL Cassini House MANAGEMENT LIMITED INVESTMENTS (EUROPE) LIMITED PIMCO EUROPE LIMITED 57-59 St. James’s Place Morgan House 50 Bank Street 11 Baker Street London Madeira Walk London London SW1A 1LD Windsor E14 5NT W1U 3AH United Kingdom Berkshire Tel: 020 7982 2000 Tel: 020 7872 1300 Tel: 020 7907 8200 SL4 1EP Website: www.ntrs.com Website: www.pimco.com Website: www.putnam.com/institutional Tel: 01753 852 222 Management Asset Website: www.recordcm.co.uk NORWICH & PETERBOROUGH PRINCIPAL GLOBAL INVESTORS PYRAMIS GLOBAL ADVISORS (UK) BUILDING SOCIETY (EUROPE) LIMITED LTD Peterborough Business Park 1 Wood Street 1 St Martins-le-Grand Lynch Wood London London Peterborough EC2V 7JB EC1A 4AS Cambridgeshire Tel: 020 7710 0220 Tel: 020 7184 3560 PE2 6WZ Website: www.principalglobal.com Website: www.pyramis.com RIVER AND MERCANTILE ASSET Tel: 01733 372 372 MANAGEMENT PYRFORD INTERNATIONAL PLC Website: www.npbs.co.uk 30 Coleman Street 95 Wigmore Street London London ORIGEN FINANCIAL SERVICES LTD EC2R 5AL W1U 1FD 1st Floor, Infor House Tel: 020 7601 6262 Tel: 020 7495 4641 1 Lakeside Road P-SOLVE INVESTMENTS LTD Website: www.riverandmercantile.com Website: www.pyrford.co.uk Farnborough 11 Strand Hampshire London River and Mercantile Asset Management GU14 6XP WC2N 5HR RATHBONE UNIT TRUST LLP is part of River and Mercantile Group Tel: 0844 209 3000 Tel: 020 3327 5100 MANAGEMENT LIMITED Plc (“R&M”), an advisory and investment Website: www.origenfs.co.uk Website: www.psolve.com 1 Curzon Street solutions provider to DB and DC pension London schemes and other investors. River and PAYDEN & RYGEL GLOBAL LTD P-Solve Investments Limited is part of the W1J 5FB Mercantile Asset Management LLP is a UK River and Mercantile Group PLC and provides Tel: 020 7399 0476 1 Bartholomew Lane based investment boutique specialising advice to institutional investors, such as Website: www.rutm.com London in the management of UK and Global pension schemes and charities. We strive EC2N 2AX equities. As part of the River and Mercantile to serve our clients well by developing and Tel: 020 7621 3000 R.C. BROWN INVESTMENT Group we also offer multi-asset investment implementing solutions tailored to their Website: www.payden.com MANAGEMENT PLC strategies and bespoke risk management specific investment needs either advising 1 The Square solutions such as LDI and structured schemes on how to manage their investments Temple Quay equity. and risks - investment consulting - or manage Bristol their investments and risks on their behalf - BS1 6DG fiduciary management - or a mixture of these. Tel: 0117 925 6073 We have a strong focus on person-to-person Website: www.rcbim.co.uk 50 Professional Pensions Handbook 2017 www.professionalpensions.com 51 ROYAL LONDON – SLATER INVESTMENTS SMITH & WILLIAMSON – VANGUARD

RUFFER LLP SMITH & WILLIAMSON STENHAM ASSET MANAGEMENT 80 Victoria Street INVESTMENT MANAGEMENT 180 Great Portland Street London 25 Moorgate London SW1E 5JL London W1W 5QZ Tel: 020 7963 8100 EC2R 6AY United Kingdom Website: www.ruffer.co.uk Tel: 020 7131 4000 Tel: +44 (0) 20 7079 6600 Website:

Asset Management Website: www.smith.williamson.co.uk ROYAL LONDON ASSET RUSSELL INVESTMENTS www.stenhamassetmanagement.com MANAGEMENT LTD Rex House SPEIRS & JEFFREY LIMITED 55 Gracechurch Street 10 Lower Regent Street 50 George Square SUMITOMO MITSUI ASSET London London George House MANAGEMENT (SMSM) EC3V 0RL SW1Y 4PE Glasgow 3rd Floor Tel: 020 7506 6500 Tel: 020 7024 6000 G2 1EH 90 Basinghall Street Website: www.rlam.co.uk Website: www.russell.com/uk Tel: 0141 248 4311 London Website: www.speirsjeffrey.co.uk EC2V 5AY Management Asset Royal London Asset Management is one of the SANLAMFOUR INVESTMENTS UK Tel: 020 7397 3970 UK’s leading investment companies. RLAM LIMITED STAMFORD ASSOCIATES (UK) LTD Website: www.smam-jp.com/english has built a strong reputation as an innovative 1 Ely Place 19-21 Old Bond Street manager, investing across all major asset London London T. ROWEPRICE classes. RLAM manages over £99 billion of EC1N 6RY W1S 4PX 60 Queen Victoria Street assets (at 31/12/16), split between equities, Tel: 020 3116 4000 Tel: 020 7629 5225 London fixed interest, multi asset investing, property Website: www.sanlamfour.com Website: www.stamfordassociates.com EC4N 4TZ and cash, with a market leading capability Tel: 020 7651 8200 in sustainable investing. Products include SARASIN & PARTNERS LLP STANDARD LIFE INVESTMENTS Website: www.troweprice.com funds and segregated accounts investing in Juxon House 1 George Street government bonds, investment grade, high 100 St Paul’s Churchyard Edinburgh UBS GLOBAL ASSET MANAGEMENT yield and unrated credit, equity income and London EH2 2LL 21 Lombard Street growth strategies across global developed EC4M 8BU Tel: 0131 225 2345 London markets, as well as UK property and cash and Tel: 020 7038 7000 Website:  EC3V 9AH short-term money market instruments. Website: www.sarasin.co.uk www.standardlifeinvestments.co.uk Tel: 020 7901 5000 Website: www.ubs.com Our institutional business development team SCHRODER INVESTMENT STATE STREET GLOBAL ADVISORS and Fund Managers understand the particular MANAGEMENT LIMITED 20 Churchill Place needs of pension fund trustees and work with VANGUARD ASSET MANAGEMENT 31 Gresham Street Canary Wharf them and their consultants to develop the LIMITED London London right investment solution for their scheme. 25 Walbrook EC2V 7QA E14 5HJ We wholeheartedly believe in the added London Tel: 020 7658 6000 Tel: 020 3395 6000 long-term value of active fund management EC4N 8AF Website: www.schroders.com Website: www.ssga.com and are widely recognised for the wealth of Tel: 020 7489 5600 experience we bring to managing our clients’ Website: www.vanguard.co.uk funds. Our focus is firmly set on achieving the SLATER INVESTMENTS LTD best possible returns for those who entrust us Nicholas House with their assets. 3 Lauerence Poutney London EC4R 0EU Tel: 020 7220 9460 Website: www.slaterinvestments.com

52 Professional Pensions Handbook 2017 www.professionalpensions.com 53 VENCAP INTERNATIONAL – WESTERN ASSET ASSOCIATIONS & OFFICIAL BODIES

VENCAP INTERNATIONAL PLC King Charles House PLSA conducts governance Park End Street The Oxford review to ‘reinvent’ itself OX1 1JD Tel: 01865 799 300 Professional he Pensions and Lifetime Savings Association (PLSA) has launched a year-long Website: www.vencap.com review of its internal governance procedures. Asset Management Pensions The move, which was announced in October 2016, a year after the association VONTOBEL ASSET MANAGEMENT rebranded from the National Association of Pension Funds (NAPF), aims to improve Third Floor Handbook 2017 Tits work for members and stakeholders, and ensure it operates effectively. 22 Sackville Street Speaking at the PLSA’s annual conference, chairwoman Lesley Williams (pictured) said the London association needed to be able to “reinvent” itself. W1S 3DN She said: “We have to make sure we talk the talk of 21st century governance. At our last Tel: 020 7255 8300 www.professionalpensions.com annual conference, we announced that we were reinventing the association. We have made Website: www.vontobel.com/am HANDBOOK 2017 www.professionalpensions.com great process but there is more to do. HANDBOOK 2017 “In a world that changes as quickly as ours, we want to make sure we can reinvent ourselves WESTERN ASSET www.professionalpensions.com HANDBOOK when we need to. Not just when it comes to conference programmes, publications, and policy 10 Exchange Square 2017 Primrose Street work, but in the fabric of the association. London “That’s why the PLSA is undertaking a comprehensive review of its own governance to make EC2A 2EN sure we have the right structure to deliver our strategy and purpose, the right people within Tel: 020 7422 3000 that structure, and the right selection processes for those people. Website: www.westernasset.com “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 To ensure your years ahead.” inclusion in the 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. 2018 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 Handbook from the NAPF. contact Nita Hulme 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. NOW on Segars said: “My proudest achievements have included creating the Pension Quality Mark, establishing the Pensions Infrastructure Platform, increasing the association’s income by 40% +44 (0)20 7316 9309 or 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, [email protected] reflecting the realities of retirement saving today, culminating in the rebranding of the NAPF as the PLSA in 2015.”

54 Professional Pensions Handbook 2017 www.professionalpensions.com 55 THE ANNUITY BUREAU – ASSOCIATION OF REAL ESTATE FUNDS COMBINED PENSION – THE PENSION FUND

THE ANNUITY BUREAU pensions for controlling directors; pensions COMBINED PENSION INSTITUTIONAL MONEY MARKET 3rd Floor on divorce; and many also offer personal FORECASTING TEAM FUNDS ASSOCIATION Bond House financial planning services. The Pension Service 65 Kingsway The Bourse Room TB001 London Boar Lane THE ASSOCIATION OF CORPORATE Tyneview Park WC2B 6TD Leeds TRUSTEES Newcastle upon Tyne Tel: 020 7269 4669 LS1 5EN 3 Brackerne Close NE98 1BA Website: www.immfa.org Tel: 0845 850 8550 Cooden Tel: 0870 010 1684 Associations Bodies & Official Website: www.annuity-bureau.co.uk Bexhill-on-Sea Website: www.thepensionservice.gov.uk INVESTMENT MANAGEMENT E. Sussex ASSOCIATION ASSOCIATION OF TN39 3BT FINANCIAL CONDUCT AUTHORITY 65 Kingsway BRITISH INSURERS Tel: 01424 844144 25 The North Colonnade London 51 Gresham Street Website: www.trustees.org.uk Canary Wharf WC2B 6TD London London Tel: 020 7831 0898 EC2V 7HQ ASSOCIATION OF MEMBER- E14 5HS Website: www.investmentuk.org Tel: 020 7600 3333 DIRECTED PENSION SCHEMES Tel: 020 7066 1000 Website: www.abi.org.uk (AMPS) Website: www.fca.org.uk PENSIONS & LIFETIME SAVINGS Andrew Roberts ASSOCIATION Chairman of AMPS GOVERNMENT ACTUARY’S Cheapside House

Barnett Waddingham LLP DEPARTMENT 138 Cheapside Official & BodiesAssociations Port of Liverpool Building Finlison House London Pier Head 15-17 Furnival Street EC2V 6AE Liverpool London Tel: 020 7601 1700 ASSOCIATION OF L3 1B EC4A 1AB Website: www.plsa.co.uk CONSULTING ACTUARIES Tel: 0151 235 6600l Tel: 020 7211 2600 Regis House Website: www.ampsonline.co.uk Website: www.gad.gov.uk THE PENSIONS ADVISORY First Floor SERVICE (TPAS) 45 King William Street ASSOCIATION OF INLAND REVENUE PENSIONS 11 Belgrave Road London PENSION LAWYERS SCHEMES OFFICE London EC4R 9AN Room 10 Yorke House SW1V 1RB Tel: 020 3102 6761 Pmi House PO Box 62 Tel: 0845 601 2923 Email: [email protected] 4-10 Artillery Lane Castle Meadow Road Website: www.pensionsadvisory Website: www.aca.org.uk London Nottingham service.org.uk E1 7LS NG2 1BG Contact: David Robertson Tel: 0845 680 9889 Tel: 0115 974 0000 THE PENSION FUND Email: [email protected] Website: www.apl.org.uk Website: www.hmrc.gov.uk INVESTMENT FORUM Fulling Mill Barn Services: The Association draws its ASSOCIATION OF REAL THE INSTITUTE OF ACTUARIES Fulling Mill Lane membership from individual consulting ESTATE FUNDS (AREF) Staple Inn Hall Welwyn actuaries working in over 80 consulting 65 Kingsway High Holborn Herts firms. Members of the Association are all London London AL6 9NP qualified actuaries with the major part WC2B 6TD WC1V 7QJ Tel: 01438 712 345 of members’ work being as advisers to Tel: 020 7269 4677 Tel: 020 7632 2100 Website: www.spsconferences.com UK Pension Funds. Members also advise Website: www.aref.org.uk Website: www.actuaries.org.uk on scheme design and administration; investment strategy; the pension aspects of mergers; acquisitions and sales;

56 Professional Pensions Handbook 2017 www.professionalpensions.com 57 PMI – THE SOCIETY OF PENSION AUDITORS & ACCOUNTANTS

THE PENSIONS MANAGEMENT THE SOCIETY OF PENSION Pension accounting changes - INSTITUTE (PMI) PROFESSIONALS PMI House St. Bartholomew House 4-10 Artillery Lane 92 Fleet Street the what, when, who and how London London E1 7LS EC4Y 1DG he International Accounting Standards Board is expected to finalise new guidance Tel: 020 7247 1452 Tel: 020 7353 1688 on applying IAS19 which will recognise that while it provides a broadly consistent Website: www.pensions-pmi.org.uk Website: www.the-spp.co.uk measurement approach, the disclosures can often bear little resemblance to the Associations Bodies & Official obligation sponsors have to their defined benefit (DB) pension plans. PENSIONS OMBUDSMAN TCurrently, where employers have a “right” to recover a surplus from their DB scheme (which 6th Floor is not the case for all schemes) they may recognise a pension accounting surplus as an asset 11 Belgrave Road even if they actually have a liability to make further payments to their scheme. London The updated guidance will narrow the definition of this right to recover a surplus and, even SW1V 1RB where a scheme is not currently in surplus on an accounting basis, the sponsor will still need Tel: 020 7630 2200 to reduce the value of the scheme’s assets to reflect future committed contributions. Website: www.pensions-ombudsman.org.uk This will mean that many more schemes will need to recognise a deficit equal to their THE PENSIONS REGULATOR minimum funding requirement (usually interpreted as their Schedule of Contributions (SoC) if Napier House it is greater than their IAS19 liability. Trafalgar Place Although the changes may improve transparency by bringing the accounting disclosure Brighton closer to the reality of pension scheme obligations, which may lead to potentially massive BN1 4DW increases in on-balance sheet liabilities, their impact may vary significantly based on small Tel: 0870 606 3636 technicalities in the scheme’s trust deed and rules. Website: www.thepensionsregulator.gov.uk 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. THE PENSION SERVICE Companies that recognise their SoC will experience an immediate increase in their deficit, Future Pension Centre recorded as a charge in Other Comprehensive Income (i.e. not against profit). This will worsen Combined Forecasting and Pension Tracing some key ratios (e.g. leverage) but improve others (e.g. return on capital employed). Room TB201 Tyneview Park In entity accounts this will reduce distributable reserves and so may restrict dividends. This Whitley Road is likely to be more pronounced for sponsors with weaker covenants that are more reliant on Newcastle Upon Tyne funding from their sponsor.

www.professionalpensions.com HANDBOOK www.professionalpensions.com 2017 NE98 1BA HANDBOOK The accounting dynamics of the scheme will fundamentally change. The accounting deficit 2017 www.professionalpensions.com HANDBOOK Tel: 0191 218 7967 To ensure your 2017 will be less affected by annual changes in IAS19 assumptions but may change materially 0845 606 0265 inclusion in the following agreement of a new schedule of contributions following triennial valuation (Combined Pension Forecasting) negotiations with trustees. Website: www.thepensionservice.gov.uk 2018 As an unintended consequence, sponsors may target a greater level of investment return Professional Pensions from their scheme’s investments to justify a higher discount rate on the liabilities as this THE PERSONAL FINANCE SOCIETY would imply a lower requirement for cash contributions and therefore a smaller balance 42-48 High Road Handbook sheet liability. South Woodford London contact Nita Hulme Trustees will need to be aware that these changes could alter the approach their E18 2JP NOW on sponsor takes. Tel: 020 8989 8464 Accounting based on the SoC may also become associated with underfunding and driving Website: www.thepfs.org +44 (0)20 7316 9309 or risk-taking behaviour and trustees and sponsors will need to behave carefully. [email protected] Trustees may also be approached by sponsors to request changing the wording of scheme rules to produce a better accounting outcome.

58 Professional Pensions Handbook 2017 www.professionalpensions.com 59 ASH SHAW – DELOITTE EY LLP – REEVES & CO

ASH SHAW LLP EY LLP MAZARS LLP 180 1 More London Place House London London St. Katharine’s Way W1J 9HF SE1 2AF London Tel: 020 7917 2987 Tel: 020 7951 2000 E1W 1DD Website: www.ashshaw.com Tel: 0118 928 1100 Tel: 020 7063 4000 Website: www.ey.com/uk Website: www.mazars.co.uk BARBER HARRISON & PLATT 2 Rutland Park CROWE CLARK WHITEHILL LLP GRANT THORNTON UK LLP MENZIES LLP St Bride’s House Auditors & Accountants Sheffield Grant Thornton House Victoria House S10 2PD 10 Salisbury Square 202 Silbury Boulevard 50-58 Victoria Road Tel: 0114 266 7171 London Milton Keynes Farnborough Website: www.bhp.co.uk EC4Y 8EH MK9 1LW Hampshire Tel: 020 7842 7100 Tel: 01908 660666 GU14 7PG BDO LLP Fax: 020 7583 1720 Website: www.grant-thornton.co.uk Tel: 01252 541244 2 City Place Email: [email protected] Website: www.menzies.co.uk Beehive Ring Road Website: www.croweclarkwhitehill.co.uk HAYSMACINTYRE Gatwick 26 Red Lion Square MOORE STEPHENS LLP Contact: Andrew Penketh, Partner and Head London 150 Aldersgate Street

West Sussex Accountants & Auditors RH6 0PA of Pension Funds WC1R 4AG London Tel: 01293 591000 Email: [email protected] Tel: 020 7969 5500 EC1A 4AB Website: www.bdo.co.uk Website: www.haysmacintyre.com Tel: 020 7334 9191 The Crowe Clark Whitehill award Website: www.moorestephens.co.uk winning National Pension Funds Team BISHOP FLEMING HILLIER HOPKINS LLP is a dedicated, specialist team providing Stratus House Radius House PKF COOPER PARRY independent audit, tax and advisory Emperor Way Hertfordshire Sky View services. We advise trustees of large and Exeter Business Park WD17 1HP East Midland Airport complex pension schemes, master trusts, Exeter Tel: 01923 232 938 Central England scheme administrators and independent EX1 3QS Website: www.hillierhopkins.co.uk DE74 2SA trustees in navigating the increasingly Tel: 01392 448800 Tel: 01332 411163 challenging areas of accounting, Website: www.bishopfleming.co.uk HW FISHER & COMPANY Website: www.cooperparry.com administration, risk, governance, Acre House stewardship and internal controls. 11-15 William Road PRICEWATERHOUSECOOPERS LLP London 7 Moor London DELOITTE NW1 3ER Riverside 2 New Street Tel: 020 7388 7000 London London Website: www.hwfisher.co.uk SE1 2RT EC4R 3BZ Tel: 020 7804 0953 Tel: 020 7936 3000 KPMG LLP Website: www.pwc.co.uk/pensions Website: www.deloitte.co.uk Arlington Business Park Theale, Reading REEVES & CO Berkshire 37 St. Margaret’s Street RG7 4SD Canterbury Tel: 0118 373 1369 CT1 2TU Website: www.kpmg.com/uk/pensions Tel: 01227 768231 Website: www.reeves-neylan.com

60 Professional Pensions Handbook 2017 www.professionalpensions.com 61 RSM – SAVANTS COVENANT ADVISORY AUTO-ENROLMENT CONSULTANTS

RSM 25 Farringdon Street Should AE rate hikes be in line with London EC4A 4AB The staging dates? Tel: 020 3201 8000 Website: www.rsmuk.com Professional utomatic enrolment (AE) has been rolling out for nearly six years and the programme is ongoing, with many small and micro-business being scheduled to SAFFERY CHAMPNESS Pensions enrol as late as February 2018. Lion House However, this is being undertaken alongside a programme of increasing the

Auditors & Accountants Red Lion Street Handbook 2017 Acontributions for employees, with total minimum contributions to increase from 2% to 5% London in April next year, and to 8% in 2019. WC1R 4GB For small firms only staging in February 2018, the final staging date, this means they will Tel: 020 7405 2828 Website: www.saffery.com have just two months before moving to the 5% rate, and fourteen months to prepare for 8%. www.professionalpensions.com On the other hand, businesses who staged in 2012 will have had six years to get ready and HANDBOOK 2017 are more likely to have enough cash to cover the uplift. SAVANTS COVENANT ADVISORY www.professionalpensions.com HANDBOOK 2017 But should the government consider moving the rate hikes to be more in-line with 83 Victoria Street www.professionalpensions.com London HANDBOOK staging dates? 2017 SW1H 0HW Punter Southall Aspire principal Alan Morahan believes such a phased approach should Tel: 020 8819 2159 have been legislated for, even if it does prove bureaucratically problematic. In particular, he Website: worries that employees of these small firms will feel the hit hardest. www.savantscovenantconsultancy.co.uk “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. To ensure your Furthermore, if such a phased approach did come into play, it could see small businesses inclusion in the playing catch up with their larger counterparts until tinkering with minimum contribution levels ended. 2018 “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- Handbook bution rate, that must be the same for all businesses.” contact Nita Hulme The People’s Pension head of policy Darren Philp also worries such a proposal could create an unnecessary communications and administrative headache. NOW on “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. +44 (0)20 7316 9309 or “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 [email protected] rules for different people. “The administrative burden could outweigh any benefit.”

62 Professional Pensions Handbook 2017 www.professionalpensions.com 63 AON HEWITT – HYMANS ROBERTSON JLT EMPLOYEE BENEFITS – RUSSELL INVESTMENT

AON HEWITT guidance through set up, ongoing PREMIER COMPANIES LIMITED 10 Devonshire Square compliance and governance beyond. Premier London AMP House EC2M 4YP Our solution is ‘decision-light’ for the Dingwall Road Tel: 0800 279 5588 employer, as various aspects of design are JLT EMPLOYEE BENEFITS Croydon Website: www.aonhewitt.co.uk pre-packaged, in particular the choice of The St Botolph Building CR0 2LX pension provider and default investment. 138 Houndsditch Tel: 020 8663 5800 ARTHUR J. GALLAGHER This ensures that A>E is affordable and London Fax: 020 3014 8768 The Walbrook Building can be up scaled to meet the demand for EC3A 7AW Website: www.premiercompanies.co.uk 25 Walbrook pension advice and services arising due to Tel: 020 7528 4000 London EC4N 8AW auto-enrolment. Website: www.jltgroup.com/eb PRICEWATERHOUSECOOPERS LLP Auto-Enrolment Consultants Tel: +44 (0)20 7204 6195 Hays Galleria Website: www.gallaghereb.com A>E comprises a five step process to JLT has the experience and skills to deliver 1 Hays Lane guide the employer right through from a wide ranging set of Defined Contribution London application to compliance: services for employers of all sizes and SE1 2RD sectors. We offer transparent fees, clear Tel: 020 7583 5000 • Apply communication and the ability to change Website: www.pwc.co.uk • Build or develop the services to ensure they • Configure remain relevant to your developing scheme PUNTER SOUTHALL BARNETT WADDINGHAM LLP • Deliver and your employees. 11 Strand Cheapside House • End London 138 Cheapside THE PENSIONS REGULATOR WC2N 5HR

London Authorised and regulated by the Financial Napier House Tel: 020 3327 5000 ConsultantsAuto-Enrolment EC2V 6BW Conduct Authority and licensed by the Trafalgar Place Website: www.puntersouthall.com Tel: 0333 11 11 222 Institute and Faculty of Actuaries for a Brighton Email: [email protected] range of investment business activities. BN1 4DW QUANTUM ADVISORY Website: www.barnett-waddingham.co.uk/ Tel: 0845 600 0707 Summers House auto-enrolment CAPITA EMPLOYEE BENEFITS Website: www.thepensionsregulator.gov.uk Pascal Close 65 Gresham Street St. Mellons Contact: Rob Thomas London THE PENSIONS TRUST Cardiff EC2V 7NQ Verity House CF3 OLW Barnett Waddingham LLP is the UK’s Tel: 020 7709 4500 6 Canal Wharf Tel: 029 8083 7900 largest independent provider of actuarial, Website: Leeds Website: www.quantumadvisory.co.uk administration and consultancy services. www.capita.co.uk/employeebenefits Yorkshire Founded in 1989 our headcount has grown LS11 5BQ RUSSELL INVESTMENT LTD from 20 to over 850 today based in seven HYMANS ROBERTSON Tel: 0113 234 5500 Rex House offices throughout the UK. One London Wall Website: www.thepensionstrust.org.uk 10 Lower Regent Street London London Our streamlined auto-enrolment solution EC2Y 5EA SW1Y 4PE A>E is specifically for small and medium Tel: 020 7082 6000 Tel: 020 7024 6000 enterprise (SME) employers with staging Website: www.hymans.co.uk Website: www.russell.com/uk 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

64 Professional Pensions Handbook 2017 www.professionalpensions.com 65 WILLIS TOWERS WATSON – XAFINITY CONSULTING AUTO-ENROLMENT PROVIDERS

WILLIS TOWERS WATSON 71 High Holborn Why are opt-out rates much higher London WC1V 6TP The among older workers? Tel: 020 7170 2000 Website: www.willistowerwatson.com Professional ince the introduction of auto-enrolment (AE) there has been a curious WORDSHOP Pensions phenomenon: opt-out rates for workers appear to increase with age. In Tilton Court January, the Pensions Policy Institute (PPI) published a paper on AE that shed Digby Road Handbook 2017 light on this very subject. Sherbourne

Auto-Enrolment Consultants SIt cited a 2014 Department for Work and Pensions (DWP) study, which examined why Dorset DT9 3NL workers opted out. It found opt-out rates for people over the age of 50 were 23%, while Tel: 01935 817 738 the rate for ages 30-49 was 9%, and for workers under 30 it was just 7%. Website: www.wordshop.co.uk www.professionalpensions.com The PPI study noted “DWP’s analysis suggested that age was the main demographic HANDBOOK 2017 www.professionalpensions.com characteristic that influenced the opt-out rate” and further research is needed to fully HANDBOOK XAFINITY CONSULTING 2017 understand what is happening. www.professionalpensions.com Phoenix House HANDBOOK There is a debate about how important these figures are and what policy 2017 1 Station Hill consequences flow from them. However, they should at least give the industry and Reading government pause for thought. Berkshire Opt-out rates, which are 25-50 percentage points higher for over 50s compared to RG1 1NB Tel: 0118 918 500 under-50s, take some of the shine off AE. It is important for the government to find out Website: www.xafinity.com 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 To ensure your more nuanced. inclusion in the 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 2018 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 Handbook good reasons for doing so. contact Nita Hulme 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,” NOW on 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 +44 (0)20 7316 9309 or decisions are made in error.” Hargreaves Lansdown senior pensions analyst Nathan Long argues it is too early to [email protected] 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.”

66 Professional Pensions Handbook 2017 www.professionalpensions.com 67 BENEFEX – THE PENSIONS ADVISORY SERVICE THE PEOPLE’S PENSION FROM B&CE – ZURICH ASSURANCE

BENEFEX KPMG LLP THE PEOPLE’S PENSION FROM STATE STREET GLOBAL ADVISORS Eastgate House Arlington Business Park B&CE 20 Churchill Place Town Quay Theale, Reading Manor Royal Canary Wharf Southampton Berkshire Crawley London SO14 2NY RG7 4SD West Sussex E14 5HJ Tel: 0845 129 8636 Tel: 0118 373 1369 RH10 9QP Tel: 020 7698 6000 Website: www.benefex.co.uk Website: www.kpmg.com/uk/pensions Tel: 0800 612 8080 Website: www.ssga.com/uk Website: www.thepeoplespension.co.uk CAREY CORPORATE PENSIONS UK LEGAL & GENERAL-WORKPLACE WILLIS TOWERS WATSON LIMITED SAVINGS PRICEWATERHOUSECOOPERS LLP Three Brindley Place 1st Floor St. Monica Road Hays Galleria Birmingham Lakeside House Kingswood 1 Hays Lane B1 2LN

Auto-Enrolment Providers Shirwell Crescent Furzton Lake Tadworth London Tel: 0121 631 1889 Milton Keynes Surrey SE1 2RD Website: www.willistowerwatson.com MK4 1GA KT20 6EU Tel: 020 7583 5000 Tel: +44 (0) 1908 336010 Tel: 0845 273 0001 Website: www.pwc.co.uk XAFINITY CONSULTING Website: www.careypensions.co.uk Website:  Phoenix House www.legalandgeneral.com/workplace ROWANMOOR GROUP PLC 1 Station Hill DELOITTE TOTAL REWARD & benefits/advisers/help-support Rowanmoor House Reading BENEFITS LTD 46-50 Castle Street Berkshire Hill House MERCER Salisbury RG1 1NB 1 Little New Street 1 Tower Place West Wiltshire Tel: 0118 918 500 London London SP1 3TS Website: www.xafinity.com Providers Auto-Enrolment EC4A 3TR EC3R 5BU Tel: 03445 440 440 Tel: 020 7936 3000 Tel: 020 7626 6000 Website: www.rowanmoor.co.uk ZURICH ASSURANCE LTD Website: www.deloitte.co.uk/pensions Website: www.uk.mercer.com/ukdc Tri Centre 1 STAFFCARE LTD New Bridge Square HYMANS ROBERTSON NEST CORPORATION Leatherhead House Swindon One London Wall Riverside House Station Road SN1 1HN London 2a road Leatherhead Tel: 01793 514514 EC2Y 5EA London Surrey Website: www.zurich.co.uk/life Tel: 020 7082 6000 SE1 9HA KT22 7FG Website: www.hymans.co.uk Tel: 020 3056 3600 Tel: 0845 372 6644 Website: www.nestpensions.org.uk Website: www.staffcare.net JOHNSON FLEMING LIMITED Fleming House THE PENSIONS ADVISORY STANDARD LIFE Bromsgrove Enterprise Park SERVICE (TPAS) Standard Life House Bromsgrove 11 Belgrave Road 30 Lothian Road B60 3AL London Edinburgh Tel: 01527 571 300 SW1V 1RB EH1 2DH Website: www.johnsonfleming.com Tel: 0845 601 2923 Tel: 0131 245 2552 Website:  Website: www.standardlife.co.uk www.pensionsadvisoryservice.org.uk

68 Professional Pensions Handbook 2017 www.professionalpensions.com 69 COMMUNICATIONS AMMATTI – CONCERT CONSULTING

BROADGATEMAINLAND Learning lessons from the 15 Basinghall Street London EU referendum EC2V 5BR AMMATTI Tel: 020 7776 6111 efined contribution pension providers can learn useful lessons from the UK’s Park House Website: www.BroadgateMainland.com recent referendum. Voters were asked to evaluate the short and long-term legal, 10 Park Street Bristol political and economic implications of life inside and outside the European Union, BROADSTONE COPRORATE BS1 5HX and then decide which option they preferred. BENEFITS LTD Tel: 0117 934 9016 DThis is a similar challenge to the one facing defined contribution pensions providers: how do 55 Baker Street Email: [email protected] London they help members to make complex decisions with long-term implications? Website: www.ammatti.co.uk W1U 7EU It behoves pension providers to look carefully at the failures of the remain campaign so they Tel: 020 7893 3456 avoid making similar mistakes. ANTHONY HODGES Website: www.broadstoneltd.co.uk The government made a series of critical errors according to Like Minds communications CONSULTING LTD specialist Sarah Hollingworth who says “there was an overload of information with a high Heath Hall volume of facts and figures”. Heath Not only did the government provide an overwhelming level of data but it gave the voters little Wakefield time to digest these facts. The referendum campaign only lasted four months, giving the public WF1 5SL insufficient time to debate and analyse the facts and figures. Tel: 01924 203 900 The pensions industry is also guilty of overloading its members with too much information Website: www.ahc.com Communications over too short a time period. The abolition of the requirement to purchase an annuity at AON HEWITT retirement means pensioners can now choose how they invest their pot. Parkside House LCP senior consultant Hayley Williams, says: “Six months before retirement, a member will Ashley Road CAPITA EMPLOYEE BENEFITS suddenly receive a large pack of complex information about how to take their benefits and the Epsom 65 Gresham Street tax implications.” Up to that point, members have received limited on-going pension education KT18 5BS London other than their annual benefit statement. Tel: 020 7086 1890 EC2V 7NQ Williams says: “It would be much better for pension scheme to educate members throughout Website: www.aonhewitt.co.uk Tel: 020 7709 4500 Website: their career so they can digest the information slowly and be well prepared for retirement.” www.capitaemployeebenefits.co.uk Willis Towers Watson senior consultant John Cockerton agrees: “This allows members B2E TECHNOLOGIES to make an informed and rational choice rather than one which is clouded by fear and Portsoken House 155/157 Minories CONCERT CONSULTING negative emotion.” 18-21 Queen Square House Not only did the referendum deliver too much information but it was also not communicated London EC3N 1LJ Queen Square in a coherent manner. Hollingworth says: “There was no attempt to show what this data meant Tel: 020 3475 3398 Bristol for the individual voter.” Website: www.b2e-technologies.co.uk Avon Hollingworth says the lack of pertinent individual information meant people ended up making BS1 4NH a decision based on intuition rather than logic – and she believes DC schemes can be guilty of BATH ACTUARIAL CONSULTING LTD Tel: 07958 173698 Website: www.concertconsult.co.uk doing similar. PO Box 5110 “The pensions industry is very good at providing lots of information on how it works and why Bath it is important but often fails to address what is fundamentally important - what this means for BA1 0QY the member,” she says. Tel: 01225 470 036 Emotions play an important role in all decision making processes so it’s vital to ensure these Website: www.bathactuarial.com 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.”

70 Professional Pensions Handbook 2017 www.professionalpensions.com 71 FERRIER PEARCE – PRICEWATERHOUSECOOPERS PUNTER SOUTHALL – WORDSHOP

FERRIER PEARCE PUNTER SOUTHALL WILLIS TOWERS WATSON County House, 11 Strand Watson House

14-15 Hatton Garden, London London Road London LCP WC2N 5HR Reigate EC1N 8AT 95 Wigmore Street Tel: 020 3327 5000 Surrey Tel: 020 3772 5384 London Website: www.puntersouthall.com RH2 9PQ Website: www.ferrierpearce.com W1U 1DQ Tel: 01737 241144 Website: www.lcp.uk.com RPMI Website: www.willistowerwatson.com GR COMMUNICATIONS Stooperdale Offices 24 Greville Street Contact: Mark Smith Brinkburn Road WORDSHOP London Title: Partner Darlington Tilton Court EC1N 8SS Tel: +44 (0)20 7439 2266 County Durham Digby Road Tel: 020 3159 5001 Fax: +44 (0)20 7439 0183 DL3 6EH Sherbourne Website: www.grcomms.co.uk Email: [email protected] Tel: 01325 342901 Dorset Communications Website: www.rpmi.co.uk DT9 3NL HR TRUSTEES LIMITED MERCER Tel: 01935 817 738 Phoenix House, 1 Tower Place West RUBICON BENEFIT Website: www.wordshop.co.uk 1 Station Hill Tower Place COMMUNICATIONS LTD Reading London Homestead House RG1 1NB EC3R 5BU Tuesley Lane

Tel: 0118 958 3683 Tel: 020 7626 6000 Godalming Communications Website: www.hrtrustees.com Website: www.mercer.com Surrey GU7 1SG HYMANS ROBERTSON MHP Tel: 01475 727717 One London Wall 6 Agar Street Website: www.rubicon-benefit.com London London EC2Y 5EA WC2N 4HN SHILLING COMMUNICATION LTD Tel: 020 7082 6000 Tel: 020 3128 8100 Liss Mill Fax: 020 7082 6082 Website: www.mhpc.com Mill Road Website: www.hymans.co.uk Liss ORIGEN FINANCIAL SERVICES LTD Hampshire JLT EMPLOYEE BENEFITS 1st Floor, Infor House GU33 7BD

www.professionalpensions.com HANDBOOK www.professionalpensions.com The St Botolph Building 2017 1 Lakeside Road Tel: 01730 891 212 HANDBOOK 2017 www.professionalpensions.com HANDBOOK 138 Houndsditch Farnborough Website: www.shilling.co.uk To ensure your 2017 London Hampshire EC3A 7AW GU14 6XP STRAIT LOGICS LTD inclusion in the Tel: 020 7528 4000 Tel: 0844 209 3000 Software House 2018 Website: www.jltgroup.com/eb Website: www.origenfs.co.uk 20 Chapel Street Billericay Professional Pensions KPMG LLP PRICEWATERHOUSECOOPERS LLP Essex Handbook Arlington Business Park 7 More CM12 9LU Theale, Reading London Tel: 0845 543 8415 contact Nita Hulme Berkshire SE1 2RT Website: www.straitlogics.com NOW on RG7 4SD Tel: 020 7583 5000 Tel: 0118 373 1369 Website: www.pwc.co.uk +44 (0)20 7316 9309 or Website: www.kpmg.com/uk/pensions [email protected]

72 Professional Pensions Handbook 2017 www.professionalpensions.com 73 BNP PARIBAS SECURITIES SERVICES – UBS LTD DC PROVIDERS

BNP PARIBAS SECURITIES EUROCLEAR SERVICES CRESTCO Limited Designing a gold standard DC scheme 55 Moorgate 33 Cannon Street London London EC2R 6PA EC4M 5SB here has been huge change in pensions over the past four years following the Tel: 020 7595 2000 Tel: 020 7849 0000 implementation of auto-enrolment in 2012, the introduction of the pension Website: www.securities.bnpparibas.com Website: www.euroclear.com freedoms and a raft of other regulatory change. These changes have forced employers to make significant changes to their BNY MELLON ASSET SERVICING HSBC SECURITIES SERVICES Tpensions offering to ensure it remains fit for purpose in a freedom and choice world. But Level 28 The Bank of New York Mellon Centre what makes for a gold standard defined contribution (DC) pension offering today? How can 160 Queen Victoria Street 8 Canada Square employers know they are offering the best possible scheme to their staff? London London The Pensions Regulator’s DC Code - the latest version of which was released this summer - EC4V 4LA E14 5HQ Tel: 020 7163 5566 Tel: 0117 302 0080 sets out the key standards it expects trust-based schemes to achieve. Website: www.bnymellon.com/ Website: www.hsbcnet.com/ifs And the Pensions and Lifetime Savings Association’s Pension Quality Mark - which requires Custodians assetservicing schemes to demonstrate quality across three key areas: contributions, governance and J.P. MORGAN INVESTOR SERVICES communication - is also useful in determining whether a scheme is of sufficient quality. BROWN BROTHERS But what does all this really mean in practice? And is it really as straightforward as HARRIMAN LIMITED London completing a tick box list from the regulator or achieving an external accreditation? Park House E14 5JP PP decided to ask a number of leading investment managers about what makes a gold 16-18 Finsbury Circus Tel: 020 7742 0131 standard scheme. This is what they said. Website: www.jpmorgan.com London Stephen Bowles, head of defined contribution at Schroders says: “A gold standard DC EC2M 7EB scheme should deliver value for money for the members but also for the sponsoring employer. Tel: 020 7588 6166 KAS BANK N.V. “Members should have a glide path which allows them to access sufficient growth in the Website: www.bbh.com 5th Floor 10 Old Broad Street early years (to build their pot) but that moves them into risk managed strategies (not bonds CITIGROUP GLOBAL London and cash) in the later years. SECURITIES SERVICES EC2N 1AA “The end point of the glide path should also provide members with the flexibility to use their Citigroup Centre Tel: 020 7153 3600 DC pot according to their circumstances when they actually retire. Assumptions shouldn’t be 33 Canada Square Website: www.kasbank.com made about what members will do at retirement.” Canary Wharf Alistair Byrne, senior DC investment strategist at State Street Global Advisors says: “A gold London NORTHERN TRUST standard pension scheme is one that reliably delivers good outcomes for members. E14 5LB 50 Bank Street “Good governance will help to ensure the scheme provides value for money for members. Tel: 020 7500 5043 Canary Wharf Engagement and education of members are worthwhile activities, but well-chosen defaults London Website: www.citigroup.com are more important.” E14 5NT He adds: “We have seen the power of automatic enrolment in raising participation rates Tel: 020 7982 2000 CLEARSTREAM INTERNATIONAL and behavioural insights can be effective in other areas such as automatic escalation of 11 Website: www.ntrs.com contributions to raise savings rates. High-quality default investment strategies are more 2nd Floor important than encouraging members to make their own investment choices.” London UBS LTD E14 4HD 1 Finsbury Avenue Catherine Doyle, UK head of DC pensions at Newton Investment Management says Tel: 020 7862 7000 London that defining a single gold standard in DC is not straightforward, but says there are “basic Website: www.clearstream.com EC2M 2PP attributes” indicating excellence. Tel: 020 7567 8000 She says: “The DC scheme should be given prominence by the employer, reflected in Website: www.ubs.com 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.

74 Professional Pensions Handbook 2017 www.professionalpensions.com 75 AB – BNY MELLON ASSET MANAGEMENT BROADSTONE CORPORATE BENEFITS – LEGAL & GENERAL AM

AB (FORMERLY AXA WEALTH BROADSTONE CORPORATE HSBC WORKPLACE RETIREMENT ALLIANCEBERNSTEIN) Winterthur Way BENEFITS LTD SERVICES 50 Berkeley Street Basingstoke 55 Baker Street 1st Floor London Hampshire London Norwich House W1J 8HA RG21 6SZ W1U 7EU Nelson Gate Tel: 020 7470 0100 Tel: 01256 470 707 Tel: 020 7893 3456 Commercial Road Website: www.abglobal.com Website: www.axa.co.uk Website: www.broadstoneltd.co.uk Southampton SO15 GX AEGON BAILLIE GIFFORD & CO CAREY CORPORATE PENSIONS UK Tel: 02380 722169 Edinburgh Park Calton Square LIMITED Website: www.hsbc.co.uk Edinburgh 1 Greenside Row 1st Floor EH12 9SE Edinburgh Lakeside House INSIGHT INVESTMENT LTD Tel: 0870 6000 337 EH1 3AN Shirwell Crescent Furzton Lake 160 Queen Victoria Street Website: www.aegonse.co.uk Tel: 0131 275 2000 Milton Keynes London Website: www.bailliegifford.com MK4 1GA EC4V 4LA Tel: +44 (0) 1908 336010 Tel: 020 7163 4000 Website: www.careypensions.co.uk DC Providers BARCLAYS CORPORATE & Website: www.insightinvestment.com EMPLOYER SOLUTIONS 1 Churchill Place COLUMBIA THREADNEEDLE JLT EMPLOYEE BENEFITS The St Botolph Building AON HEWITT Canary Wharf INVESTMENTS 138 Houndsditch The Aon Centre London 60 St Mary Axe London 122 Leadenhall Street E14 5HP London Providers DC EC3A 7AW London Tel: 020 7116 9000 EC3A 8JQ Tel: 020 7528 4000 EC3V 4AN Website: www.barclayswealth.com Tel: 020 7464 5000 Website: www.jltgroup.com/eb Tel: 0800 279 5588 Website: www.columbiathreadneedle.co.uk Email: [email protected] BATH ACTUARIAL CONSULTING LTD Website: www.aonhewitt.co.uk PO Box 5110 FIDELITY INTERNATIONAL JP MORGAN Bath 25 Cannon Street Finsbury Dials Aon Hewitt empowers organizations BA1 0QY London 20 Finsbury Street and individuals to secure a better future Tel: 01225 470 036 EC4M 5TA London through innovative human capital Website: www.bathactuarial.com Tel: 020 7283 9911 EC2Y 9 AQ solutions. We advise and design a wide Website: www.fidelityinstitutional.com Tel: 020 7742 6000 range of solutions that enable our clients’ BLACKROCK Website: www.jpmorgan.com success. Our teams of experts help clients 12 Throgmorton Avenue FRIENDS LIFE navigate the risks and opportunities to London Castle Street LEGAL & GENERAL optimize financial security; redefine health EC2N 2DL Salisbury ASSET MANAGEMENT solutions for greater choice, affordability, Tel: 020 7743 3000 SP1 3SH One Coleman Street and wellbeing; and achieve sustainable Website: www.blackrock.co.uk Tel: 0845 602 9189 London growth by driving business performance Website: www.friendslife.com EC2R 5AA through people performance. We serve BNY MELLON ASSET MANAGEMENT Tel: 020 3124 3000 more than 20,000 clients through our The Bank of New York Mellon Centre Website: www.lgim.com 15,000 professionals located in 50 160 Queen Victoria Street countries around the world. London EC4V 4LA Tel: 020 7163 4300 Website: www.bnymellonam.com

76 Professional Pensions Handbook 2017 www.professionalpensions.com 77 MERCER – ZURICH LTD

MERCER SCOTTISH WIDOWS INVESTMENT 1 Tower Place West PARTNERSHIP Tower Place Edinburgh One London 60 Morrison Street EC3R 5BU Edinburgh Tel: 020 7626 6000 EH3 8BE Website: www.mercer.com Tel: 0131 655 8500 Website: www.swip.com NEWTON FUND MANAGERS LIMITED STANDARD LIFE 160 Queen Victoria Street Standard Life House London Edinburgh

www.professionalpensions.com | 11 May 2017

Will slowing longevity EC4V 4LA EH15 1ET rises reduce deficits? UK Pensions Awards 2017 – the winners

How the MNOPF uses Tel: 020 7163 9000 Tel: 0131 225 2552 fiduciary management Website: www.newton.co.uk Website: www.standardlife.co.uk

DC Providers THE PENSION TRUST UBS GLOBAL ASSET MANAGEMENT Ad page Verity House 21 Lombard Street 6 Canal Wharf London Leeds EC3V 9AH LS1 5BQ Tel: 020 7901 5000 Tel: 0113 234 5500 Website: www.ubs.com

001_PP_110517.indd 1 08/05/2017 13:11 Website: www.thepensionstrust.org.uk XAFINITY CONSULTING PRUDENTIAL Phoenix House DC Solutions 1 Station Hill Access the latest pensions insight with Craigforth Reading Stirling Berkshire Professional Pensions. Subscribe today. FK9 4UE RG1 1NB Professional Pensions is the market Tel: 0118 968 6951 Tel: 0118 918 500 45 printed issues of Professional Pensions Website:  Website: www.xafinity.com leading source for those in the Monthly supplements, including DC World, the www.pru.co.uk/employers/corp_pensions occupational pensions industry. Top 100 Pension Funds and specialist reports ZURICH LTD The annual Professional Pensions Handbook ROYAL LONDON ASSET The Grange Following an extensive, independent Exclusive access to premium content MANAGEMENT LTD Bishop’s Cleeve audience research study, Professional Pensions has been further improved to UK 1 YEAR: £530 55 Gracechurch Street Cheltenham NAME: London Gloucestershire include greater depth of analysis, insight COMPANY: EC3V 0UF GL52 8XX and content. JOB TITLE: Tel: 020 7506 6500 Tel: 01242 511227 ADDRESS: POSTCODE: Website: www.rlam.co.uk Website: www.zurich.co.uk Professional Pensions has taken into TEL: FAX: account your information needs which can EMAIL: be accessed whether in print, in person, I enclose cheque/banker’s draft* for £530 made payable to online or via your smart device. Incisive Business Media Ltd. *(delete as applicable) You can subscribe using the form to DATE: SIGNED: the right or online at: Send details and cheque, payable to Incisive Business Media Ltd, professionalpensions.com/register to: Haymarket House, 28-29 Haymarket, London, SW1Y 4RX 78 Professional Pensions Handbook 2017

PP Subs Ad 2017.indd 1 5/23/17 2:28 PM EMPLOYEE BENEFITS

How employee benefits for SMEs are changing

mall 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 S& 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.” Advancing pensions and 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. benefits every day. 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 In an ever-shifting pensions and investment landscape, we give our clients the ability believes smaller firms have never had it so good in the benefits arena. to elevate decision-making and navigate change to their advantage. “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 Conduent HR Services (formerly Buck Consultants/Xerox HR Services) offers the has changed quite significantly from the past,” he says. latest innovative technology and advanced analytics to successfully manage anything Typically the options for most SMEs have been limited to shopping discounts, cash back from trust-based DB pension arrangements to insured DC plans. For decades, our 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. clients in the UK and around the world have trusted our customised solutions, Research shows that employees do appreciate benefits provided by their employer. including pensions administration, actuarial, and investment consulting. 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 In a world where modern, digital and personalised interactions are expected valuable part of their employment package. every day, businesses turn to Conduent. 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. 0800 066 5433 Grid spokeswoman Katharine Moxham notes that when cost is put forward as an issue, [email protected] | conduent.co.uk/hrservices 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 80 Professional Pensions Handbook 2017 Conduent Business Services, LLC in the United States and/or other countries.

Conduent_PP_handbook.indd 1 10/05/2017 10:20:40 AEGON – BARNETT WADDINGHAM BARNETT WADDINGHAM – CS FINANCIAL SOLUTIONS

AEGON We look at the most efficient ways to Edinburgh Park implement changes (for example, whether Edinburgh to operate salary sacrifice arrangements, EH12 9SE impact upon internal processes etc.) and Tel: 0870 6000 337 also how best to engage employees with CONDUENT HR SERVICES Website: www.aegonse.co.uk BARNETT WADDINGHAM LLP these and the overall reward strategy. 160 Queen Victoria Street Cheapside House London AON HEWITT 138 Cheapside With our Me2 technology and other in- EC4V 4AN 10 Devonshire Square London house consultancy tools (such as GEM Tel: 0800 066 5433 London EC2V 6BW and BWell) we are able to help employers Email: [email protected] EC2M 4YP Tel: 0333 11 11 222 understand their workforce and set benefit Website: www.conduent.co.uk/hrservices Tel: 020 7086 1890 Email: [email protected] and engagement strategies to ensure a Website: www.aonhewitt.co.uk Website: www.barnett-waddingham.co.uk return on investment. Conduent HR Services is an established, leading provider of consulting, administration ARTHUR J. GALLAGHER Contact: Damian Stancombe Authorised and regulated by the Financial and outsourcing services to fulfil the The Walbrook Building Conduct Authority and licensed by the pensions and benefits needs of you and your 25 Walbrook Barnett Waddingham LLP is the UK’s Institute and Faculty of Actuaries for a employees/scheme members. We work London EC4N 8AW largest independent provider of actuarial, range of investment business activities. with our clients to deliver tailored, innovative Employee Benefits Employee Tel: +44 (0)20 7204 6195 administration and consultancy services. solutions across health, risk and wellbeing, Website: www.gallaghereb.com Founded in 1989 our headcount has grown B&CE, PROVIDER OF THE PEOPLE’S flexible benefits, share plans, and DB and from 20 to over 850 today based in seven PENSION DC pension schemes for both trustees and AWD CHASE DE VERE offices throughout the UK. Manor Royal corporates alike. CONSULTING LIMITED West Sussex 60 New Broad Street We follow our ACDC philosophy when RH10 9QP We aim to help you effectively manage London working with our clients around employee Tel: 0800 612 8080 the full range of your HR, pension, and benefits programmes, whilst engaging your EC2M 1JJ benefits: Website: www bandce.co.uk Employee Benefits Tel: 020 7065 1700 employees/scheme members in their health, Website: www.awdcdv.com Analytics – looking at the employee CAPITA EMPLOYEE BENEFITS wealth, and career. We integrate our years of cohorts and any issues there 65 Gresham Street experience with current day expertise and a BARNES & SHERWOOD may be in particular areas London customer partnership approach, to help you Highbridge Consultancy – solutions for addressing the EC2V 7NQ overcome your challenges. Oxford Road issues Tel: 020 7709 4500 Uxbridge Delivery – options on how to implement Email: [email protected] Our consultants are proactive, commercial, Greater London any solutions and communication with the Website: balanced, and professional, focused on UB8 1HR workforce www.capitaemployeebenefits.co.uk meeting and exceeding the needs of our Tel: 020 7474 3700 Check – reviewing and monitoring any clients. By harnessing technology of the Website: www.barnsher.co.uk advice and delivery future, and the power of Conduent’s global reach, we can help you to achieve your goals. This philosophy helps us to have a holistic approach to benefits advice, with the CS FINANCIAL SOLUTIONS LIMITED wellbeing of the employee at the centre 20 Chapel Street of what we do: be it financial, mental or Liverpool physical. We work with employers to set L3 9AG wellbeing strategies to include pensions, Tel: 0151 255 2630 wider workplace savings, risk, wellbeing Website: www.csfinancialsolutions.co.uk and lifestyle benefits.

82 Professional Pensions Handbook 2017 www.professionalpensions.com 83 DELOITTE TOTAL – JOHNSON FLEMING KPMG PENSIONS – NIGEL SLOAM & CO

DELOITTE TOTAL REWARD AND HYMANS ROBERTSON KPMG PENSIONS we’ll make lemonade, that’s our motto. BENEFITS One London Wall Arlington Business Park From pension communication to advice 66 Shoe Lane London Theale, Reading at retirement, we provide a wide range of London EC2Y 5EA Berkshire services. But it’s the way we deliver them that EC4A 3BQ Tel: 020 7082 6000 RG7 4SD makes us, and you, stand out from the crowd. Tel: 020 7936 3000 Website: www.hymans.co.uk Tel: 0118 373 1369 We don’t believe in complicated jargon Website: www.deloitte.co.uk Website: www.kpmg.com/uk/pensions and stuffy stereotypes. Instead, we design innovative communication programmes that EQUINITI LTD truly engage. We’ll work with you to develop Aspect House a handpicked solution that’s right for your

Spencer Road business, helping you to motivate your staff Lancing JLT EMPLOYEE BENEFITS LCP and improve communications. West Sussex The St Botolph Building 95 Wigmore Street BN99 6DA 138 Houndsditch London MERCER Tel: 0117 905 6841 London W1U 1DQ 1 Tower Place West Website: www.equiniti.com EC3A 7AW Website: www.lcp.uk.com Tower Place Tel: 020 7528 4000 London HAMISHWILSON & CO LLP Website: www.jltgroup.com/eb Contact: Aiden Coloe EC3R 5BU Employee Benefits Employee The Byre Title: Partner & Head of Employee Benefits Tel: 020 7626 6000 Wheelers Lane As one of the UK’s leading pension and Consulting Website: www.mercer.com Brockham employee benefit consultancies, we inform, Tel: +44 (0)20 7439 2266 Betchworth consult and deliver to be a single central Fax: +44 (0)20 7439 0183 MICHAEL J. FIELD Surrey provider of solutions which meet the needs Email: [email protected] CONSULTING ACTUARIES RH3 7HJ of employers, trustees and individuals. 8 St Stephen Street Tel: 0870 160 5700 Manchester

Website: www.hamishwilson.com We recognise the ever changing dynamics M3 6AY Employee Benefits of the Pensions, Savings and Benefits Tel: 0161 834 3297 HARGREAVES LANSDOWN landscape. We know that things are LEMONADE REWARD Website: www.michaeljfield.com CORPORATE SOLUTIONS changing at pace and we respond to this by Postford Mill, 1 College Square South adapting the way we provide our services Mill Ln, MITCHELL CONSULTING Anchor Road to help our clients meet the challenges of Chilworth, ACTUARIES LIMITED Bristol this new world Guildford Albion Wharf BS1 5HL GU4 8RT Albion Street Tel: 0117 317 1637 JLT is part of JLT – a global provider Tel: 01483 617010 Manchester Website: www.h-l.co.uk of insurance, reinsurance, employee Email: [email protected] M1 5LN benefits,brokerage and associated services Website: www.lemonadereward.com Tel: 0161 236 1330 HS ADMINISTRATIVE SERVICES LTD Linkedin: www.linkedin.com/company/ Website: www.mitchellconsulting.co.uk 3300 Daresbury Park JOHNSON FLEMING LIMITED lemonadereward Daresbury Fleming House Twitter: @LemonadeReward NIGEL SLOAM & CO Cheshire Bromsgrove Enterprise Park Roman House WA4 4HS Bromsgrove Contact: David Pugh, Managing Partner 296 Golders Green Road Tel: 01928 707 900 B60 3AL London Website: www.hsadmin.com Tel: 01527 571 300 The world of pensions can be pretty dull. NW11 9PY Website: www.johnsonfleming.com Let’s face it; it could do with a little fizz. Tel: 020 8209 1222 At Lemonade, we take a fresh approach. Website: www.nigelsloam.co.uk We’re here to turn the sour complexity into something sweet. Give us lemons and

84 Professional Pensions Handbook 2017 www.professionalpensions.com 85 ORIGEN FINANCIAL SERVICES – UBS AG WEALTH AT WORK – XAFINITY CONSULTING

ORIGEN FINANCIAL SERVICES LTD QUANTUM ADVISORY WEALTH AT WORK 1st Floor, Infor House Summers House 5 Temple Square 1 Lakeside Road Pascal Close Temple Street Farnborough St. Mellons Liverpool The Hampshire Cardiff L2 5RH GU14 6XP CF3 OLW Tel: 0800 234 6880 Professional Tel: 0844 209 3000 Tel: 029 8083 7900 Website: www.wealthatwork.co.uk Website: www.origenfs.co.uk Website: www.quantumadvisory.co.uk Pensions WILLIS TOWERS WATSON PARTRIDGE MUIR & WARREN LTD RUSSELL INVESTMENT LTD Watson House Handbook 2017 Tolworth Tower Rex House London Road Ewell Road 10 Lower Regent Street Reigate Surbiton London Surrey Surrey SW1Y 4PE RH2 9PQ KT6 7EL Tel: 020 7024 6000 Tel: 01737 241144 www.professionalpensions.com HANDBOOK 2017 Tel: 020 8339 9900 Website: www.russell.com Website: www.willistowerwatson.com www.professionalpensions.com HANDBOOK Website: www.pmw.co.uk 2017 www.professionalpensions.com SMITH & WILLIAMSON EMPLOYEE XAFINITY CONSULTING HANDBOOK

Employee Benefits Employee 2017 PREMIER COMPANIES LIMITED BENEFIT CONSULTANTS Phoenix House Premier 25 Moorgate 1 Station Hill AMP House London Reading Dingwall Road EC2R 6AY Berkshire Croydon Tel: 020 7131 4000 RG1 1NB CR0 2LX Website: www.smith.williamson.co.uk Tel: 0118 918 500 Tel: 020 8663 5800 Website: www.xafinity.com

Website: www.premierpensions.co.uk STAMFORD ASSOCIATES LIMITED Employee Benefits 19-21 Old Bond Street PRICEWATERHOUSECOOPERS LLP London Hays Galleria W1S 4PX 1 Hays Lane Tel: 020 7629 5225 London Website: www.stamfordassociates.com SE1 2RD Tel: 020 7583 5000 TOWRY GROUP To ensure your Website: www.pwc.co.uk Towry House Western Road inclusion in the PUNTER SOUTHALL Bracknell 11 Strand Berkshire 2018 London RG12 1TL WC2N 5HR Tel: 01344 828 000 Handbook Tel: 020 3327 5000 Website: www.towrylaw.com Website: www.puntersouthall.com contact Nita Hulme UBS AG 3 Finsbury Avenue NOW on London +44 (0)20 7316 9309 or EC2M 2AN Tel: 020 7567 5757 [email protected] Website: www.ubs.com/uk

86 Professional Pensions Handbook 2017 www.professionalpensions.com 87 EMPLOYER COVENANT ARGYLL COVENANT ADVISORY – EY LLP

ARGYLL COVENANT ADVISORY FTSE 350 schemes supported by Davidson House Forbury Square weak covenants doubles Reading CROWE CLARK WHITEHILL LLP Berkshire St Bride’s House wice as many FTSE 350 companies with defined benefit (DB) schemes are RG1 3EU 10 Salisbury Square supported by a weak sponsor covenant than in 2006 according to PwC. Tel: 0118 900 1201 London The consultant’s Pensions Support Index for 2016 tracked the relationship Website: www.argyllcovenant.com EC4Y 8EH between the financial strength of FTSE 350 companies and their defined Tel: 020 7842 7100 Tbenefit (DB) pension obligations. BARBER HARRISON & PLATT Website: www.croweclarkwhitehill.co.uk It showed no overall improvement in FTSE 350 companies’ ability to support their 2 Rutland Park Sheffield Contact: Bob Alsop, Partner defined benefit (DB) pension obligations. This is despite billions of pounds being paid S10 2PD Email: [email protected] into schemes and extensive protections being put in place by the Pensions Regulator. Tel: 0114 266 7171 The report revealed a number of adverse factors affecting schemes. These included Website: www.bhp.co.uk Crowe Clark Whitehill’s team of advisory average life expectancy increasing by two years since 2006 and 15-year gilt yields falling specialists provide individually tailored sharply from 4.1% in January 2006 to 1.4% in June 2016. This included a 0.4% fall in BDO LLP covenant reviews of the sponsoring yields following Brexit. As a result, the report also showed scheme deficits had grown 55 Baker street employer so as to support and guide more than ten-fold since 2006 from £23bn to £244bn. London trustees in respect of their integrated The report concluded if the covenant supporting the scheme was strong enough, and W1U 7EU approach to risk management. Based on the scheme was not making material cash payments in the short- to medium-term, the Tel: 020 7486 5888 latest guidance set out by the Pensions scheme could ride out medium-term interest rate risk. Website: www.bdo.co.uk Regulator we will consider the financial aspects of, and provide insight into, the However, the ongoing question for companies and trustees to explore was how much employer covenant and report to the interest rate risk a covenant could bear and whether a scheme could afford to hedge CLASHSTREETCO LLP No1 Leeds trustees using one of the four measures particularly if gilts fell further. 26 Road of covenant grade referred to by the PwC pensions credit advisory leader Jonathon Land said: “Trustees and companies Leeds Regulator. Employer Covenant Employer need to decide how strong their covenant is and how Brexit has affected that. There will West Yorkshire be winners and losers - you need to know which group you are in. If you’re producing LS12 1BE DELOITTE in the UK and selling overseas you might see an opportunity. If you’re importing a lot of Tel: 0113 8000 250 2 New Street goods it could get harder.” Website: www.clashstreetco.com London In a separate report, Hymans Robertson warned only one in three defined benefit (DB) EC4R 3BZ schemes would reach buyout funding by 2036 – noting it was concerned too many were CVR GLOBAL Tel: 020 7936 3000 still failing to integrate long-term covenant risk into their decision making process. New Fetter Place West Website: www.deloitte.co.uk The consultant said some 43% of schemes were not integrating long-term covenant 55 Fetter Lane risk currently. London EY LLP It said the number of schemes reaching buyout by 2036 could increase by 50% to one EC4A 1AA 1 More London Place Tel: 0203794 8750 in two if they adopt a fully integrated approach that incorporates sponsor default risk. London Website: www.cvr.global SE1 2AF Having a fully integrated strategy also decreases the chance of a scheme not seeing Tel: 020 7951 2000 an improvement in deficit in 20 years’ time from one in four to just one in 12. Tel: 0118 928 1100 Hymans Robertson head of trustee consulting Calum Cooper said: “For too long now Website: www.ey.com/uk 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.”

88 Professional Pensions Handbook 2017 www.professionalpensions.com 89 FRP ADVISORY LLP – KPMG LLP LCP – RSM

HAYSMACINTYRE MOORE STEPHENS LLP 26 Red Lion Square 150 Aldersgate Street London London WC1R 4AG LCP EC1A 4AB Tel: 020 7969 5500 95 Wigmore Street Tel: 020 7334 9191 erpearce.com Website: www.haysmacintyre.com London Website: www.moorestephens.co.uk W1U 1DQ HYMANS ROBERTSON Website: www.lcp.uk.com PENFIDA PARTNERS LLP FRP Advisory LLP 1 London Wall 1 Carey Lane Principal Office London Contact: James Atherton London 110 Cannon Street EC2Y 5EA Title: Partner EC2V 8AE London Tel: 020 7082 6000 Contact: Jonathan Wolff Tel: 020 7337 4100 EC4N 6EU Website: www.hymans.co.uk Title: Partner Website: www.penfida.co.uk Website: www.frppensions.com Tel: +44 (0)20 7439 2266 INSIGHT PENSIONS Fax: +44 (0)20 7439 0183 PENSION GEEKS LIMITED Contact: Gerald Smith 3rd Floor Email: [email protected] 4 The Hollows Tel: +44 (0) 121 710 1680 54-56 Victoria Street Legbourne Email: [email protected] St Albans Louth Hertfordshire Lincolnshire Employer Covenant AL1 3HZ LN11 8NF Tel: 01727 733150 Website: www.pensiongeeks.com Website: www.insidepensions.com PRICEWATERHOUSECOOPERS LLP JACKAL ADVISORY 7 Moor London GAZELLE PENSIONS ADVISORY Level 19 Riverside 41 Devonshire Street Portland House London SE1 2RT London Bressenden Place Covenant Employer W1G 7AJ London Tel: 020 7804 0953 Tel: 020 7182 7220 SW1E 5RS LINCOLN PENSIONS Website: www.pwc.co.uk/pensions Fax: 020 7182 7230 Tel: 020 8282 6008 9th Floor Website: www.gazellegroup.co.uk Website: www.jackaladvisory.co.uk 6 Bevis Marks RENDLE & CO London No 9 Hockley Court Contacts: Simon Willes, Deborah Gudgeon, KPMG LLP EC3A 7BA Hockley Heath Paula Lee Arlington Business Park Tel: 020 3889 6300 Solihull Theale, Reading Website: www.lincolnpensions.com B94 6NW GRANT THORNTON UK LLP Berkshire Tel: 01564 783777 30 Finsbury Square RG7 4SD Contact: Darren Redmayne Website: www.rpendle.com London Tel: 0118 373 1369 Title: CEO EC2P 2YU Website: www.kpmg.com/uk/pensions Email: [email protected] RSM Tel: 020 7728 2433 25 Farringdon Street Website: www.grant-thornton.co.uk MERCER London 1 Tower Place West EC4A 4AB London Tel: 020 3201 8000 EC3R 5BU Website: www.bakertilly.co.uk Tel: 020 7626 6000 Website: www.mercer.com

90 Professional Pensions Handbook 2017 www.professionalpensions.com 91 ESG MANAGER

Putting ESG at the heart of investment decision making

nvironmental, 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’ Emoney 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. Ad page 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 100% along with economic and financial risks. This ethos has been part of UniSuper’s investment of our strategies outperformed their process for many years, partly driven by its members who are highly engaged on ESG issues benchmarks over and view them as very important. five years1 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 OUTCOME #11 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 Our investment in King’s Cross has a strong to manage to a two degree Celsius future. Governance is a continual source of risk and op- 78% ethos of community provision: new schools, over three years1 public parks and open spaces. portunity, as without effective governance there are often failures in management - leading to greenwashing and poor stakeholder management.” 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. 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 At Hermes we believe that excellent investment performance goes hand-in-hand with the companies that it invests in, allowing it to engage directly about ESG issues, Dixon said. contributing to society. Creating outcomes for all clients that go beyond strong fi nancial She explained the biggest change in the past five years has been the development of performance and positively impact society, the environment and the wider world. portfolio analysis tools – tools which allow the fund to review the risks most relevant to a Our investment in the redevelopment of King’s Cross has achieved 25%2 annualised portfolio rather than taking a more thematic approach. performance while creating a sustainable and community-centred asset. UniSuper has long considered ESG risks both in a quantitative and qualitative man- OUR APPROACH TO HOLISTIC RETURNS MEANS WE ARE COMMITTED TO DELIVERING ner – and uses a range of different data sources to identify ESG risks. It subscribes to the EXCELLENT LONG-TERM INVESTMENT PERFORMANCE AND STEWARDSHIP, WHILE MSCI IVA ratings tool, which enables it to do portfolio and stock analysis. It also uses other IMPROVING THE LIVES OF MANY information from the company, proxy adviser reports, broker research and media to inform about company behaviour. Call today 020 7702 0888 or visit www.hermes-investment.com

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 92 Professional Pensions Handbook 2017 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.

0000450_UK_Corp PP_Handbook_210x148.indd 1 01/06/2017 14:09 ABERDEEN ASSET – J. P. MORGAN LEGAL & GENERAL – SCHRODER

ABERDEEN ASSET LEGAL & GENERAL NEWTON INVESTMENT MANAGEMENT PLC INVESTMENT MANAGEMENT MANAGEMENT Bow Bells House One Coleman Street The Bank of New York Mellon Centre 1 Bread Street London 160 Queen Victoria Street London HERMES INVESTMENT EC2R 5AA London EC4M 9HH MANAGEMENT Tel: 020 3124 3000 EC4V 4LA Tel: 020 7463 6000 Lloyds Chambers Website: www.lgim.com Tel: 020 7163 9000 Website: www.aberdeen-asset.com 1 Portsoken Street Website: www.newton.co.uk London AVIVA INVESTORS E1 8HZ PANTHEON No1 Poultry Tel: +44 (0)20 7702 0888 4th Floor London Website: www.hermes-investment.com LGT CAPITAL PARTNERS 10 Finsbury Square EC2R 8EJ Schuetzenstrasse 6 London Tel: 020 7809 6000 IMPAX ASSET MANAGEMENT PO Box 8808 Pfaeffikon EC2A 1AF Website: http://www.avivainvestors.com Switzerland GROUP PLC Tel: 020 3356 1800 Tel: +41 55 415 9600 Norfolk House Website: www.pantheon.com Fax: +41 55 415 9698 BLUEBAY ASSET MANAGEMENT 31 St James’s Square Website: www.lgtcp.com LTD London RBC GLOBAL ASSET MANAGEMENT 77 Grosvenor Street SW1Y 4JR (UK) LTD Contact: Raphael Paglia London Tel: 020 7434 1122 River Bank House Email: [email protected] ESG Manager W1K 3JR Website: www.impax.co.uk 2 Swan Lane Tel: 020 7389 3700 Tel: +41 55 415 96 29 London Website: www.bluebay.com EC4R 3BF J. P. MORGAN ASSET MANAGEMENT • Outstanding track record – 19 years Finsbury Dials Tel: 020 7653 8944 BMO GLOBAL ASSET MANAGEMENT experience in generating attractive risk- Website: www.rbcgam.com 20 Finsbury Street adjusted returns Exchange House London • Significant asset base – Over USD 55 Manager ESG Primrose Street ROYAL LONDON ASSET EC2Y 9AQ billion in assets under management London MANAGEMENT LTD Tel: 020 7742 6000 • Strong alignment of interests – Team and EC2A 2NY 55 Gracechurch Street Website:  shareholder invest in own programs Tel: 020 7628 8000 London www.jpmorganassetmanagement.co.uk/ • Large, international team – 370 people Website: www.bmogam.com EC3V 0RL institutional representing 41 nationalities Tel: 020 7506 6754 • Global client base – 450 sophisticated COLUMBIA THREADNEEDLE LASALLE INVESTMENT institutional investors in 37 countries Website: www.rlam.co.uk INVESTMENTS MANAGEMENT 60 St Mary Axe One Curzon Street MARTIN CURRIE INVESTMENT SCHRODER INVESTMENT London London MANAGEMENT LIMITED EC3A 8JQ MANAGEMENT LTD W1J 5HD Saltire Court 31 Gresham Street Tel: 020 7464 5000 Tel: 020 7852 4200 London Website: www.columbiathreadneedle.co.uk 20 Castle Terrace Fax: +44 (0) 20 7852 4404 Edinburgh EC2V 7QA Website: www.lasalle.com EH1 2ES Tel: 020 7658 6000 FIRST STATE INVESTMENTS UK LTD Tel: 0131 229 5252 Website: www.schroders.com 154 Finsbury Square Website:  London www.martincurrie.com/ukinstitutional EC2M 7EB Tel: 020 7332 6500 Website: www.firststate.co.uk

94 Professional Pensions Handbook 2017 www.professionalpensions.com 95 STANDARD LIFE - VONTOBEL STANDARD LIFE INVESTMENTS 1 George Street Edinburgh The EH2 2LL Tel: 0131 225 2345 Website:  Professional www.standardlifeinvestments.co.uk Pensions VONTOBEL ASSET MANAGEMENT Third Floor Handbook 2017 22 Sackville Street London W1S 3DN Tel: 020 7255 8300 www.professionalpensions.com Website: www.vontobel.com/am HANDBOOK 2017 www.professionalpensions.com HANDBOOK Contact: Sheridan Bowers - Head of UK/ 2017 Ad page www.professionalpensions.com Ireland Business HANDBOOK 2017 Tel: 020 7255 8321 Email: [email protected] www.professionalpensions.com | 11 May 2017 Pensions Buzz Comment Feature Should investment Governance in Reclassifying Will slowing longevity consultants be fully contract-based money purchase rises reduce deficits? regulated? page 22 schemes page 25 benefits page 28 ESG Manager UK Pensions Awards 2017 – the winners How the MNOPF uses fiduciary management 20 February 2014 www.professionalpensions.com Walkingintheshoes ofaTPASadviser How three volunteers conduct their roles page 26 Financial Assistance Scheme FAS regulations offer ‘last chance’ entry to ineligible schemes page 4 DB Code of Practice Regulator’s code branded ‘garbage’ due to lack of guiding principles page 6 FCA annuity review Did the Financial Conduct Authority’s reviewintoannuitymarketsgofarenough? page 14

fotoaloja To ensure your Is it time for a new towerswatson.com +44 1737 241144 [email protected] Unrivalled coverage perspective on your administration? Copyright©2013TowersWatson.Allrightsreserved. TW-EU-2012-28548c. April 2013. TowersWatsonisrepresentedintheUKbyTowersWatsonLimited and Towers Watson Capital Markets Limited. inclusion in the 001_PP_110517.indd 1 08/05/2017 13:11 2018 Professional Pensions continues to be the market leading source Handbook for those in the occupational pensions industry. Print Online Events Tablet Following an extensive, independent audience research study, contact Nita Hulme Professional Pensions has been further improved to include NOW on greater depth of analysis, insight and content. Professional Pensions has taken into account your information +44 (0)20 7316 9309 or needs which can be accessed whether in print, in person, online or via any smart device. [email protected]

www.professionalpensions.com 96 Professional Pensions Handbook 2017

PPPP14-AD145x210-launchPP house ad 2017.indd 1 ad.indd 1 20/03/20145/23/17 1:41 14:45 PM FIDUCIARY MANAGEMENT

Reinventing the investment platform

nvestment 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. Fiduciary Management IThe 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 performance can be transparent managers through a centralised back office and standardised fund infrastructure. Willis Towers Watson is the first consultant to enter the marketplace and compete with 30 existing platforms, and now other consultants are sitting up and taking notice. Aon Hewitt P-Solve Growth Portfolio recently published a report on how investment platforms can be useful for large DB schemes. 25 Interestingly, the AMX will be open to schemes (both DB and DC) that aren’t clients of Willis Liabilities Benchmark Towers Watson, so in theory other consultants could feed their own clients into it. 20 The exchange’s head Oliver Jaegemann explained: “In the past, investors had to go and Ad page outsource the investment decisions and infrastructure decisions to the investment manager. 15 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 10 counterparty, is now between the platform and the trading counterparty. Performance (%) Platforms can generate significant cost savings for DB schemes through a number of ways 5 including reviewing legal documents and negotiating terms, reducing the administrative burden, and having legal operational and administrative experts in one place. 0 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 1 year manager runs its own infrastructure and does it slightly differently,” said Jaegemann. 3 years (p.a.)5 years (p.a.)10 years (p.a.) Another benefit is speedier implementation of investment decisions, easier rebalancing of Since Jan '04 (p.a.) 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, In the 12 months to March 2017, our clients have beaten partnering with a platform which has £100bn assets gives it even more power to negotiate not their liability benchmark by 11.3%, successfully navigating just fees but also contractual and legal terms. a volatile year for pension schemes 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 Source: 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 outsource manager selection and investment strategy. full discretion on investment decisions and have liability hedging levels within the same ranges. The liabilities Aon’s delegated consulting services partner Mike Rogers said: “We’ve effectively been doing benchmark is a composite of bespoke gilt portfolios for each of these clients that match their specific liabiltiy this for fiduciary clients for the last 10 years or so, but what’s been missing is taking that same profiles. Past performance is not a reliable indicator of future results and should not be relied upon. platform and allowing larger clients to make their own investment choices, and give them To hear more get in touch at [email protected] 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 Fiduciary Management • Investment Consultancy • Structured Equity • DC things that make a difference. Such schemes may want help with operational due diligence, Asset Management • LDI • Multi-Asset • Insurance Investement Consultancy which can be time consuming and expensive.” 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. 98 Professional Pensions Handbook 2017

PSV208 FM_Performance_20170331 c.indd 1 31/05/2017 17:05 ALLIANZ GLOBAL INVESTORS – JLT EMPLOYEE BENEFITS KEMPEN FIDUCIARY MANAGEMENT – SEI INVESTMENTS

ALLIANZ GLOBAL INVESTORS CARDANO RISK MANAGEMENT B.V. KEMPEN FIDUCIARY MANAGEMENT EUROPE GmbH 9th Floor 60 Cannon Street 199 Bishopsgate 6 Bevis Marks London The London London EC4N 6NP EC2M 3TY EC3A 7BA Tel: 0207 002 1422 Tel: 020 7859 9000 Tel: 020 3170 5910 Website: Professional Website: www.allianzgi.com Website: www.cardano.com www.kempen.nl/uk/fiduciarymanagement Pensions GOLDMAN SACHS NORTHERN TRUST ASSET MANAGEMENT 50 Bank Street Handbook 2017 Christchurch Court Canary Wharf 10 - 15 Newgate Street London AON HEWITT London E14 5NT The Aon Centre EC1A 7HD Tel: 020 7982 2000 Website: www.gsam.com Website: www.northerntrust.com www.professionalpensions.com 122 Leadenhall Street HANDBOOK 2017 www.professionalpensions.com London HANDBOOK RIVER AND MERCANTILE GROUP 2017 EC3V 4AN www.professionalpensions.com 11 Strand HANDBOOK Tel: 0800 279 5588 2017 Email: [email protected] London Website: www.aonhewitt.co.uk WC2N 5HR JLT EMPLOYEE BENEFITS Tel: 020 3327 5100 Aon Hewitt empowers organizations The St Botolph Building Website: www.psolve.com Fiduciary Management Fiduciary and individuals to secure a better future 138 Houndsditch through innovative human capital London RUSSELL INVESTMENTS solutions. We advise and design a wide EC3A 7AW Rex House range of solutions that enable our clients’ Tel: 020 7528 4000 10 Lower Regent Street success. Our teams of experts help clients Website: www.jltgroup.com/eb London navigate the risks and opportunities to SW1Y 4PE optimize financial security; redefine health JLT Fiduciary Management brings Tel: 020 7024 6000 solutions for greater choice, affordability, together the expertise of JLT Investment Website: www.russell.com/uk and wellbeing; and achieve sustainable Consulting and JLT Investment Fiduciary Management growth by driving business performance Management. We have a proven track SEI INVESTMENTS LTD through people performance. We serve record of helping clients make the right 1st Floor To ensure your more than 20,000 clients through our decisions to keep their scheme on track, Alphabeta inclusion in the 15,000 professionals located in 50 as well as saving them time and improving 14-18 Finsbury Square countries around the world. their efficiency. We work with pension London 2018 schemes that have liabilities totalling EC2A 1BR anything from £3million to more than BNP PARIBAS INVESTMENT Tel: 020 3810 8000 Handbook £1billion. So whatever your goals, we can Website: www.seic.com PARTNERS UK LTD help you make the decisions that will get 5 Aldermanbury Square you closer to reaching them. contact Nita Hulme London EC2V 7BP NOW on Tel: 020 7595 2000 Website: www.bnpparibas-ip.com +44 (0)20 7316 9309 or [email protected]

100 Professional Pensions Handbook 2017 www.professionalpensions.com 101 HEDGE FUND PROVIDERS ALLENBRIDGE IS – KEY ASSET MANAGEMENT

ALLENBRIDGE IS DEUTSCHE BANK Picking winning hedge fund managers 26th Floor Winchester House 125 Old Broad Street 1 Great Winchester Street n the past few years, many hedge funds have failed to deliver their promise of strong absolute London London returns with low correlation to more traditional asset classes, says James Balcombe, a EC2N 1AR EC2N 2DB solutions specialist at Cardano. Tel: 020 7079 1000 Tel: 020 7545 8000 Instead, investors have seen lacklustre returns that, at times, have been highly correlated to Website: www.allenbridgeis.com Website: www.deutsche-bank.com Iboth equity and bond markets, and so it has become increasingly difficult for managers to justify their fees. AMUNDI ALTERNATIVE GOLDMAN SACHS INTERNATIONAL And, while fees have been falling over recent years, hedge funds are still significantly more INVESTMENT Christchurch Court 10 - 15 Newgate Street expensive than more traditional investments. 41 Lothbury London London The disappointing returns and increased scepticism over whether these high fees are justified has EC2R 7HF EC1A 7HD led a number of large US and UK pension funds to completely redeem their hedge fund allocations. Tel: 020 7074 9300 Tel: 020 7774 1000 Some also decided that the resources and expertise needed to manage these allocations was Website: www.amundi-ai.com Website: www.gs.com simply not worth their time and effort, particularly larger schemes. However, Balcombe says there are still some truly talented managers, generating consistent ASPECT CAPITAL LTD HERMES INVESTMENT outperformance with little to no correlation to more traditional assets. 10 Portman Square MANAGEMENT Key to success, he says, is a manager’s ability to produce ‘alpha’, which represents the return London Lloyds Chambers produced over and above the markets they operate in. W1H 6AZ 1 Portsoken Street Talented managers have been more astute at producing alpha by taking advantage of hedge funds’ Tel: 020 7170 9700 London flexible nature to better implement their strategies. Website: www.aspectcapital.com E1 8HZ Skilful implementation of risk management techniques has also allowed the best managers to limit Tel: +44 (0)20 7702 0888 Website: www.hermes-investment.com downside risks. Even at the industry level, drawdowns have often been shorter and shallower than BDO LLP 55 Baker Street those experienced by equity markets. London INTERNATIONAL ASSET Balcombe says it is clear that good hedge fund managers can benefit schemes – and by investing W1U 7EU MANAGEMENT LTD a portion of a traditional portfolio in good quality hedge funds, overall downside risks can be greatly Tel: 020 7486 5888 11A Regent Street reduced, especially in more challenging environments, such as a recession or period of high inflation. Website:  London Surprise events such as Brexit, the Trump presidency and the ongoing European political risk are www.bdo.co.uk/investmentmanagement SW1Y 4LR opportunities for a good manager. Tel: 020 7734 8488 The hedge fund industry can be a daunting place. It contains thousands of funds running a

BLACKROCK Website: www.iam.uk.com Hedge Providers Fund multitude of different strategies that exhibit a huge dispersion of returns every year. Good manager 12 Throgmorton Avenue selection is crucial. London KEY ASSET MANAGEMENT The problem is most managers are very experienced at writing good marketing documents and EC2N 2DL 2-6 Cannon Street answering standard questions about investment objectives or fund liquidity. Tel: 020 7743 3000 London But those that look good on paper can often turn out to be poor investments over the long term. Website: www.blackrock.co.uk EC4M 2XX That’s why a more unconventional approach can often better identify those who are likely to deliver Tel: 020 7246 5700 CAZENOVE CAPITAL Website: www.keyhedge.com consistent outperformance over time. MANAGEMENT LIMITED Gaining a firm grasp of how a strategy works and when it will both outperform and underperform is 12 Moorgate a must. London However, it is also essential to understand the individual behind the strategy, as the best managers EC2R 6DA share a number of character traits. Tel: 020 3479 1000 It’s true to say the hedge fund industry has not lived up to its promises in recent years, says Website: www.cazenovecapital.com Balcombe. But he believes there remains a select group of truly talented managers that have. You just need to know how to find them.

102 Professional Pensions Handbook 2017 www.professionalpensions.com 103 LGT CAPITAL – NGAM UK NORTHERN TRUST – SLATER INVESTMENTS

MESIROW FINANCIAL NORTHERN TRUST GLOBAL SLATER INVESTMENTS LTD INTERNATIONAL UK LTD INVESTMENTS (EUROPE) LTD Nicholas House Sackville House 50 Bank Street 3 Lauerence Poutney LGT CAPITAL PARTNERS Fifth Flour London London Schuetzenstrasse 6 40 Piccadilly E14 5NT EC4R 0EU PO Box 8808 Pfaeffikon London Tel: 020 7982 2000 Tel: 020 7220 9460 Switzerland W1J 0DR Website: www.ntrs.com Website: www.slaterinvestments.com Tel: +41 55 415 9600 Tel: 020 7851 1700 Fax: +41 55 415 9698 Website: www.mesirowfinancial.com OLD MUTUAL ASSET Website: www.lgtcp.com MANAGERS (UK) LIMITED MOMENTUM GLOBAL INVESTMENT 2 Lambeth Hill Contact: Raphael Paglia MANAGEMENT London Email: [email protected] The Rex Building EC4P 4WR Tel: +41 55 415 96 29 62 Queen Street Tel: 020 7332 7500 London Website: www.omam.co.uk • Outstanding track record – 19 years EC4R 1EB experience in generating attractive risk- Tel: 020 7489 7223 OLYMPIA CAPITAL MANAGEMENT adjusted returns 4 th Floor • Significant asset base – Over USD 55 MORGAN STANLEY 2 Duke Street billion in assets under management INVESTMENT MANAGEMENT St James’s • Strong alignment of interests – Team and 25 Cabot Square London shareholder invest in own programs Canary Wharf SW1Y 6BJ • Large, international team – 370 people London Tel: 020 7389 9900 representing 41 nationalities Hedge Fund Providers Hedge E14 4QA Website: www.olympiagroup.com • Global client base – 450 sophisticated Tel: 020 7425 8000 institutional investors in 37 countries Website: www.morganstanley.co.uk PAAMCO MAN INVESTMENTS 25 Victoria Street NEWEDGE GROUP (UK BRANCH) London Riverbank House 10 Bishops Square SW1H 0EX 2 Swan Lane London Tel: 020 7593 5360 London E1 6EG Website:: www.paamco.com EC4R 3AD Tel: 020 7676 8000 Hedge Providers Fund

Tel: 020 7144 1000 www.professionalpensions.com HANDBOOK www.professionalpensions.com 2017 HANDBOOK Website: www.newedgegroup.com 2017 www.professionalpensions.com RASINI & CO LIMITED HANDBOOK Website: www.maninvestments.com 2017 32 Duke Street To ensure your NGAM UK LTD MARTIN CURRIE INVESTMENT St James’s inclusion in the One Carter Lane MANAGEMENT LTD London London SW1Y 6DF 2018 Saltire Court EC4V 5ER Tel: 020 7766 7600 20 Castle Terrace Professional Pensions Tel: 020 3405 2173 Website: www.rasini.co.uk Edinburgh Website: www.ngam.natixis.co.uk Handbook EH1 2ES Tel: 0131 229 5252 SCHRODERS PLC contact Nita Hulme Website:  31 Gresham Street NOW on www.martincurrie.com/ukinstitutional London EC2V 7QA +44 (0)20 7316 9309 or Tel: 020 7658 6000 Website: www.schroders.com [email protected]

104 Professional Pensions Handbook 2017 www.professionalpensions.com 105 INDEPENDENT TRUSTEES 2020 TRUSTEE SERVICES – DENTONS UKMEA

2020 TRUSTEE SERVICES LTD BLAKE LAPTHORN 21st century trusteeship St Nicholas Court New Kings Court 25-27 Castle Gate Tollgate ver the past 18 months, The Pensions Regulator has been considering how to ensure Nottingham Chandler’s Ford trustees are fit for purpose in the 21st century. But what should a 21st century trustee NG1 7AR Eastleigh look like? Tel: 0115 941 1031 Southampton BESTrustees chairman Alan Pickering says: “Even though trusteeship is six centuries Website: www.2020trustees.co.uk SO53 3LG Oold, we can make it fit in the 21st century. The challenges have changed tremendously and that’s why Tel: 023 8090 8090 Website: www.bllaw.co.uk we really want good quality people serving on our trustee boards and people drawn from a variety of ATKIN TRUSTEES LTD Cornwall House backgrounds so we drive out groupthink.” Blythe Gate BRIDGE TRUSTEES LIMITED Pensions and Lifetime Savings Association (PLSA) policy lead for stewardship and corporate Blythe Valley Park 115 Colmore Row governance Luke Hildyard believes 21st century trustees should be more diverse, dedicated, and Solihull Birmingham accountable. West Midlands B3 3AL “The collective capacity of the board is very important. They should be diverse in backgrounds, B90 8AF Tel: 0845 497 9797 skill-sets and demographics. Around 83% of trustees are male; hopefully they will be less Tel: 0121 506 8200 Website: www.bridgetrustees.com overwhelmingly male in future.” Website: www.atkintrustees.com TPR’s research highlighted the varying levels of time commitments that trustees contribute to CAPITA ASSET SERVICES different types of schemes. B & CE BENEFIT SCHEMES 4th Floor “Committing time to trustee duties and also developing skills through training and other process (The People’s Pension) 40 Dukes Place are important,” says Hildyard. Manor Royal London Crawley EC3A 7NH The regulator’s research last year revealed half of schemes with non-professional trustees did not West Sussex Tel: 020 3367 8200 believe all of these trustees had the requisite level of knowledge and understanding. So what should RH10 9QP Website: www.capitaassetservices.com be done to help trustees up their game? Tel: 08457 41 41 42 Hildyard says the PLSA has no issue with the quality of guidance but the issue is “there’s a lot of it Website: www.bandce.co.uk CAPITAL CRANFIELD TRUSTEES and people aren’t always aware of it.” 5th Floor It supports compulsory completion of the trustee toolkit within six months, but cautions against BERKELEY BURKE New Liverpool House anything that makes it seem this is sufficient to qualify as a trustee. Berkeley Burke House 15-17 Eldon Street Also, a six-month probation period could be misleading. It should be possible to remove under- Regent Street London performing or uncommitted trustees at any time, not just during their first six months, said the PLSA. Leceister EC2M 7LD The Association of Member-Nominated Trustees (AMNT) says its members would support the LE1 7BR Tel: 020 7012 8700 requirement, provided it was not applied, either in theory or practice, only to MNTs and MNDs. Also, Tel: 0116 204 2988 Website: www.cctl.co.uk

Website: www.berkeleyburke.com Trustees Independent 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. DALRIADA TRUSTEES LIMITED BESTRUSTEES PLC 1 Berkeley Street Pickering believes ongoing training is much more important than upfront training, and suggests Five Kings House London new components to be added to the toolkit syllabus. 1 Queen Street Place W1J 8DJ “These components should be about managing sub-contractors, managing contracts, and London Tel: 020 7495 5515 transferring modern business acumen from the world of business to the world of pensions. The real EC4R 1QS Website: www.dalriadatrustees.co.uk danger is we look at pension scheme governance in a vacuum; it’s but one form of governance in Tel: 020 7332 4100 Britain, and we can all compare and contrast between those governance bodies that run businesses Website: www.bestrustees.co.uk DENTONS UKMEA LLP and schools etc.” 1 Fleet Place Many respondents said trustee boards should have a process and framework for reviewing the London competence and effectiveness of its members. EC4M 7WS It seems the two main reasons why trustees do not complete the toolkit are either that they do not Tel: 020 7242 1212 realise the importance of doing so or do not have the time. Website: www.dentons.com

106 Professional Pensions Handbook 2017 www.professionalpensions.com 107 MICHAEL J. FIELD – OFA TRUSTEE SERVICES OPEN TRUSTEES – TEMPLE TRUSTEES

MICHAEL J. FIELD CONSULTING INSIGHT PENSIONS OPEN TRUSTEES LTD RADCLIFFE & CO ACTUARIES 3rd Floor 2 Temple Back East (LIFE & PENSIONS) LTD 8 St Stephen Street 54-56 Victoria Street Temple Quay Thomas House Manchester St Albans Bristol 28-30 Bernard Street M3 6AY Hertfordshire BS1 6EG Southampton Tel: 0161 834 3297 AL1 3HZ Tel: 0117 917 3000 SO14 3AY Website: www.michaeljfield.com Tel: 01727 733150 Website: www.openrtrustees.com Tel: 02380 222 444 Website: www.insidepensions.com Website: www.radcliffe-ifa.co.uk HANOVER TRUSTEE CO LTD PAN TRUSTEES LTD 824 Salisbury House IPM TRUSTEES LTD 3 Castlefield Court REEDSMITH LLP London Wall 3 Victoria Court Church Street The London Bank Square Reigate 20 Primrose Street EC2M 5QQ Morley RH2 0AH London Tel: 020 7588 8406 Leeds Tel: 01737 222402 EC2A 2RS Website: www.hanover-pensions.co.uk LS27 9SE Website: www.pantrustees.co.uk Tel: 020 3116 3000 Tel: 0845 130 3223 Website: www.reedsmith.com HR TRUSTEES LTD Website: www.ipm-pensions.co.uk PITMANS TRUSTEES LIMITED Phoenix House, 47 Castle Street ROWANMOOR GROUP PLC 1 Station Hill LAWDEB PENSION TRUSTEES Reading Rowanmoor House Reading Fifth Floor Berkshire 46-50 Castle Street RG1 1NB 100 Wood Street RG1 7SR Salisbury Tel: 0118 958 3683 London Tel: 0118 957 0610 Wiltshire Website: www.hrtrustees.com EC2V 7EX Website: www.pitmanstrustees.com SP1 3TS Tel: 020 7606 5451 Tel: 03445 440 440 Website: www.lawdeb.com Web: www.rowanmoor.co.uk

Independent Trustees INDEPENDENT TRUSTEE LIMITED 6th Floor 20 Gresham Street LYONS DAVIDSON TRUSTEE NIGEL SLOAM & CO London COMPANY LIMITED Roman House EC2V 7JE Victoria House 296 Golders Green Road Tel: 020 7329 6699 51 Victoria Street London Website: www.sackers.com Bristol NW11 9PY BS1 6AD Tel: 020 8209 1222 INDEPENDENT TRUSTEE SERVICES Tel: 0117 904 6000 Website: www.nigelsloam.co.uk Independent Trustees Independent The St.Botolph Building Website: www.lyonsdavidson.co.uk PS INDEPENDENT 138 Houndsditch TRUSTEES LIMITED TEMPLE TRUSTEES LIMITED London OFA TRUSTEE SERVICES LIMITED One Glass Wharf Albion EC3A 7AW 36 East Stockwell Street Bristol Fishponds Road Tel: 020 7558 3163 Colchester BS2 0ZX Wokingham Website: www.itslimited.co.uk Essex Tel: 0117 939 2000 Berks CO1 1ST Website: www.burges-salmon.com RG41 2QE Tel: 01206 761 252 Tel: 0845 313 0024 Website: www.offord-fenning.com Fax: 0118 313 0701 Website: www.psitl.com

Contact: Suzi Lowther Email: [email protected]

108 Professional Pensions Handbook 2017 www.professionalpensions.com 109 TRUSTEE SOLUTIONS – WILLIS TOWERS WATSON INSURANCE COMPANIES

TRUSTEE SOLUTIONS LIMITED 3 Colmore Circus Dashboard one step closer to Birmingham The B4 6BH launch as ABI unveils prototype Tel: 0121 623 8686 Website: www.trusteesolutions.co.uk Professional he Association of British Insurers – the body leading the pensions dashboard project – has unveiled a first prototype of the product. WEDLAKE BELL PENSION Pensions It is the first major step forward for the project, which aims to eventually unify private TRUSTEES LIMITED pension and state pension data in a central online service, allowing savers to know 52 Bedford Row Handbook 2017 Texactly how much they will have for retirement. London The project, which was delegated to the ABI by the Treasury, has been developed by 17 WC1R 4LR pension firms and six technology companies, alongside a number of government and industry Tel: 020 7395 3000 Website: www.wedlakebell.com working groups. www.professionalpensions.com The Treasury first announced plans for a dashboard in 2016 before appointing providers to work HANDBOOK 2017 WILLIS TOWERS WATSON www.professionalpensions.com on the project. The full product is pencilled in to launch in March 2019. HANDBOOK 2017 ABI director of long-term savings and protection policy Yvonne Braun said the latest step Watson House www.professionalpensions.com London Road HANDBOOK showed the dashboard was feasible. 2017 Reigate “It sounds obvious that in 2017 everyone should have easy online access to all their pension Surrey information in one single place of their choice,” she said. “Yet, the practicalities of making that RH2 9PQ happen are very complex. The prototype demonstrates once and for all that the technological Tel: 01737 241144 hurdles can be overcome. Website: www.willistowerwatson.com “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,

Independent Trustees 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 To ensure your 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 inclusion in the functional by 2019. The firm developed a ‘pension finder service’ for the prototype, providing a system to retrieve data for the dashboard from providers. 2018 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. Handbook “The government wants live dashboards in place for consumers to use in 2019, and as the contact Nita Hulme 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.” NOW on The People’s Pension director of policy and market engagement Darren Philp said fundamental issues still needed resolving. +44 (0)20 7316 9309 or 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 [email protected] needed to deliver the dashboard by 2019, then it needs to press ahead urgently with resolving these fundamental issues.”

110 Professional Pensions Handbook 2017 www.professionalpensions.com 111 AEGON – PHOENIX LIFE GROUP PRUDENTIAL – ZURICH ASSURANCE

AEGON CO-OPERATIVE GROUP PENSIONS PRUDENTIAL UNUM Edinburgh Park DEPARTMENT (CIS) DC Solutions Milton Court Edinburgh PO Box 35 Stirling Dorking EH12 9SE New Century House FK9 4UE Surrey Tel: 0870 60 00 337 Manchester Tel: 01786 448 844 RH4 3LZ Website: www.aegon.co.uk M60 4ES Website: www.pru.co.uk/risk Tel: 01306 887 766 Tel: 0161 834 1212 Website: www.unum.co.uk AVIVA Website: www.co-op.co.uk REASSURE LTD PO Box 4 Windsor House ZURICH ASSURANCE LTD Surrey Street FRIENDS LIFE Ironmasters Way UK Life Centre Norwich Pixham End Town Centre Station Road NR1 3NG Dorking Telford Swindon Tel: 0800 068 6800 Surrey Shropshire SN1 1EL Website: www.aviva.co.uk RH4 1QA TF3 4NB Tel: 01793 511227 Tel: 0845 600 3122 Tel: 0800 073 1777 Website: www.zurich.co. AXA Website: www.friendslife.co.uk Website: www.reassure.co.uk Sun Life Centre PO Box 1810 LEGAL & GENERAL SCOTTISH WIDOWS PLC Bristol ASSURANCE SOCIETY PO Box 17036 BS99 5SN Legal & General House 69 Morrison Street Tel: 0117 989 9000 St Monica’s Road Edinburgh Website: www.axa.co.uk Kingswood EH3 8YH Tadworth Tel: 0131 655 6000 CANADA LIFE LIMITED Surrey Website: www.scottishwidows.co.uk Canada Life Place KT20 6EU Potters Bar Tel: 01737 370 370 SKANDIA LIFE ASSURANCE Insurance Companies Insurance Hertfordshire Website: www.legalandgeneral.com COMPANY LIMITED EN6 5BA PO Box 37 Tel: 01707 651 122 LUCIDA PLC Skandia House Website: www.canadalife.co.uk 84 Grosvenor Street Portland Terrace London Southampton CLERICAL MEDICAL INVESTMENT W1K 3JZ SO14 7EJ

www.professionalpensions.com HANDBOOK www.professionalpensions.com 2017 GROUP LIMITED Tel: 020 7647 1600 Tel: 023 8033 4411 HANDBOOK 2017 www.professionalpensions.com HANDBOOK PO Box 28121 Website: www.lucidaplc.com Website: www.skandia.co.uk To ensure your 2017

15 Dalkeith Road Insurance Companies Edinburgh PHOENIX LIFE GROUP STANDARD LIFE inclusion in the EH16 9AS 301 St. Vincent Street 30 Lothian Road 2018 Tel: 0845 603 6770 Glasgow Edinburgh Website: www.clericalmedical.co.uk G2 5AD EH1 2DH Professional Pensions Tel: 0845 002 0350 Tel: 0131 225 2552 Handbook Website: www.phoenixgroup.co.uk Website: www.standardlife.co.uk contact Nita Hulme NOW on +44 (0)20 7316 9309 or [email protected]

112 Professional Pensions Handbook 2017 www.professionalpensions.com 113 INVESTMENT CONSULTANCY AON HEWITT – JLT EMPLOYEE BENEFITS

BFINANCE UK LIMITED ‘Big three’ consultancies set Clareville House 26-27 Oxendon Street sights on change London SW1Y 4EL AON HEWITT Tel: 020 7747 8600 The Aon Centre Website: www.bfinance.co.uk he top three investment consultants have joined forces in calling for measures to 122 Leadenhall Street tackle the transparency and competition issues raised by the Financial Conduct London CAPITA EMPLOYEE BENEFITS Authority (FCA). EC3V 4AN 65 Gresham Street When it was published in November 2016, the Financial Conduct Authority’s Tel: 0800 279 5588 London T(FCA’s) Asset Management Market Study pointed to a lack of competition in the Email: [email protected] EC2V 7NQ Website: www.aonhewitt.co.uk investment consultancy market with 60% of business held by just three firms - Aon Tel: 020 7709 4500 Hewitt, Mercer and Willis Towers Watson. Website: www.capita.co.uk/ Aon Hewitt empowers organizations These firms are also active in the fiduciary management space and the study employeebenefits and individuals to secure a better future expressed concerns around the conflicts of interest in acting as an investment adviser through innovative human capital and asset allocator. solutions. We advise and design a wide HYMANS ROBERTSON The findings of the study led the FCA to consider referring the market to the Competition range of solutions that enable our clients’ One London Wall and Markets Authority (CMA) for investigation. success. Our teams of experts help clients London In a bid to avert this, Aon Hewitt, Mercer and Willis Towers Watson have worked together navigate the risks and opportunities to EC2Y 5EA to submit a package of measures to the FCA designed to advance competitiveness and optimize financial security; redefine health Tel: 020 7082 6000 Website: www.hymans.co.uk transparency in the investment consultancy and fiduciary management industries. solutions for greater choice, affordability, While the firms have not yet publicly revealed what the measures would entail, they said and wellbeing; and achieve sustainable these will have regard to review of services, transparency of performance and fees, and growth by driving business performance conflicts of interest. through people performance. We serve more than 20,000 clients through our The move by the firms is significant given they have a large share of the fiduciary 15,000 professionals located in 50 JLT EMPLOYEE BENEFITS management market and account for 60% of the investment consultancy market. countries around the world. The St Botolph Building While more needs to be done to stoke competition, it would seem that many would like to 138 Houndsditch avoid a CMA investigation if at all possible. BARKER TATHAM London Financial Inclusion Centre director Mick McAteer says: “The FCA has a whole range of Dingwall Toad EC3A 7AW conduct of business powers it can utilise and maybe it is time asset allocation advice given Croydon Tel: 020 7528 4000 by consultants came under the remit of the FCA. There are plenty of smaller investment Surrey Website: www.jltgroup.com/eb consultants snapping at the heels of the big three and a better regulated market would CR0 2LX help them.” Tel: 020 8603 7131 However, Hymans Robertson head of investment consultancy John Walbaum disagrees Website: www.barkertatham.com that this strategic advice should be brought under the remit of the FCA as it is already Consultancy Investment heavily regulated by other bodies. He also believes the level of competition among BARNETT WADDINGHAM LLP Cheapside House consultants is growing. 138 Cheapside “We adhere to codes of practice and professional standards bodies and we believe that London level of oversight is sufficient,” he says. “I also believe that over the last few years we have EC2V 6BW seen more competition in the market, with several new players and less concentration in Tel: 020 7776 2200 the top three players. Of course that’s not to say more competition wouldn’t be welcome Website: www.barnett-waddingham.co.uk 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.”

114 Professional Pensions Handbook 2017 www.professionalpensions.com 115 KPMG LLP – QUANTUM ADVISORY QUANTUM ADVISORY - REDINGTON

excessive cost. We have no competing fund Cardiff/Bristol REDINGTON management or fiduciary management Stuart Price, Partner Austin Friars House products to sell. Impartial investment Direct line: 029 2083 7902 2-6 Austin Friars KPMG LLP advice is our only priority, meaning we Email: London Arlington Business Park avoid the conflict of managing clients’ [email protected] EC2N 2HD Theale assets. Tel: 020 7250 3331 Reading London Website: www.redington.co.uk Berkshire Phil Farrell, Partner RG7 4SD Direct line: 020 3008 7197 Tel: 0118 373 1369 Email: LCP Fax: 0118 373 1373 [email protected] 95 Wigmore Street Website: www.kpmg.com/uk/pensions London Established in 2000, Quantum Advisory W1U 1DQ Contact: Ray Pygott is an independent Financial Services Website: www.lcp.uk.com Email: [email protected] Consultancy that provides solution based Pensions and Employee Benefits services Contact: Ken Willis Our pension team of over 400 people to employers, scheme trustees and Title: Investment Partner advise all sizes of pension funds and our members. Tel: +44 (0)20 7439 2266 clients include some of the biggest pension Fax: +44 (0)20 7439 0183 schemes in the UK right through to small We design, maintain and review pension Email: [email protected] and medium sized pension schemes. schemes and related employee benefits so We have offices in London, Reading, that they operate efficiently and effectively, Bristol, Birmingham, Manchester, Leeds, and are valued by employees. This means Edinburgh and Glasgow that you can get on with doing the things that you do best, therefore saving you time We offer services to both trustees and and money. QUANTUM ADVISORY scheme sponsors on the full range of Cypress House We offer a range of services to companies

Investment Consultancy pension services for Defined Benefit (DB), Pascal Close Defined Contribution (DC) and hybrid and pension trustees, all designed to focus St. Mellons pension schemes. We provide full services on your specific needs, including actuarial, Cardiff to trustees covering, administration, administration (including accounts and CF3 OLW actuarial, investment and covenant payroll), communications, consultancy, Tel: 029 2083 7900 investment, secretarial and trustee www.professionalpensions.com HANDBOOK www.professionalpensions.com support. Our advice and solutions 2017 HANDBOOK 2017 www.professionalpensions.com Website: www.quantumadvisory.co.uk HANDBOOK extend to the areas of scheme funding, training. To ensure your 2017 risk management, insurance solutions, Contacts: benefit design, asset backed funding, We have offices in Amersham, inclusion in the Amersham Birmingham, Bristol, Cardiff and London. communications, member options, Rhidian Williams, Partner 2018 liability management, transactions & Call us to see how we can help with your Consultancy Investment Direct line: 01494 582 024 pension and employee benefit challenges. Professional Pensions restructuring, PPF levy mitigation and Email: public sector pensions. [email protected] Handbook contact Nita Hulme Our investment consultants are focused Birmingham on delivering proactive and strategic Robert Palmer, Partner NOW on advice. They do this through the Direct line: 0121 632 2190 +44 (0)20 7316 9309 or production of insightful investment Email: research, implemented in a pragmatic [email protected] [email protected] manner, avoiding over-complexity and

116 Professional Pensions Handbook 2017 www.professionalpensions.com 117 RIVER AND MERCANTILE GROUP – WILLIS TOWERS WATSON LIABILITY-DRIVEN INVESTMENT

WILLIS TOWERS WATSON 71 High Holborn LDI must evolve London ver the past 20 years, schemes have shifted from focusing solely on WC1V 6TP growth towards liabilities. This has been crucial as interest rates have fallen RIVER AND MERCANTILE GROUP Tel: 020 7170 2000 11 Strand Website: www.willistowerwatson.com to historical lows on the back of quantitative easing since the 2008 crisis, London thereby reducing discount rates and increasing the value of liabilities. WC2N 5HR OLiability-driven investment (LDI) paved the way for fiduciary management, marrying Tel: 020 7601 6262 up the liability side with the multi-manager side, and has undergone huge growth to now Website: www.riverandmercantile.com cover around 10% of the DB universe. The Pension and Lifetime Savings Association’s head of investment Joe Dabrowski says: River and Mercantile Asset Management “For schemes that got into LDI early it’s worked out pretty well, and they probably got a LLP is part of River and Mercantile Group better deal than those who got in late.” Plc (“R&M”), an advisory and investment However, total deficits have only increased. Yet, there is a belief that if schemes had not solutions provider to DB and DC pension done what they have, they would be in a much worse position now. schemes and other investors. River and Mercantile Asset Management LLP is a UK Hymans Robertson head of investment consultancy John Walbaum says: “From one based investment boutique specialising in point of view it’s a disaster as we’re in a worse funding position, which suggests we’ve the management of UK and Global equities. failed, but that’s purely because of a lack of hedging and low rates. Schemes that took a As part of the River and Mercantile Group we more pragmatic view and hedged are in a much better position.” also offer multi-asset investment strategies Schemes’ experience around last year’s EU referendum clearly shows how the level of and bespoke risk management solutions hedging was a differentiating factor. Dabrowski says: “Schemes that were well-hedged such as LDI and structured equity. 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.” P-Solve Investments Limited is part of CREATE Research chief executive officer Professor Amin Rajan believes without hedging, the River and Mercantile Group PLC and more schemes would have gone into the Pension Protection Fund (PPF) and deficits provides advice to institutional investors, would be higher. But he points out: “If long-term rates don’t rise then hedging has been a Investment Consultancy such as pension schemes and charities. We strive to serve our clients well by very good investment but if they do rise, many of these hedges will prove very expensive.” developing and implementing solutions While LDI has been a helpful tool for schemes to de-risk, there are concerns it has tailored to their specific investment needs become an expensive commodity. With the prospect of rates being lower for longer, LDI either advising schemes on how to manage clearly must evolve.

www.professionalpensions.com HANDBOOK www.professionalpensions.com 2017 their investments and risks - investment HANDBOOK 2017 www.professionalpensions.com JPMorgan Asset Management pensions solutions managing director Rupert Brindley is HANDBOOK 2017 consulting - or manage their investments To ensure your critical of the traditional strategy where schemes pursue LDI with rigid barbell allocations and risks on their behalf - fiduciary to growth and hedging asset baskets. management - or a mixture of these. We inclusion in the “Barbell portfolios are pretty inefficient because everyone thinks to do the hedging I have a strong focus on person-to-person 2018 need to buy index-linked gilts with negative yields and then invest in some equities.” relationships and matching the right solution to the client at the right time. We regard this Professional Pensions He believes this has resulted in some assets being effectively orphaned as they neither ability, offering expertise and advice together Handbook match liabilities perfectly nor offer equity-like returns. with tailored solutions, as the reason why The use of value-at-risk models has encouraged LDI implementation regardless of we have such strong and longstanding contact Nita Hulme the level of gilt yields. Given historically low yields, should there be a re-think of how the relationships with so many clients. NOW on benchmark or target is defined? Brindley says: “If you define your liabilities as valued off gilts, then gilts are the only +44 (0)20 7316 9309 or perfect answer to your problem. There’s absolute clarity on how you value your assets [email protected] because it’s mark-to-market value, but the open question now is how should you be valuing your liabilities?

118 Professional Pensions Handbook 2017 www.professionalpensions.com 119 ABERDEEN AM – JANUS HENDERSON INVESTORS JPMORGAN – UBS GLOBAL

ABERDEEN ASSET COLUMBIA THREADNEEDLE JPMORGAN NORTHERN TRUST GLOBAL MANAGEMENT PLC INVESTMENTS 25 Bank Street INVESTMENTS (EUROPE) LIMITED Bow Bells House 60 St Mary Axe London 50 Bank Street 1 Bread Street London E14 5JP London London EC3A 8JQ Tel: 020 7742 6000 E14 5NT EC4M 9HH Tel: 020 7464 5000 Website: www.jpmorgan.com Tel: 020 7982 2000 Tel: 020 7463 6000 Website: www.columbiathreadneedle.co.uk Website: www.ntrs.com Website: www.aberdeen-asset.com KPMG LLP CREDIT SUISSE Arlington Business Park PIMCO EUROPE LTD AVIVA One Cabot Square Theale, Reading 11 Baker Street 1 Poultry London Berkshire London London E14 4QJ RG7 4SD W1U 3AH EC2R 8EJ Tel: 020 7888 8888 Tel: 0118 373 1369 Tel: 020 3640 1000 Tel: 020 7809 6000 Website: www.credit-suisse.com Website: www.kpmg.com/uk/pensions Website: www.pimco.co.uk Website: www.avivainvestors.com GOLDMAN SACHS LEGAL & GENERAL RIVER & MERCANTILE GROUP AXA INVESTMENT MANAGERS ASSET MANAGEMENT INVESTMENT MANAGEMENT 11 Strand 7 Newgate Street River Court One Coleman Street London London 120 Fleet Street London WC2N 5HR EC1A 7NX London EC2R 5AA Tel: 020 3327 5100 Tel: 020 7003 1000 EC2A 2BE Tel: 020 3124 3000 Website: www.riverandmercantile.com Website: www.axa-im.com Tel: 020 7774 1000 Website: www.lgim.com Website: www.gs.com STANDARD LIFE INVESTMENTS BLACKROCK M&G 1 George Street 12 Throgmorton Avenue IGNIS ASSET MANAGEMENT Governor’s House Edinburgh London 150 Cheapside Laurence Pountney Hill EH2 2LL EC2N 2DL London London Tel: 0131 225 2345 Tel: 020 7743 3000 EC2V 6ET EC4R 0HH Website: www.standardlifeinvestments.co.uk Website: www.blackrock.co.uk Tel: 020 3003 3000 Tel: 020 7626 4588 Liability-Driven Investment Liability-Driven Website: www.ignisasset.com Fax: 020 7548 3495 UBS GLOBAL ASSET MANAGEMENT BMO GLOBAL ASSET MANAGEMENT Website: www.mandg.co.uk 21 Lombard Street Exchange House INSIGHT INVESTMENT LTD London Primrose Street 160 Queen Victoria Street MORGAN STANLEY INVESMENT EC3V 9AH London London MANAGEMENT LTD Tel: 020 7901 5000 EC2A 2NY EC4V 4LA 25 Cabot Square Website: www.ubs.com Tel: 020 7628 8000 Tel: 020 7163 4000 London Website: www.bmogam.com Website: www.insightinvestment.co.uk E14 4QA Tel: 020 7425 8000 BNP PARIBAS INVESTMENT JANUS HENDERSON INVESTORS Website: www.morganstanley.co.uk PARTNERS 201 Bishopsgate Liability-Driven Investment 5 Aldermanbury Square London London EC2M 3AE EC2V 7BP Tel: 020 7818 1818 Tel: 0230 759 2000 Website: www.janushenderson.com Website: www.bnpparibas-ip.com

120 Professional Pensions Handbook 2017 www.professionalpensions.com 121 AXA ROSENBERG – LEGAL & GENERAL MULTI-MANAGERS MERCER – SEI INVESTMENTS

AXA ROSENBERG INVESTMENT FIDELITY WORLDWIDE MERCER MANAGEMENT LTD INVESTMENTS 1 Tower Place West 8th Floor 25 Cannon Street Tower Place The 155 Bishopsgate London London London EC4M 5TA EC3R 5BU EC2M 3XJ Tel: 020 7283 9911 Tel: 020 7626 6000 Professional Tel: 020 7003 1800 Website: www.fidelity.co.ukinstitutional Website: www.mercer.com Website: www.axarosenberg.com Pensions FUNDQUEST MOMENTUM GLOBAL INVESTMENT BDO LLP BNP PARIBAS GROUP MANAGEMENT Handbook 2017 55 Baker Street 5 Aldermanbury Square The Rex Building London London 62 Queen Street W1U 7EU EC2V 7BP London Tel: 020 7486 5888 United Kingdom EC4R 1EB www.professionalpensions.com Website:  Tel: 020 7595 1000 Tel: 020 7489 7223 HANDBOOK 2017 www.bdo.co.uk/investmentmanagement Website: www.fundquest.com Website: www.momentumgim.com www.professionalpensions.com HANDBOOK 2017 www.professionalpensions.com CLOSE INVESTMENTS GOODHART PARTNERS LLP NORTHERN TRUST GLOBAL HANDBOOK 2017 10 Exchange Square Queensland House ADVISERS LIMITED Primrose Street 393 Strrand 50 Bank Street London London Canary Wharf EC2A 2BY WC2R 0LT London Tel: 020 7426 4000 Tel: 020 7379 3000 E14 5NT Website: www.closeinvestments.com Website: www.goodhartpartners.com Tel: 020 7982 2000 Website: www.ntrs.com COLUMBIA THREADNEEDLE JANUS HENDERSON INVESTORS INVESTMENTS 201 Bishopsgate RUSSELL INVESTMENTS 60 St Mary Axe London Rex House London EC2M 3AE 10 Lower Regent Street EC3A 8JQ Tel: 020 7818 1818 London

Multi-Managers Tel: 020 7464 5000 Website: SW1Y 4PE Website: www.columbiathreadneedle.co.uk Website: www.janushenderson.com Tel: 020 7024 6000 Website: www.russell.com/uk To ensure your CREDIT SUISSE LEGAL & GENERAL inclusion in the One Cabot Square INVESTMENT MANAGEMENT SEI INVESTMENTS LTD London One Coleman Street 1st Floor 2018 E14 4QJ London Alphabeta Multi-Managers Tel: 020 7888 8888 EC2R 5AA 14-18 Finsbury Square Handbook Website: www.credit-suisse.com Tel: 020 3124 2000 London Website: www.legalandgeneral.com EC2A 1BR contact Nita Hulme Tel: 020 3810 8000 NOW on +44 (0)20 7316 9309 or [email protected]

122 Professional Pensions Handbook 2017 www.professionalpensions.com 123 PENSIONS MASTER TRUSTS The Aon MasterTrust

Gap in investment quality EXPERT

aster 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, GUIDANCE there have been concerns it could also lead to watered-down services. gives your DC journey A study by the Defi ned Contribution Investment Forum (DCIF) – Master MTrusts: Investment Designs, A Comprehensive Study, which examined investment off erings of the direction it needs 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. Bringing together the best of our DC and investment The government-backed master trust will assign £130m of its UBS Life World Equity Fund expertise to drive better member outcomes. 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. The Aon MasterTrust can help employers to meet their Positive tilts will apply to fi rms that support or use renewable technology, and are performing pension governance and performance responsibilities, in line with the Paris Agreement which aims to restrict global temperature increases to below as well as minimise administrative workloads and costs. two degrees Celsius above pre-industrial levels. By combining flexible investment design with a service Meanwhile negative tilts will hit companies that have worse than average greenhouse gas delivered by experts, The Aon MasterTrust supports employers to address their DC challenges – now and emissions, are producing energy from coal, or have reserves of coal, oil and gas. in the future. The master trust has also picked JP Morgan Asset Management to run its fi rst high yield bond mandate after an open tender. To learn more, call +44 (0)800 279 5588, visit The high yield opportunities fund, which will aim to generate returns in a low yield theaonmastertrust.co.uk or email [email protected] 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: Risk. Reinsurance. Human Resources. “Diversifying our members’ portfolios across a range of asset classes is the best way to Aon Hewitt Limited is authorised and regulated by the Financial Conduct Authority. manage risks and deliver returns.” Registered in England & Wales. Registered No: 4396810. Registered Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN. 124 Professional Pensions Handbook 2017

a05694-01 AON Mechanical Data Trust A5.indd 1 24/05/2017 16:51 AON HEWITT – B&CE THE PEOPLE’S PENSION BLACKROCK MASTER TRUST – NEST CORPORATION

create Atlas Master Trust, a professionally THE BLACKROCK MASTER TRUST sections, the Plan enables sections to governed, multi-employer, trust-based 12 Throgmorton Avenue benefit from economies of scale. pension plan. Atlas Master Trust is designed London • High quality advice – Deloitte to meet the exacting requirements of EC2N 2DL provides scheme actuarial and pensions the Pensions Regulator and the needs of Tel: 020 7743 3000 administration services to the sections. AON HEWITT employers, while providing the opportunity Website: www.blackrock.co.uk • Retain control – The company The Aon Centre for its members to accumulate assets in a and trustees remain in control. On 122 Leadenhall Street quality pension arrangement with access THE CAREY WORKPLACE PENSION transfer into the Plan, there are no London to all of the new flexibilities on drawing TRUST changes to members’ benefits, the EC3V 4AN pension benefits easily, engagingly and on Carey Corporate Pensions UK Limited scheme’s investments, the employer’s Tel: 0800 279 5588 competitive terms. 1st Floor responsibilities or to the trustees and their Email: [email protected] Lakeside House key powers. Website: www.aonhewitt.co.uk Our approach is founded on three pillars Shirwell Crescent Furzton Lake to ensure that the plan delivers the best Milton Keynes FIDELITY RETIREMENT SERVICE Aon Hewitt empowers organizations possible value for members: MK4 1GA Pascall House and individuals to secure a better future Tel: +44 (0) 1908 336010 Westridge Business Park through innovative human capital Service – plan delivery through robust, Website: www.careypensions.co.uk Cothey Way solutions. We advise and design a wide proven and scalable technology, supported Ryde range of solutions that enable our clients’ by an experienced team of administrators. Isle of Wight success. Our teams of experts help clients Governance – a strong, expert and PO33 1QT navigate the risks and opportunities to independent trustee board adds value and Tel: 0500 50 65 75 (freephone) optimize financial security; redefine health insight through its management of the plan. Website: www.fidelity.co.uk solutions for greater choice, affordability, Engagement – a structured and focused and wellbeing; and achieve sustainable framework of member support and GODDARD PERRY CONSULTING growth by driving business performance guidance. 8th Floor through people performance. We serve DELOITTE PENSIONS MASTER Corinthian House more than 20,000 clients through our PLAN Through our plan, employers and employees 17 Lansdowne Road 15,000 professionals located in 50 c/o Deloitte Pensions Services Limited receive a complete end-to-end service, from Croydon countries around the world. Hill House contribution collection through to benefits’ Surrey 1 Little New Street payment. CR0 2BX London Tel: 020 8603 3700 EC4A 3TR Atlas Master Trust has achieved the Pension Website: www.goddardperry.com

Pensions Master Trust Tel: 020 7007 3687 Powered by Capita Quality Mark and is committed to achieving the Master Trust Assurance Framework. Email: ATLAS MASTER TRUST [email protected] NEST CORPORATION From Capita Website: Riverside House B&CE THE PEOPLE’S PENSION 2a Southwark Bridge road 65 Gresham Street www.deloitte.co.uk/DeloittePensionsMasterPlan Manor Royal London London Crawley The Deloitte Pensions Master Plan is a SE1 9HA EC2V 7NQ West Sussex defined benefit pension scheme designed Tel: 020 3056 3600 Tel: 020 7709 4500 RH10 9QP to cater for pension benefits for many Website: www.nestpensions.org.uk Email: [email protected] Tel: 0800 612 8080 unrelated employers. Employers can Trust Master Pensions Website: Website: www.thepeoplespension.co.uk www.capitaemployeebenefits.co.uk/what-we- transfer their existing schemes into the do/integrated-solutions/atlas-master-trust Plan with each employer having its own fully segregated section. Joining the Plan We have brought together our consultancy has a number of key benefits: skills, administrative know-how and • Lower costs – As a single trust with proprietary technology propositions to assets from many schemes in different

126 Professional Pensions Handbook 2017 www.professionalpensions.com 127 NOW PENSIONS - PREMIER PREMIER - XAFINITY CONSULTING

NOW PENSIONS Paul Couchman choose from the range available. 3rd Floor Title: Managing Director 164 Bishopsgate Email:  For individuals, independent advice can be London [email protected] provided on a fully FSA regulated basis to ensure The EC2M 4LX impartiality and a focus on individual needs. Tel: 0333 332 2222 Association Memberships: NAPF, ACA Professional Website: www.nowpensions.com For companies, we can provide strategic Services offered: To Trustees: Consultant, benefits advice, the management of group Pensions THE PENSIONS REGULATOR Actuarial, Administration Services, Risk personal pension plans including selection and Napier House Benefits and I.F.A Services on-going governance support, the insurance Handbook 2017 Trafalgar Place of benefits such as private medical cover, Brighton To Companies: Strategic Consulting disability and critical illness cover, salary BN1 4DW and Actuarial advice and on-site support. sacrifice and high earners’ support. In addition, Tel: 0845 600 0707 Advice on contract based pension and actuarial support for pensions’ accounting or Website: www.thepensionsregulator.gov.uk flexible benefit plans. actuarial funding negotiations with trustees is www.professionalpensions.com HANDBOOK also offered. 2017 www.professionalpensions.com To Individuals: Financial Planning HANDBOOK THE PENSIONS TRUST 2017 Significant on-going investment in technology www.professionalpensions.com Verity House ensures that our service is responsive, HANDBOOK 6 Canal Wharf Total Employees (UK): 160 2017 relevant and accurate and assists us greatly Leeds with the communication of our consulting Yorkshire Number of Pensions Fund Clients: 300 support. Premier are fully committed to long LS11 5BQ standing relationships with clients, Tel: 0113 234 5500 Value of Funds Advised: £15bn Website: www.thepensionstrust.org.uk Associated Companies: Premier Experience the difference…. See change. Pensions Management Ltd. Premier Benefit Solutions Ltd. SEI INVESTMENTS LTD 1st Floor THE PREMIER DB SOLUTION, THE Other Offices: Bristol Alphabeta PREMIER LIFE MASTER TRUST & 14-18 Finsbury Square THE PREMIER RETIREMENT SAVER Company Profile: London Premier Premier was established to challenge the EC2A 1BR AMP House Pensions Master Trust status quo in the pensions industry and to Tel: 020 3810 8000 Dingwall Road To ensure your offer a range of services which actually meet Website: www.seic.com Croydon customer needs at competitive costs. CR0 2LX inclusion in the XAFINITY CONSULTING Tel: 020 3727 9800 Premier clients will be either trustees, Phoenix House Fax: 020 3014 8768 2018 employers or individuals and our services are 1 Station Hill Email: focussed on their particular requirements. Reading Handbook [email protected] Berkshire Website: www.premiercompanies.co.uk For trustees, a full range of advisory and RG1 1NB contact Nita Hulme support services are offered including Tel: 0118 958 3683 Trust Master Pensions Contacts: Ian Gutteridge pensions consulting, secretary to the Website: www.xafinity.com NOW on Title: Sale & Marketing Director trustees, actuarial advice, administration, Email: the insurance of risk benefits and all relevant +44 (0)20 7316 9309 or [email protected] communications. Our approach is to offer either a full range of services to manage the [email protected] scheme or to allow the trustees to pick and

128 Professional Pensions Handbook 2017 www.professionalpensions.com 129 PERFORMANCE MEASUREMENT AMACES LTD – STATPRO GROUP PLC

Why schemes need to look beyond AMACES LTD INTERACTIVE INVESTOR 10-11th Floor 2 West Regent Street total returns when measuring success 88 Wood Street Glasgow London G2 1RW EC2V 7RS Tel: 0845 200 3637 Tel: 0870 240 1314 Website: www.iii.co.uk/funds he 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. BERKELEY BURKE INVESTMENT PROPERTY However, a paper published by the 300 Club - a group of leading global Berkeley Burke House DATABANK (IPD) investment professionals – has suggested that a different focus should Regent Street 1 St. John’s Lane Tbe adopted. Leicester London The paper – Using wealth, not returns, to set objectives and measure success – LE1 7BR EC1M 4BL suggested that using total returns in isolation is no longer sufficient. Instead, asset Tel: 0116 204 2988 Tel: 020 7336 9200 owners such as pension funds should also look at the level of absolute wealth needed to Website: www.berkeleyburke.com Website: www.ipdglobal.com 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. BNY MELLON ASSET SERVICING JP MORGAN The paper used the following example. “Consider a closed DB pension fund with Performance & Risk Analytics 25 Bank Street BNY Mellon Centre assets of £1bn that needs to pay its expected pensions over the next 10 years. It needs London 160 Queen Victoria Street E14 5JP an average real required rate of return of 2% a year to do so. Assuming the fund has the London Tel: 020 7742 6000 same annual outflow over the next 10 years, there will be exactly the right amount of EC4V 4LA Website: www.jpmorgan.com money to meet all its payments. Tel: 020 7163 5566 “Poor performance early on may result in the fund not being able to make the pension Website: www.bnymellon.com/ MERCER payments towards the end of its expected life as the strong performance years will be assetservicing 1 Tower Place West working on a smaller pot of assets. Strong returns early on may, by contrast, result in Tower Place the fund having more money than it needed.” HR TRUSTEES LTD London The message is the ability to meet an overall wealth target should be considered a key Xafinity House EC3R 5BU measure for success, not just the investment returns. 42-62 Greyfriars Road Tel: 020 7626 6000 Report author Stefan Dunatov, the chief investment officer at Coal Pension Trustees, Reading Website: www.mercer.com RG1 1NN said that, while such issues have been discussed over the years, now might be the right Tel: 0118 958 3683 time for schemes to take another look at this approach. PORTFOLIO EVALUATION LIMITED Website: www.hrtrustees.com The Bourse “This is an issue that has been discussed over the years but we are at a real Boar Lane tipping point right now in that we are seeing more DB schemes start to shift from an INALYTICS LTD Leeds accumulation to decumulation phase,” he explained. “As more DB schemes are closed 12th Floor LS1 5EN then issues like this start to bubble to the top.” Emerald House Tel: 0113 242 9381 Cardano client director Tony Baily agreed that this is an issue that needs more focus: 15 Lansdowne Road Website: www.portfolioevaluation.net “We are at a point where more schemes are becoming cashflow negative. When we work Croydon with clients we would encourage them to look at whether their funding level is improving Surrey STATPRO GROUP PLC over time rather than focusing on total returns. CR0 2BX Statpro House “If a scheme has had poor returns early on then having goo;d returns at a later stage Tel: 020 8666 0656 81-87 Hartfield Road Website: www.inalytics.com might not be enough to get them where they need to be. That is why we encourage Wimbledon clients to place more emphasis on funding level and then ask themselves whether what London

SW19 3TJ Measurement Performance they are doing is adding or detracting from this.” Tel: 020 8410 9876 Website: www.statpro.com

130 Professional Pensions Handbook 2017 www.professionalpensions.com 131 WILLIS TOWERS WATSON – WM COMPANY PROPERTY SERVICES

WILLIS TOWERS WATSON What did we learn from real estate Watson House London Road The markets in 2016? Reigate Surrey RH2 9PQ Professional he property market went through a turbulent time during 2016, with Tel: 01737 241144 the shock Brexit vote prompting mass redemption requests, which led Website: www.willistowerwatson.com Pensions to several funds suspending trading. However, this activity was largely Handbook 2017 confined to retail investors with institutional investors holding firm. WILSHIRE ASSOCIATES TSo how has the past year treated UK pension schemes invested in the property 23 Austin Friars sector and what can they expect going forward? London While 2016 brought turbulence to real estate investors it is important to realise that EC2N 2QP this also came off the back of several years of strong returns, according to M&G Real Tel: 020 7920 3100 www.professionalpensions.com Estate chief investment officer Tony Brown: “If we cast our minds back to 2013-2015, Website: www.wilshire.com HANDBOOK 2017 www.professionalpensions.com we saw record numbers of transactions. These were not just institutional inves- HANDBOOK 2017 tors but also from overseas. Then we saw things start to slow down in early 2016 in WM COMPANY www.professionalpensions.com HANDBOOK anticipation of the EU referendum, but it is important to remember that up until that 525 Ferry Road 2017 Edinburgh point all parts of the real estate market had been doing well.” EH5 2AW While many column inches were given over to the resulting wave of redemption Tel: 0131 315 2000 requests and the subsequent suspension of several funds, Brown insists that things Website: www.statestreet.com 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. To ensure your “Then by Q4 it was almost a case of business as usual. I think that demonstrates Performance Measurement inclusion in the 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 2018 we actually received new allocations from institutional investors in the wake of the referendum.” Handbook However, Hermes Investments head of private markets Chris Taylor says the shifts contact Nita Hulme 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 NOW on 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 +44 (0)20 7316 9309 or 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 [email protected] have seen happening anyway as part of the cycle.

132 Professional Pensions Handbook 2017 www.professionalpensions.com 133 AVIVA INVESTORS – CREDIT SUISSE PROPERTY INVESTMENT DEUTSCHE BANK – KNIGHT FRANK INVESTORS

AVIVA INVESTORS CAPA DEUTSCHE BANK GVA No1 Poultry 37 Duke Street 1 Great Winchester Street 10 Stratton Street London London London London EC2R 8EJ W1U 1LN EC2N 2DB W1J 8JR Tel: 020 7809 6000 Tel: 020 7224 7222 Tel: 020 7545 8000 Tel: 08449 02 03 04 Website: http://www.avivainvestors.com Website: www.capa.uk.com Website: www.db.com Website: www.gva.co.uk

BARINGS REAL ESTATE ADVISERS CBRE GLOBAL INVESTORS DTZ INVESTMENT MANAGEMENT HERMES INVESTMENT Southwest House Third Floor 125 Old Broad Street MANAGEMENT 11A Regent Street One New Change London Lloyds Chambers London London EC2N 1AR 1 Portsoken Street SW1Y 4LR EC4M 9AF Tel: 020 3296 3269 London Tel: +44 (0)20 7297 0900 Tel: 020 7809 9000 Website: www.dtzinvestors.com E1 8HZ Website: www.barings.com Website: www.cbreglobalinvestors.com Tel: +44 (0)20 7702 0888 EDWARD SYMMONS & PARTNERS Website: www.hermes-investment.com BLACKROCK CLUTTONS 2 Southwark Street 12 Throgmorton Avenue Portman House London JANUS HENDERSON INVESTORS London 2 Portman Street SE1 1TQ 201 Bishopsgate EC2N 2DL London Tel: 020 7955 8454 London Tel: 020 7743 3000 W1H 6DU Website: www.edwardsymmons.com EC2M 3AE Website: www.blackrock.co.uk Tel: 020 7408 1010 Tel: 020 7818 1818 Website: www.cluttons.com FLETCHER KING SERVICES LIMITED Website: www.janushenderson.com BMO REAL ESTATE PARTNERS 61 Conduit Street 5 Wigmore Street COLLIERS INTERNATIONAL London JONES LANG LASALE London 50 George Street W1S 2GB INVESTMENT ADVISORY W1U 1PB London Tel: 020 7493 8400 22 Hanover Square Tel: 020 7499 2244 W1U 7GA Website: www.fletcherking.co.uk London Website: www.bmorep.com Tel: 020 7935 4499 W1S 1JA Website: www.colliers.com GERALD EVE CHARTERED Tel: 020 7493 6040 BNP PARIBAS REAL ESTATE UK SURVEYORS Website: www.joneslanglasalle.co.uk 5 Aldermanbury Square COLUMBIA THREADNEEDLE 72 Welbeck Street London INVESTMENTS London KENETH PETERS EC2V 7BP 60 St Mary Axe W1G 0AY 56 Queen Anne Street Tel: +020 7595 1000 London Tel: 020 7493 3338 London Website: www.relestate.bnpparibas.co.uk EC3A 8JQ Website: www.geraldeve.com W1G 8LA Property Services Property Tel: 020 7464 5000 Tel: 020 7317 3104 BROWN & CO Website: www.columbiathreadneedle.co.uk GREENOAK REAL ESTATE Website: www.keneth-peters.co.uk Granta Hall ADVISORS LLP Finkin Street CREDIT SUISSE PROPERTY 4 Sloane Terrace KNIGHT FRANK INVESTORS Grantham INVESTMENT MANAGEMENT LTD London Woolgate Exchange Lincolnshire One Cabot Square SW1X 5DQ 25 Basinghall Street NG31 6QZ London London

Tel: 020 7866 8800 Property Services Tel: 01476 591991 E14 4QJ Website: www.greenoakrealestate.com EC2V 5HA Website: www.brown-co.com Tel: 020 7888 1000 Tel: 020 7861 1220 Website: www.credit-suisse.com/uk Website: www.knightfrankinvestors.co.uk

134 Professional Pensions Handbook 2017 www.professionalpensions.com 135 LASALLE INVESTMENT – LOTHBURY INVESTMENT LOTHBURY INVESTMENT – UBS GLOBAL ASSET

LEGAL & GENERAL PROPERTY and public sector pension funds. Our clients ROCKSPRING PROPERTY One Coleman Street also include treasury investors, collective INVESTMENT MANAGERS LTD London investment schemes, insurance companies 166 LASALLE INVESTMENT EC2R 5AA and charities. London MANAGEMENT Tel: 020 3124 2700 SW1X 9QF One Curzon Street Website: www.lgim.co.uk Further information on our company, strategy Tel: 020 7761 3300 London and products can be found at Website: www.rockspringpim.com W1J 5HD www.lothburyim.com Tel: 020 7852 4200 RUGBY ESTATES Fax: +44 (0) 20 7852 4404 LOTHBURY INVESTMENT MATTHEWS & GOODMAN 4 Farm Street Website: www.lasalle.com MANAGEMENT LIMITED 33 Robert Adams Street Mayfair 155 Bishopsgate London London Contact: London W1U 3HR W1J 5RD Head of UK EC2M 3TQ Tel: 020 7747 8847 Tel: 020 7016 0050 Alan Tripp ([email protected]) Switchboard: 020 3551 4900 Website: www.matthews-goodman.co.uk Website: www.rugbyestates.plc.uk UK CIO Website: www.lothburyim.com Julian Agnew ([email protected]) M&G REAL ESTATE SAVILLS FUND MANAGEMENT Client Executive, Client Capital Group Contact: Barbara O’Riordan City Place House 33 Margaret Street Anne Lucking ([email protected]) Title: Associate Director 55 Basinghall Street London Email: [email protected] London W1G 0JD Main services: LaSalle Investment EC2V 5DU Tel: 020 7499 8644 Management is one of the world’s leading We are an independent UK real estate Tel: 020 7548 6600 Website: www.savills.co.uk real estate investment managers with over investment manager, formed in 2010. Our Website: www.mandg.co.uk 35 years of experience. LaSalle manages strong and cohesive senior fund management SCHRODER PROPERTY US$58bn of assets on behalf of institutions team has worked together for nearly 20 NGAM UK LTD INVESTMENT MANAGEMENT LTD and private investors across the world, years and has a track record of delivering One Carter Lane 31 Gresham Street investing in private real estate equity and outperformance for investors. London London debt, and public real estate through a EC4V 5ER EC2V 7QA complete range of investment vehicles. Our LIM manages unlisted property vehicles on Tel: 020 3405 2173 Tel: 020 7658 6000 products include separate accounts, open behalf of institutional investors seeking Website: www.ngam.natixis.co.uk Website: www.schroderproperty.com and closed-end commingled funds, joint indirect exposure to the UK. Lothbury ventures, and public securities. Property Trust (LPT) is our flagship fund. We PGIM REAL ESTATE STRUTT & PARKER also manage the Clarendon Unit Trust and Grand Buildings, 1-3 Strand 13 Hill Street From the London office of 165 people we a segregated secure income portfolio for London manage £12.5bn assets of which £12.2bn London W1J 5LQ

Property Services Property a UK pension fund. We offer an innovative are located within the UK. We have extensive solution to clients, through our core/active WC2N 5HR Tel: 020 7629 7282 successful experience of managing strategy. Our predominantly core portfolio of Tel: 020 7766 2400 Website: www.struttandparker.com portfolios to both MSCI relative and real prime assets provides stable returns, while Website: www.pgimrealestate.com return performance targets as well as assets our active management initiatives create UBS GLOBAL ASSET MANAGEMENT and strategies targeting index-linked and additional value and enhance returns. PRINCIPAL GLOBAL INVESTORS 21 Lombard Street absolute returns. (EUROPE) LIMITED London 1 Wood Street EC3V 9AH

Since LIM’s launch, we have progressively Property Services We have 700 people located in 23 offices grown our funds under management to over London Tel: 020 7901 5000 around the world, as well as access to JLL’s £1.8 billion. We have attracted new investors EC2V 7JB Website: www.ubs.com 300 offices in 80 countries worldwide. to our Funds and significantly diversified our Tel: 020 7710 0220 robust base of UK and overseas institutional Website: www.principalglobal.com clients, the majority of which are corporate

136 Professional Pensions Handbook 2017 www.professionalpensions.com 137 RISK REDUCTION PROVIDERS

The next de-risking innovation?

he 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 Tnext 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

www.professionalpensions.com | 11 May 2017

Will slowing longevity perceived as very complex. rises reduce deficits? UK Pensions Awards 2017 – the winners

How the MNOPF uses However, this mentality is starting to change, with Phoenix Life being the first to successfully fiduciary management 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 Ad page 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 001_PP_110517.indd 1 08/05/2017 13:11 common, but this will depend on appetite. Zugic says: “To the extent that the longevity swap providers have appetite to take on assets Access the latest pensions insight with 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.” Professional Pensions. Subscribe today. It is important to look at the original reasons for schemes putting in longevity swaps rather Professional Pensions is the market than going down the buy-in route. Many needed the asset returns and could not afford to hand 45 printed issues of Professional Pensions leading source for those in the Monthly supplements, including DC World, the them over to an insurer. occupational pensions industry. Top 100 Pension Funds and specialist reports So it’s not obvious that all schemes would want to convert into a buy-in, and it depends on The annual Professional Pensions Handbook the progress made since the hedges were put in place. Following an extensive, independent Exclusive access to premium content But given there are a lot of challenges and legal complexities in converting a swap into a bulk audience research study, Professional annuity, why would insurers want to do this, and why now? Pensions has been further improved to UK 1 YEAR: £530 NAME: The biggest factor at play is Solvency II, the new capital regime for insurers, which came into include greater depth of analysis, insight COMPANY: force in January 2016. Buy-in providers are now incentivised to put in longevity reinsurance and content. JOB TITLE: because Solvency II requires them to hold a risk margin. ADDRESS: POSTCODE: So, a scheme that has already hedged longevity risk could look very attractive now. “If a Professional Pensions has taken into TEL: FAX: pension scheme comes to market with a longevity hedge, some of the work has already been account your information needs which can EMAIL: be accessed whether in print, in person, done for the insurer,” says Aon Hewitt principal consultant Michael Walker. I enclose cheque/banker’s draft* for £530 made payable to Another driver for conversions is that providers which have pulled back from the longevity online or via your smart device. Incisive Business Media Ltd. *(delete as applicable) swap market - such as Deutsche Bank and Credit Suisse - may want to wind down their You can subscribe using the form to existing swaps. DATE: SIGNED: the right or online at: Send details and cheque, payable to Incisive Business Media Ltd, professionalpensions.com/register to: Haymarket House, 28-29 Haymarket, London, SW1Y 4RX 138 Professional Pensions Handbook 2017

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140 Professional Pensions Handbook 2017 www.professionalpensions.com 141 SIPPs AEGON – EBS

Concerns over interest skimming AEGON CANADA LIFE LTD Edinburgh Park Canada Life Place ‘overstated’ Edinburgh Potters Bar EH12 9SE Hertfordshire Tel: 0870 6000 337 EN6 5BA oncern some self-invested personal pension (SIPP) providers rely on Website: www.aegonse.co.uk Tel: 0845 606 708 creaming interest from their clients’ bank accounts is ‘overstated’ and actually Website: www.canadalife.co.uk part of a well-established SIPP business model, providers have said. A J BELL LIMITED Speaking at a forum last year, Finalytiq’s Abraham Okusanya told delegates Trafford House CAREY PENSIONS UK LLP 1st Floor thatC SIPP providers are currently taking up to £50m a year in interest from their clients’ cash Chester Road Manchester Lakeside House accounts and may struggle to stay afloat without the income. M32 0RS Shirwell Crescent Furzton Lake However, Dentons Pensions director of technical services Martin Tilley argued SIPP Tel: 0845 40 89 100 Milton Keynes providers taking a percentage of this income are acting fairly because they have negotiated Website: www.ajbell.co.uk MK4 1GA better interest rates with a bank than an individual client would ever have done. Tel: +44 (0) 1908 336010 “SIPP providers may be putting £100m of client funds into one bank and, as a result, they AVIVA PLC Website: www.careypensions.co.uk are awarded better interest rates. The rates will be determined by the weight of the SIPP PO Box 4 provider’s commercial business,” he said. Surrey Street CLERICAL MEDICAL INVESTMENT He explained: “Concerns around this practice are overstated and often part of a viable Norwich GROUP LIMITED business model.” NR1 3NG PO Box 28121 Tilley added that even though some providers may rely on the income, interest rates have Tel: 01603 622 200 15 Dalkeith Road been low for some time meaning these providers are making very small amounts compared Website: www.aviva.co.uk Edinburgh EH16 9AS with income from interest in the past. Tel: 0845 603 6770 “The base rate has been fixed at a low 0.5% since 2009, and banks are still reducing fees - BARNETT WADDINGHAM Website: www.clericalmedical.co.uk as a result, SIPP providers aren’t making nearly as much from this as they did even a couple (BW SIPP LLP) Decimal Place of years ago,” he explained. Chilton Avenue DENTONS PENSION MANAGEMENT TISA policy director Adrian Boulding concurred that SIPP providers taking interest from Amersham Sutton House client accounts is no longer an important issue for the industry. Buckinghamshire Weyside Park “It used to be the way many SIPP providers made their profits, but the 5% to 7% provided HP6 5FG Cattleshall Lane by bank deposits in 2008 doesn’t exist any longer.” Tel: 01494 788 100 Godalming Fewer SIPP providers ‘creaming’ this interest has the net effect of creating more Website: www.bwsipp.co.uk Surrey transparency around pricing, according to Boulding. GU7 1XE He said: “It means more of the SIPP providers’ profits come direct from client fees, and BDO LLP Tel: 01483 521521 Website: www.dentonspensions.co.uk those clients see even more clearly what they are paying for.” 55 Baker Street Rowanmoor head of technical pensions Robert Graves said that SIPPs are by their nature London W1U 7EU EBS (MANAGEMENT) PLC transparent, unlike the old personal pensions which had a “complicated black box” charging Tel: 020 7486 5888 25 Luke Street structure. Website: www.bdo.co.uk/ London “Personal pensions had lots of charging mechanisms including value adjustors, allocation investmentmanagement EC2A 4AR rates and capital account charges whereas SIPPs savers pay the provider a fee, then choose Tel: 020 7149 6560 SIPPs and pay the adviser, they can see how much their investment managers charge too.” Website: www.ebsmanagement.co.uk 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.

142 Professional Pensions Handbook 2017 www.professionalpensions.com 143 FRIENDS LIFE – PREMIER COMPANIES ROWANMOOR – WEALTH AT WORK

FRIENDS LIFE LONDON & COLONIAL SERVICES ROWANMOOR GROUP PLC WEALTH AT WORK PO Box 1550 LIMITED Rowanmoor House 5 Temple Square Milford Perrymount House 46-50 Castle Street Temple Street Salisbury 38-42 Perrymount Road Salisbury Liverpool Wiltshire Haywards Heath Wiltshire L2 5RH SP1 2TW West Sussex SP1 3TS Tel: 0800 234 6880 Tel: 0845 602 0624 RH16 3DN Tel: 03445 440 440 Website: www.wealthatwork.co.uk Website: www.friendslife.co.uk Tel: 0203 479 5505 Website: www.rowanmoor.co.uk Website: www.londoncolonial.com HORNBUCKLE SCOTTISH LIFE Tyman House MAC ROBINS Royal London House 42 Regent Road 40 Great Portland Street Alderley Road Leicester London Wilmslow LE1 6YJ W1W 7ND Cheshire Tel: 0845 345 2555 Tel: 08456 300 740 SK9 1PF Website: www.hornbuckle.co.uk Website: www.macrobins.co.uk Tel: 0845 60 50 050 Website: www.scottishlife.co.uk IPM TRUSTEES LTD ORIGEN FINANCIAL SERVICES LTD 3 Victoria Court 1st Floor, Infor House SCOTTISH WIDOWS PLC Bank Square 1 Lakeside Road PO Box 17036 Morley Farnborough 69 Morrison Street Leeds Hampshire Edinburgh LS27 9SE GU14 6XP EH3 8YH Tel: 0845 230 3553 Tel: 0844 209 3000 Tel: 0131 655 6000 Website: www.ipm-pensions.co.uk Website: www.origenfs.co.uk Website: www.scottishwidows.co.uk

JAMES HAY PARTNERSHIP POINTON YORK SIPP SOLUTIONS STANDARD LIFE Dunn’s House LIMITED Sipps Centre St Paul’s Road Pointon York House Edinburgh Salisbury Welland Business Park EH15 1ET SP2 7BF Valley way Tel: 0845 0845 000 Tel: 0845 850 4455 Market Harborough Website: www.standardlife.co.uk

www.professionalpensions.com HANDBOOK www.professionalpensions.com 2017 Website: www.jameshay.co.uk HANDBOOK Leicestershire 2017 www.professionalpensions.com HANDBOOK 2017 LE 16 7PS SUFFOLK LIFE ANNUITIES LIMITED To ensure your LEGAL & GENERAL Tel: 01858 419300 153 Princes Street ASSURANCE SOCIETY Website: www.sippsolutions.com Ipswich inclusion in the Legal & General House Suffolk 2018 St Monica’s Road PREMIER COMPANIES LTD IP1 1QJ

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Surrey Dingwall Road contact Nita Hulme SIPPs KT20 6EU Croydon Tel: 01737 370 370 CR0 2LX NOW on Website: www.legalandgeneral.com Tel: 020 8663 5800 +44 (0)20 7316 9309 or Website: www.premiercompanies.co.uk [email protected]

144 Professional Pensions Handbook 2017 www.professionalpensions.com 145 SOFTWARE & SYSTEMS Can the dashboard develop with patchy data? 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. aIn 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. Ad page 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 www.professionalpensions.com | 11 May 2017 the roll-out of the dashboard, which might slow the pace of development but would ensure the Pensions Buzz Comment Feature Should investment Governance in Reclassifying Will slowing longevity consultants be fully contract-based money purchase rises reduce deficits? regulated? page 22 schemes page 25 benefits page 28 end-product works. UK Pensions Awards 2017 – the winners How the MNOPF uses fiduciary management The second recognises the data is imperfect but points out that waiting until it is better could 20 February 2014 www.professionalpensions.com cause too much delay. Walkingintheshoes ofaTPASadviser The third suggests there can be a compromise between these positions. Pressure to establish How three volunteers conduct their roles page 26 the dashboard is a catalyst for cleaning up data, which then improves the dashboard. Financial Assistance Scheme ITM chairman Duncan Howorth thinks the accuracy of data needs to be up to standard and FAS regulations offer ‘last chance’ entry to ineligible schemes page 4 DB Code of Practice says the industry must collaborate. Regulator’s code branded ‘garbage’ due to lack of guiding principles page 6 FCA annuity review “Whatever data is to be presented on dashboards, it needs to be wholly or substantially Did the Financial Conduct Authority’s reviewintoannuitymarketsgofarenough? page 14 accurate. Providers and schemes need to take a methodical approach to data improvement. There needs to be a coordinated approach.”

fotoaloja This comes as data protection laws and the penalties for non-compliance are set to go up Is it time for a new towerswatson.com +44 1737 241144 [email protected] Unrivalled coverage under the European Union’s (EU) General Data Protection Regulation (GDPR). It will put more perspective on your administration? Copyright©2013TowersWatson.Allrightsreserved. TW-EU-2012-28548c. April 2013. TowersWatsonisrepresentedintheUKbyTowersWatsonLimited and Towers Watson Capital Markets Limited. obligations on third-party administrators (TPA) and trustees to protect member data with a 001_PP_110517.indd 1 08/05/2017 13:11 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, Professional Pensions continues to be the market leading source starting the dashboard with inaccurate data is potentially in breach of data protection legislation for those in the occupational pensions industry. and also, to me it seems, may impact on customer trust and confidence. I would always advise Print Online Events Tablet Following an extensive, independent audience research study, from a data protection point of view that the data is as clean and accurate as possible.” Professional Pensions has been further improved to include Redington head of DC and financial well-being Lydia Fearn believes the industry has to push greater depth of analysis, insight and content. forward regardless. “Even if the data isn’t as clean as we would like, we need to start somewhere. Over time, usage Professional Pensions has taken into account your information and data will improve and ultimately people will have more control and understanding about their needs which can be accessed whether in print, in person, online pension savings, rather than having limited emotional connection as is often the case currently,” or via any smart device. she explains. www.professionalpensions.com 146 Professional Pensions Handbook 2017

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CAPITA EMPLOYEE BENEFITS DST SYSTEMS HEYWOOD LIMITED 65 Gresham Street DST House 1st Floor London St Mark’s Hill Hamilton House BENPAL EC2V 7NQ Surbiton Church Street The St Botolph Building Tel: 020 7709 4500 Surrey Altrincham 138 Houndsditch Email: [email protected] KT6 4QD Cheshire London Website: Tel: 020 8412 5000 WA14 4DR EC3A 7AW www.capitaemployeebenefi ts.co.uk Website: www.dstsystems.com Tel: 0161 613 4200 Tel: 020 7528 4000 Website: www.heywood.co.uk Website: www.jltgroup.com/eb CASHFAC PLC DUNSTAN THOMAS 50 Mark Lane HOLDINGS LIMITED HS ADMINISTRATIVE BENPAL is the next generation employee London Rawlings Offi ce SERVICES LIMITED benefi ts platform from JLT, designed to EC3R 7QR Gunwharf Quays Daresbury Park help you attract, retain, engage and reward Tel: 0844 871 8717 Portsmouth Daresbury your valuable workforce. Website: www.cashfac.com PO1 3TT Cheshire Tel: 023 9282 2254 WA4 4HS BENPAL provides you with a seamless user Website: www.dthomas.co.uk Tel: 01928 707 900 experience for managing your employee Website: www.hsadmin.com reward and benefi t programme and is EQUINITI PENSION SOLUTIONS

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148 Professional Pensions Handbook 2017 www.professionalpensions.com 149 ITM LIMITED – PROCENTIA PROFUND – STAFFCARE

ITM LIMITED PENSIONPAL LIMITED SCOTTISH LIFE 2nd Floor 9 The Dell 19 St Andrew Square Minster House Kingsclere Edinburgh 42 Mincing Lane Newbury EH2 1YE London Berkshire PROFUND Tel: 0131 470 1365 EC3R 7AE RG20 5NL The St Botolph Building Website: www.scottishlife.co.uk Tel: 020 7648 9990 Tel: 01635 297400 138 Houndsditch Website: www.itmlimited.com Website: www.pensionpal.co.uk London SOURCE PENSIONS EC3A 7AW 80 Coleman Street L&P SYSTEMS PENSIONS FIRST LTD Tel: 020 7528 4000 London New Oxford House 90 Long Acre Website: www.jltgroup.com/eb EC2R 5B7 75 Dale Street London Tel: 020 7104 2220 Liverpool WC2E 9RA Profund are a leading provider of pension Website: www.sourcepensions.co.uk L2 2HT Tel: 020 7632 9100 software. United Kingdom Website: www.pensionsfirst.com SS&C TECHNOLOGIES Tel: 0151 255 1553 Since 1984 we have been developing, DST House Website: www.lpsystems.com PROCENTIA LTD implementing and supporting systems St Marks Hill 8 Brook Office Park specifically designed for those with Surbiton LINEDATA SERVICES (UK) LTD Emersons Green the responsibility for running pension Surrey Bishopsgate Court Bristol schemes. KT6 4QD 4/12 Norton Folgate BS16 7FL Tel: 020 8390 5000 London Tel: 0117 332 7800 With 7 million members on our software, Website: www.ssctech.com E1 6DB Website: www.procentia.co.uk whether you run a Defined Contribution Tel: 020 7360 1800 (DC), Defined Benefit (DB), Career SSP Website: www.ldsam.com Average (CARE) or Hybrid scheme, you 2nd Floor can use our software for all the processes G Mill and functionality a modern pensions MSCI Dean Clough department requires 10 Bishops Square Halifax Software & SystemsSoftware London West Yorkshire E1 6EG RETIRE EASY HX3 5AX Tel: 020 7618 2222 20 Manor Courtyard Tel: 01422 330 022 Website: www.msci.com Hughenden Avenue Website: www.ssp-uk.com High Wycombe Buckinghamshire OBJECTWAY LTD STAFFCARE LTD HP13 5RE 25 Canada Square Leatherhead House Tel: 020 3434 0000 Station Road Canary Wharf Software Systems & Website: www.retireeasy.co.uk London Leatherhead E14 5LQ Surrey Tel: 020 7071 3000 SCORPEO KT22 7FG Website: www.objectway.com 3rd Floor Tel: 0845 372 6644 24 Threadneedle Street Website: www.staffcare.net London EC2R 8AY Tel: 020 3598 2000 Web: www.scorpeo.com

150 Professional Pensions Handbook 2017 www.professionalpensions.com 151 STRAIT LOGICS – WILLIS TOWERS WATSON SOLICITORS & LEGAL ADVISERS

STRAIT LOGICS LTD Software House Should it be mandatory for 20 Chapel Street Billericay The schemes to appoint a lawyer? Essex CM12 9LU Professional he Pensions Act 1995 introduced the requirement for schemes to be audited Tel: 01277 634844 annually and valued triennially. Website: www.straitlogics.com Pensions This largely stemmed from Professor Roy Goode’s 1993 report, which recommended a statutory obligation for scheme audits and actuarial valuations, SUNGARD Handbook 2017 Tbut did not extend to scheme lawyers. Instead, he said it was sufficient to let trustees 25 Canada Square decide to appoint lawyers where they deemed necessary. London Since then, the volume of legislation and case law has steadily increased and the demands E14 5LQ Tel: 020 8081 2000 on trustees have risen accordingly. www.professionalpensions.com Some argue trustees need a lawyer to help them do their job and that it should be Website: www.sungard.com HANDBOOK 2017 www.professionalpensions.com mandatory to appoint one. Such a reform would require primary legislation and a decision HANDBOOK WILLIS TOWERS WATSON 2017 on how often schemes would need to review the lawyer they have hired. www.professionalpensions.com Watson House HANDBOOK It is claimed this would reassure members they are in a well-run scheme, and allow 2017 London Road trustees to keep abreast of the latest case law. Also, it could prevent an increase in what the Reigate regulator calls “second class pension savers”, who are in schemes that are small, poorly Surrey governed and bad at delivering value for money. RH2 9PQ However, others argue such a requirement would be very costly for schemes and that Tel: 01737 241144 trustees should not be forced to get legal advice if there is no need for it. Website: www.willistowerwatson.com 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

Software & SystemsSoftware 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. To ensure your He says: “There are now around 160,000 pages of legislation and counting. There is no inclusion in the 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- 2018 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?” Handbook Ellison says a parallel might be that every household is legally required to appoint plumber contact Nita Hulme and electrician. Aside from concerns there are too many regulations already, the main objection to having NOW on mandatory lawyers comes down to money. Barnett Waddingham senior consultant Malcolm McLean warns says. “I am told it can cost +44 (0)20 7316 9309 or 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.” [email protected] The arguments for appointing a lawyer are compelling but making it mandatory is unnecessary and too costly.

152 Professional Pensions Handbook 2017 www.professionalpensions.com 153 ADDLESHAW GODDARD – CMS CAMERON MCKENNA DECHERT LLP – HERBERT SMITH FREEHILLS LLP

ADDLESHAW GODDARD BURGES SALMON LLP DECHERT LLP FOX WILLIAMS Milton Gate One Glass Wharf 160 Queen Victoria Street 10 Dominion Street 60 Chiswell Street Bristol London London London BS2 0ZX EC4V 4QQ EC2M 2EE EC1Y 4AG Tel: 0117 939 2000 Tel: 020 7184 7000 Tel: 020 7628 2000 Tel: 020 7606 8855 Website: www.burges-salmon.com Website: www.dechert.com Website: www.foxwilliams.com Website: www.addleshawgoddard.com BURNESS DENTONS UKMEA LLP FRESHFIELDS BRUCKHAUS ALLEN & OVERY 50 Lothian Road 1 Fleet Place DERINGER One Bishops Square Festival Square London 65 Fleet Street London Edinburgh EC4M 7WS London EC1 6AD EH3 9WJ Tel: 020 7242 1212 EC4A 1HT Tel: 020 3088 0000 Tel: 0131 473 6000 Website: www.dentons.com Tel: 020 7936 4000 Website: www.allenovery.com Website: www.burness.co.uk Website: www.freshfields.com DLA PIPER UK LLP ARC PENSIONS LAW CHARLES RUSSELL SPEECHLYS 3 Noble Street GORDONS LAW GROUP 80 Coleman Street 5 Fleet Place London Forward House London London EC2V 7EE 8 Duke Street EC2R 5BJ EC4M 7RD Tel: 08700 111 111 Bradford Tel: 020 7653 8970 Tel: 020 7203 5000 Website: www.dlapiper.com BD1 3QX Website: www.arcpensionslaew.com Website: www.charlesrussellspeechlys.co.uk Tel: 01274 2502202 DWF Website: www.gordonsllp.co.uk BAKER & MCKENZIE CLIFFORD CHANCE 1 Scott place 100 New Bridge Street 2 Hardman Street GREENWOODS SOLICITORS LLP London London Manchester Monkstone House EC4V 6JA E14 5JJ M3 3AA City Road Tel: 020 7919 1000 Tel: 020 7006 1000 Tel: 0161 603 5000 Peterborough Solicitors & Legal Advisers & Legal Solicitors Website: www.bakermckenzie.com Website: www.cliffordchance.com Website: www.dwf.co.uk PE1 1JE Tel: 01733 887 700 BLAKE MORGAN CLYDE & CO LLP EVERSHEDS SUTHERLAND Website: www.greenwoods.co.uk New Kings Court Beaufort House 1 Wood Street Tollgate 15 St. Botolph Street London HERBERT SMITH FREEHILLS LLP Chandler’s Ford London EC2V 7WS Exchange House Eastleigh EC3A 7NJ Tel: 020 7919 4500 Primrose Street SO53 3LG Tel: 020 7247 2277 Website: www.eversheds-sutherland.com London Tel: 023 8090 8090 Website: www.clydeco.com EC2A 2EG Website: www.blakemorgan.co.uk FIELD FISHER Tel: 020 7374 8000 CMS CAMERON MCKENNA WATERHOUSE SOLICITORS Website: www.hsf.com Solicitors & Legal Advisers BOND DICKINSON Mitre House Riverbank House St Ann’s Wharf 160 Aldersgate Street 2 Swan Lane 112 Quayside London London Newcastle upon Tyne EC1A 4DD EC4R 3TT NE1 3DX Tel: 020 7367 3000 Tel: 020 7861 4000 Tel: 0844 984 1500 Website: www.law-now.com Website: www.ffw.com Website: www.bonddickinson.com

154 Professional Pensions Handbook 2017 www.professionalpensions.com 155 HOGAN LOVELLS – OSBORNE CLARKE PINSENT MASONS – STEPHENSON HARWOOD

MAYER BROWN INTERNATIONAL PINSENT MASONS LLP SHOOSMITHS LLP Crown Place Witan Gate House 201 Bishopsgate Earl Street 500-600 Witan Gate West London London Milton Keynes EC2M 3AF EC2A 4ES MK9 1SH Tel: 020 3130 3000 Tel: 020 7418 7000 Tel: 03700 868300 Website: www.mayerbrown.com Website: www.pinsentmasons.com Website: www.shoosmiths.co.uk HOGAN LOVELLS INTERNATIONAL LLP MCDERMOTT WILL & EMERY PITMANS SIMMONS & SIMMONS Atlantic House 47 Castle Street City Point Holborn Viaduct 110 Bishopsgate Reading 1 Ropemaker Street London London Berkshire London EC1A 2FG EC2N 4AY RG1 7SR EC2Y 9SS Tel: 020 7296 2000 Tel: 020 7577 6900 Tel: 0118 957 0610 Tel: 020 7628 2020 Website: www.hoganlovells.com Website: www.mwe.com Website: www.pitmans.com Website: www.simmons-simmons.com Contact: Katie Banks REED SMITH SLAUGHTER AND MAY Email: [email protected] MILLS & REEVE 1 St James Court Broadgate Tower 1 Bunhill Row Whitefriars 20 Primrose Street London LINKLATERS Norwich London EC1Y 8YY One Silk Street NR3 1RU EC2A 2RS Tel: 020 7600 1200 London Tel: 01603 660 155 Tel: 020 7247 6555 Website: www.slaughterandmay.com EC2Y 8HQ Website: www.mills-reeve.com Website: www.reedsmith.com Tel: 020 7456 2000 SPEECHLY BIRCHAM Website: www.linklaters.com NABARRO LLP REYNOLDS PORTER CHAMBERLAIN 6 New Street Square 125 London Wall Tower Bridge House London MACFARLANES London St Katharine’s Way EC4A 3LX Solicitors & Legal Advisers & Legal Solicitors 20 Cursitor Street EC2Y 5AL London Tel: 020 7427 6400 London Tel: 020 7524 6000 E1W 1AA Website: www.speechlys.com EC4A 1LT Website: www.nabarro.com Tel: 020 3060 6000 Tel: 020 7831 9222 Website: www.rpc.co.uk SQUIRE PATTON BOGGS Website: www.macfarlanes.com NORTON ROSE FULBRIGHT LLP 7 Devonshire Square 3 More London Riverside SACKER & PARTNERS LLP Cutlers Gardens MACLAY MURRAY & SPENS London 6th Floor London 1 George Square SE1 2AQ 20 Gresham Street EC2M 4YH Glasgow Tel: 020 7283 6000 London Tel: 020 7655 1000 G2 1AL Website: www.nortonrose.com EC2V 7JE Website: www.squirepattonboggs.com Tel: 0141 248 5011 Tel: 020 7329 6699 Solicitors & Legal Advisers Website: www.mms.co.uk OSBORNE CLARKE Website: www.sackers.com STEPHENSON HARWOOD LLP 1 Finsbury Circus MACROBERTS SOLICITORS 2 Temple Back East Temple Quay SHEPHERD & WEDDERBURN London Capella 1 Exchange Crescent EC2M 7SH 60 York Street Bristol BS1 6EG Conference Square Tel: 020 7809 2261 Glasgow Edinburgh Website: www.shlegal.com G2 8JX Tel: 0117 917 3000 Website: www.osborneclarke.com EH3 8UL Tel: 0141 303 1100 Tel: 0131 228 9900 Website: www.macroberts.com Website: www.shepwedd.co.uk

156 Professional Pensions Handbook 2017 www.professionalpensions.com 157 TRAVERS SMITH – WRAGGE LAWRENCE GRAHAM & CO SSASs AVIVA PLC – LEGAL & GENERAL ASSURANCE

TRAVERS SMITH AVIVA PLC HORNBUCKLE 10 Snow Hill PO Box 4 Tyman House London Surrey Street 42 Regent Road EC1A 2AL The Norwich Leicester Tel: 020 7295 3000 NR1 3NG LE1 6YJ Website: www.traverssmith.com Professional Tel: 01603 622 200 Tel: 0845 345 2555 Website: www.aviva.co.uk Website: www.hornbuckle.co.uk WEDLAKE BELL Pensions 52 Bedford Row BDO LLP IPM TRUSTEES LTD London Handbook 2017 55 Baker Street 3 Victoria Court WC1R 4LR London Bank Square Tel: 020 7395 3000 W1U 7EU Morley Website: www.wedlakebell.com Tel: 020 7486 5888 Leeds Website:  LS27 9SE www.professionalpensions.com WRAGGE LAWRENCE GRAHAM & HANDBOOK www.bdo.co.uk/investmentmanagement Tel: 0845 230 3553 2017 CO LLP www.professionalpensions.com Website: www.ipm-pensions.co.uk HANDBOOK 2017 CANTWELL GROVE LIMITED Two Snow Hill www.professionalpensions.com Birmingham HANDBOOK The Old Registry JAMES HAY PARTNERSHIP 2017 B4 6WR 6 Derby Road Dunn’s House Tel: 0870 903 1000 Belper St Paul’s Road Website: www.wragge-law.com Derbyshire Salisbury DE56 1UU SP2 7BF Tel: 01773 307200 Tel: 0845 850 4455 Website: www.cantwellgrove.co.uk Website: www.jameshay.co.uk

CAREY CORPORATE PENSIONS UK JLT EMPLOYEE BENEFITS LIMITED The St Botolph Building Solicitors & Legal Advisers & Legal Solicitors 1st Floor 138 Houndsditch Lakeside House London Shirwell Crescent Furzton Lake EC3A 7AW Milton Keynes Tel: 020 7528 4000 MK4 1GA Website: www.jltgroup.com/eb To ensure your Tel: +44 (0) 1908 336010 inclusion in the Website: www.careypensions.co.uk LEGAL & GENERAL ASSURANCE SOCIETY 2018 EBS (MANAGEMENT) PLC Legal & General House 25 Luke Street St Monica’s Road London Kingswood Handbook EC2A 4AR

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158 Professional Pensions Handbook 2017 www.professionalpensions.com 159 LONDON & COLONIAL SERVICES – STANDARD LIFE TRACING COMPANIES ACCRATE DATA – SWIFT CREDIT

LONDON & COLONIAL SERVICES SCOTTISH WIDOWS PLC ACCURATE DATA SERVICES LTD GB GROUP PLC LIMITED PO Box 17036 Suite 2, The Old Dairy The Foundation Perrymount House 69 Morrison Street Elm Farm Herons Way 38-42 Perrymount Road Edinburgh Norwich Common Chester Business Park Haywards Heath EH3 8YH Wymondham Chester West Sussex Tel: 0131 655 6000 NR18 0SW CH4 9GB RH16 3DN Website: www.scottishwidows.co.uk Tel: 01603 813366 Tel: 01244 657333 Tel: 0203 479 5505 Website: www.accurate data.co.uk Website: www.gb.co.uk Website: www.londoncolonial.com SKANDIA LIFE ASSURANCE COMPANY LTD ATMOS DATA SERVICES LIMITED LEXIS NEXIS ORIGEN FINANCIAL SERVICES LTD PO Box 37 Aquila House Global Reach 1st Floor, Infor House Skandia House 35 London Road Dunleavy Drive 1 Lakeside Road Portland Terrace Redhill Cardiff Farnborough Southampton Surrey CF11 0SN Hampshire SO14 7EJ RH1 1NJ Tel: 029 2067 8555 GU14 6XP Tel: 023 8033 4411 Tel: 01737 857 187 Website: Tel: 0844 209 3000 Website: www.skandia.co.uk Website: www.atmosdataservices.co.uk www.lexisnexis.com/risk/tracesmart Website: www.origenfs.co.uk STANDARD LIFE CAPITA EMPLOYEE BENEFITS NATIONAL FRAUD INITIATIVE PREMIER COMPANIES LTD Sipps Centre 65 Gresham Street 1 Road Corinthian House Edinburgh London London 17 Lansdowne Road EH15 1ET EC2V 7NQ SW1A 2HQ Croydon Tel: 0845 0845 000 Tel: 0800 731 1267 Tel: 07977 340 550 CR0 2BX Website: www.standardlife.co.uk Email: [email protected] Website: www.gov.uk/national-fraud- Tel: 020 8663 5800 Website: www.capitatracing.co.uk initiative-private-sector-services Website: www.premiercompanies.co.uk EXPERIAN THE PENSION TRACING SERVICE ROWANMOOR GROUP PLC PO Box 9501 The Pension Service Rowanmoor House Nottingham NG80 1WD Tyneview Park 46-50 Castle Street Tel: 0844 481 8180 Whitley Road Salisbury Website:  Necastle upon Tyne Wiltshire www.experian.co.uk/pensionsolutions NE98 1BA

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Will slowing longevity rises reduce deficits? UK Pensions Awards 2017 – the winners

How the MNOPF uses fiduciary management

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Untitled-3 1 5/23/17 3:45 PM TRUSTEE TRAINING How trustees can improve record- keeping ahead of TPR’s new rules oor 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 - Pconditional 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 Ad page 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 www.professionalpensions.com | 11 May 2017 Pensions Buzz Comment Feature January 2018 and defined contribution plans from June 2018. Should investment Governance in Reclassifying Will slowing longevity consultants be fully contract-based money purchase rises reduce deficits? regulated? page 22 schemes page 25 benefits page 28 KGC Associates director Kim Gubler explains there is not a problem with trustees looking UK Pensions Awards 2017 – the winners How the MNOPF uses fiduciary management at both common and conditional data; the fact is a number of them simply do not examine it. 20 February 2014 www.professionalpensions.com “Often these are trustees of very small schemes. Our research and TPR’s research shows these Walkingintheshoes ofaTPASadviser schemes have less engagement with their administrator and a smaller governance budget. How three volunteers conduct their roles page 26 “So you have the combined impact of potentially poorer data and lack of connection between Financial Assistance Scheme trustees and administrator. Making it mandatory to include the scores in the return is a strategy FAS regulations offer ‘last chance’ entry to ineligible schemes page 4 DB Code of Practice to change trustees’ behaviour.” Regulator’s code branded ‘garbage’ due to lack of guiding principles page 6 FCA annuity review While many welcome the regulator’s more muscular approach, will it actually improve the Did the Financial Conduct Authority’s reviewintoannuitymarketsgofarenough? page 14 performance of trustees and is it enough? Even if trustees do develop a healthier attitude towards common and conditional data, there

fotoaloja are concerns these will not improve data to the necessary standard to be truly effective. Is it time for a new towerswatson.com Trafalgar House senior business analyst Claire Montgomery says there are two issues with +44 1737 241144 [email protected] Unrivalled coverage perspective on your administration? Copyright©2013TowersWatson.Allrightsreserved. TW-EU-2012-28548c. April 2013. TowersWatsonisrepresentedintheUKbyTowersWatsonLimited and Towers Watson Capital Markets Limited. TPR’s new requirement: 001_PP_110517.indd 1 08/05/2017 13:11 “Firstly, conditional data is a gap analysis - it tells you whether something you expect to be in a Professional Pensions continues to be the market leading source field is there or not, the same goes for common data. Determining whether the data in that field for those in the occupational pensions industry. is accurate is a whole different ball game. Print Online Events Tablet “The other problem with ‘conditional data’ is that it’s a catch-all term for solutions that Following an extensive, independent audience research study, vary significantly across the market. There are some specialist providers who have highly Professional Pensions has been further improved to include sophisticated analysis and interrogation tools who can bring a great deal of insight and quality greater depth of analysis, insight and content. analysis to data as part of their ‘conditional data’ analysis suite.” Professional Pensions has taken into account your information While these conditional data solutions cover a gap analysis in a few basic fields, they are not needs which can be accessed whether in print, in person, online comprehensive and could lull trustees into a false sense of security, she argues. or via any smart device. 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. www.professionalpensions.com www.professionalpensions.com 169

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