www.professionalpensions.com HANDBOOK 2016
21st Edition KPMG Pensions Trustee Services A continuing evolution
Helping trustees manage all sizes of The past year has seen yet more change in the world of pensions The pension freedoms were launched in April 2015 and are now bedding in; the pension fund by balancing people, government consulted on overhauling pensions tax relief before deciding to hold back technology, breadth and quality. from radical change; the annual allowance taper came into force; and schemes had to grapple with the end of contracting out. PEOPLE In addition to this, we have seen the introduction of a Lifetime ISA and independent governance committees; and a revised DC Code is coming into force. By balancing the right level of knowledge, experience and technical skills together with our passion, we Yet, at the same time as all this change, schemes, trustees and sponsoring employers provide trustees with the advice to help them make the continue to face the challenges of ongoing scheme management and funding – and rely big decisions and members with the clarity to make on the support and expertise of their consultants, advisers and service providers to do informed choices. this. It is against this backdrop that Professional Pensions strives to play a key role by TECHNOLOGY delivering the latest news and analysis through our magazine, website, apps and events. We utilise technology. This encompasses our online The Professional Pensions Handbook 2016 – expanded and updated – is part of this modelling system, giving trustees access to real time growing service. information and our online administration system, which We hope you find it useful over the year ahead at such a time of change for the gives members the ability to run their own retirement occupational pensions sector. scenarios. Jonathan Stapleton, editor-in-chief, Professional Pensions BREADTH Not only do we provide the core services needed by trustees (administration, actuarial, investment and consultancy) we are also able to utilise the breadth of services offered by a Big 4 firm. This gives trustees invaluable business insights. Handbooks Advertising Manager: Nita Hulme, [email protected] QUALITY Editor-in-chief: Jonathan Stapleton Overriding all of the above is the commitment to quality Editor: Helen Morrissey that KPMG brings to everything we do. Nowhere does Published by Incisive Financial Publishing Ltd © Incisive Investments Ltd. this matter more than in managing member data and Editorial & Advertising offices: getting their benefits right. 28-29 Haymarket, London, SW1Y 4RX, United Kingdom Tel: +44 (0) 7316 9000 Printed by Wyndeham Grange, West Sussex © Incisive Media TIME TO CHANGE YOUR ADVISER? Call the KPMG Trustee Services team today All rights reserved. No part of this publication may be reproduced or transmitted in any form by any means on 0118 373 1369 or visit © 2015 KPMG LLP, a UK limited liability partnership including photocopying and recording without the written permission of the publishers. Such written permission and a member firm of the KPMG network of must be obtained before any part of the publication is stored in any retrieval system of any nature. www.kpmg.com/uk/trusteeservices independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. www.professionalpensions.com 2
Untitled-1 1 22/05/2015 11:10 CONTENTS CONTENTS
4 Actuaries & Consultants 69 DC Providers 1 15 Performance Measurement 14 0 Solicitors & Legal Advisors Holding actuaries and consultants Small DC providers feeling Manager spin on performance How independent is advice in the to account the squeeze still a big problem bulk annuity market?
15 Administration Services 74 Employee Benefits 1 18 Property Services 1 47 SSASs Administration services react to Is this the beginning of the end Looking beyond the UK for freedom and choice for salary sacrifice property 15 0 Tracing Companies
24 Alternative Investment 81 Employer Covenant 1 25 Risk Reduction Providers 152 Training Provider Guide Managers Employer Covenant Working Could British Steel go down the Alternatives to play a bigger role Group launches and issues first bulk annuity route? 153 Transition Management guidance 29 Annuity Providers 128 SIPPs 1 54 Trustee Liability Insurance ABI: annuities see revival as 85 Fiduciary Management Quality mark for ‘new wave’ of SIPP Run Off/Overlooked sales outstrip drawdown IC Select to launch fiduciary savers to be launched Beneficiary - A Case Study management performance 32 Asset Management standard 1 34 Software & Systems 1 57 Trustee Training Time to tackle closet indexation How will NIC reforms impact DB TPR chief wants ‘more capable and 87 Hedge Fund Providers schemes? competent 21st century trustees’ 50 Associations & Official Bodies Overhauling hedge fund strategies All change after fee concerns
54 Auditors & Accountants 92 Independent Trustees FRS102 increasing PPF bills for Independent trustees in demand schemes The 97 Insurance Companies 58 Auto-Enrolment Consultants L&G buys Aegon’s £3bn Millions now saving, but not annuity book Professional enough 10 0 Investment Consultancy 61 Auto-Enrolment Providers Challenging consultants on Pensions AE penalty notices on the rise investment advice
64 Communications 1 04 Liability-Driven Investment Handbook 2016 Embracing technology to Tackling £1trn of unhedged To ensure your inclusion in the 2017 Handbook communicate with members interest rate exposure contact Nita Hulme NOW on 68 Custodians 107 Multi-Managers +44 (0) 20 7316 9309 or 110 Pensions Master Trusts [email protected] Mounting concerns about master trust regulation 3 Professional Pensions Handbook 2016 www.professionalpensions.com 4 ACTUARIES & CONSULTANTS ALLENBRIDGE – BARNETT WADDINGHAM
ALLENBRIDGE INVESTMENT Holding actuaries and consultants SOLUTIONS LLP 26th Floor to account 125 Old Broad Street London ension consultants have long grappled with the problem of fund managers EC2N 1AR BARNETT WADDINGHAM LLP putting a gloss on their track records. Pulling apart these marketing tactics Tel: 020 7079 1000 Cheapside House can take up a lot of time and resources. Website: www.allenbridgeis.com 138 Cheapside Managers putting spin on performance is still a huge problem and may even London Pbe getting worse, according to Cerulli Associates. The research firm’s 2Q 2016 Europe ALLIANCE TRUST EC2V 6BW Actuaries & Consultants Edition cites interviews with eight investment consultants who complained managers PO Box 164 Tel: 020 7776 2200 Email: [email protected] are submitting back-tested performance data as the numbers of a real fund. 8 Westmarket Gait Dundee Website: www.barnett-waddingham.co.uk Another common complaint was the lack of clarity over whether the numbers in DD1 9YP performance data are net or gross of fees. Tel: 01382 321000 Contact: Nigel Hacking “While consultants may be more forgiving of the latter issue, the overriding concern Website: www.alliancetrust.co.uk is that some managers are willing to ‘fudge’ their way to success,” according to senior Barnett Waddingham LLP is the UK’s analyst Tony Griffiths, who conducted the interviews. AON HEWITT largest independent provider of actuarial, A fund selector at one UK-based institutional adviser said they are seeing managers 10 Devonshire Square administration and consultancy services. putting a gloss on their achievements more often. The interviewee was still surprised London by the number of basic issues arising from performance reporting, even among larger EC2M 4YP Founded in 1989 our headcount has grown fund managers. Tel: 0800 279 5588 from 20 to over 750 today based in seven offices throughout the UK. “There was frustration on behalf of consultants that while they didn’t necessarily Website: www.aonhewitt.co.uk think managers were trying to deceive them, they felt clarity wasn’t there and they ATKIN & CO Our business is based on a culture which had to ask questions about whether it was net or gross of fees,” says Griffiths. “Maybe aims to provide all of our clients with a Cornwall House it’s borne out of an environment whereby performance feels more important than it high quality professional service through Blythe Gate has been for a while.” strong personal relationships and tailored Blythe Valley Park Consultants also complained about a number of other red flag behaviours including: solutions, while remaining competitive on Solihull fees. sweeping a poorly performing product under the carpet either by changing its name West Midlands or its mandate; aggregated assets of a manager or a product including segregated B90 8AF We strive to do things ‘the right way’ mandates the consultant cannot verify; data being changed without explanation Tel: 0121 506 8200 while remaining pragmatic, and we between pitch and proposal; and managers launching or adapting products based Website: www.atkin.uk.com pride ourselves on our long and lasting primarily on market demand. relationships with clients. Punter Southall Aspire chief executive Steve Butler has been dealing with performance data issues for the past 14 years and the only way he has gotten round Our services include the design, valuation them is by being “brutally strict” about the data given by managers. He says looking and financial management of occupational at numbers gross of fees is the only way to compare apples with apples. He has done pension schemes, as well as full pensions this with defined benefit (DB) and is now doing the same type of analysis in defined administration services, and advice contribution (DC). relating to the investment of assets and the “It’s just as frustrating because I want to do it in gross but the providers want to give selection and monitoring of fund managers. it to me in net,” he says. “Yet net means something different for every single client they have – so there’s no standard net. I’m forcing them to use gross with me but the Authorised and regulated by the Financial Conduct Authority and licensed by the managers will always present the one that represents them in the best light.” Institute and Faculty of Actuaries for a range of investment business activities.
4 Professional Pensions Handbook 2016 www.professionalpensions.com 5 BATH ACTUARIAL – CAPITA CARTWRIGHT CONSULTING – DENTONS
Actuaries & Consultants Actuaries BATH ACTUARIAL CONSULTING LTD CARTWRIGHT CONSULTING LTD benefit and defined contribution schemes. PO Box 5110 Mill Pool House These include: Bath Mill Lane •Trustee services, including formal Scheme CAPITA EMPLOYEE BENEFITS BA1 0QY Godalming Actuary and Administration appointments, 65 Gresham Street Tel: 01225 481 450 Surrey trustee advisory services and the Deloitte London Website: www.bathactuarial.com GU7 1EY Pensions Master Plan, our comprehensive EC2V 7NQ Tel: 01483 860201 solution to defined benefit pension provision Tel: 020 7709 4500 BBS CONSULTANTS & Website: www.cartwrightconsulting.co.uk for employers and trustees. Email: [email protected] ACTUARIES LTD Website:
•Defined Contribution strategy, scheme Actuaries & Consultants 23-25 St Georges’ Road www.capitaemployeebenefits.co.uk CHASE DE VERE Canard Court 60 New Broad Street design, implementation and governance advice. Bristol Contact: Robin Hames London BS1 5UU Twitter: @Capita_EB W1G 0PW •Corporate advisory services, including Tel: 0117 937 8700 Facebook: Capita Employee Benefits Tel: 020 7065 1700 pensions strategy and funding negotiation Website: www.bbs-actuaries.co.uk Linkedin: www.linkedin.com/groups/ Website: www.chasedevere.co.uk support for employers, as well as specialist Capita-Employee-Benefits-4681308 BRIAN TATCH & CO CLUB VITA advice on funding deficits, including asset backed contributions (e.g. Deloitte’s 14 Branscombe Gardens Employee Benefits Consultancy of One London Wall Pension Funding Partnerships). London the Year: London N21 3BN UK Pensions Awards 2016 EC2Y 5EA •Preparation of accounting disclosures and Tel: 020 8882 6466 Firm of the Year: Tel: 020 7082 6060 pensions accounting advice. Corporate Adviser Awards 2015 Website: www.clubvita.co.uk BROADSTONE CORPORATE Pensions Consultancy of the Year: •Scheme funding strategy advice, including BENEFITS LTD Pensions Age Awards 2014 COLUMBIA THREADNEEDLE pensions derisking strategies, liability 55 Baker Street INVESTMENTS management, pension scheme buyouts and London Capita Employee Benefits is the largest 60 St Mary Axe funding negotiation support for employers. W1U 7EU UK-owned employee benefits consultancy London Tel: 020 7893 3456 servicing over 1,200 clients and more than EC3A 8JQ •Developing, implementing and monitoring Website: www.broadstone.co.uk 4 million scheme members. Tel: 020 7464 5000 investment strategies for trustees and With offices across the UK, we are part of Website: www.columbiathreadneedle.co.uk sponsoring employers. Capita plc, a FTSE100 company. •M&A and Transaction support, including We offer a fully integrated service. Our due diligence and post-transaction actuaries, investment consultants and implementation. pension consultants work closely together to support our sponsor, trustee and DELOITTE TOTAL REWARD AND DENTONS PENSION MANAGEMENT pension manager clients. BENEFITS Sutton House 66 Shoe Lane Weyside Park We use our skills and the best technology London GU7 1XE on the market to help schemes navigate EC4A 3BQ Tel: 01483 521521 the path to fully managing their risk and Tel: 020 7936 3000 Website: www.dentonspensions.co.uk fully meeting their obligations. Website: www.deloitte.co.uk
Our actuaries and pensions consultants provide a full range of specialist pensions actuarial services to scheme trustees and sponsoring employers on both defined
6 Professional Pensions Handbook 2016 www.professionalpensions.com 7 EY LLP – JAGGER & ASSOCIATES JAMES HAY – KPMG LLP
Actuaries & Consultants Actuaries EY LLP HARSANT PENSIONS JAMES HAY PARTNERSHIP 1 More London Place 321 Pensby Road Dunn’s House London Heswall St Paul’s Road SE1 2AF Wirral Salisbury KPMG LLP Tel: 020 7951 2000 CH61 9ND SP2 7BF Arlington Business Park Tel: 0118 928 1100 Tel: 0151 648 7615 Tel: 0845 850 44 55 Theale Website: www.ey.com/uk Website: www.harsantpensions.co.uk Website: www.jameshaypartnership.com Reading Berkshire ESHARE HS ADMINISTRATIVE SERVICES LTD JLT EMPLOYEE BENEFITS RG7 4SD
1 Oxford Road 3300 Daresbury Park Actuaries & Consultants The St Botolph Building Tel: 0118 373 1369 Newbury Warrington 138 Houndsditch Fax: 0118 373 1373 Berkshire WA4 4HS London Website: www.kpmg.com/uk/pensions RG14 1PD Tel: 01928 707 900 EC3A 7AW Tel: 0845 200 7829 Website: www.hsadmin.com Tel: 020 7528 4000 Contact: Ray Pygott Website: www.eshareuk.com Website: www.jltgroup.com/eb Email: [email protected] HUGHES PRICE WALKER LTD FIRST ACTUARIAL PLC Pembroke House JOHNSON FLEMING LIMITED Our pension team of over 400 people Mayesbrook House 15 Pembroke Road Fleming House advise all sizes of pension funds and our Lawnswood Business Park Clifton Bromsgrove Enterprise Park clients include some of the biggest pension Leeds Bristol Worcestershire schemes in the UK right through to small LS16 6QY BS8 3BA B60 3AL and medium sized pension schemes. Tel: 0113 818 7300 Tel: 0117 946 7269 Tel: 0870 242 8600 We have offices in London, Reading, Website: www.firstactuarial.co.uk Website: www.hughespricewalker.co.uk Website: www.johnsonfleming.com Bristol, Birmingham, Manchester, Leeds, Edinburgh and Glasgow GATEMORE CAPITAL HUNTSWOOD KIM GUBLER CONSULTING MANAGEMENT LLP Abbey Gardens Woodpecker Lodge We offer services to both trustees and 33 Cavendish Square Abbey Street 15, Ford Lane scheme sponsors on the full range of London Reading Roxton pension services for Defined Benefit (DB), W1G 0PW RG1 3BA Bedfordshire Defined Contribution (DC) and hybrid Tel: 020 7580 0300 Tel: 0844 875 120 MK44 3EL pension schemes. We provide full services Website: www.gatemore.com Website: www.huntswood.com Tel: 01234 871010 to trustees covering, administration, Website: www.kimgublerconsulting.co.uk actuarial, investment and covenant HYMANS ROBERTSON support. Our advice and solutions One London Wall extend to the areas of scheme funding, London risk management, insurance solutions, HAMISHWILSON LIMITED EC2Y 5EA benefit design, asset backed funding, communications, member options, The Byre Tel: 020 7082 6000 liability management, transactions & Wheelers Lane Website: www.hymans.co.uk restructuring, PPF levy mitigation and Brockham public sector pensions. Betchworth JAGGER & ASSOCIATES Surrey Ground Floor RH3 7HJ 14 Exchange Quay Tel: 0870 160 5700 Salford Quays Website: www.hamishwilson.com Manchester Contact: Lisa Whitfield M5 3EQ Email: [email protected] Tel: 0161 873 9350 Website: www.jaggerandassociates.co.uk
8 Professional Pensions Handbook 2016 www.professionalpensions.com 9 LCP – MICHAEL J. FIELD MITCHELL CONSULTING – PREMIER PENSIONS
Actuaries & Consultants Actuaries 4. Business Analytics: MITCHELL CONSULTING Our Business Analytics team delivers clear ACTUARIES LTD
advice based on complex analysis to help Albion Wharf PREMIER PENSIONS LCP clients gain a competitive advantage. Albion Street MANAGEMENT LIMITED 95 Wigmore Street Manchester 8th Floor London Our core consulting services include the M1 5LN AMP House W1U 1DQ following areas of expertise: Tel: 0161 236 1330 Dingwall Road Tel: +44 (0) 20 7439 2266 Website: www.mitchellconsulting.co.uk Croydon Fax: +44 (0) 20 7439 0183 • Strategic consulting for trustees and Surrey
Email: [email protected] corporate sponsors NIGEL SLOAM & CO CRO 2LX Actuaries & Consultants Website: www.lcp.uk.com • Employee benefits Roman House Tel: 020 3727 9800 • Executive pensions 296 Golders Green Road Fax: 020 3014 8768 LCP is a firm of financial, actuarial and • Covenant services London Email: business consultants, specialising in • Pension scheme administration NW11 9PY [email protected] the areas of pensions, investment and • Defined contribution services Tel: 020 8209 1222 Website: www.premiercompanies.co.uk business analytics. • Trustee governance Website: www.nigelsloam.co.uk • Pension buyout and de-risking Contacts: Ian Gutteridge We advise more than 30 of the FTSE 100 • Corporate financial reporting ORIGEN FINANCIAL SERVICES LTD Title: Sale & Marketing Director and our clients include 3i, Barnado’s, • Merger and Acquisitions 1st Floor, Infor House Email: Lenovo, NM Rothschild & Sons, Smith & • Public Sector outsourcing 1 Lakeside Road [email protected] Nephew, Tate & Lyle, UNISON, Volkswagen • Multinational consulting Farnborough and Whitbread. • Setting investment strategy Hampshire Paul Couchman • Investment manager research and GU14 6XP Title: Managing Director The firm has more than 500 staff based performance monitoring Tel: 0844 209 3000 Email: across London, Winchester, Utrecht and • Solvency II Website: www.origenfs.co.uk [email protected] Dublin. • Reserving • Business modelling and risk appraisal ORTEC FINANCE LTD Association Memberships: NAPF, ACA 1. Pensions: 23 Austin Friars MERCER We have over 60 years of experience of London Services offered: To Trustees: Consultant, 1 Tower Place West advising on complex pensions issues in the EC2N 2QP Actuarial, Administration Services, Risk London UK and internationally. Tel: 020 3178 3913 Benefits and I.F.A Services EC3R 5BU Website: www.ortec-finance.com 2. Insurance: Tel: 020 7626 6000 To Companies: Strategic Consulting We provide a full range of actuarial and Website: www.mercer.com and Actuarial advice and on-site support. consulting advice to insurance clients Advice on contract based pension and including Lloyd’s managing agents, MICHAEL J. FIELD flexible benefit plans. insurance companies, captives, medical CONSULTING ACTUARIES indemnity societies, local authorities, 8 St Stephen Street To Individuals: Financial Planning government bodies, brokers and auditors. Manchester M3 6AY Total Employees (UK): 160 3. Investment: Tel: 0161 834 3297 Our investment team provides high Website: www.michaeljfield.com Number of Pensions Fund Clients: 300 quality investment advice to trustees and sponsors of pension schemes, as well as Value of Funds Advised: £15bn advice to clients in the broader area of risk management. Associated Companies: Premier Pensions Management Ltd.
10 Professional Pensions Handbook 2016 www.professionalpensions.com 11 PREMIER PENSIONS – QUANTUM ADVISORY QUANTUM ADVISORY – ROYAL LONDON
Actuaries & Consultants Actuaries Premier Benefit Solutions Ltd. PRICEWATERHOUSECOOPERS LLP Cardiff/Bristol QUATTRO PENSIONS 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 719 Website: www.quattropensions.com Premier clients will be either trustees, Email: 11 Strand Actuaries & Consultants employers or individuals and our services are London [email protected] ROWANMOOR GROUP PLC 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 Summers 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 8083 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]
12 Professional Pensions Handbook 2016 www.professionalpensions.com 13 RUSSELL INVESTMENT– XEROX ADMINISTRATION SERVICES
Actuaries & Consultants Actuaries RUSSELL INVESTMENT LTD XAFINITY CONSULTING Rex House Phoenix House Administration services react to 10 Lower Regent Street Astation Hill London Reading freedom and choice SW1Y 4PE Berkshire Tel: 020 7024 6000 RG1 1NB he administration industry has undergone massive change in recent years Website: www.russell.com/uk Tel: 0118 958 3683 as it gets to grips with auto-enrolment and Budget flexibilities. With this in Website: www.xafinity.com mind the KGC Associates Administration Survey, now in its sixth year has STAMFORD ASSOCIATES LIMITED changed the composition of this year’s research. 19-21 Old Bond Street TData from 20 providers was included in the survey. In response to increased London demand for metrics on larger scheme fees and services this year’s survey includes W1S 4PX data on both 15,000 and 20,000 life schemes. Fifteen providers provided data for Tel: 020 7629 5225 XEROX HR SERVICES this section. More emphasis was also placed on the range and level of services pro- Website: www.stamfordassociates.com 160 Queen Victoria Street London vided by third-party administrators. TOWRY GROUP EC4V 4AN The decision was also taken to separate out implementation costs from ongoing Towry House Tel: 0800 066 5433 fees. The reason for this is that implementation costs can have a major effect on Western Road Email: [email protected] scheme costs in the early years and while this does fall away as time progresses it Bracknell Website: www.xerox.co.uk/hrservices plays a significant role when schemes decide to move administrator. Berkshire “When we looked at the pricing in light of this we saw that the difference between RG12 1TL Xerox HR Services is an established, leading the highest and lowest costs being paid across most scheme sizes was not as stark provider of consulting, administration and Tel: 01344 828 000 as it had been in the past,” says survey author Hayley Mudge. “This could be indica- outsourcing services to fulfil the pensions and Website: www.towrylaw.com tive of a hardening in pricing as a result of a capacity crunch in the market. This has benefits needs of you and your employees/ led to administrators having to consider what business they pitch for much more TRIANGLE PENSIONS scheme members. We work with our clients to deliver tailored, innovative solutions carefully and I think this has been reflected here.” Unit 7 across health, risk and wellbeing, flexible However, given the potential impact an implementation fee can have on scheme Sandown Road Industrial Estate benefits, share plans, and DB and DC pension cost it is interesting to note that two out of the 15 firms who supplied data in this Sandown Road schemes for both trustees and corporates Watford area did not charge an implementation fee for 200 life schemes. This was the same alike. WD24 74B for 500 and 1,000 life schemes as well and one firm chose not to charge implemen-
Tel: 01923 253 464 tation fees for 2,000 life schemes. It was only when you get to 5,000 life schemes We aim to help you effectively manage Website: www.triangle-pensions.co.uk that all firms charged an implementation fee. the full range of your HR, pension, and The survey looked at ongoing costs for maintaining the pension scheme and cre- benefits programmes, whilst engaging your WILLIS TOWERS WATSON ated a unit cost per member (UCM). This is the combined cost of administration, employees/scheme members in their health, 71 High Holborn wealth, and career. We integrate our years of pensioner payroll and treasury and accounts divided by the number of scheme London experience with current day expertise and a members. WC1V 6TP customer partnership approach, to help you The differences are marked between the highest and lowest costs being paid. At Tel: 020 7170 2000 overcome your challenges. the 200 life section the highest UCM was 4.54 times more than the lowest. However, Website: www.willistowerwatson.com at the 20,000 life end this is much lower at 2.73 times. Our consultants are proactive, commercial, Another interesting shift from last year is the number of administrators choosing balanced, and professional, focused on to offer standard web functionality at no additional cost. For instance in last year’s meeting and exceeding the needs of our survey 76% of firms would offer 200 life schemes standard web functionality at no clients. By harnessing technology of the extra cost. However, in this year’s survey this dropped to only 47%. Similarly in the future, and the power of Xerox’s global reach, 10,000 life area 50% of firms offer this whereas last year it was 64%. we can help you to achieve your goals.
14 Professional Pensions Handbook 2016 www.professionalpensions.com 15 AON HEWITT – BARNETT WADDINGHAM BARNETT WADDINGHAM – CAPITA EMPLOYEE
AON HEWITT our administration clients achieve their goals
Administration Services 10 Devonshire Square by striking an appropriate balance between Authorised and regulated by the Financial London technology and people skills. Conduct Authority and licensed by the EC2M 4YP Institute and Faculty of Actuaries for a range CAPITA EMPLOYEE BENEFITS Tel: 0800 279 5588 Technology has an important role to play of investment business activities. 65 Gresham Street Website: in providing an accurate, efficient and London www.aonhewitt.co.uk/administration secure service which is risk managed and BARTLETT GROUP EC2V 7NQ cost effective. Our pension administration Broadway Hall Tel: 020 7709 4500 ARTHUR J. GALLAGHER software, Penstream, is being continually Horsforth Email: [email protected] The Walbrook Building developed by IT experts with a pensions Leeds Website: 25 Walbrook background and driven by experienced LS18 4RS www.capitaemployeebenefits.co.uk London EC4N 8AW administrators in order to meet these goals. Tel: 0113 258 5711 ServicesAdministration Tel: +44 (0)20 7204 6195 Website: www.bartlettgroup.com Contact: Robin Hames Website: www.gallaghereb.com Our well trained and qualified staff are highly Twitter: @Capita_EB motivated and, perhaps more importantly, BATH ACTUARIAL CONSULTING LTD Facebook: Capita Employee Benefits take pride in their work aiming to achieve the PO Box 5110 Linkedin: www.linkedin.com/groups/ very highest standards. All our administration Bath Capita-Employee-Benefits-4681308 services for each client are provided by one BA1 0QY of our administration teams, dedicated to Tel: 01225 470 036 Communications Innovation of the that client, who take responsibility for all Website: www.bathactuarial.com Year: aspects of the administration of the scheme. UK Pensions Awards 2016 BERKELEY BURKE Third Party Administrator of the Year: We provide the full range of administration Berkeley Burke House PIPA Awards 2015 services for group occupational pension Regent Street Firm of the Year: schemes - defined benefit, defined Leicester Corporate Adviser Awards 2015 BARNETT WADDINGHAM LLP contribution, career average revalue earnings LE1 7BR Cheapside House (CARE), hybrid, open, closed and those Tel: 0116 204 2988 Capita Employee Benefits is the largest 138 Cheapside transferring to the Financial Assistance Website: www.berkeleyburke.com UK-owned employee benefits consultancy London Scheme and the Pension Protection Fund. servicing over 1,200 clients and more than 4 EC2V 6BW BROADSTONE CORPORATE million scheme members. Tel: 020 7776 2200 These services include: BENEFITS LTD Email: [email protected] • membership record keeping 55 Baker Street With offices across the UK, we are part of Website: www.barnett-waddingham.co.uk • member communications London Capita plc, a FTSE100 company. • benefit calculations and payments W1U 7EU Contact: Paul Latimer including electronic payments Tel: 020 7893 3456 We offer clients a blend of experience, scale • all regulatory reporting including e-filing Website: www.broadstoneltd.co.uk and expertise in the administration market. Barnett Waddingham LLP is the UK’s • full cash and accounting services including largest independent provider of actuarial, drafting the annual report and accounts CANTWELL GROVE LIMITED Our Hartlink administration platform is a administration and consultancy services. • data audits and data cleansing exercises, The Old Registry proven performer with excellent automation, Founded in 1989 our headcount has grown particularly where data originates from 6 Derby Road outstanding member communications, from 20 to over 750 today based in seven multiple sources Belper precise workflow management and offices throughout the UK. • comprehensive internet functionality and Derbyshire the flexibility to manage DB, DC, Cash links to other systems (such as HM DE56 1UU Balance and CARE schemes and all points Developing client relationships at all levels Revenue & Customs) Tel: 01773 307200 in between. The platform has been fully and ‘knowing our client’ is an extremely • trustee secretarial services including Website: www.cantwellgrove.co.uk updated to cope with all aspects of the new important part of Barnett Waddingham’s meeting management pension freedoms and is capable of handling personal service based approach. We help • consultancy services one-off, regular and ad hoc payments.
16 Professional Pensions Handbook 2016 www.professionalpensions.com 17 CAPITA EMPLOYEE – HYMANS ROBERTSON JLT EMPLOYEE BENEFITS – THE PENSIONS TRUST
GODDARD PERRY CONSULTING JLT EMPLOYEE BENEFITS MERCER
Administration Services Our implementation and transition teams 8th Floor The St Botolph Building 1 Tower Place West work closely together to ensure scheme are Corinthian House 138 Houndsditch Tower Place brought on board in a timely and seamless 17 Lansdowne Road London London fashion while our operations and client Croydon EC3A 7AW EC3R 5BU management team will work closely with you Surrey Tel: 020 7528 4000 Tel: 020 7626 6000 throughout the lifetime of the scheme. CR0 2BX Website: www.jltgroup.com/eb Website: www.mercer.com Tel: 020 8603 3700 Supported by secretarial, data, tracing and Website: www.goddardperry.com KPMG PENSIONS MITCHELL CONSULTING scheme wind-up experts, we are your perfect Arlington Business Park ACTUARIES LIMITED partner for scheme administration. THE HANOVER TRUSTEE Theale, Reading Albion Wharf COMPANY LTD Berkshire Albion Street ServicesAdministration CAREY PENSIONS UK LLP 824 Salisbury House RG7 4SD Manchester 1st Floor London Wall Tel: 0118 373 1369 M1 5LN Lakeside House EC2M 5QQ Website: www.kpmg.com/uk/pensions Tel: 0161 236 1330 Shirwell Crescent Furzton Lake Tel: 020 7585 8406 Website: www.mitchellconsulting.co.uk Milton Keynes Website: www.hanover-pensions.co.uk LCP MK4 1GA St Paul’s House OFA TRUSTEE SERVICES LIMITED Tel: +44 (0) 1908 336010 HARSANT PENSIONS St Paul’s Hill 36 East Stockwell Street Website: www.careypensions.co.uk 321 Pensby Road Winchester Colchester Heswall S022 5AB Essex DBC PENSIONS SERVICES LIMITED Wirral Website: www.lcp.uk.com CO1 1ST 1D Mitre Court CH61 9ND Tel: 01206 761 252 Lichfield Road Tel: 0151 648 7615 Contact: Daren Newman Website: www.offord-fenning.com Sutton Coldfield Website: www.harsantpensions.co.uk Title: Partner West Midlands Tel: +44 (0) 1962 870060 PENSION & BENEFIT B74 2LZ HS ADMINISTRATIVE Fax: +44 (0) 1962 870086 SERVICES LIMITED Tel: 0121 362 8550 SERVICES LIMITED Email: [email protected] Cyclops House Website: www.dbcpensions.co.uk 25 Goodlass Road Link Business Park Liverpool LONDON PENSIONS FUND York EQUINITI PENSION SOLUTIONS L24 9HJ AUTHORITY YO10 3JB Sutherland House Tel: 0151 448 5400 Dexter House Tel: 01904 422 702 Russell Way Website: www.hsadmin.com 2 Royal Mint Court Website: www.pbslyork.com Crawley London West Sussex HYMANS ROBERTSON EC3N 4LP THE PENSIONS TRUST RH10 1UH One London Wall Tel: 0207369 2687 Verity House Tel: 01293 560 999 London Website: www.lpfa.org.uk 6 Canal Wharf Website: www.equiniti.com EC2Y 5EA Leeds Tel: 020 7082 6000 MCHARDY & BURNETT (FINANCIAL Yorkshire GO PENSIONS Website: www.hymans.co.uk SERVICES) LTD LS11 5BQ The Belfrey 5-7 Bon Accord Crescent Tel: 0113 234 5500 237 Queens Road Aberdeen Website: www.thepensionstrust.org.uk Wimbledon AB11 6DN London Tel: 01224 578250 SW19 8NY Website: www.machardyandburnett.com Tel: 020 8213 5860 Website: www.go-pensions.co.uk
18 Professional Pensions Handbook 2016 www.professionalpensions.com 19 PREMIER PENSIONS PROBIS SERVICES – ROWANMOOR GROUP
Other Offices: Bristol PROBIS SERVICES LTD Direct line: 020 3008 719
Administration Services Churchill House Email: Company Profile: 142-146 Old Street [email protected] PREMIER PENSIONS Premier was established to challenge the London MANAGEMENT LIMITED status quo in the pensions industry and to EC1V 9BW Established in 2000, Quantum Advisory 8th Floor offer a range of services which actually meet Tel: 020 7490 4110 is an independent Financial Services AMP House customer needs at competitive costs. Website: www.probis.co.uk Consultancy that provides solution based Dingwall Road Pensions and Employee Benefits services to Croydon Premier clients will be either trustees, P-SOLVE employers, scheme trustees and members. Surrey employers or individuals and our services are 11 Strand CRO 2LX focussed on their particular requirements. London We design, maintain and review pension Tel: 020 3727 9800 WC2N 5HR schemes and related employee benefits so ServicesAdministration Fax: 020 3014 8768 For trustees, a full range of advisory and Tel: 020 3327 5100 that they operate efficiently and effectively, Email: support services are offered including Website: www.psolve.com and are valued by employees. This means [email protected] pensions consulting, secretary to the that you can get on with doing the things Website: www.premiercompanies.co.uk trustees, actuarial advice, administration, PUNTER SOUTHALL that you do best, therefore saving you time the insurance of risk benefits and all relevant 11 Strand and money. Contacts: Ian Gutteridge communications. Our approach is to offer London Title: Sale & Marketing Director either a full range of services to manage the WC2N 5HR We offer a range of services to companies Email: scheme or to allow the trustees to pick and Tel: 020 3327 5000 and pension trustees, all designed to focus [email protected] choose from the range available. Website: www.puntersouthall.com on your specific needs, including actuarial, administration (including accounts and Paul Couchman For individuals, independent advice can be payroll), communications, consultancy, Title: Managing Director provided on a fully FSA regulated basis to ensure investment, secretarial and trustee training. Email: impartiality and a focus on individual needs. [email protected] We have offices in Amersham, Birmingham, For companies, we can provide strategic QUANTUM ADVISORY Bristol, Cardiff and London. Call us to see Association Memberships: NAPF, ACA benefits advice, the management of group Contacts: how we can help with your pension and personal pension plans including selection and Amersham employee benefit challenges. Services offered: To Trustees: Consultant, on-going governance support, the insurance Rhidian Williams, Partner Actuarial, Administration Services, Risk of benefits such as private medical cover, Direct line: 01494 582 024 RADCLIFFE & CO Benefits and I.F.A Services disability and critical illness cover, salary Email: (LIFE & PENSIONS) LTD sacrifice and high earners’ support. In addition, [email protected] Thomas House To Companies: Strategic Consulting actuarial support for pensions’ accounting or 28-30 Bernard Street and Actuarial advice and on-site support. actuarial funding negotiations with trustees is Birmingham Southampton Advice on contract based pension and also offered. Robert Palmer, Partner SO14 3AY flexible benefit plans. Direct line: 0121 632 2190 Tel: 02380 222 444 Significant on-going investment in technology Email: Website: www.radcliffe-ifa.co.uk ensures that our service is responsive, To Individuals: Financial Planning [email protected] relevant and accurate and assists us greatly Total Employees (UK): 160 ROWANMOOR GROUP PLC with the communication of our consulting Cardiff/Bristol Rowanmoor House support. Premier are fully committed to long Number of Pensions Fund Clients: 300 Stuart Price, Partner 46-50 Castle Street standing relationships with clients, Direct line: 029 2083 7902 Salisbury Value of Funds Advised: £15bn Email: Wiltshire Experience the difference…. See change. [email protected] SP1 3TS Associated Companies: Tel: 03445 440 440 Premier Pensions Management Ltd. London Web: www.rowanmoor.co.uk Premier Benefit Solutions Ltd. Phil Farrell, Partner
20 Professional Pensions Handbook 2016 www.professionalpensions.com 21 RPMI – TRAFALGAR HOUSE PENSIONS WILLIS TOWERS WATSON – XEROX
RPMI WILLIS TOWERS WATSON
Administration Services Stooperdale Offices Watson House Brinkburn Road London Road Darlington Reigate The Co Durham Surrey DL3 6EH RH2 9PQ Professional Tel: 01325 342 849 TRAFALGAR HOUSE PENSIONS Tel: 01737 241144 Website: www.rpmi.co.uk ADMINISTRATION Website: www.willistowerwatson.com Pensions 30 Coleman Street SOVEREIGN EMPLOYEE London Handbook 2016 BENEFITS LTD EC2R 5AL Sovereign House Website: www.thpa.co.uk ServicesAdministration 37 Middle Road XEROX HR SERVICES Park Gate Contact: Joe Anderson 160 Queen Victoria Street Southampton Tel: 0207 330 0778 London Hampshire Email: [email protected] EC4V 4AN SO31 7GH Tel: 0800 066 5433 Tel: 01489 582 011 We are specialists in pensions administration. Email: [email protected] Website: www.sovemp.co.uk Website: www.xerox.co.uk/hrservices As specialists, all of our effort goes into providing the best possible pensions STC PENSION MANAGEMENT LTD Xerox HR Services is an established, leading administration service, without distraction. 1 King’s Arm Yard provider of consulting, administration and London We provide administration, payroll, accounting outsourcing services to fulfil the pensions EC2R 7AF & treasury and trustee secretarial services to and benefits needs of you and your Tel: 0845 872 0339 occupational pension schemes of all types employees/scheme members. We work Website: www.stcpm.co.uk and sizes. with our clients to deliver tailored, innovative solutions across health, risk and wellbeing, SUFFOLK LIFE ANNUITIES LIMITED We believe that we offer something different flexible benefits, share plans, and DB and 153 Princes Street from the usual administration service. As well DC pension schemes for both trustees and Ipswich as being reliable, accurate and timely, our corporates alike. Suffolk in-house origins mean we retain a high level of IP1 1QJ client and member care that you may not find We aim to help you effectively manage Tel: 0870 414 7000 elsewhere. the full range of your HR, pension, and To ensure your Website: www.suffolklife.co.uk To ensure members get the best possible benefits programmes, whilst engaging your service, we provide them with direct contact employees/scheme members in their health, inclusion in the TATA CONSULTANCY SERVICES with pensions experts. We don’t operate wealth, and career. We integrate our years of 33 Grosvenor Place contact centres and we don’t offshore any experience with current day expertise and a 2017 London services. customer partnership approach, to help you SW1X 7HY overcome your challenges. Handbook Tel: 020 7245 1800 Our leading technology means we can provide Website: www.tcs.com a self-service member website offering Our consultants are proactive, commercial, contact Nita Hulme access to benefits, personal data and more, balanced, and professional, focused on in real-time, 24 hours a day. This results in a meeting and exceeding the needs of our NOW on better experience for members and a more clients. By harnessing technology of the cost-effective service for our clients. future, and the power of Xerox’s global reach, +44 (0) 20 7316 9309 or we can help you to achieve your goals. If you’d like to find out more, please get in [email protected] touch. 22 Professional Pensions Handbook 2016 www.professionalpensions.com 23 ALTERNATIVE INVESTMENT MANAGERS Leading the way in alternative investing Alternatives to play a bigger role
nvestment markets present major challenges to pension funds searching for returns to meet their liabilities. More traditional asset classes such as fixed income and equities are not yielding the return they once did and volatile equity markets bring real uncertainty. IFaced with the challenge of where to find returns there are signs investors are increas- ingly looking to alternatives to fill the gap. This is borne out by research by eVestment – conducted among consultants in the US, Canada, Europe and Asia – which shows con- sultants expect mandates for alternative investments to make up approximately 32.5% of global search activity in 2016. “Consultants and asset owners have real concerns about the low available returns from traditional asset classes and they wonder how they can make the returns they need from an increasingly volatile market,” says eVestment’s head of research Peter Laurelli. “I think this has led consultants to the belief that we will see an increase in searches for more alternative asset classes – areas outside of the public markets. For instance, we have seen a lot of interest in private equity as it has been able to deliver returns higher than those found in the public markets over recent times. There has also been increased interest in inflation sensitive assets such as infrastructure and real estate.” He believes that over the long term we could see a growth in alternative allocations of about four percentage points – from around 14.5% to around 18.5%. So given the potential uptick in allocations to alternative assets, what activity is being seen within more traditional asset classes? “We are seeing high levels of replacements in domestic equities however, this is not surprising given that we have been through a period of volatility but it is interesting to see,” says Laurelli. “In terms of fixed income allocations if we look at high yield for instance then we aren’t seeing a lot of searches but those that we are seeing are for replacement man- agers. As a result, we aren’t seeing much money coming into high yield right now.” Overall institutional investor flows globally were -$277.8bn (-£196bn) in 2015 for US equities, -$25.5bn for global equities and -$19.5bn for EM equities. This mirrors concerns regarding global growth. Furthermore, while far from the majority, several institutional asset owners were ex- pected to shift allocations from active to passive strategies. “This shift is somewhat expected when you look at areas like domestic equity as this 50 + 400+ 350 + 10 is an area where passive makes more sense,” says Laurelli. “If you look at areas such as USD billion AuM institutional investors employees globally offices worldwide emerging market equities, for instance, then you will see a much slower shift and outside of domestic equity the shift to passive from active strategies is higher in investment grade fixed income segments.” LGT Capital Partners Ltd. is a leading alternative invest- liquid alternatives, and multi-asset class solutions. ment specialist with over USD 50 billion in assets under LGT Capital Partners is also one of the world's largest However, the research also notes that with fixed income allocations, particularly with management and more than 400 institutional clients investment managers for insurance-linked investments. respect to global and fixed income mandates, are anticipated to be increasingly in favour in 35 countries. An international team of over 350 Headquartered in Pfaeffikon (SZ), Switzerland, the firm of active management. professionals is responsible for managing a wide range has offices in New York, Dublin, London, Vaduz, Dubai, of investment programs focusing on private markets, Beijing, Hong Kong, Tokyo and Sydney. 24 Professional Pensions Handbook 2016 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 Alternative Investment Managers Investment Alternative 125 Old Broad Street London 1Portsoken Street WINNER 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 Canada Square 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 Alternative Investment Managers DARWIN PROPERTY INVESTMENT 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$59bn 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 Fleet Street From the London office of 167 people we Tel: 020 7486 5888 London manage £12.1bn assets of which £11.8bn are Website: EC4A 2BB 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 24 offices around the world, as well as access to JLL’s offices in 80 countries worldwide.
26 Professional Pensions Handbook 2016 www.professionalpensions.com 27 LGT CAPITAL PARTNERS – STENHAM ASSET MANAGEMENT ANNUITY PROVIDERS
NGAM UK LTD One Carter Lane ABI: annuities see revival as London Alternative Investment Managers Investment Alternative LGT CAPITAL PARTNERS EC4V 5ER sales outstrip drawdown Schuetzenstrasse 6 Tel: 020 3405 2173 PO Box 8808 Pfaeffikon Website: www.ngam.natixis.co.uk nnuities are beginning to see a revival, as retirees shun drawdown and cash Switzerland withdrawals for a guaranteed income, figures from the Association of British Tel: +41 55 415 9600 PIMCO EUROPE LIMITED Insurers (ABI) have shown. Fax: +41 55 415 9698 11 Baker Street Data from the ABI, covering the sales of its insurer members, showed the ‘rush to Website: www.lgtcp.com London Acash’ in pension pots following the government’s pension freedom reforms settled down over W1U 3AH the year, with annuity sales picking up at the end of 2015. Contact: Raphael Paglia Tel: 020 3640 1000 Annuity sales took a hit in the immediate aftermath of the reforms, which gave all defined Email: [email protected] Website: www.pimco.co.uk Tel: +41 55 415 96 29 contribution savers over the age of 55 unfettered access to their savings from April 2015. In the second quarter of 2015 18,200 annuities were sold, alongside 18,800 drawdown SCM PRIVATE LLP products. This compared with 21,200 annuities being sold in the last quarter of the year, • Outstanding track record – 18 years 2 Eaton Gate experience in generating attractive risk- Westminster alongside 19,700 income drawdown products. adjusted returns London Similarly, £990m was invested in annuities in Q2, while £1.3bn was taken as cash lump • Significant asset base – Over USD 50 SW1W 9BJ sums. By Q4 annuity sales had risen to £1.1bn, while £660m was taken as lump sums. billion in assets under management Tel: 020 7838 8650 Director of policy for long-term savings and protection Yvonne Braun said: “Following some • Strong alignment of interests – Team and Website: www.scmprivate.com initial pent-up demand, the number of people accessing their pension pot as cash in one go shareholder invest in own programs has settled down. • Large, international team – 350 people STANDARD LIFE INVESTMENTS “People are taking a sensible approach and considering how they will pay for their whole representing 41 nationalities (PRIVATE EQUITY) LTD • Global client base – 400 sophisticated retirement. Annuity sales are beginning to see a revival, with more annuities than drawdown 1 George Street institutional investors in 35 countries products sold in the last quarter. Edinburgh “This shows people still really value a lifelong guaranteed income.” EH2 2LL The figures also confirmed previous indications that people who have saved the least for MAN INVESTMENTS LTD Tel: 0131 245 8565 their retirement are the most likely to cash in their pension pots under pension freedom, while Riverbank House Website: www.standardlifeinvestments.com 2 Swan Lane those who have built up bigger retirement funds are more likely to invest in income-generating London STENHAM ASSET MANAGEMENT products. EC4R 3AD 180 Great Portland Street The data showed that, in the nine months after the reforms, £3bn was paid out as lump Tel: 020 7144 1000 London sums to just over 213,000 people, giving an average payment of nearly £15,000. Website: www.maninvestments.com W1W 5QZ Over the same time frame, £3.3bn was invested in around 61,700 annuities, making the United Kingdom average amount invested nearly £53,000, and £4.2bn was invested in 63,600 income MORGAN STANLEY Tel: +44 (0) 20 7079 6600 drawdown products, giving an average sum invested of just over £66,000. 25 Cabot Square Website: www.stenhamassetmanagement.com Trade Union Congress warned the market innovation the government promised has “failed Canary Wharf London to materialise”. E14 4QA Policy adviser Tim Sharp said: “At retirement, savers remain stuck with a stark choice Tel: 020 7425 8000 between taking cash and buying annuities they may feel don’t suit their needs. Website: www.morganstanley.co.uk “Savers with smaller pots seem to have particularly limited options. We desperately need greater urgency in developing modern, good-value retirement income pathways that offer longevity insurance to guard against poverty in later old age.” However, the ABI’s Braun argued the priority was making sure people save more for their retirement. She said: “With increasing life expectancy and declining final salary pension provision, we must turn our attention to helping customers grow bigger pots.”
28 Professional Pensions Handbook 2016 www.professionalpensions.com 29 AEGON – PRUDENTIAL ROTHESAY LIFE – SCOTTISH WIDOWS
AEGON LONDON & COLONIAL SERVICES ROTHESAY LIFE Edinburgh Park LIMITED 25th Floor Edinburgh Perrymount House The Leadenhall Building EH12 9SE 38-42 Perrymount Road 122 Leadenhall Street The
Annuity Providers Annuity Tel: 0870 600 337 Haywards Heath London Website: www.aegonse.co.uk West Sussex EC3V 4AB Professional RH16 3DN Tel: 020 770 5300 AVIVA INVESTORS Tel: 0203 479 5505 Website: www.rothesaylife.co.uk Pensions No1 Poultry Website: www.londoncolonial.com London SCOTTISH WIDOWS Handbook 2016 EC2R 8EJ ORIGEN FINANCIAL SERVICES LTD PO Box 17036
Tel: 0800 068 6800 1st Floor, Infor House 69 Morrison Street Annuity Providers Website: http://www.avivainvestors.com 1 Lakeside Road Edinburgh Farnborough EH3 8YH FIDELITY RETIREMENT SERVICE Hampshire Tel: 0131 655 6000 Pascall House GU14 6XP Website: www.scottishwidows.co.uk Westridge Business Park Tel: 0844 209 3000 Cothey Way Website: www.origenfs.co.uk Ryde Isle of Wight PARTNERSHIP PO33 1QT 110 Bishopsgate Tel: 0500 50 65 75 (freephone) London Website: www.fidelity.co.uk 2N 4AY Tel: 0845 108 7240 JUST RETIREMENT LIMITED Website: www.partnership.co.uk Vale House Roebuck Close PREMIER COMPANIES LTD Bancroft Road 8th Floor Reigate AMP House Surrey Dingwall Road RH2 7RU Croydon Tel: 0845 300 5968 CR0 2LX Website: www.justretirement.com Tel: 020 3727 9800 To ensure your Website: www.premiercompanies.co.uk LEGAL & GENERAL inclusion in the ASSURANCE SOCIETY LTD PRUDENTIAL 2017 Legal & General House Stirling St Monica’s Road FK9 4UE Handbook Kingswood Tel: 020 7004 9621 Tadworth Website: www.prudential.co.uk contact Nita Hulme Surrey KT20 6EU NOW on Tel: 01737 370 370 Website: www.landg.com +44 (0) 20 7316 9309 or [email protected]
30 Professional Pensions Handbook 2016 www.professionalpensions.com 31 ASSET MANAGEMENT
Time to tackle closet indexation
he practice of closet indexing, whereby equity funds marketed as actively managed in reality largely mimic a benchmark, has long been a concern. If investing in such funds, schemes will find they are paying high active fees for what is essentially a passive strategy, which has a negative impact on net returns. TDespite increased awareness in recent years, it continues to be a problem with several regulators across the globe recently undertaking investigations. Research published in March by the European Securities and Markets Association (ESMA) revealed a sixth of actively-managed equity funds across Europe could “poten- tially be closet indexers”. The sample it analysed covered UCITS funds with management fees over 0.65%, based on the period from 2012 to 2014. The regulator’s head of investment management Richard Stobo says for the funds that were found to be closet indexers, the fee range went as high as 3%. That is a shockingly high fee to pay for a fund with a very low active share. A fund’s active share is essentially equal to the percentage of its portfolio that differs from the bench- mark. Another prime office The picture is slightly worse according to separate analysis by Morningstar which looked development delivered at how active share has developed over 10 years from 2005 to 2015. It found around a to the Lothbury Property fifth of 456 funds it evaluated were closet indexers - which it deems as having a three-year Trust portfolio by our average active share below 60%. in-house team. Although, it notes the proportion of closet indexers has been shrinking in recent years. The peak clearly coincides with the aftermath of the financial crisis, with the proportion of closet indexers nearing 40% in 2008. www.lothburyim.com Among the least active funds, Morningstar found almost all closet indexers underper- formed their benchmark. Such a fund is rarely a good choice if combined with high fees. Senior manager research analyst Mathieu Caquineau says increasing scrutiny from Lothbury Investment Management regulators could lead to structural change and less closet indexing. Limited is authorised and regulated ESMA has passed on the baton to national regulators to act as they see fit. Regulators in by The Financial Conduct Authority countries such as Sweden, Germany and the UK have started detailed investigations. Create Research chief executive Amin Rajan who first came across the issue of closet indexing in 2003 says it is the prime factor behind the erosion of trust between pension funds and managers. Interestingly, he argues it is a self-inflicted wound to an extent: “A ‘beat the markets’ mentality on the part of pension funds has led managers to track the index carefully and take extra risk at the edge to eke out small excess returns. This has not always worked.” But he does believe regulators should be doing more: “This has been going on for so long and is yet another area where regulators have been caught asleep at the wheel. They can really do something about it. Investigations create the illusion of action and progress.”
55 St. James’s Street, St. James’s, London 32 Professional Pensions Handbook 2016
20585_Lothbury_A5_Advert_150820.indd 1 20/08/2015 14:17 AB GLOBAL – 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 Asset Management Website: www.abglobal.com Website: www.amundi-ai.com Tel: 020 7003 1800 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 Management Asset Tel: 020 7463 6000 Tel: 020 7399 6000 Tel: 0131 275 2000 Website: www.aberdeen-asset.com Website: www.artemisonline.co.uk Website: www.bailliegifford.com BNP PARIBAS INVESTMENT PARTNERS ADAM & CO. GROUP PLC ASHMORE INVESTMENT BARCLAYS WEALTH 5 Aldermanbury Square 25 St Andrew Square MANAGEMENT LIMITED Barclays Bank PLC London Edinburgh 61 Aldwych 1 Churchill Place EC2V 7BP EH2 1AF London Canary Wharf Tel: +020 7595 2000 Tel: 0131 225 8484 WC2B 4AE London E14 5HP Website: www.bnpparibas-ip.com Website: www.adambank.com United Kingdom Tel: 020 7116 9000 Tel: +44 (0)20 3077 6000 Website: www.barclayswealth.com BNY MELLON ASSET MANAGEMENT ALCHEMY PARTNERS LLP Website: www.ashmoregroup.com/ INTERNATIONAL LIMITED 21 Palmer Street www.ashmoreemm.com BARING ASSET The Bank of New York Mellon Centre London MANAGEMENT LIMITED 160 Queen Victoria Street SW1H 0AD AVIVA INVESTORS 155 Bishopsgate London Tel: 020 7240 9596 No1 Poultry London EC4V 4LA Website: www.alchemypartners.co.uk London EC2M 3XY Tel: 020 7163 4300 EC2R 8EJ Tel: 020 7628 6000 Website: www.bnymellonam.com ALLIANZ GLOBAL INVESTORS Tel: 020 7809 6000 Website: www.barings.com EUROPE GmbH Website: http://www.avivainvestors.com BRAMDEAN ASSET MANAGEMENT 199 Bishopsgate BDO INVESTMENT LLP London AXA INVESTMENT MANAGERS LTD MANAGEMENT LTD 42 Bruton Place EC2M 3TY 7 Newgate Street 55 Baker Street London Tel: 020 7859 9000 London London W1J 6PH Website: www.allianzgi.com EC1A 7NX W1U 7EU Tel: 020 7052 9272 Tel: 020 7003 1000 Tel: 020 7486 5888 Website: www.bramdean.com AMP CAPITAL INVESTORS (UK) LTD Website: www.axa-im.co.uk Website: www.bdo.co.uk Fourth Floor BREWIN DOLPHIN Berkeley Square House 12 Smithfield Street Berkeley Square London London EC1A 9BD W1J 6BX Tel: 020 7246 1000 Tel: 020 7659 9252 Website: www.brewin.co.uk Website: www.ampcapital.com 34 Professional Pensions Handbook 2016 www.professionalpensions.com 35 CAIRN CAPITAL – CHARLES STANLEY & CO CLOSE BROTHERS – DUNCAN LAWRIE
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 Asset Management Website: www.cazenovecapital.com Cheshire 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 Management Asset Tel: +44 (0) 20 3744 7024 London London 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 One New Change Website: www.cohenandsteers.com Fax: 020 3033 3323 Email: [email protected] London Website: www.eu.dimensional.com EC4M 9AF COLUMBIA THREADNEEDLE CAPITAL DYNAMICS LTD Tel: 020 7809 9000 INVESTMENTS Contact: Chris Morgan Email: 21 Sackville Street Website: www.cbreglobalinvestors.com 60 St Mary Axe [email protected] London London For 35 years, we have helped investors W1S 3DN CCLA INVESTMENT EC3A 8JQ pursue higher expected returns using Tel: 020 7297 0200 MANAGEMENT LIMITED Tel: 020 7464 5000 advanced portfolio structure and Website: www.capdyn.com Senator House Website: www.columbiathreadneedle.co.uk 85 Queen Victoria Street implementation. Through deep working relationships with leading financial CAPITAL INTERNATIONAL LTD London CORDIUM economists, we apply academic research 40 Grosvenor Place EC4V 4ET 2nd Floor to practical investment strategies to help London Tel: 0800 022 3505 130 Jermyn Street investors benefit from capital markets. Our SW1X 7GG Website: www.ccla.co.uk London goal is to offer an outstanding investment Tel: 020 7864 5000 SW1Y 4UR experience to every client. We offer a Website: www.capgroup.com CHARLES STANLEY & CO LTD Tel: 020 7408 2448 broad set of global and regional equity and 25 Luke Street Website: www.cordium.com fixed income investment strategies. As at CARMIGNAC GESTION London EC2A 4AR 31st March 2016, we managed £284bn No 29-30 Cornhill CREDIT SUISSE ASSET worldwide. London Tel: 020 7739 8200 MANAGEMENT LIMITED Website: www.charles-stanley.co.uk ECV3 3NF One Cabot Square DUNCAN LAWRIE LTD Tel: 020 7360 6100 London 1 Hobart Place Website: www.carmignacgestion.com E14 4QJ London Tel: 020 7888 8888 SW1W 0HU Website: www.credit-suisse.com/uk Tel: 020 7245 1234 Website: www.duncanlawrie.com
36 Professional Pensions Handbook 2016 www.professionalpensions.com 37 ECM ASSET MANAGEMENT – GMO GOLDMAN SACHS – INVESTEC AM
ECM ASSET MANAGEMENT LIMITED FPP ASSET MANAGEMENT LLP GOLDMAN SACHS INVESCO PERPETUAL 34 Grosvenor Street 34 Brook Street ASSET MANAGEMENT 43-45 Portman Square London London Christchurch Court London W1K 4QU W1K 5DN 10 - 15 Newgate Street W1H 6LY Tel: 020 7529 7400 Tel: 020 7647 9100 London Tel: 020 7543 3541 Website: www.europeancredit.com Website: www.fpictet.com EC1A 7HD Website: www.invescoperpetual.co.uk Asset Management Tel: 020 7774 1000 EUROPA CAPITAL PARTNERS FRANKLIN TEMPLETON Website: www.gsam.com 15 Sloane Square INVESTMENTS London Cannon Place HERMES INVESTMENT SW1W 8ER 78 Cannon Street MANAGEMENT Tel: 020 7881 6800 London Lloyds Chambers INVESTEC ASSET MANAGEMENT Website: www.europacapital.com EC4N 6HL 1 Portsoken Street Woolgate Exchange Tel: 020 7073 8500 London 25 Basinghall Street Management Asset BMO GLOBAL ASSET MANAGEMENT Website: E1 8HZ London Exchange House www.franklintempletoninstitutional.com Tel: +44 (0)20 7702 0888 EC2V 5HA Primrose Street Website: www.hermes-investment.com Tel: 020 7597 2000 London FULCRUM ASSET MANAGEMENT Website: EC2A 2NY Marble Arch House HSBC GLOBAL ASSET www.investecassetmanagement.com Tel: 020 7628 8000 66 seymour Street MANAGEMENT (UK) LIMITED Website: www.bmogam.com London 8 Canada Square Contact: W1H 5BT London Frank Doyle FIDELITY WORLDWIDE Tel: 020 7016 6450 E14 5HQ UK Institutional Sales Director INVESTMENTS Website: www.fulcrumasset.com Tel: 020 7991 0756 Tel: 020 7597 2075 25 Cannon Street Website: www.assetmanagement.hsbc.com Email: [email protected] London GAM EC4M 5TA 20 King Street IMPAX ASSET MANAGEMENT Investec Asset Management provides Tel: 020 7283 9911 London GROUP PLC investment products and services Website: www.fidelity.co.ukinstitutional SW1Y 6QY Norfolk House to institutions, advisory clients and Tel: 020 7493 9990 31 St James’s Square individuals. Our clients include pension FIRST STATE INVESTMENTS UK LTD Website: www.gam.com London funds, central banks, sovereign wealth 154 Finsbury Square SW1Y 4JR funds, insurers, foundations, financial London GLG PARTNERS LP Tel: 020 7434 1122 advisers and individual investors. EC2M 7EB 1 Curzon Street Website: www.impax.co.uk Tel: 020 7332 6500 London It all began in South Africa in 1991. We Website: www.firststate.co.uk W1J 5HB INSIGHT INVESTMENT were a small start-up offering domestic Tel: 020 7016 7000 MANAGEMENT (GLOBAL) LTD strategies in an emerging market. Over two decades of growth later and we’re Website: www.glgpartners.com 160 Queen Victoria Street an international business managing FOUR CAPITAL PARTNERS LIMITED London approximately £76 billion* for clients based 1 Ely Place GMO EC4V 4LA all over the world. London 1 London Bridge Tel: 020 7163 4000 EC1N 6RY London Website: www.insightinvestment.com Tel: 020 3116 4000 SE1 9BG *As at 31 March 2016 Website: www.fourcpl.co.uk Tel: 020 7814 7600 Website: www.gmo.com
38 Professional Pensions Handbook 2016 www.professionalpensions.com 39 JAGGER & ASSOCIATES – LASALLE INVESTMENT LAZARD ASSET – LOTHBURY INVESTMENT
JAGGER & ASSOCIATES LAZARD ASSET MANAGEMENT Ground Floor 50 Stratton Street 14 Exchange Quay London LOTHBURY INVESTMENT Salford Quays LASALLE INVESTMENT W1J 8LL MANAGEMENT LIMITED Manchester Tel: 020 7588 2721 MANAGEMENT 155 Bishopsgate M5 3EQ One Curzon Street Website: www.uk.lazardnet.com Asset Management London Tel: 0161 873 9350 London EC2M 3TQ Website: www.jaggerandassociates.co.uk W1J 5HD LEGAL & GENERAL Switchboard: 020 3551 4900 Tel: 020 7852 4200 INVESTMENT MANAGEMENT Website: www.lothburyim.com JANUS CAPITAL Fax: +44 (0) 20 7852 4404 One Coleman Street Website: www.lasalle.com INTERNATIONAL LTD London Contact: Barbara O’Riordan City Point EC2R 5AA Title: Associate Director Contact: 26th Floor Tel: 020 3124 3000 Email: [email protected] 1 Ropemaker Street Head of UK Website: www.lgim.com Management Asset Alan Tripp ([email protected]) London We are an independent UK real estate UK CIO EC2Y 9HT LEGG MASON GLOBAL ASSET investment manager, formed in 2010. Our Julian Agnew ([email protected]) Tel: 020 7410 1900 MANAGEMENT strong and cohesive senior fund management Client Executive, Client Capital Group Website: www.janusinternational.com 201 Bishopsgate team has worked together for nearly 20 Anne Lucking ([email protected]) London years and has a track record of delivering J. P. MORGAN ASSET MANAGEMENT EC2M 3AP outperformance for investors. Finsbury Dials Main services: LaSalle Investment Tel: 020 7392 1929 Management is one of the world’s leading 20 Finsbury Street Website: www.leggmason.co.uk LIM manages unlisted property vehicles real estate investment managers with over London on behalf of institutional investors seeking 35 years of experience. LaSalle manages EC2Y 9AQ LONGVIEW PARTNERS indirect exposure to the UK. Lothbury US$59bn of assets on behalf of institutions Tel: 020 7742 6000 Thames Court Property Trust (LPT) is our flagship fund. and private investors across the world, Website: 1 Queenhithe We also manage a European Fund of Funds investing in private real estate equity and www.jpmorganassetmanagement.co.uk/ London and a segregated secure income portfolio debt, and public real estate through a institutional EC4V 3RL for a UK pension fund. We offer an innovative complete range of investment vehicles. Our Tel: 020 7809 4100 solution to clients, through our core/active products include separate accounts, open JUPITER ASSET MANAGEMENT Website: www.longview-partners.com strategy. Our predominantly core portfolio of and closed-end commingled funds, joint 1 Grosvenor Place prime assets provides stable returns, while ventures, and public securities. London our active management initiatives create SW1X 7JJ additional value and enhance returns. Tel: 020 7412 0703 From the London office of 167 people we manage £12.1bn assets of which £11.8bn are Website: www.jupiteronline.co.uk Since LIM’s launch, we have progressively located within the UK. We have extensive grown our funds under management to £1.8 successful experience of managing KAMES CAPITAL billion. We have attracted new investors to our portfolios to both MSCI relative and real Kames House Funds and significantly diversified our robust return performance targets as well as assets 3 Lochside Crescent base of UK and overseas institutional clients, and strategies targeting index-linked and Edinburgh the majority of which are corporate and public absolute returns. EH12 9SA sector pension funds. Our clients also include Tel: 0870 609 0101 treasury investors, collective investment We have 700 people located in 24 offices Website: www.kamescapital.com schemes, insurance companies and charities. around the world, as well as access to JLL’s offices in 80 countries worldwide. Further information on our company, strategy and products can be found at www. lothburyim.com
40 Professional Pensions Handbook 2016 www.professionalpensions.com 41 MAJEDIE ASSET MANAGEMENT M&G INVESTMENTS – MARATHON ASSET
Our aim is to deliver consistent investment outperformance and we have built one of the most experienced teams of fund The managers and research analysts in the industry in order to do so. These teams Professional M&G INVESTMENTS are backed by excellent client service and Asset Management MAJEDIE ASSET MANAGEMENT Governor’s House product development teams to ensure we 10 Old Bailey Pensions Laurence Pountney Hill deliver the most appropriate investment London London solutions to pension funds. EC4M 7NG Handbook 2016 EC4R 0HH Tel: 020 7618 3900 Tel: 020 7548 3414 Our strengths Website: www.majedie.com Fax: 020 7548 3419 Managing £246 billion* of assets gives the Email: [email protected] scope and scale to research companies Majedie Asset Management, established Website: www.mandg.co.uk/institutions and markets in real detail. We engage with Management Asset in 2002, is an independent investment senior company management teams and boutique that actively manages equities Contacts: our research enables our industry-leading for institutional investors, wealth managers Andrew Swan, Director (Fixed Income) portfolio managers to act decisively to and endowments across a range of UK and Tel: 020 7548 2375 construct portfolios to meet our clients’ Global strategies. Email: [email protected] expectations.
Majedie was founded by a team from Nick Robert-Nicoud, Business Development Client service Mercury Asset Management with a clear Director – Equities and Multi Asset By understanding our clients’ needs and aim: simply to make money for our clients. Tel: 020 3790 1331 ensuring we are at the forefront of product We are proud of our distinctive, long-term Email: [email protected] development, our client service team track record – but remain as hungry to delivers the investment knowledge, flexibility perform today as we were on day one. Lucy Williams, Director of Institutional and implementation skills required to offer Business, UK & Europe (M&G Real Estate) the most effective investment solutions Importantly, every Majedie employee Tel: 020 7548 6585 across all asset classes. owns equity in the business; we are in Email: [email protected] partnership with our clients and here *source: M&G, as at 31 December 2014 to stay. Similarly, our fund managers all M&G Investments is the European asset **source: M&G, as at 31 March 2016 invest in Majedie funds, further aligning our management arm of Prudential plc. We interests with those of our clients. M&G Investments and M&G Real Estate are business To ensure your are an active investment-led manager names of M&G Investment Management Limited and are and have a long-standing reputation for used by other companies within the Prudential Group. We view our capacity as scarce; we believe inclusion in the forward thinking strategies, market-leading M&G Investment Management Limited is authorised investment performance suffers from and regulated by the Financial Conduct Authority. M&G performance and excellent client service. Investment Management Limited and M&G Real Estate diseconomies of scale if assets under 2017 Limited are registered in England and Wales under numbers management grow too large. We are • We invest £246 billion* across fixed 936683 and 3852763 respectively with their registered office at Laurence Pountney Hill, London EC4R 0HH. determined to maintain the size advantage Handbook income, equity, real estate and multi-asset for our clients and therefore limit the strategies available capacity in each of our funds. contact Nita Hulme • We are a long-term investor via our MARATHON ASSET MANAGEMENT parent company, Prudential plc, for whom Orion House Assets under management total NOW on we invest £120 billion* 5 Upper St Martin’s Lane approximately £11bn ($16bn). +44 (0) 20 7316 9309 or • Our clients include 47* local authority London pension funds and almost 60% ** of the WC2H 9EA top 40 UK pension funds. Tel: 020 7497 2211 [email protected] Website: www.marathon.co.uk
42 Professional Pensions Handbook 2016 www.professionalpensions.com 43 MARTIN CURRIE – NEUBERGER BERMAN NGAM UK – PIMCO EUROPE
MARTIN CURRIE INVESTMENT MONDRIAN INVESTMENT NIKKO GLOBAL ASSET ORIGEN FINANCIAL SERVICES LTD MANAGEMENT LTD PARTNERS LTD MANAGEMENT (UK) LTD 1st Floor, Infor House Saltire Court 10 Gresham Street 1 London Wall 1 Lakeside Road 20 Castle Terrace London London Farnborough Edinburgh EC2V 7JD EC2Y 5AD Hampshire EH1 2ES Tel: 020 7477 7000 Tel: 020 7796 9866 GU14 6XP Asset Management Tel: 0131 229 5252 Website: www.mondrian.com Website: www.nikkoam.com Tel: 0844 209 3000 Website: www.martincurrie.com/ Website: www.origenfs.co.uk ukinstitutional MORGAN STANLEY INVESMENT NN INVESTMENT PARTNERS MANAGEMENT LTD 60 London Wall, PAYDEN & RYGEL GLOBAL LTD MFS INTERNATIONAL (UK) LTD 25 Cabot Square London 1 Bartholomew Lane Paternoster House Canary Wharf EC2M 5TQ London 65 St Paul’s Churchyard London Tel: 020 7767 1215 EC2N 2AX
London E14 4QA Website: www.nnip.com Tel: 020 7621 3000 Management Asset EC4M 8AB Tel: 020 7425 8000 Website: www.payden.com Tel: 020 7429 7200 Website: www.morganstanley.co.uk NOMURA ASSET MANAGEMENT Website: www.mfs.com UK LIMITED PICTET ASSET MANAGEMENT LTD MUZINICH & CO LTD 1 Angel Lane Moor House MIRABAUD ASSET MANAGEMENT 8 Hanover Street London 120 London Wall LIMITED London EC4R 3AB London 33 Grosvenor Place W1S 1YQ Tel: 020 7521 3333 EC2Y 5ET London Tel: 020 7614 8760 Website: www.nomura-asset.co.uk United Kingdom SW1X 7HY Website: www.muzinich.com Tel: 020 7847 5000 Website: www.pictet.com Tel: 020 7878 3411 NORTHERN TRUST GLOBAL Website: www.mirabaud.com NGAM UK LTD INVESTMENTS (EUROPE) LIMITED One Carter Lane 50 Bank Street PIMCO EUROPE LIMITED MITSUBISHI UFJ ASSET London London 11 Baker Street MANAGEMENT (UK) LTD EC4V 5ER E14 5NT London Ropemaker Place Tel: 020 3405 2173 Tel: 020 7982 2000 W1U 3AH 25 Ropemaker Street Website: www.ngam.natixis.co.uk Website: www.ntrs.com Tel: 020 7872 1300 London Website: www.pimco.com EC2Y 9AN NEPTUNE INVESTMENT NORWICH & PETERBOROUGH Tel: 020 7577 2149 MANAGEMENT LTD BUILDING SOCIETY Website: www.uk.am.mufg.jp 3 Shortlands Peterborough Business Park London Lynch Wood MOMENTUM GLOBAL INVESTMENT W6 8DA Peterborough MANAGEMENT Tel: 020 3249 0163 Cambridgeshire The Rex Building Website: www.neptune-im.co.uk PE2 6WZ 62 Queen Street Tel: 01733 372 372 London NEUBERGER BERMAN Website: www.npbs.co.uk EC4R 1EB Lansdowne House Tel: 020 7489 7223 57 Berkeley Square London W1J 6ER Tel: 020 3214 9000 Website: www.nb.com
44 Professional Pensions Handbook 2016 www.professionalpensions.com 45 PIONEER INVESTMENTS – RATHBONE UNIT TRUST R.C. BROWN – ROYAL LONDON
PRINCIPAL GLOBAL INVESTORS R.C. BROWN INVESTMENT (EUROPE) LIMITED MANAGEMENT PLC 1 Wood Street 1 The Square PIONEER INVESTMENTS London Temple Quay Portland House EC2V 7JB Bristol Bressenden Place Tel: 020 7710 0220 BS1 6DG Asset Management London Website: www.principalglobal.com Tel: 0117 925 6073 ROYAL LONDON ASSET SW1E 5BH Website: www.rcbim.co.uk Tel: 020 7190 2000 PUTNAM INVESTMENTS LIMITED MANAGEMENT LTD Website: www.pioneerinvestments.com Cassini House RCM (UK) LTD 55 Gracechurch Street 57-59 St. James’s Place 199 Bishopsgate London Contact: Jonathan May, London London EC3V 0RL Head of Institutional Business Development - UK SW1A 1LD EC2M 3TY Tel: 020 7506 6754
Email: United Kingdom Tel: 020 7859 9000 Website: www.rlam.co.uk Management Asset [email protected] Tel: 020 7907 8200 Website: www.rcm.co.uk Website: www.putnam.com/institutional Established in 1988, today Royal London Asset Management (RLAM) is one of For over 85 years, Pioneer Investments has RECORD CURRENCY the UK’s leading fund management been dedicated to growing and preserving PYRAMIS GLOBAL ADVISORS (UK) MANAGEMENT LIMITED companies. With assets under client assets. Our aim is to deliver high- Morgan House LTD management of £87.9 Billion (as at quality investment solutions to match the 1 St Martins-le-Grand Madeira Walk 31.03.16) our experienced team of needs and requirements of our institutional London Windsor investment specialists manages over £8 clients. We are innovators in managing EC1A 4AS Berkshire billion of assets and we pride ourselves on investment strategies, leveraging our Tel: 020 7184 3560 SL4 1EP the breadth and quality of the investment proprietary research and global reach. Our Website: www.pyramis.com Tel: 01753 852 222 options we offer. As well as a range of investment process is focused on creating Website: www.recordcm.co.uk pooled investment products covering high value-added investment capabilities PYRFORD INTERNATIONAL PLC thanks to a disciplined investment all major asset classes, we also provide 95 Wigmore Street RIVER AND MERCANTILE GROUP bespoke solutions to meet specific approach based on three pillars: the London 11 Strand search for value over the long term; a focus objectives. Our institutional business W1U 1FD London development team and fund managers on proprietary research; and a rigorous Tel: 020 7495 4641 WC2N 5HR approach to risk management. understand the particular needs of pension Website: www.pyrford.co.uk Tel: 020 7601 6262 fund trustees and work with them and Website: www.riverandmercantile.com their consultants to develop the right In the UK institutional market, Pioneer RATHBONE UNIT TRUST Investments is best known as a specialist investment solution for their scheme. We MANAGEMENT LIMITED fixed income manager, offering a broad wholeheartedly believe in the added long- 1 Curzon Street range of capabilities across government term value of active fund management London bond, aggregate and credit portfolios, high and are widely recognized for the wealth W1J 5FB yield and emerging market debt. We also of experience we bring to managing our Tel: 020 7399 0476 offer equity and multi-asset strategies and clients’ funds. Our focus is firmly set on Website: www.rutm.com our investment solutions are available in achieving the best possible returns for both pooled and segregated approaches. those who entrust us with their assets.
46 Professional Pensions Handbook 2016 www.professionalpensions.com 47 RUFFER LLP – STENHAM AM SUMITOMO MITSUI – WESTERN ASSET
RUFFER LLP SPEIRS & JEFFREY LIMITED SUMITOMO MITSUI ASSET 80 Victoria Street 50 George Square MANAGEMENT (SMSM) London George House 3rd Floor SW1E 5JL Glasgow 90 Basinghall Street Tel: 020 7963 8100 G2 1EH London Website: www.ruffer.co.uk Tel: 0141 248 4311 EC2V 5AY Asset Management Website: www.speirsjeffrey.co.uk Tel: 020 7397 3970 m RUSSELL INVESTMENTS Website: www.smam-jp.com/english Rex House STAMFORD ASSOCIATES (UK) LTD 10 Lower Regent Street 19-21 Old Bond Street T. ROWEPRICE 2016 London London 60 Queen Victoria Street WINNER Equity Manager of the Year SW1Y 4PE W1S 4PX London Tel: 020 7024 6000 Tel: 020 7629 5225 EC4N 4TZ
Website: www.russell.com/uk Website: www.stamfordassociates.com Tel: 020 7651 8200 VONTOBEL ASSET MANAGEMENT Management Asset Website: www.troweprice.com Third Floor SARASIN & PARTNERS LLP STANDARD LIFE INVESTMENTS 22 Sackville Street Juxon House 1 George Street UBS GLOBAL ASSET MANAGEMENT London 100 St Paul’s Churchyard Edinburgh 21 Lombard Street W1S 3DN London EH2 2LL London Tel: 020 7255 8300 EC4M 8BU Tel: 0131 225 2345 EC3V 9AH Website: www.vontobel.com/am Tel: 020 7038 7000 Website: Tel: 020 7901 5000 Website: www.sarasin.co.uk www.standardlifeinvestments.co.uk Website: www.ubs.com Contact: Sheridan Bowers - Head of UK/ Ireland Business SCHRODER INVESTMENT STATE STREET GLOBAL ADVISORS VANGUARD ASSET MANAGEMENT Tel: 020 7255 8321 Email: [email protected] MANAGEMENT LIMITED 20 Churchill Place LIMITED 31 Gresham Street Canary Wharf 25 Walbrook London London London WESTERN ASSET EC2V 7QA E14 5HJ EC4N 8AF 10 Exchange Square Tel: 020 7658 6000 Tel: 020 3395 6000 Tel: 020 7489 5600 Primrose Street Website: www.schroders.com Website: www.ssga.com Website: www.vanguard.co.uk London EC2A 2EN SLATER INVESTMENTS LTD STENHAM ASSET MANAGEMENT VENCAP INTERNATIONAL PLC Tel: 020 7422 3000 Website: www.westernasset.com Nicholas House 180 Great Portland Street King Charles House 3 Lauerence Poutney London Park End Street London W1W 5QZ Oxford EC4R 0EU United Kingdom OX1 1JD Tel: 020 7220 9460 Tel: +44 (0) 20 7079 6600 Tel: 01865 799 300 Website: www.slaterinvestments.com Website: Website: www.vencap.com www.stenhamassetmanagement.com SMITH & WILLIAMSON INVESTMENT MANAGEMENT 25 Moorgate London EC2R 6AY Tel: 020 7131 4000 Website: www.smith.williamson.co.uk
48 Professional Pensions Handbook 2016 www.professionalpensions.com 49 ASSOCIATIONS & OFFICIAL BODIES THE ANNUITY BUREAU – AREF
THE ANNUITY BUREAU pensions for controlling directors; pensions All change 3rd Floor on divorce; and many also offer personal Bond House financial planning services. The Bourse he past year has been one of significant change for the industry’s main Boar Lane THE ASSOCIATION OF CORPORATE associations and professional bodies – with the National Association of Pension Leeds TRUSTEES Funds rebranding as the Pensions and Lifetime Savings Association and the LS1 5EN 3 Brackerne Close Pensions Management Institute both rejecting a merger and choosing a new Tel: 0845 850 8550 Cooden Tchief executive. Website: www.annuity-bureau.co.uk Bexhill-on-Sea The NAPF’s rebranding as the PLSA in October last year was in recognition of a market E. Sussex where pensions only make up a portion of people’s retirement income – and the new ASSOCIATION OF TN39 3BT Tel: 01424 844144 organisation says it will also look at areas such as ISAs, equity release and long term care. BRITISH INSURERS 51 Gresham Street Website: www.trustees.org.uk Commenting on the rebrand, chief executive Joanne Segars said: “We need to be bold London about the future and do our best to help those who are trying to do the right thing by EC2V 7HQ ASSOCIATION OF MEMBER- saving for a decent retirement income. We need to look beyond pensions towards lifetime Tel: 020 7600 3333 DIRECTED PENSION SCHEMES savings.” Website: www.abi.org.uk (AMPS) The organisation said it would expand its remit by offering new services for the two Andrew Roberts million smaller employers currently going through auto-enrolment as well as offering help Chairman of AMPS Associations & Official & BodiesAssociations for savers. Barnett Waddingham LLP However, Segars said the new organisation remained committed to its current Port of Liverpool Building membership. Pier Head “We are not moving away from our members,” she said. “We need to get ahead of the Liverpool changes that we can see coming. It will not be a massive programme of change.” ASSOCIATION OF L3 1B The organisation discussed the move with a selection of members prior to launch CONSULTING ACTUARIES Tel: 0151 235 6600l Regis House Website: www.ampsonline.co.uk through a series of workshops. First Floor Diageo pensions director Stuart Stephen said he believed the move was a positive one. 45 King William Street ASSOCIATION OF “The change of name will make the organisation more relevant as there is more to London PENSION LAWYERS retirement now than just pensions,” he said. “We did challenge them on the move but they EC4R 9AN Room 10 had clearly given it a lot of thought and I think the change is merited.” Tel: 020 3102 6761 Pmi House HSBC Global Asset Management’s head of strategy Stuart White described the move as Email: [email protected] 4-10 Artillery Lane “shrewd.” Website: www.aca.org.uk London “The NAPF has chosen to look forward not back and its fund members are often E1 7LS responsible for both defined benefit and defined contribution pensions,” he said. Contact: David Robertson Tel: 0845 680 9889 “Bringing these strands together is in line with the need to think about retirement more Email: [email protected] Website: www.apl.org.uk holistically.” Services: The Association draws its The Pensions Management Institute rejected plans to merge with the NAPF at the ASSOCIATION OF REAL membership from individual consulting ESTATE FUNDS (AREF) beginning of 2015 - deciding it was better placed as an independent body going forward. actuaries working in over 80 consulting 65 Kingsway It also saw a change of presidents – with Kevin LeGrand taking over from Paul firms. Members of the Association are all London Couchman in July last year – and the retirement of its long-standing chief executive, Vince qualified actuaries with the major part WC2B 6TD Linnane, after 32 years’ service. of members’ work being as advisers to Tel: 020 7269 4677 UK Pension Funds. Members also advise Gareth Tancred, the former chief executive of The British Institute of Facilities Website: www.aref.org.uk Management took over from Linnane in March and says his key priorities are on scheme design and administration; demonstrating the value of the PMI even more, making the body more agile and investment strategy; the pension aspects enhancing the institute’s lifelong learning capabilities. of mergers; acquisitions and sales;
50 Professional Pensions Handbook 2016 www.professionalpensions.com 51 COMBINED PENSION – THE PENSION FUND PMI – THE SOCIETY OF PENSION
COMBINED PENSION INSTITUTIONAL MONEY MARKET THE PENSIONS MANAGEMENT THE SOCIETY OF PENSION FORECASTING TEAM FUNDS ASSOCIATION INSTITUTE (PMI) PROFESSIONALS The Pension Service 65 Kingsway PMI House St. Bartholomew House Room TB001 London 4-10 Artillery Lane 92 Fleet Street Tyneview Park WC2B 6TD London London Newcastle upon Tyne Tel: 020 7269 4669 E1 7LS EC4Y 1DG NE98 1BA Website: www.immfa.org Tel: 020 7247 1452 Tel: 020 7353 1688
Associations Bodies & Official Tel: 0870 010 1684 Website: www.pensions-pmi.org.uk Website: www.the-spp.co.uk Website: www.thepensionservice.gov.uk INVESTMENT MANAGEMENT ASSOCIATION PENSIONS OMBUDSMAN FINANCIAL CONDUCT AUTHORITY 65 Kingsway 6th Floor 25 The North Colonnade London 11 Belgrave Road Canary Wharf WC2B 6TD London London Tel: 020 7831 0898 SW1V 1RB E14 5HS Website: www.investmentuk.org Tel: 020 7630 2200 Tel: 020 7066 1000 Website: www.pensions-ombudsman.org.uk Website: www.fca.org.uk THE NATIONAL ASSOCIATION OF PENSION FUNDS LTD (NAPF) THE PENSIONS REGULATOR GOVERNMENT ACTUARY’S Napier House
Cheapside House Official & BodiesAssociations DEPARTMENT 138 Cheapside Trafalgar Place Finlison House London Brighton 15-17 Furnival Street EC2V 6AE BN1 4DW London Tel: 020 7601 1700 Tel: 0870 606 3636 EC4A 1AB Website: www.napf.co.uk Website: www.thepensionsregulator.gov.uk Tel: 020 7211 2600 Website: www.gad.gov.uk THE PENSIONS ADVISORY THE PENSION SERVICE SERVICE (TPAS) Future Pension Centre INLAND REVENUE PENSIONS 11 Belgrave Road Combined Forecasting and Pension Tracing SCHEMES OFFICE London Room TB201 Yorke House SW1V 1RB Tyneview Park PO Box 62 Tel: 0845 601 2923 Whitley Road Castle Meadow Road Website: www.pensionsadvisory Newcastle Upon Tyne Nottingham service.org.uk NE98 1BA NG2 1BG Tel: 0191 218 7967 To ensure your Tel: 0115 974 0000 THE PENSION FUND 0845 606 0265 (Combined Pension Forecasting) inclusion in the Website: www.hmrc.gov.uk INVESTMENT FORUM Website: www.thepensionservice.gov.uk Fulling Mill Barn 2017 THE INSTITUTE OF ACTUARIES Fulling Mill Lane Professional Pensions Staple Inn Hall Welwyn THE PERSONAL FINANCE SOCIETY High Holborn Herts 42-48 High Road Handbook London AL6 9NP South Woodford contact Nita Hulme WC1V 7QJ Tel: 01438 712 345 London Tel: 020 7632 2100 Website: www.spsconferences.com E18 2JP NOW on Website: www.actuaries.org.uk Tel: 020 8989 8464 Website: www.thepfs.org +44 (0) 20 7316 9309 or [email protected]
52 Professional Pensions Handbook 2016 www.professionalpensions.com 53 AUDITORS & ACCOUNTANTS ASH SHAW – DELOITTE
ASH SHAW LLP FRS102 increasing PPF bills for 180 Piccadilly London schemes W1J 9HF Tel: 020 7917 2987 he Pension Protection Fund’s (PPF) decision to switch to a different rating Website: www.ashshaw.com agency was welcomed for giving a fairer and more realistic picture of the 17,000 scheme employers it assesses. BARBER HARRISON & PLATT The Experian methodology is much harder to game than its predecessor but 2 Rutland Park CROWE CLARK WHITEHILL LLP Ta change in accounting standards has left some multi-employer schemes facing a steep Sheffield St Bride’s House levy increase. S10 2PD 10 Salisbury Square The new standard, FRS102, applies to all accounting periods that started after 1 January Tel: 0114 266 7171 London EC4Y 8EH 2015. It is a mandatory, general reporting standard which replaces FRS17 and is designed Website: www.bhp.co.uk Tel: 020 7842 7100 to bring the disclosure of retirement benefits more in line with the revised IAS19 standard. Fax: 020 7583 1720 However, it means that for some sponsors of multi-employer schemes large defined BDO LLP 2 City Place Email: [email protected] benefit liabilities will appear on their balance sheet for the first time. Beehive Ring Road Website: www.croweclarkwhitehill.co.uk Barnett Waddingham head of corporate consulting Nick Griggs explains: “Those deficits Gatwick will now start to appear, making the balance sheet position worse and as a result some of West Sussex Contact: Andrew Penketh, Partner and Head Accountants & Auditors the metrics PPF and Experian use to assess will be worse. Companies that see reductions RH6 0PA of Pension Funds in their ratings may end up having to pay bigger levies in later years.” Tel: 01293 591000 Email: [email protected] One metric the PPF and Experian use to calculate insolvency scores is to look at how a Website: www.bdo.co.uk company’s net worth changes over time, which has a big impact on ratings. An additional The Crowe Clark Whitehill award- winning National Pension Funds Team liability on the balance sheet resulting from suddenly having to disclose the pension deficit BISHOP FLEMING is a dedicated, specialist team providing will lower the Experian score. Stratus House independent audit and assurance services. Emperor Way The PPF raised the issue early in its consultation on rules for 2016/2017 levies – We advise trustees of large and complex Exeter Business Park recognising it could affect insolvency scores for the 2017/18 levies. pension schemes, master trusts, scheme Exeter PPF public policy director Chris Collins estimates it is likely to affect “hundreds” of administrators and independent trustees EX1 3QS employers – but is most likely to arise predominately in the PPF’s ‘large and complex’ in navigating the increasingly challenging Tel: 01392 448800 scorecard which applies to around 3,000 or so employers including parent companies areas of accounting, administration, risk, Website: www.bishopfleming.co.uk governance, stewardship and internal and the largest subsidiaries. controls. Most of the scorecard comprises ultimate parent companies, which typically will have CHANTREY VELLACOTT DFK already recorded the deficit on their books and so will not be affected. Russell Square House DELOITTE “But it will affect a subset of that scorecard, likely to be in the hundreds, of parent 10-12 Russell Square Stonecutter Court companies that are still large but have chosen not to report the deficit on the company’s London 1 Stonecutter Street books,” says Collins. WC1B 5LF London PwC pensions credit advisory practice Julia Dickson says it is important to understand Tel: 020 7509 9000 EC4A 4TR Website: www.cvdfk.com how the scheme is allocated among employers, and that this may not have been clear Tel: 020 7936 3000 in the past. She says: “If it is currently not obvious about how to allocate the scheme Website: www.deloitte.co.uk among employers, you may find that none of the employers have accounted for it on their CLEMENT KEYS LLP No 8 Calthorpe Road balance sheet and that it just gets put at the consolidated group level.” Birmingham If the new accounting standard will lead to a material increase in a company’s levy, the B15 1QT PPF wants to know about it early on and is open to discussion. “Schemes should work Tel: 0121 456 4456 with corporates and their finance departments to understand what change on accounts Website: www.clementkeys.co.uk will come through as a result of the new standard and work it through,” says Dickson.
54 Professional Pensions Handbook 2016 www.professionalpensions.com 55 EY LLP – PKF COOPER PARRY PRICEWATERHOUSECOOPERS – SAFFERY CHAMPNESS
EY LLP KPMG LLP PRICEWATERHOUSECOOPERS LLP 1 More London Place Arlington Business Park 7 Moor London London Theale, Reading Riverside SE1 2AF Berkshire London The Tel: 020 7951 2000 RG7 4SD SE1 2RT Tel: 0118 928 1100 Tel: 0118 373 1369 Tel: 020 7804 0953 Professional Website: www.ey.com/uk Website: www.kpmg.com/uk/pensions Website: www.pwc.co.uk/pensions Pensions GRANT THORNTON UK LLP MAZARS LLP REEVES & CO Auditors & Accountants Grant Thornton House Tower Bridge House 37 St. Margaret’s Street Handbook 2016 202 Silbury Boulevard St. Katharine’s Way Canterbury Milton Keynes London CT1 2TU MK9 1LW E1W 1DD Tel: 01227 768231 Tel: 01908 660666 Tel: 020 7063 4000 Website: www.reeves-neylan.com Website: www.grant-thornton.co.uk Website: www.mazars.co.uk RSM HAYSMACINTYRE MENZIES LLP 25 Farringdon Street 26 Red Lion Square Victoria House London London 50-58 Victoria Road EC4A 4AB Accountants & Auditors WC1R 4AG Farnborough Tel: 020 3201 8000 Tel: 020 7969 5500 Hampshire Website: www.bakertilly.co.uk/pensions Website: www.haysmacintyre.com GU14 7PG Tel: 01252 541244 SAFFERY CHAMPNESS HILLIER HOPKINS LLP Website: www.menzies.co.uk Lion House Radius House Red Lion Street Hertfordshire MOORE STEPHENS LLP London WD17 1HP 150 Aldersgate Street WC1R 4GB Tel: 01923 232 938 London Tel: 020 7405 2828 Website: www.hillierhopkins.co.uk EC1A 4AB Website: www.saffery.com Tel: 020 7334 9191 HW FISHER & COMPANY Website: www.moorestephens.co.uk Acre House To ensure your 11-15 William Road PKF COOPER PARRY London Sky View inclusion in the NW1 3ER East Midland Airport Tel: 020 7388 7000 Central England 2017 Website: www.hwfisher.co.uk DE74 2SA Tel: 01332 411163 Handbook JACKAL ADVISORY Website: www.cooperparry.com Level 19 contact Nita Hulme Portland House Bressenden Place NOW on London SW1E 5RS +44 (0) 20 7316 9309 or Tel: 020 8282 6008 Website: www.jackaladvisory.co.uk [email protected]
56 Professional Pensions Handbook 2016 www.professionalpensions.com 57 AUTO-ENROLMENT CONSULTANTS AON HEWITT – HYMANS ROBERTSON
AON HEWITT compliance and governance beyond. Millions now saving, but not enough 10 Devonshire Square London Our solution is ‘decision-light’ for the EC2M 4YP employer, as various aspects of design are ore than six million people have started saving into a workplace pension Tel: 0800 279 5588 pre-packaged, in particular the choice of since auto-enrolment (AE) began, with more than 120,000 employers Website: www.aonhewitt.co.uk pension provider and default investment. having enrolled employees. This ensures that A>E is affordable and According to The Pensions Regulator (TPR)’s monthly AE declaration ARTHUR J. GALLAGHER can be upscaled to meet the demand for ofM compliance report, 6,214,000 started saving in schemes and 124,487 employers The Walbrook Building pension advice and services arising due to auto-enrolment. completed the declaration from the beginning of AE to the end of April 2016. 25 Walbrook London EC4N 8AW Thousands of small and micro-employers have also enrolled staff into pensions, such Tel: +44 (0)20 7204 6195 A>E comprises a five step process to as scaffolding firms, children’s nurseries, and farmers. Website: www.gallaghereb.com guide the employer right through from Pensions minister Ros Altmann said it was “brilliant” to see millions of people enrolling application to compliance: into a pension. She said: “So far it has been those working for big firms. Now the challenge is to make • Apply sure small employers set up pensions too, so their employees get to enjoy this major • Build financial benefit. • Configure “Our pensions reforms are starting a culture of saving which is making pension provi- • Deliver sion the norm across the UK.” BARNETT WADDINGHAM LLP • Evidence Hundreds of thousands of small and micro employers still need to enrol staff in the Cheapside House Authorised and regulated by the Financial 138 Cheapside ConsultantsAuto-Enrolment coming two years. London Conduct Authority and licensed by the The regulator warned that employers need to plan ahead to understand what they EC2V 6BW Institute and Faculty of Actuaries for a need to do to avoid the risk of non-compliance and a potential fine. Tel: 020 7776 2200 range of investment business activities. TPR director of AE Charles Counsell said: “The roll out of automatic enrolment has Email: [email protected] proved successful so far, with more than 90% of the first small employers required to Website: www.barnett-waddingham.co.uk CAPITA EMPLOYEE BENEFITS put their staff into a workplace pension now complying with the law. 65 Gresham Street “We are finding a minority of small employers are leaving preparations too late. Don’t Contact: Damian Stancombe London get caught out - use our website to nominate a contact. This only takes around five min- EC2V 7NQ utes and means we can contact you with all you need to know to get ready.” Barnett Waddingham LLP is the UK’s Tel: 020 7709 4500 Website: Despite AE being very successful in enrolling people into workplace pensions, there largest independent provider of actuarial, administration and consultancy services. www.capita.co.uk/employeebenefits are mounting concerns that most employers are contributing very small amounts. Founded in 1989 our headcount has grown A Department for Work and Pensions report revealed that three in five employers who from 20 to over 750 today based in seven HYMANS ROBERTSON have successfully introduced AE are only contributing the minimum legal amounts. offices throughout the UK. One London Wall The Employers’ Pension Provision survey 2015, conducted by IFF Research on behalf London of DWP, found that three in five (62%) of staged employers were only contributing the Our streamlined auto-enrolment solution EC2Y 5EA minimum 1% of qualifying earnings. One third of staged employers were contributing at A>E is specifically for small and medium Tel: 020 7082 6000 least 3% from the start. This is leading to fears that workers will have to retire a lot later enterprise (SME) employers with staging Website: www.hymans.co.uk than expected in the future. dates from 2014 onwards. It’s designed The report surveyed 3,008 UK private sector employers that employed a total of 1.8 for employers who want more than million workers between May and September 2015. basic compliance with the legislation; for those who want a solution that will Royal London director of policy Steve Webb said the findings were worrying: “Unless address employees’ priorities and ease the we can get workplace pension contributions up quickly to a more realistic level, we risk employer’s processes, with consultancy facing a generation of workers who simply cannot afford to retire.” guidance through set up, ongoing
58 Professional Pensions Handbook 2016 www.professionalpensions.com 59 JLT EMPLOYEE BENEFITS – XAFINITY CONSULTING AUTO-ENROLMENT PROVIDERS
JLT EMPLOYEE BENEFITS PUNTER SOUTHALL AE penalty notices on the rise TThe St Botolph Building 11 Strand 138 Houndsditch London London WC2N 5HR EC3A 7AW Tel: 020 3327 5000 he Pensions Regulator (TPR) is issuing an increasing number of escalating penalty Tel: 020 7528 4000 Website: www.puntersouthall.com notices (EPN) to get companies to comply with their auto-enrolment (AE) duties. Website: www.jltgroup.com/eb This is despite the watchdog showing compliance rates remain high, with over 95% QUANTUM ADVISORY of the first small employers required to put staff into a workplace pension having THE PENSIONS TRUST Summers House Tcomplied. Verity House Pascal Close The regulator issued 96 EPNs in the first quarter of 2016, bringing the total issued to 127 since
Auto-Enrolment Consultants St. Mellons 6 Canal Wharf AE was initiated in 2012. This is one of TPR’s statutory powers to help maximise employer Leeds Cardiff compliance with AE duties. Fines for small employers with one to four staff who fail to comply Yorkshire CF3 OLW with an EPN is £50 per day and rises to £500 per day for those with five to 49 staff. LS11 5BQ Tel: 029 8083 7900 Tel: 0113 234 5500 Website: www.quantumadvisory.co.uk Also, 3,057 compliance notices were issued between January 2016 and March 2016, bringing Website: www.thepensionstrust.org.uk the total number to 7,834 since 2012. RUSSELL INVESTMENT LTD It issued 806 fixed penalty notices in the first three months of 2016, bringing the total to 2,234 THE PENSIONS REGULATOR Rex House since 2012. Napier House 10 Lower Regent Street The watchdog warned employers that fail to heed 28-day warning notices risk a fine which Trafalgar Place London increases each day. Brighton SW1Y 4PE It follows the regulator fining Swindon Town Football Company £22,000 for failing to meet its Tel: 020 7024 6000 BN1 4DW AE duties. Tel: 0845 600 0707 Website: www.russell.com/uk TPR executive director for AE Charles Counsell said: “It’s simply not fair for staff not to receive Website: www.thepensionsregulator.gov.uk WILLIS TOWERS WATSON the pension contributions they are legally due. But failing to act also means an employer risks PREMIER COMPANIES LIMITED 71 High Holborn clocking up a significant penalty until they put things right. If things aren’t going well, then talk to 8th Floor London us; don’t ignore us.” AMP House WC1V 6TP Pensions minister Baroness Ros Altmann said: “It is most encouraging to see even the Dingwall Road Tel: 020 7170 2000 smaller employers are managing to do this, and the proportion facing enforcement action has Croydon Website: www.willistowerwatson.com stayed remarkably low.” Surrey Commenting on the report, Aegon head of pensions Kate Smith added: “It’s good to see CRO 2LX WORDSHOP that the Pension Regulator has teeth and is using its powers to fine non-compliant employers, Tilton Court Tel: 020 8663 5800 sending out a message that failing to play by the automatic enrolment rules is simply not Fax: 020 3014 8768 Digby Road acceptable. Website: www.premiercompanies.co.uk Sherbourne Dorset She was not surprised to see an upward trend in the number of fixed and escalating notices PRICEWATERHOUSECOOPERS LLP DT9 3NL given the smallest employers “probably have little pension experience and are unlikely to turn Hays Galleria Tel: 01935 817 738 to advisers for support.” 1 Hays Lane Website: www.wordshop.co.uk NOW:Pensions said a growing proportion of firms were failing to meet their deadlines for London auto-enrolment. SE1 2RD XAFINITY CONSULTING Of the companies that signed up with the master trust provider in the first quarter of 2016, Tel: 020 7583 5000 Phoenix House over a third (37%) completed their application either very close to their staging date or after Website: www.pwc.co.uk Astation Hill Reading the deadline had passed. Of these, 16% contacted NOW:Pensions after their staging date had Berkshire passed - which was the highest percentage over the recorded quarters, rising from 12% in Q4 RG1 1NB 2015. Tel: 0118 958 3683 Chief executive officer Morten Nilsson said: “When it comes to auto enrolment, it’s becoming Website: www.xafinity.com clear that there are two distinct categories of employers – the conscientious and the oblivious.
60 Professional Pensions Handbook 2016 www.professionalpensions.com 61 BENEFEX – TPAS B&CE – ZURICH ASSURANCE LTD
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 Astation 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 958 3683 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 XEROX HR SERVICES Website: www.deloitte.co.uk/pensions Website: www.uk.mercer.com/ukdc 160 Queen Victoria Street STAFFCARE LTD London HYMANS ROBERTSON NEST CORPORATION Leatherhead House EC4V 4AN One London Wall Riverside House Station Road Tel: 0800 066 5433 London 2a Southwark Bridge road Leatherhead Email: [email protected] EC2Y 5EA London Surrey Website: www.xerox.co.uk/hrservices Tel: 020 7082 6000 SE1 9HA KT22 7FG Website: www.hymans.co.uk Tel: 020 3056 3600 Tel: 0845 372 6644 ZURICH ASSURANCE LTD Website: www.nestpensions.org.uk Website: www.staffcare.net Tri Centre 1 JOHNSON FLEMING LIMITED New Bridge Square Fleming House THE PENSIONS ADVISORY STANDARD LIFE Swindon Bromsgrove Enterprise Park SERVICE (TPAS) Standard Life House SN1 1HN Bromsgrove 11 Belgrave Road 30 Lothian Road Tel: 01793 514514 B60 3AL London Edinburgh Website: www.zurich.co.uk/life 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
62 Professional Pensions Handbook 2016 www.professionalpensions.com 63 COMMUNICATIONS AMMATTI – CONCERT CONSULTING
BROADGATEMAINLAND Embracing technology to 15 Basinghall Street London communicate with members EC2V 5BR AMMATTI Tel: 020 7776 6111 ingfisher head of group pensions Dermot Courtier shared details about Website: www.BroadgateMainland.com Park House how the scheme auto-enrolled members and helped educate them. 10 Park Street The scheme started to plan its strategy for auto-enrolment (AE) in 2012 Bristol BROADSTONE COPRORATE and went live on 31 March 2013 with 14,078 people. BS1 5HX BENEFITS LTD K“We used a mixture of fairly traditional modes of communication. We got the main Tel: 0117 934 9016 55 Baker Street message across to all our stores and branches on our short DVDs. “ Email: [email protected] London The firm developed the characters of the Bolt family to make the concept of Website: www.ammatti.co.uk W1U 7EU Tel: 020 7893 3456 pensions appealing to members. “Tommy Bolt was the eligible jog holder. Then we Website: www.broadstoneltd.co.uk had another character as the non-eligible job holder and we had another character ANTHONY HODGES as an entitled worker and through all our communications in the letters we sent we CONSULTING LTD introduced the Bolt family,” Courtier added. Heath Hall Kingfisher used what it learned from its AE launch to craft a five-year education Heath Wakefield campaign called Saving for your future. One of the improvements it made was to WF1 5SL shorten the length of its DVDs. “We slightly rejigged our communications. We got Tel: 01924 203 900 Communications the feedback that four or five minutes for the majority of our membership was too Website: www.ahc.com long. We shortened them to about three or four minutes. “What we then did is link it back to our trustee website so if an employee is in one AON HEWITT of our team briefings and wants to learn more they can go onto the trustee website. Parkside House CAPITA EMPLOYEE BENEFITS They can see the DVD again and they can look at a more detailed PowerPoint Ashley Road 65 Gresham Street presentation and that may take about 15 minutes to go through. Then we sign them Epsom London onto other organisations that can help them and educate them.” KT18 5BS EC2V 7NQ The scheme introduced its Bolt to the finish app that allows members to play a Tel: 020 7086 1890 Tel: 020 7709 4500 game and see how much money they may end up with in retirement in November Website: www.aonhewitt.co.uk Website: www.capitaemployeebenefits.co.uk 2014. This can be downloaded from Apple and now forms an integral part of B2E TECHNOLOGIES the Saving for your future financial education plan. The game is aimed at young Portsoken House CONCERT CONSULTING members especially. Courtier said. “When we were planning to introduce our 155/157 Minories 18-21 Queen Square House application it was geared to the younger element solely because they have iPhones, London Queen Square iPads and trying to engage them in a fun manner to think about saving for the future EC3N 1LJ Bristol and think about saving for retirement.” Tel: 020 3475 3398 Avon Courtier said: “Success was initially measured by the number of hits and also Website: www.b2e-technologies.co.uk BS1 4NH access to the website as well. The trustee website is really where the detailed Tel: 07958 173698 financial education is and the more hits you get the more the game is played you BATH ACTUARIAL CONSULTING LTD Website: www.concertconsult.co.uk get people going through to the website. Equally the other objective we had is we PO Box 5110 did see it as phased development of the app. We do see as our technology improves Bath we can make more and more use of it.” BA1 0QY Tel: 01225 470 036 Website: www.bathactuarial.com
64 Professional Pensions Handbook 2016 www.professionalpensions.com 65 FERRIER PEARCE – PUNTER SOUTHALL RPMI – XEROX
FERRIER PEARCE KPMG LLP RPMI WORDSHOP County House, Arlington Business Park Stooperdale Offices Tilton Court 14-15 Hatton Garden, Theale, Reading Brinkburn Road Digby Road London Berkshire Darlington Sherbourne EC1N 8AT RG7 4SD County Durham Dorset Tel: 020 3772 5384 Tel: 0118 373 1369 DL3 6EH DT9 3NL Website: www.ferrierpearce.com Website: www.kpmg.com/uk/pensions Tel: 01325 342901 Tel: 01935 817 738 Website: www.rpmi.co.uk Website: www.wordshop.co.uk MERCER GR COMMUNICATIONS 1 Tower Place West RUBICON BENEFIT XEROX HR SERVICES 24 Greville Street Tower Place 160 Queen Victoria Street London COMMUNICATIONS LTD London London EC1N 8SS Homestead House EC3R 5BU EC4V 4AN Tel: 020 3159 5001 Tuesley Lane Communications Tel: 020 7626 6000 Tel: 0800 066 5433 Website: www.grcomms.co.uk Godalming Website: www.mercer.com Surrey Email: [email protected] Website: www.xerox.co.uk/hrservices HR TRUSTEES LIMITED GU7 1SG MHP Tel: 01475 727717 Xafinity House 60 Great Portland Street Website: www.rubicon-benefit.com 42-62 Greyfriars Road London Reading W1W 7RT SHILLING COMMUNICATION LTD Berkshire Communications Tel: 020 3128 8100 RG1 1NN Liss Mill Website: www.mhpc.com Tel: 0118 958 3683 Mill Road Website: www.hrtrustees.com Liss ORIGEN FINANCIAL SERVICES LTD Hampshire HYMANS ROBERTSON 1st Floor, Infor House GU33 7BD 1 Lakeside Road Tel: 01730 891 212 One London Wall Farnborough Website: www.shilling.co.uk London Hampshire EC2Y 5EA GU14 6XP Tel: 020 7082 6000 STRAIT LOGICS LTD Tel: 0844 209 3000 Fax: 020 7082 6082 Software House Website: www.origenfs.co.uk Website: www.hymans.co.uk 20 Chapel Street Billericay PRICEWATERHOUSECOOPERS LLP JLT EMPLOYEE BENEFITS Essex 7 More London Riverside CM12 9LU The St Botolph Building To ensure your London Tel: 0845 543 8415 138 Houndsditch SE1 2RT Website: www.straitlogics.com London inclusion in the Tel: 020 7583 5000 EC3A 7AW 2017 Website: www.pwc.co.uk Tel: 020 7528 4000 WILLIS TOWERS WATSON Website: www.jltgroup.com/eb Watson House Professional Pensions PUNTER SOUTHALL London Road Handbook 11 Strand Reigate London Surrey contact Nita Hulme WC2N 5HR RH2 9PQ NOW on Tel: 020 3327 5000 Tel: 01737 241144 Website: www.puntersouthall.com Website: www.willistowerwatson.com +44 (0) 20 7316 9309 or [email protected]
66 Professional Pensions Handbook 2016 www.professionalpensions.com 67 BNP PARIBAS – UBS LTD DC PROVIDERS
BNP PARIBAS SECURITIES EUROCLEAR SERVICES CRESTCO Limited Small DC providers feeling 55 Moorgate 33 Cannon Street London London the squeeze EC2R 6PA EC4M 5SB Tel: 020 7595 2000 Tel: 020 7849 0000 Website: www.securities.bnpparibas.com Website: www.euroclear.com ension reforms will lead to a consolidation of providers, with fewer than ten major life companies dominating the industry, according to a research BNY MELLON ASSET SERVICING HSBC SECURITIES SERVICES report by the Pensions Institute (PI). The Bank of New York Mellon Centre Level 28 The Meaning of Life: An uncertain future for the traditional life company 160 Queen Victoria Street 8 Canada Square Pbusiness model in the UK’s private-sector pensions market claims that between five London London and seven of the largest and most successful life companies will have cornered most EC4V 4LA E14 5HQ of the market by 2020. Tel: 020 7163 5566 Tel: 0117 302 0080 Website: www.hsbcnet.com/ifs The report predicts that defined contribution (DC) pension scheme assets under
Custodians Website: www.bnymellon.com/ assetservicing management (AUM) are expected to double from £280bn to £550bn by then. About J.P. MORGAN INVESTOR SERVICES 90% of these assets will be managed by those larger companies. BROWN BROTHERS 25 Bank Street According to the report, this spells trouble for smaller insurers, which will be forced HARRIMAN LIMITED London out by the increasing cost of regulatory compliance. These smaller companies are Park House E14 5JP being urged to consider other areas of business for the future. 16-18 Finsbury Circus Tel: 020 7742 0131 JLT Employee Benefits director Margaret Snowdon agrees smaller DC schemes London Website: www.jpmorgan.com should be phased out, as this would better benefit members. EC2M 7EB “There has been a move to set up all sorts of master trusts, which only work if you’ve Tel: 020 7588 6166 KAS BANK N.V. got scale. We have more than 100 master trusts now for DC which is way too many. 5th Floor Website: www.bbh.com “So, I think we’ll see the consolidation not only of small pots, but the consolida- 10 Old Broad Street tion of small master trusts into super-trusts. I can see that extending to small legacy CITIGROUP GLOBAL London schemes as well.” SECURITIES SERVICES EC2N 1AA The PI report suggests that the industry should take note of lessons learned over- Citigroup Centre Tel: 020 7153 3600 seas, such as Australia, where freedom and choice has been a “disaster”, while in 33 Canada Square Website: www.kasbank.com Canary Wharf Chile and Switzerland, consumers have faith in the annuity market through tighter London NORTHERN TRUST regulation of pricing and rates. E14 5LB 50 Bank Street Sackers partner Georgina Jones says: “I find it unusual that we are flying in the face Tel: 020 7500 5043 Canary Wharf of what so many other countries were doing. We seem to be a few years behind.” Website: www.citigroup.com London The report calls for an urgent cross-industry debate on the future of the life company E14 5NT and its business model, as well as for the Financial Conduct Authority, the Prudential Tel: 020 7982 2000 CLEARSTREAM INTERNATIONAL Regulation Authority and The Pensions Regulator to publish regulations together. Website: www.ntrs.com 11 Westferry Circus It also recommends that pension reform should reflect a long-term, cross-party ap- 2nd Floor proach, which Jones agrees with. London UBS LTD “If they had cross-party consensus, then we would have some faith that if the gov- E14 4HD 1 Finsbury Avenue ernment changed, we would still keep the same policies. One problem is that there are Tel: 020 7862 7000 London Website: www.clearstream.com EC2M 2PP only a handful of people of political persuasion that understand pensions.” Tel: 020 7567 8000 The Meaning of Life sets out four options that “vulnerable life companies” should Website: www.ubs.com consider when they start thinking about the future, each one requiring a large amount of structural change.
68 Professional Pensions Handbook 2016 www.professionalpensions.com 69 AB GLOBAL – CAREY CORPORATE PENSIONS COLUMBIA THREADNEEDLE – THE PENSION TRUST
AB (FORMERLY BATH ACTUARIAL CONSULTING LTD COLUMBIA THREADNEEDLE JP MORGAN ALLIANCEBERNSTEIN) PO Box 5110 INVESTMENTS Finsbury Dials 50 Berkeley Street Bath 60 St Mary Axe 20 Finsbury Street London BA1 0QY London London W1J 8HA Tel: 01225 470 036 EC3A 8JQ EC2Y 9 AQ Tel: 020 7470 0100 Website: www.bathactuarial.com Tel: 020 7464 5000 Tel: 020 7742 6000 Website: www.abglobal.com Website: www.columbiathreadneedle.co.uk Website: www.jpmorgan.com BLACKROCK AEGON 12 Throgmorton Avenue FIDELITY INTERNATIONAL LEGAL & GENERAL Edinburgh Park London 25 Cannon Street ASSET MANAGEMENT Edinburgh EC2N 2DL London One Coleman Street EH12 9SE Tel: 020 7743 3000 EC4M 5TA London Tel: 0870 6000 337 Website: www.blackrock.co.uk Tel: 020 7283 9911 EC2R 5AA Website: www.aegonse.co.uk Website: www.fidelityinstitutional.com Tel: 020 3124 3000 BNY MELLON ASSET MANAGEMENT Website: www.lgim.com AON HEWITT The Bank of New York Mellon Centre FRIENDS LIFE DC Providers 10 Devonshire Square 160 Queen Victoria Street Castle Street MERCER London London Salisbury 1 Tower Place West EC2M 4YP EC4V 4LA SP1 3SH Tower Place Tel: 0800 279 5588 Tel: 020 7163 4300 Tel: 0845 602 9189 London Website: www.aonhewitt.co.uk Website: www.bnymellonam.com Website: www.friendslife.com EC3R 5BU Tel: 020 7626 6000 Providers DC AXA WEALTH BROADSTONE CORPORATE HSBC WORKPLACE RETIREMENT Website: www.mercer.com Winterthur Way BENEFITS LTD SERVICES Basingstoke 55 Baker Street 1st Floor NEWTON FUND MANAGERS Hampshire London Norwich House LIMITED RG21 6SZ W1U 7EU Nelson Gate 160 Queen Victoria Street Tel: 01256 470 707 Tel: 020 7893 3456 Commercial Road London Website: www.axa.co.uk Website: www.broadstoneltd.co.uk Southampton EC4V 4LA SO15 GX Tel: 020 7163 9000 BAILLIE GIFFORD & CO CAREY CORPORATE PENSIONS UK Tel: 02380 722169 Website: www.newton.co.uk Calton Square LIMITED Website: www.hsbc.co.uk 1 Greenside Row 1st Floor THE PENSION TRUST Edinburgh Lakeside House INSIGHT INVESTMENT LTD Verity House EH1 3AN Shirwell Crescent Furzton Lake 160 Queen Victoria Street 6 Canal Wharf Tel: 0131 275 2000 Milton Keynes London Leeds Website: www.bailliegifford.com MK4 1GA EC4V 4LA LS1 5BQ Tel: +44 (0) 1908 336010 Tel: 020 7163 4000 Tel: 0113 234 5500 BARCLAYS CORPORATE & Website: www.careypensions.co.uk Website: www.insightinvestment.com Website: www.thepensionstrust.org.uk EMPLOYER SOLUTIONS 1 Churchill Place Canary Wharf London E14 5HP Tel: 020 7116 9000 Website: www.barclayswealth.com
70 Professional Pensions Handbook 2016 www.professionalpensions.com 71 s n e P PRUDENTIAL – ZURICH LTD s n o i s i D u o c t n PRUDENTIAL XAFINITY CONSULTING R DC Solutions Phoenix House a S Craigforth Astation Hill t trat Stirling Reading e eg y FK9 4UE Berkshire Re I Tel: 0118 968 6951 RG1 1NB tir n Website: Tel: 0118 958 3683 Strateg em y Insigh en s www.pru.co.uk/employers/corp_pensions Website: www.xafinity.com t E t I i m nvesti g er ng P ROYAL LONDON ASSET XEROX HR SERVICES g olic h Pensions Buzz Comment Feature y Should investment Governance in Reclassifying i F consultants be fully contract-based money purchase n t MANAGEMENT LTD 160 Queen Victoria Street regulated? page 22 schemes page 25 benefits page 28 g idu M E c i 55 Gracechurch Street London 20 February 2014 www.professionalpensions.com a a k r m ry London EC4V 4AN Walkingintheshoes t t e e e ofaTPASadviser s s M How three volunteers conduct their roles r page 26 A A g EC3V 0UF Tel: 0800 066 5433 e e s s s s n i Tel: 020 7506 6500 Email: [email protected] b b - - t t g a Financialc c Assistancea a Scheme M FASk k regulations offer ‘last chance’ entry n c c d d e e to ineligible schemes page 4 r a Website: www.rlam.co.uk Website: www.xerox.co.uk/hrservices t t n n o o DB Code of Practice k o o i i t t u u b b i i r r Regulator’s code branded ‘garbage’ due e a S n n to lack of guiding principles page 6 s t DC Providers h c e FCA annuity review m Did the Financial Conduct Authority’s A g e reviewintoannuitymarketsgofarenough? s s page 14 e s m SCOTTISH WIDOWS INVESTMENT ZURICH LTD - - t t e PARTNERSHIP The Grange b b fotoaloja a a n Bishop’s Cleeve c c Edinburgh One Is it time for a new towerswatson.com +44 1737 241144 [email protected] perspective on your administration? Copyright © 2013 Towers Watson. All rights reserved. TW-EU-2012-28548c. April 2013. A TowersWatsonisrepresentedintheUKbyTowersWatsonLimited 60 Morrison Street Cheltenham and Towers Watson Capital Markets Limited. k k u e e o t Edinburgh Gloucestershire d E - EH3 8BE GL52 8XX r n Tel: 0131 655 8500 Tel: 01242 511227 m l o Website: www.swip.com Website: www.zurich.co.uk Access the latest pensions insight with n e o G STANDARD LIFE Professional Pensions. Subscriben r e today.v Standard Life House c n a Edinburgh e Professional Pensions is the market EH15 1ET 45 printed issues of Professional Pensions leading source for those in the Tel: 0131 225 2552 Monthly supplements, including DC World, the occupational pensions industry. Top 100 Pension Funds and specialist reports Website: www.standardlife.co.uk The annual Professional Pensions Handbook Following an extensive, independent Exclusive access to premium content UBS GLOBAL ASSET MANAGEMENT To ensure your audience research study, Professional 21 Lombard Street UK 1 YEAR: £499 inclusion in the Pensions has been further improved to NAME: London include greater depth of analysis, insight COMPANY: EC3V 9AH 2017 and content. JOB TITLE: Tel: 020 7901 5000 Professional Pensions ADDRESS: Website: www.ubs.com Handbook Professional Pensions has taken into POSTCODE: account your information needs which can TEL: FAX: EMAIL: contact Nita Hulme be accessed whether in print, in person, online or via your smart device. I enclose cheque/banker’s draft* for £499 made payable to NOW on Incisive Financial Publishing. *(delete as applicable) +44 (0) 20 7316 9309 or You can subscribe using the form to [email protected] the right or online at: DATE: SIGNED: Send details and cheque, payable to Incisive Financial professionalpensions.com/register Publishing, to: Haymarket House, 28-29 Haymarket, London, SW1Y 4RX 72 Professional Pensions Handbook 2016
Untitled-2PP Subs Ad.indd 1 1 28/04/201418/05/2016 12:0111:28 PPPP14-AD145x210-SUBS.indd 1 17/03/2014 17:18 xerox.co.uk/hrservices EMPLOYEE BENEFITS
Is this the beginning of the end for salary sacrifice
he future for salary sacrifice schemes looks increasingly uncertain with documents released alongside the Budget showing government is looking to clamp down on the range of benefits available. Among the few surprises for pensions, the Chancellor’s Budget stated that while gov- ernmentT wants to encourage employers to offer certain benefits where employees give up salary in return for benefits-in-kind, it is concerned about the level of growth in salary sacrifice schemes. Clearance requests for salary sacrifice arrangements from employers to HMRC have increased by over 30% since 2010. It is therefore considering a limit to the range of benefits that attract income tax and NI contri- bution advantages when they are provided as part of salary sacrifice schemes. The documents point out that such arrangements enable employees to access benefits often subject to more favourable tax treatment. HELPING EMPLOYEES MAKE THE However, the intention is that pension saving, childcare and health-related benefits such as Cycle to Work should continue to benefit from income tax and NICs relief when provided through CHOICES THAT ARE RIGHT FOR salary sacrifice. It has also ruled out changes in the short term. Salary sacrifice has become increasingly common as more employers are using it to manage THEM, SO BENEFITS WORK BETTER. their pension costs due to auto-enrolment (AE) and helping their employees to save. Employers do not have to pay NI costs on their pension contributions, incentivising them to pay in more than AE minimum contributions. They often put in place salary sacrifice arrangements whereby employees agree to exchange part of their salary for an employer contribution. This includes employers sharing NI contributions with employees to keep it attractive and retain staff engagement with pensions. Therefore many are concerned that removing or limiting NI exemption on employers’ contri- butions could be a blow to pension saving. It could even undermine the future success of AE by putting pressure on the level of employer contributions. Hymans Robertson partner Paul Waters welcomes ruling out major changes for now but warns the future of salary sacrifice is at risk. “This move by the government will provoke a sigh of relief from the industry,” he says. “Cur- rently the employer makes 13.8% NI savings on all employee contributions, so if the employer shares the NI contribution the employee pays less into their savings since the NI saving goes into the employees’ pension pots. “Over the next five years the government is going to transition towards making that the main approach,” he says. “If they do that, the NI and salary sacrifice question becomes irrelevant, Life Connect from Xerox. because it becomes redundant if he changes the regime.” A tailored, easy to manage platform that’s accessible from Broadstone technical director David Brooks believes the government has fired a warning shot anywhere. Making bene ts simpler for your employees, so they to employers. He suggests the move could be a deterrent to employers using salary sacrifice, can concentrate on what’s most important. Work can work better. particularly if the government eventually decides to remove it altogether. However the Chancel- lor’s lifetime ISA (LISA) could be a compromise by offering more flexibility to employers who use less salary sacrifice. Xerox HR Consulting and Xerox HR Services are UK trading names of the following. Buck Consultants Limited (registered number 1615055), Buck Consultants (Administration & Investment) Limited (registered number 1034719) and Buck Consultants (Healthcare) Limited (registered number 172919) are private limited liability companies registered in England and Wales and all have their registered of ce at 160 Queen Victoria Street, London EC4V 4AN. Buck Consultants (Administration & Investment) Limited and Buck Consultants (Healthcare) Limited are authorised and regulated by the Financial Conduct Authority. 74 Professional Pensions Handbook 2016 ©2016 Xerox Corporation. All rights reserved. Xerox®, Xerox and Design® and Work Can Work Better are trademarks of Xerox Corporation in the United States and/or other countries.
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AEGON Conduct Authority and licensed by the With offices across the UK, we are part of Edinburgh Park Institute and Faculty of Actuaries for a range Capita plc, a FTSE100 company. Edinburgh of investment business activities. EH12 9SE Our specialist Employee Benefits and Tel: 0870 6000 337 B&CE, PROVIDER OF THE PEOPLE’S Reward team offers clients a wide range Website: www.aegonse.co.uk BARNETT WADDINGHAM LLP PENSION of benefits skills: DC pensions, Health and BARNETT WADDINGHAM LLP Manor Royal Risk Management, Flexible and Voluntary AON HEWITT Cheapside House West Sussex Benefits and our in-house agency, Creative 10 Devonshire Square 138 Cheapside RH10 9QP Sparks. London London Tel: 0800 612 8080 EC2M 4YP EC2V 6BW Website: www bandce.co.uk We are the pioneers of using data analytics Tel: 020 7086 1890 Tel: 020 7776 2200 to build effective benefits strategies that Website: www.aonhewitt.co.uk Email: [email protected] are aligned to both the organisation’s Website: www.barnett-waddingham.co.uk strategic objectives and their own specific ARTHUR J. GALLAGHER employee demographic. The Walbrook Building Contact: Damian Stancombe 25 Walbrook Our team of data scientists is helping our London EC4N 8AW Barnett Waddingham LLP is the UK’s consultants and their clients to transform Employee Benefits Employee Tel: +44 (0)20 7204 6195 largest independent provider of actuarial, the employee benefits. Come and join the Website: www.gallaghereb.com administration and consultancy services. benefits revolution. Founded in 1989 our headcount has grown CAPITA EMPLOYEE BENEFITS AWD CHASE DE VERE from 20 to over 750 today based in seven CS FINANCIAL SOLUTIONS LIMITED 65 Gresham Street CONSULTING LIMITED offices throughout the UK. 20 Chapel Street London 60 New Broad Street Liverpool EC2V 7NQ London We take a holistic approach to benefits L3 9AG
Tel: 020 7709 4500 Employee Benefits EC2M 1JJ advice, having the wellbeing of the employee Tel: 0151 255 2630 Email: [email protected] Tel: 020 7065 1700 at the centre of what we do: financial, mental Website: www.csfinancialsolutions.co.uk Website: Website: www.awdcdv.com and physical. We work with employers to set wellbeing strategies to include pensions, www.capitaemployeebenefits.co.uk DELOITTE TOTAL REWARD AND BARNES & SHERWOOD wider workplace savings, risk, wellbeing and BENEFITS Contact: Robin Hames Highbridge lifestyle benefits. 66 Shoe Lane Twitter: @Capita_EB Oxford Road London Facebook: Capita Employee Benefits Uxbridge We look at the most efficient ways to EC4A 3BQ Linkedin: www.linkedin.com/groups/ Greater London implement changes (for example, whether Tel: 020 7936 3000 Capita-Employee-Benefits-4681308 UB8 1HR to operate salary sacrifice arrangements, Website: www.deloitte.co.uk Tel: 020 7474 3700 impact upon internal processes etc.) and Best Employee Benefits Consultant Website: www.barnsher.co.uk also how best to engage employees with EQUINITI LTD VIB Awards 2015 these and the overall reward strategy. Aspect House Innovation of the Year: Spencer Road Pensions Age Awards 2015 With our Me2 technology and other in-house Lancing Firm of the Year: consultancy tools (such as GEM and BWell) West Sussex Corporate Adviser Awards 2015 we are able to help employers understand BN99 6DA their workforce and set benefit and Tel: 0117 905 6841 Capita Employee Benefits is the largest engagement strategies to ensure a return on Website: www.equiniti.com investment. UK-owned employee benefits consultancy servicing over 1,200 clients and more than Authorised and regulated by the Financial 4 million scheme members.
76 Professional Pensions Handbook 2016 www.professionalpensions.com 77 HAMISHWILSON & CO – MICHAEL J. FIELD CONSULTING MITCHELL CONSULTING ACTUARIES – STAMFORD ASSOCIATES
HAMISHWILSON & CO LLP JOHNSON FLEMING LIMITED MITCHELL CONSULTING PRICEWATERHOUSECOOPERS LLP The Byre Fleming House ACTUARIES LIMITED Hays Galleria Wheelers Lane Bromsgrove Enterprise Park Albion Wharf 1 Hays Lane Brockham Bromsgrove Albion Street London Betchworth B60 3AL Manchester SE1 2RD Surrey Tel: 01527 571 300 M1 5LN Tel: 020 7583 5000 RH3 7HJ Website: www.johnsonfleming.com Tel: 0161 236 1330 Website: www.pwc.co.uk Tel: 0870 160 5700 Website: www.mitchellconsulting.co.uk Website: www.hamishwilson.com KPMG PENSIONS PUNTER SOUTHALL Arlington Business Park NIGEL SLOAM & CO 11 Strand HARGREAVES LANSDOWN Theale, Reading Roman House London CORPORATE SOLUTIONS Berkshire 296 Golders Green Road WC2N 5HR 1 College Square South RG7 4SD London Tel: 020 3327 5000 Anchor Road Tel: 0118 373 1369 NW11 9PY Website: www.puntersouthall.com Bristol Website: www.kpmg.com/uk/pensions Tel: 020 8209 1222 BS1 5HL Website: www.nigelsloam.co.uk QUANTUM ADVISORY Tel: 0117 317 1637 LCP Summers House Website: www.h-l.co.uk Pascal Close Employee Benefits Employee 95 Wigmore Street ORIGEN FINANCIAL SERVICES LTD London 1st Floor, Infor House St. Mellons HS ADMINISTRATIVE SERVICES LTD W1U 1DQ 1 Lakeside Road Cardiff 3300 Daresbury Park Website: www.lcp.uk.com Farnborough CF3 OLW Daresbury Hampshire Tel: 029 8083 7900 Cheshire Contact: Aiden Coloe GU14 6XP Website: www.quantumadvisory.co.uk WA4 4HS Title: Partner & Head of Employee Benefits Tel: 0844 209 3000 Tel: 01928 707 900 Consulting Website: www.origenfs.co.uk RUSSELL INVESTMENT LTD Website: www.hsadmin.com Tel: +44 (0)20 7439 2266 Rex House Employee Benefits Fax: +44 (0)20 7439 0183 PARTRIDGE MUIR & WARREN LTD 10 Lower Regent Street HYMANS ROBERTSON Email: [email protected] Tolworth Tower London One London Wall Ewell Road SW1Y 4PE London MERCER Surbiton Tel: 020 7024 6000 EC2Y 5EA 1 Tower Place West Surrey Website: www.russell.com Tel: 020 7082 6000 Tower Place KT6 7EL Website: www.hymans.co.uk London Tel: 020 8339 9900 SMITH & WILLIAMSON EMPLOYEE EC3R 5BU Website: www.pmw.co.uk BENEFIT CONSULTANTS JLT EMPLOYEE BENEFITS Tel: 020 7626 6000 25 Moorgate The St Botolph Building Website: www.mercer.com PREMIER COMPANIES LIMITED London 138 Houndsditch 8th Floor EC2R 6AY London MICHAEL J. FIELD AMP House Tel: 020 7131 4000 EC3A 7AW CONSULTING ACTUARIES Dingwall Road Website: www.smith.williamson.co.uk Tel: 020 7528 4000 8 St Stephen Street Croydon Website: www.jltgroup.com/eb Manchester Surrey STAMFORD ASSOCIATES LIMITED M3 6AY CRO 2LX 19-21 Old Bond Street Tel: 0161 834 3297 Tel: 020 8663 5800 London Website: www.michaeljfield.com Website: www.premierpensions.co.uk W1S 4PX Tel: 020 7629 5225 Website: www.stamfordassociates.com
78 Professional Pensions Handbook 2016 www.professionalpensions.com 79 TOWRY GROUP – XEROX EMPLOYER COVENANT
TOWRY GROUP Towry House Employer Covenant Working Group Western Road Bracknell launches and issues first guidance Berkshire XEROX HR SERVICES RG12 1TL 160 Queen Victoria Street he Employer Covenant Working Group (ECWG) announced its formal launch in April London Tel: 01344 828 000 2016 as it published a guide for advisers, trustees and sponsors of defined benefit EC4V 4AN Website: www.towrylaw.com (DB) schemes. Tel: 0800 066 5433 It is a group of industry experts that will work in collaboration with trustees, sponsors UBS AG Email: [email protected] Website: www.xerox.co.uk/hrservices Tand regulators to address the issues facing schemes in regards to covenant advisory work. 3 Finsbury Avenue The ECWG guidance explores how to assess the employer covenant as part of an integrated London approach to managing scheme risks, monitoring the covenant and on occasion taking action EC2M 2AN Xerox HR Services is an established, leading Tel: 020 7567 5757 provider of consulting, administration and to agree a recovery plan. Website: www.ubs.com/uk outsourcing services to fulfil the pensions It lays out practical principles that underpin independent covenant assessments including and benefits needs of you and your key considerations in a variety of circumstances such as scheme mergers, corporate employees/scheme members. We work WEALTH AT WORK transactions and clearance applications. with our clients to deliver tailored, innovative It also looks at depositing cash into a scheme centred on payments of contributions for Employee Benefits Employee 5 Temple Square solutions across health, risk and wellbeing, Temple Street benefit accrual, potential shortfall of assets relative to liabilities and any downside experience in flexible benefits, share plans, and DB and Liverpool DC pension schemes for both trustees and a scheme’s agreed investment strategy. L2 5RH corporates alike. Legal obligations for trustees to identify and consider were also discussed in the 32-page Tel: 0800 234 6880 document along with the integrated risk management aspect of a scheme’s strategy. Website: www.wealthatwork.co.uk We aim to help you effectively manage It said there are circumstances where the provision of external professional advice regarding the full range of your HR, pension, and employer covenant would be appropriate. WILLIS TOWERS WATSON benefits programmes, whilst engaging your Watson House employees/scheme members in their health, London Road More to come wealth, and career. We integrate our years of Reigate The guidance is the first of several that the working group plans to launch. ECWG chair and experience with current day expertise and a Surrey AlixPartners managing director Gary Squires said: customer partnership approach, to help you RH2 9PQ “There are still 11 million people in 6,000 DB pension schemes in the UK. The 2015 Purple overcome your challenges. Tel: 01737 241144 Book published jointly by the Pension Protection Fund (PPF) and The Pension Regulator (TPR) Website: www.willistowerwatson.com Our consultants are proactive, commercial, discloses these schemes collectively face a solvency deficit of some £800bn at present. balanced, and professional, focused on “This funding gap ultimately needs to be filled by investment returns and employer XAFINITY CONSULTING meeting and exceeding the needs of our contributions for a considerable time into the future. The PPF safety net covers well under half Phoenix House clients. By harnessing technology of the of this collective deficit and the vast majority of employers would not want their schemes and Astation Hill future, and the power of Xerox’s global reach, their members to have to rely upon its use. Reading we can help you to achieve your goals. “Given the scale of the challenge it’s clear that there is a need for a consistent approach to Berkshire addressing funding deficits and the members of the ECWG’s work assisting trustees, scheme RG1 1NB Tel: 0118 958 3683 sponsors and regulators in considering an employer’s ability to pay contributions into the Website: www.xafinity.com future, is vitally important to help secure the retirement of millions of people.” Society of Pension Professionals chair Duncan Buchanan added: “The formation of the Employer Covenant Working Group and the publication of its principles guidance will be a useful addition for pension scheme trustees undergoing their tri-annual evaluations particularly at times such as this when the funding levels of schemes are tending towards deficits and therefore further reliance has to be placed on the employer covenant.”
80 Professional Pensions Handbook 2016 www.professionalpensions.com 81 ALIXPARTNERS SERVICES – EY LLP FRP ADVISORY LLP – LCP
BARBER HARRISON & PLATT 2 Rutland Park HYMANS ROBERTSON Sheffield 1 London Wall S10 2PD London ALIXPARTNERS Tel: 0114 266 7171 EC2Y 5EA 6 New Street Square Website: www.bhp.co.uk erpearce.com Tel: 020 7082 6000 London Website: www.hymans.co.uk EC4A 3BF BDO LLP Tel: 020 7332 5000 55 Baker street FRP Advisory LLP JACKAL ADVISORY Fax: 020 7332 5001 London Principal Office Level 19 Website: www.alixpartners.com W1U 7EU 110 Cannon Street Portland House Tel: 020 7486 5888 London Bressenden Place Contact: Gary Squires Website: www.bdo.co.uk EC4N 6EU London Email: [email protected] Website: www.frppensions.com SW1E 5RS CHANTRY VELLACOTT DFK Tel: 020 8282 6008 AlixPartners is a leading global business Russell Square House Contact: Gerald Smith Website: www.jackaladvisory.co.uk advisory firm of results-oriented 10/12 Russell Square Tel: +44 (0) 121 710 1680 professionals who specialise in creating London Email: [email protected] KPMG LLP value and restoring performance. We thrive WC1B 5LF Arlington Business Park Employer Covenant on our ability to make a difference in high- Tel: 020 7509 9000 Theale, Reading impact situations and deliver sustainable, Website: www.cvdfk.com Berkshire bottom-line results. RG7 4SD CLASHSTREETCO LLP GAZELLE PENSIONS ADVISORY Tel: 0118 373 1369 Our Pensions Advisory Services team No1 Leeds 41 Devonshire Street Website: www.kpmg.com/uk/pensions has market leading experience in helping 26 Whitehall Road London trustees and sponsors of defined benefit Leeds W1G 7AJ LCP pension schemes to understand the West Yorkshire Tel: 020 7182 7220 95 Wigmore Street Covenant Employer strength of the employer covenant LS12 1BE Fax: 020 7182 7230 London supporting schemes and the implications Tel: 0113 8000 250 Website: www.gazellegroup.co.uk W1U 1DQ for funding decisions. We have the Website: www.clashstreetco.com Tel: +44 (0)20 7439 2266 expertise and an insightful, commercial, Contact: Simon Willes, Donald Fleming, Fax: +44 (0)20 7439 0183 collaborative approach to providing robust CROWE CLARK WHITEHILL LLP Deborah Gudgeon Website: www.lcp.uk.com analysis and commercial advice to help St Bride’s House Email: [email protected] you achieve the optimal outcome. We are 10 Salisbury Square GRANT THORNTON UK LLP often engaged in the following situations: London 30 Finsbury Square Contact: James Atherton
EC4Y 8EH London Title: Partner Tel: 020 7842 7100 EC2P 2YU Contact: Jonathan Wolff • Scheme specific valuations and Website: www.croweclarkwhitehill.com Tel: 020 7728 2433 Title: Senior Consultant monitoring Website: www.grant-thornton.co.uk • Scheme events • Corporate restructuring, transactions EY LLP and clearance applications 1 More London Place HAYSMACINTYRE • Financial stress and distress London 26 Red Lion Square • Regulatory proceedings SE1 2AF London • Expert witness Tel: 020 7951 2000 WC1R 4AG Tel: 0118 928 1100 Tel: 020 7969 5500 Website: www.ey.com/uk Website: www.haysmacintyre.com
82 Professional Pensions Handbook 2016 www.professionalpensions.com 83 LINCOLN PENSIONS – RSM FIDUCIARY MANAGEMENT
PRICEWATERHOUSECOOPERS LLP IC Select to launch fiduciary 7 Moor London Riverside London management performance standard SE1 2RT Tel: 020 7804 0953 C Select has developed a standard to improve transparency and consistency of Website: www.pwc.co.uk/pensions performance information across the fiduciary management sector. The standard, which will be launched by the end of 2016, will provide trustees with RENDLE & CO performance data calculated on a consistent basis and presented in a standardised No 9 Hockley Court Imanner to improve understanding. Hockley Heath Solihull A steering group headed up by IC Select has been established, made up of a selection LINCOLN PENSIONS B94 6NW of evaluation firms, independent trustee firms and legal representation. Orion House Tel: 01564 783777 The group held its inaugural meeting in March 2016 and is currently collating and St Martin’s Lane Website: www.rpendle.com analysing data from the fiduciary managers using the new standard. London WC2H 9EA This will determine the consistency of composite construction across the RSM Tel: 020 7022 9880 management firms. It may also avoid the often heard complaint that fiduciary managers 25 Farringdon Street Website: www.lincolnpensions.com cherry pick their best funds to demonstrate their investment process even if they are London
Employer Covenant not fit for a prospective pension fund. EC4A 4AB Contact: Darren Redmayne Results from this analysis will be fed back to fiduciary managers to allow them to Tel: 020 3201 8000 Title: Head of Lincoln Pensions consider the construction of their composites. Following this process the managers Website: www.bakertilly.co.uk Email: [email protected] will have the opportunity to amend their composites before re-submitting data based on their new composites. The performance data is expected to be available for use by MERCER trustees and third party evaluators later this year. 1 Tower Place West It comes as the practice is set for growth in 2016 with fiduciary management London becoming an integral part of the UK pension fund landscape. However, managers may EC3R 5BU Tel: 020 7626 6000 also come under increasing pressure to show they have delivered the promised goods. Website: www.mercer.com There are also challenges given the disparate nature of the mandates and risk profiles, but there are independent providers trying to produce a more standardised approach MOORE STEPHENS LLP for performance. 150 Aldersgate Street IC Select managing director and steering group chair Peter Dorward said: “The London To ensure your standard may be refined over time but is very much as we expect it to be largely EC1A 4AB implemented. Tel: 020 7334 9191 inclusion in the “An overriding theme is how a trustee can look at a fiduciary manager and understand Website: www.moorestephens.co.uk 2017 how that manager is performing, what makes them tick and what the end result of their performance may be. Here there has historically been a lack of transparency. PENFIDA PARTNERS LLP Professional Pensions “Over the last two years or so we have developed a standard for fiduciary 1 Carey Lane Handbook management performance reporting which has now got a steering group which London oversees the standard and has now been bought into by the major fiduciary managers. EC2V 8AE contact Nita Hulme “This will resolve the issue of lack of transparency around the way they demonstrate Tel: 020 7337 4100 NOW on their performance record but also how they calculate their performance when they’re in Website: www.penfida.co.uk +44 (0) 20 7316 9309 or a position of trying to pitch for business with a board of trustees.” [email protected]
84 Professional Pensions Handbook 2016 www.professionalpensions.com 85 ALLIANZ GLOBAL INVESTORS – SEI INVESTMENTS HEDGE FUND PROVIDERS
ALLIANZ GLOBAL INVESTORS KEMPEN FIDUCIARY MANAGEMENT EUROPE GmbH 60 Cannon Street Overhauling hedge fund strategies 199 Bishopsgate London London EC4N 6NP after fee concerns EC2M 3TY Tel: 0207 002 1422 Tel: 020 7859 9000 Website: Website: www.allianzgi.com www.kempen.nl/uk/fiduciarymanagement oncerns over high fees and disappointing performance have led to reviews of hedge funds in pension fund portfolios. AON HEWITT NORTHERN TRUST Schemes are looking to increase their control of asset allocation in hedge funds 10 Devonshire Square 50 Bank Street and move away from fund of funds structures, according to State Street asset London Canary Wharf ownerC solutions managing director Ian Hamilton. He said many schemes still perceive fund of EC2M 4YP London funds arrangements as too expensive. This is due to paying for the underlying hedge funds as Tel: 0800 279 5588 E14 5NT well as the running of them. Website: Tel: 020 7982 2000 But he said UK schemes were unlikely to follow the lead of the largest US pension fund, Website: www.northerntrust.com www.aonhewitt.co.uk/delegatedconsulting Calpers, which in 2014 announced it was pulling out of hedge funds. He said: “We think hedge fund allocation is going to increase and that is where people are BNP PARIBAS INVESTMENT RIVER AND MERCANTILE GROUP looking to take more control rather than reduce allocation and have the right mix and blend of PARTNERS UK LTD 11 Strand hedge funds. 5 Aldermanbury Square London “They then have them on the right infrastructure like managed accounts so they can get the London WC2N 5HR Tel: 020 3327 5100 control they require. Then they are paying a fee which is good value for the return they Fiduciary Management Fiduciary EC2V 7BP Tel: 020 7595 2000 Website: www.psolve.com are getting.” Website: www.bnpparibas-ip.com In November last year Clwyd Pension Fund changed its hedge fund strategy to generate RUSSELL INVESTMENTS cost efficiencies and protect against volatility, following a major investment review. CARDANO RISK MANAGEMENT B.V. Rex House The £1.4bn local government fund moved its 13% hedge fund allocation from four previous 9th Floor 10 Lower Regent Street managers into a managed account platform run by Man FRM, through which Clwyd will 6 Bevis Marks London allocate 9% of its assets. SW1Y 4PE London The strategy includes exposure to managed futures for the first time, with just 3% exposure Tel: 020 7024 6000 EC3A 7BA to hedge funds and 6% to managed futures, according to the fund’s 2015 annual report. It said Tel: 020 3170 5910 Website: www.russell.com/uk investing in managed futures will protect against market volatility, particularly on the downside. Website: www.cardano.com SEI INVESTMENTS LTD Managed futures are an alternative investment strategy aimed at giving portfolio diversification GOLDMAN SACHS 1st Floor among various types of investment styles and asset classes to help mitigate risk. ASSET MANAGEMENT Alphabeta Clwyd’s revamped portfolio replaced previous allocations to Liongate, SSARIS, BlueCrest, Christchurch Court 14-18 Finsbury Square and Duet which have run various hedge fund strategies for the scheme. 10 - 15 Newgate Street London These changes came on the back of a fundamental investment strategy review by the fund’s London EC2A 1BR investment consultant JLT Employee Benefits, which discovered opportunities to reduce risk EC1A 7HD Tel: 020 3810 8000 without sacrificing returns. Website: www.gsam.com Website: www.seic.com Clwyd pension fund manager said in a statement: “We look forward to working closely with Man FRM to build a diversified hedge fund portfolio that will provide the best solution for the Clwyd Pension Fund as part of the overall investment strategy. “Man FRM’s managed account solution provides our fund with ownership of the hedge fund investments, but also allows for high levels of transparency of the underlying holdings, a factor which is not always available through the traditional fund of funds offering. In addition, Man FRM’s tailored solution for LGPS funds provides a material collaboration opportunity for all LGPS funds looking to invest in hedge funds.”
86 Professional Pensions Handbook 2016 www.professionalpensions.com 87 ALLENBRIDGE IS – KEY ASSET LGT CAPITAL – NGAM UK
ALLENBRIDGE IS DEUTSCHE BANK MESIROW FINANCIAL 26th Floor Winchester House INTERNATIONAL UK LTD 125 Old Broad Street 1 Great Winchester Street Sackville House London London LGT CAPITAL PARTNERS Fifth Flour EC2N 1AR EC2N 2DB Schuetzenstrasse 6 40 Piccadilly Tel: 020 7079 1000 Tel: 020 7545 8000 PO Box 8808 Pfaeffikon London Website: www.allenbridgeis.com Website: www.deutsche-bank.com Switzerland W1J 0DR Tel: +41 55 415 9600 Tel: 020 7851 1700 AMUNDI ALTERNATIVE GOLDMAN SACHS INTERNATIONAL Fax: +41 55 415 9698 Website: www.mesirowfinancial.com INVESTMENT Christchurch Court Website: www.lgtcp.com 41 Lothbury 10 - 15 Newgate Street MOMENTUM GLOBAL INVESTMENT London London Contact: Raphael Paglia MANAGEMENT EC2R 7HF EC1A 7HD Email: [email protected] The Rex Building Tel: 020 7074 9300 Tel: 020 7774 1000 Tel: +41 55 415 96 29 62 Queen Street Website: www.amundi-ai.com Website: www.gs.com London • Outstanding track record – 18 years EC4R 1EB ASPECT CAPITAL LTD HERMES INVESTMENT experience in generating attractive risk- Tel: 020 7489 7223 10 Portman Square MANAGEMENT adjusted returns London Lloyds Chambers • Significant asset base – Over USD 50 MORGAN STANLEY W1H 6AZ 1 Portsoken Street billion in assets under management INVESTMENT MANAGEMENT • Strong alignment of interests – Team and Tel: 020 7170 9700 London 25 Cabot Square shareholder invest in own programs Website: www.aspectcapital.com E1 8HZ Canary Wharf Hedge Fund Providers Hedge • Large, international team – 350 people Tel: +44 (0)20 7702 0888 London representing 41 nationalities BDO LLP Website: www.hermes-investment.com E14 4QA • Global client base – 400 sophisticated 55 Baker Street Tel: 020 7425 8000 institutional investors in 35 countries London INTERNATIONAL ASSET Website: www.morganstanley.co.uk W1U 7EU MANAGEMENT LTD MAN INVESTMENTS Tel: 020 7486 5888 11A Regent Street NEWEDGE GROUP (UK BRANCH) Riverbank House Website: London 10 Bishops Square 2 Swan Lane www.bdo.co.uk/investmentmanagement SW1Y 4LR London
London Hedge Providers Fund Tel: 020 7734 8488 E1 6EG EC4R 3AD BLACKROCK Website: www.iam.uk.com Tel: 020 7676 8000 Tel: 020 7144 1000 12 Throgmorton Avenue Website: www.newedgegroup.com Website: www.maninvestments.com London KEY ASSET MANAGEMENT EC2N 2DL 2-6 Cannon Street NGAM UK LTD MARTIN CURRIE INVESTMENT Tel: 020 7743 3000 London One Carter Lane Website: www.blackrock.co.uk EC4M 2XX MANAGEMENT LTD London Tel: 020 7246 5700 Saltire Court EC4V 5ER CAZENOVE CAPITAL Website: www.keyhedge.com 20 Castle Terrace Tel: 020 3405 2173 MANAGEMENT LIMITED Edinburgh Website: www.ngam.natixis.co.uk EH1 2ES 12 Moorgate Tel: 0131 229 5252 London Website: EC2R 6DA www.martincurrie.com/ukinstitutional Tel: 020 3479 1000 Website: www.cazenovecapital.com
88 Professional Pensions Handbook 2016 www.professionalpensions.com 89 NORTHERN TRUST – SLATER INVESTMENTS o i s n e P D s n o c s i NORTHERN TRUST GLOBAL SLATER INVESTMENTS LTD n u INVESTMENTS (EUROPE) LTD Nicholas House t 50 Bank Street 3 Lauerence Poutney R London London a Str E14 5NT EC4R 0EU te ate Tel: 020 7982 2000 Tel: 020 7220 9460 gy Website: www.ntrs.com Website: www.slaterinvestments.com Re I tire n OLD MUTUAL ASSET Strategy I m MANAGERS (UK) LIMITED nsigh en s t E t In i 2 Lambeth Hill m vestin g g London er r r g Po h h EC4P 4WR g g licy n n i i Fi t t Tel: 020 7332 7500 g g du Website: www.omam.co.uk M M ci a a m m E E E E E ar e e k k r r y OLYMPIA CAPITAL MANAGEMENT s s t t r r e e M s s A A i i g g 4 th Floor - - t t e e s s g g n n a 2 Duke Street c c a a b b M M c c d d e e k k r r a a n n St James’s t t n n o o Pensions Buzz Comment Feature k k o i t u b b i i r r Should investment Governance in Reclassifying e e a a S n consultants be fully contract-based money purchase s s t t m e h c regulated? page 22 schemes page 25 benefits page 28 A A London s e s s g g SW1Y 6BJ e e s s m m Hedge Fund Providers Hedge 20 February 2014 www.professionalpensions.comt t Tel: 020 7389 9900 b b - - e e Walkingintheshoesa a n n Website: www.olympiagroup.com ofaTPASadviser How three volunteers conduct their roles c c page 26 k k u u u A A A A PAAMCO Financial Assistance Scheme e e FAS regulations offer ‘last chance’ entry t t 25 Victoria Street to ineligible schemes page 4 o o DB Code of Practice - Regulator’s code branded ‘garbage’ due d to lack of guiding principles page 6 E London FCA annuity review n Did the Financial Conduct Authority’s reviewintoannuitymarketsgofarenough? r SW1H 0EX page 14 m l o Tel: 020 7593 5360 e Website:: www.paamco.com n
fotoaloja o G Is it time for a new towerswatson.com +44 1737 241144 [email protected] Unrivalledv coverage perspective on your administration? Copyright©2013TowersWatson.Allrightsreserved. RASINI & CO LIMITED TW-EU-2012-28548c. April 2013. e TowersWatsonisrepresentedintheUKbyTowersWatsonLimited To ensure your and Towers Watson Capital Markets Limited. a n r 32 Duke Street e c n St James’s inclusion in the London Professional Pensions continues to be the market leading source SW1Y 6DF 2017 for those in the occupational pensions industry. Tel: 020 7766 7600 Professional Pensions Print Online Events Tablet Website: www.rasini.co.uk Following an extensive, independent audience research study, Handbook Professional Pensions has been further improved to include SCHRODERS PLC contact Nita Hulme greater depth of analysis, insight and content. 31 Gresham Street Professional Pensions has taken into account your information London NOW on needs which can be accessed whether in print, in person, online EC2V 7QA +44 (0) 20 7316 9309 or or via any smart device. Tel: 020 7658 6000 Website: www.schroders.com [email protected] www.professionalpensions.com 90 Professional Pensions Handbook 2016
PPPP14-AD145x210-launchPP house ad.indd 1 ad.indd 1 20/03/201425/05/2016 14:4516:04 INDEPENDENT TRUSTEES 2020 TRUSTEE SERVICES – DENTONS UKMEA
2020 TRUSTEE SERVICES LTD BLAKE LAPTHORN Independent trustees in demand St Nicholas Court New Kings Court 25-27 Castle Gate Tollgate Nottingham Chandler’s Ford NG1 7AR Eastleigh he use of independent trustees within pension schemes in the UK is no longer the Tel: 0115 941 1031 Southampton novelty it once was. Website: www.2020trustees.co.uk SO53 3LG Trustee boards – and employers – are increasingly engaging with professional Tel: 023 8090 8090 trustees to bolster their scheme’s governance, usually for a perceived lack of skill in ATKIN TRUSTEES LTD Website: www.bllaw.co.uk Tone or more crucial area of expertise. Cornwall House Clearly, they are considered an important component of a properly functioning scheme, yet, Blythe Gate BRIDGE TRUSTEES LIMITED Blythe Valley Park 115 Colmore Row there are concerns about how they are appointed. There is no prescribed method – nor wish for Solihull Birmingham one – of appointing an independent, but to what extent do schemes conduct their recruitment West Midlands B3 3AL process with the same levels of governance they aspire to apply once that individual is on board? B90 8AF Tel: 0845 497 9797 The Hymans Robertson Independent Trustee Survey 2015 found that the use of professional, Tel: 0121 506 8200 Website: www.bridgetrustees.com independent trustees does indeed improve scheme governance because the individuals are Website: www.atkintrustees.com generally better prepared to face the challenges facing UK schemes, particularly in defined CAPITA TRUST COMPANY LTD benefit (DB). B & CE BENEFIT SCHEMES 4th Floor So it confirms there is an advantage to be had, though like any other tender process it should (The People’s Pension) 40 Dukes Place be done in an impartial and systematic way. Manor Royal London Many appointments of independent trustees are done on the basis of recommendation. They Crawley EC3A 7NH are then invited to interview and given an hour in which to make a mess of the appointment. West Sussex Tel: 020 3367 8200 RH10 9QP Website: www.capitafiduciary.com Many would argue their process is more robust than that, but there is plenty of anecdotal Tel: 08457 41 41 42 evidence to show that most candidates are not subject to the rigours a consultant or fund Website: www.bandce.co.uk CAPITAL CRANFIELD TRUSTEES manager might expect. Of course, independent trustees are not advisers, but does that mean 5th Floor their appointment could be seen as inconsistent? BERKELEY BURKE New Liverpool House Sarah Smart, chairperson at The Pensions Trust believes UK schemes need to up their Berkeley Burke House 15-17 Eldon Street game when it comes to appointing independent trustees. Regent Street London She says trustee appointments – and non-executive directors – often do not receive the due Leceister EC2M 7LD diligence of other adviser interviews. LE1 7BR Tel: 020 7012 8700 Independent Trustees Independent The greatest single failing according to Smart is the reliance on a single one-hour interview in Tel: 0116 204 2988 Website: www.cctl.co.uk which to assess a candidate. Website: www.berkeleyburke.com “You cannot possibly assess the abilities of a trustee director – let alone a chair of trustees – DALRIADA TRUSTEES LIMITED under such circumstances,” says Smart. BESTRUSTEES PLC 1 Berkeley Street Five Kings House This requires a much fuller process that might include presentations but she would prefer London 1 Queen Street Place W1J 8DJ to see a more dynamic session where a candidate is put through their paces in a live environ- London Tel: 020 7495 5515 ment with some or all of the rest of the trustee board they would be working with. EC4R 1QS Website: www.dalriadatrustees.co.uk “This would give them an opportunity to demonstrate how they work with people, demon- Tel: 020 7332 4100 strate problem-solving skills and whether, while you’re in the same room, the trustees feel this Website: www.bestrustees.co.uk DENTONS UKMEA LLP is something that they could work with.” 1 Fleet Place Without a more inclusive and dynamic process, especially with member-nominated trustees London (MNTs) who may feel unable to challenge the views of other board members, there is danger EC4M 7WS of groupthink confirming a candidate who has been recommended by another individual or Tel: 020 7242 1212 group of individuals they trust. Website: www.dentons.com
92 Professional Pensions Handbook 2016 www.professionalpensions.com 93 MICHAEL J. FIELD – OPEN TRUSTEES PAN TRUSTEES – WEDLAKE BELL PENSION
MICHAEL J. FIELD CONSULTING IPM TRUSTEES LTD PAN TRUSTEES LTD REEDSMITH LLP ACTUARIES 3 Victoria Court 3 Castlefield Court The Broadgate Tower 8 St Stephen Street Bank Square Church Street 20 Primrose Street Manchester Morley Reigate London M3 6AY Leeds RH2 0AH EC2A 2RS Tel: 0161 834 3297 LS27 9SE Tel: 01737 222402 Tel: 020 3116 3000 Website: www.michaeljfield.com Tel: 0845 130 3223 Website: www.pantrustees.co.uk Website: www.reedsmith.com Website: www.ipm-pensions.co.uk HANOVER TRUSTEE CO LTD PITMANS TRUSTEES LIMITED ROWANMOOR GROUP PLC 824 Salisbury House LAWDEB PENSION TRUSTEES 47 Castle Street Rowanmoor House London Wall Fifth Floor Reading 46-50 Castle Street London 100 Wood Street Berkshire Salisbury EC2M 5QQ London RG1 7SR Wiltshire Tel: 020 7588 8406 EC2V 7EX Tel: 0118 957 0610 SP1 3TS Website: www.hanover-pensions.co.uk Tel: 020 7606 5451 Website: www.pitmanstrustees.com Tel: 03445 440 440 Website: www.lawdeb.com Web: www.rowanmoor.co.uk HR TRUSTEES LTD Xafinity House LYONS DAVIDSON TRUSTEE NIGEL SLOAM & CO 42-62 Greyfriars Road COMPANY LIMITED Roman House Reading Victoria House 296 Golders Green Road RG1 1NN 51 Victoria Street PS INDEPENDENT London Tel: 0118 958 3683 Bristol TRUSTEES LIMITED NW11 9PY Website: www.hrtrustees.com BS1 6AD Albion Tel: 020 8209 1222
Independent Trustees Tel: 0117 904 6000 Fishponds Road Website: www.nigelsloam.co.uk INDEPENDENT TRUSTEE LIMITED Website: www.lyonsdavidson.co.uk Wokingham 6th Floor Berks TEMPLE TRUSTEES LIMITED 20 Gresham Street OFA TRUSTEE SERVICES LIMITED RG41 2QE One Glass Wharf London 36 East Stockwell Street Tel: 0845 313 0024 Bristol EC2V 7JE Colchester Fax: 0118 313 0701 BS2 0ZX Tel: 020 7329 6699 Essex Website: www.psitl.com Tel: 0117 939 2000 Website: www.sackers.com CO1 1ST Website: www.burges-salmon.com Tel: 01206 761 252 Contact: Suzi Lowther Independent Trustees Independent INDEPENDENT TRUSTEE SERVICES Website: www.offord-fenning.com Email: [email protected] TRUSTEE SOLUTIONS LIMITED The St.Botolph Building 3 Colmore Circus 138 Houndsditch OPEN TRUSTEES LTD RADCLIFFE & CO Birmingham London 2 Temple Back East (LIFE & PENSIONS) LTD B4 6BH EC3A 7AW Temple Quay Thomas House Tel: 0121 623 8686 Tel: 020 7558 3163 Bristol 28-30 Bernard Street Website: www.trusteesolutions.co.uk Website: www.itslimited.co.uk BS1 6EG Southampton Tel: 0117 917 3000 SO14 3AY WEDLAKE BELL PENSION Website: www.openrtrustees.com Tel: 02380 222 444 TRUSTEES LIMITED Website: www.radcliffe-ifa.co.uk 52 Bedford Row London WC1R 4LR Tel: 020 7395 3000 Website: www.wedlakebell.com
94 Professional Pensions Handbook 2016 www.professionalpensions.com 95 WILLIS TOWERS WATSON – XEROX HR SERVICES INSURANCE COMPANIES
WILLIS TOWERS WATSON Watson House L&G buys Aegon’s £3bn London Road Reigate The annuity book Surrey RH2 9PQ Professional Tel: 01737 241144 n May it was announced Aegon had sold the final third of its UK annuity portfolio to Legal & Website: www.willistowerwatson.com Pensions General (L&G) as part of its strategy to free up capital from non-core business. The purchase consists of £3bn of Aegon’s annuity book including around 27,000 policy- XEROX HR SERVICES Handbook 2016 holders, after it sold £6bn of the portfolio to Rothesay Life in April. 160 Queen Victoria Street IUnder the terms of the agreement Aegon will initially reinsure £3bn of liabilities to L&G London followed by a Part VII transfer. After this transfer has been completed the policyholders will EC4V 4AN become L&G customers. L&G has chosen not to reinsure the longevity risk in relation to this Tel: 0800 066 5433 transaction. Email: [email protected] Website: www.xerox.co.uk/hrservices The Solvency II ratio of Aegon’s UK operations is expected to increase by an estimated 15% following the reinsurance transaction with L&G, and another 5% following the Part VII transfer. In contrast, the transaction has decreased L&G’s Solvency II surplus by £50m and coverage ratio by 3%. Aegon also expects its annual capital generation from its UK operations to fall by approxi- mately £30m while underlying earnings before tax are expected to be reduced by some £16m per annum. Aegon now has around £1bn annuity liabilities remaining through an inward reinsurance Independent Trustees transaction. The life insurance company has not been an active player in the UK annuity market since 2010. The divestment of the annuity portfolio significantly reduces Aegon’s exposure to both longevity and credit risk. It will now focus on further accelerating the growth of its platform and protection business. L&G retirement managing director Kerrigan Procter said: “We are delighted Aegon has chosen us to secure its policyholders’ annuities. Back book annuity risk transfer deals can be executed efficiently under our post-Solvency II model. In the UK there is an estimated £100bn To ensure your of individual annuities in back books and we expect further consolidation of these back books.” inclusion in the Aon Hewitt partner Paul Belok said: “Insurers such as L&G and Rothesay Life who are picking up these back book deals are the same ones that are also bidding for pension scheme buy-ins 2017 and buy-outs. The question therefore is whether these back book deals will affect the insurers’ level of appetite for bulk annuities. Handbook “It is possible there will be a slight hiatus whilst they digest large scale back books before re- focussing on bulk annuities, but we would not expect this to be for an extended period. contact Nita Hulme “In the meantime, at this stage there are sufficient other participants to ensure the bulk annu- NOW on ity market remains competitive, and our experience is that pension schemes with appetite to transact are able to obtain attractive terms,” he added. +44 (0) 20 7316 9309 or Hymans Robertson partner James Mullins said: “Post Solvency II, we’re seeing a divide in the insurance market between those who no longer see annuities as a key business line, and those [email protected] keen to build their business in this area. This is leading to a series of back book transactions as insurers refocus on other types of business and free up capital in order to do so.”
96 Professional Pensions Handbook 2016 www.professionalpensions.com 97 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 Insurance Companies Insurance Potters Bar Tel: 01737 370 370 SKANDIA LIFE ASSURANCE 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 GROUP LIMITED Tel: 020 7647 1600 Tel: 023 8033 4411 PO Box 28121 Website: www.lucidaplc.com Website: www.skandia.co.uk To ensure your Insurance Companies 15 Dalkeith Road Edinburgh PHOENIX LIFE GROUP STANDARD LIFE inclusion in the EH16 9AS 301 St. Vincent Street 30 Lothian Road 2017 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]
98 Professional Pensions Handbook 2016 www.professionalpensions.com 99 INVESTMENT CONSULTANCY AON HEWITT – KPMG LLP
AON HEWITT Challenging consultants on 10 Devonshire Square London investment advice EC2M 4YP KPMG LLP Tel: 0800 279 5588 Arlington Business Park Website: www.aonhewitt.co.uk Theale s fiduciaries looking after savers’ pensions, it is absolutely crucial for trustees to Reading BARKER TATHAM question any advice they receive. Berkshire Dingwall Toad Yet research by SEI Institutional Group and IFF Research has found that despite RG7 4SD Croydon the amount of power trustees have, they lack confidence to challenge advice from Tel: 0118 373 1369 Surrey investmentA consultants. Fax: 0118 373 1373 CR0 2LX The survey of 100 DB trustees in September 2015 revealed just one always reached “their Website: www.kpmg.com/uk/pensions Tel: 020 8603 7131 own conclusions” and 59% did not frequently consider alternatives to their consultants’ Website: www.barkertatham.com recommendations. Contact: Ray Pygott Email: [email protected] SEI Institutional Group managing director Patrick Disney said: “The fact is the investment BARNETT WADDINGHAM LLP consultant is metaphorically put up on a platform where his or her advice is handed down. Cheapside House Our pension team of over 400 people This is the sort of relationship which does not make for a lot of collaboration. There is a heavy 138 Cheapside advise all sizes of pension funds and our reliance where the key inputs/advice is not directly aligned with the final outcome of the fund.” London clients include some of the biggest pension The firm said it was likely many trustees did not feel confident or knowledgeable enough to EC2V 6BW schemes in the UK right through to small question the advice they were given from their advisers. “Hence why there should be a devil’s Tel: 020 7776 2200 and medium sized pension schemes. advocate or someone with knowledge, say an independent trustee who is on the board who Website: www.barnett-waddingham.co.uk We have offices in London, Reading, can challenge it,” he added. Bristol, Birmingham, Manchester, Leeds, BFINANCE UK LIMITED The present model did not allow trustees to be constantly aware of the funding position of Edinburgh and Glasgow Clareville House their scheme. “It seems clear that a more accountable advisory model is needed where fees 26-27 Oxendon Street are based on results and the trustee board is able to clearly track the funding level against the We offer services to both trustees and London scheme sponsors on the full range of scheme’s goals,” Disney continued. SW1Y 4EL pension services for Defined Benefit (DB), Of those surveyed, 46% of the schemes were classified as small (£15m - £99m assets under Tel: 020 7747 8600 Defined Contribution (DC) and hybrid management), 33% were medium (£100m - £499m), and 21% were large schemes (£500m Website: www.bfinance.co.uk pension schemes. We provide full services and upwards). to trustees covering, administration, The report puts these worrying figures down to the prevalence of group think, which is CAPITA EMPLOYEE BENEFITS actuarial, investment and covenant where a desire for harmony or conformity in a group can result in irrational decisions. 65 Gresham Street support. Our advice and solutions Unfortunately, the SEI research did not show that trustees are asking hard hitting questions. London extend to the areas of scheme funding, This came on the back of the Financial Conduct Authority’s (FCA) investigation into asset EC2V 7NQ risk management, insurance solutions, Tel: 020 7709 4500 managers and investment consultants over concerns about value for money and conflicts of benefit design, asset backed funding, Consultancy Investment Website: www.capita.co.uk/ interest, which is due to conclude in summer 2016. communications, member options, employeebenefits liability management, transactions & It followed the watchdog’s wholesale sector competition review in 2014, which raised restructuring, PPF levy mitigation and a number of potential conflicts of interest in investment consulting. It found an issue in HYMANS ROBERTSON public sector pensions. consultants potentially hindering investors getting value for money, and difficulty for trustees One London Wall assessing quality of advice. London Our investment consultants are focused The FCA is also looking at how consultants affect competition for asset management EC2Y 5EA on delivering proactive and strategic services, and also where they provide fiduciary management. Its findings could have Tel: 020 7082 6000 advice. They do this through the significant consequences as the FCA could intervene through changing existing regulations, Website: www.hymans.co.uk production of insightful investment or could even take action against individual firms such as hitting them with financial penalties. research, implemented in a pragmatic manner, avoiding over-complexity and
100 Professional Pensions Handbook 2016 www.professionalpensions.com 101 KPMG LLP – RIVER AND MERCANTILE WILLIS TOWERS WATSON
excessive cost. We have no competing fund Direct line: 020 3008 719 WILLIS TOWERS WATSON management or fiduciary management Email: 71 High Holborn products to sell. Impartial investment [email protected] London advice is our only priority, meaning we WC1V 6TP The avoid the conflict of managing clients’ Established in 2000, Quantum Advisory Tel: 020 7170 2000 assets. is an independent Financial Services Website: www.willistowerwatson.com Professional Consultancy that provides solution based LCP Pensions and Employee Benefits services Pensions 95 Wigmore Street to employers, scheme trustees and London members. Handbook 2016 W1U 1DQ Tel: +44 (0) 20 7439 2266 We design, maintain and review pension Website: www.lcp.uk.com schemes and related employee benefits so that they operate efficiently and effectively, and are valued by employees. This means that you can get on with doing the things that you do best, therefore saving you time and money. QUANTUM ADVISORY Summers House We offer a range of services to companies Pascal Close and pension trustees, all designed to focus St. Mellons on your specific needs, including actuarial, Cardiff administration (including accounts and CF3 OLW payroll), communications, consultancy, Tel: 029 8083 7900 investment, secretarial and trustee Website: www.quantumadvisory.co.uk training.
Investment Consultancy Contacts: We have offices in Amersham, Amersham Birmingham, Bristol, Cardiff and London. Rhidian Williams, Partner Call us to see how we can help with your Direct line: 01494 582 024 pension and employee benefit challenges. Email: [email protected] REDINGTON To ensure your Austin Friars House Birmingham 2-6 Austin Friars Robert Palmer, Partner inclusion in the London Direct line: 0121 632 2190 EC2N 2HD Consultancy Investment Email: 2017 Tel: 020 7250 3331 [email protected] Website: www.redington.co.uk Handbook Cardiff/Bristol contact Nita Hulme Stuart Price, Partner RIVER AND MERCANTILE GROUP Direct line: 029 2083 7902 11 Strand NOW on Email: London [email protected] WC2N 5HR Tel: 020 7601 6262 +44 (0) 20 7316 9309 or London Website: www.riverandmercantile.com [email protected] Phil Farrell, Partner
102 Professional Pensions Handbook 2016 www.professionalpensions.com 103 LIABILITY-DRIVEN INVESTMENT ABERDEEN AM – INSIGHT INVESTMENT
Tackling £1trn of unhedged ABERDEEN ASSET COLUMBIA THREADNEEDLE MANAGEMENT PLC INVESTMENTS Bow Bells House 60 St Mary Axe interest rate exposure 1 Bread Street London London EC3A 8JQ efined benefit (DB) schemes have been embracing liability driven investment (LDI) EC4M 9HH Tel: 020 7464 5000 strategies in pursuit of ways to protect against exposure to interest rate risk. Tel: 020 7463 6000 Website: www.columbiathreadneedle.co.uk However, figures by consultancy Hymans Robertson show private sector Website: www.aberdeen-asset.com schemes accrued more than £1trn of unhedged interest rate exposure as of 31 CREDIT SUISSE DMarch 2015, based on data from The Pension Regulator’s Purple Book that tracks about AVIVA One Cabot Square 6,000 schemes. 1 Poultry London This is despite the value of assets held in bonds almost tripling over the past decade. London E14 4QJ EC2R 8EJ The £250bn paid out by FTSE350 companies since 2000 to plug their ballooning pension Tel: 020 7888 8888 Tel: 020 7809 6000 Website: www.credit-suisse.com deficits has not been enough to cancel out the devastating impact of historically low interest Website: www.avivainvestors.com rates. GOLDMAN SACHS Since then, interest rates have increased liabilities by more than 50%, while continued AXA INVESTMENT MANAGERS ASSET MANAGEMENT increase in longevity has inflated liabilities by another 10% to 15. The FTSE 350 pension deficit 7 Newgate Street River Court gyrated between £110bn and £40bn over the course of 2015 alone. London 120 Fleet Street Hymans Robertson head of corporate DB Jon Hatchett says schemes need to understand EC1A 7NX London their biggest risks and know how to manage them. He warns companies are running much Tel: 020 7003 1000 EC2A 2BE bigger risks in their schemes than they would ever run in their core business. Website: www.axa-im.com Tel: 020 7774 1000 Firms also need to be more cautious and prepare for what might happen in the markets, Website: www.gs.com with worldwide volatility set to increase this year. BLACKROCK “Looking at DB schemes in the FTSE350 specifically, half are already cashflow negative or 12 Throgmorton Avenue HENDERSON GLOBAL INVESTORS London soon will be,” says Hatchett. 201 Bishopsgate EC2N 2DL As such, investing in assets that deliver the income needed to pay today’s and tomorrow’s London Tel: 020 7743 3000 EC2M 3AE pensioners is key. Website: www.blackrock.co.uk Tel: 020 7818 1818 “Cashflow risk should be front of mind for those responsible for DB schemes. You can’t be Website: www.henderson.com certain of much in markets, except the fact that future prices are inherently uncertain,” he BMO GLOBAL ASSET MANAGEMENT adds. Exchange House IGNIS ASSET MANAGEMENT BlackRock head of UK strategic clients Andrew Tunningley encourages trustees to take a Primrose Street 150 Cheapside proactive approach to reducing their unhedged interest rate exposure, adding they should London London balance out the risk by using growth and matching assets. EC2A 2NY EC2V 6ET “We’re seeing evidence of trustees anchoring their decision for the investment strategy Tel: 020 7628 8000 Tel: 020 3003 3000 based on recent experience on where they’ve been before, so they don’t want to start hedging Website: www.bmogam.com Website: www.ignisasset.com now because they really wish they’d done it 12 months ago, three years ago or five years ago. BNP PARIBAS INVESTMENT Liability-Driven Investment “Our advice would be to look at the amount of under-hedging and its contribution to risk, not INSIGHT INVESTMENT LTD PARTNERS at the amount of hedging done so far. People are looking at it the wrong way around.” 160 Queen Victoria Street 5 Aldermanbury Square London The Bank of England announced on 14 January that it was keeping the base interest rate London EC4V 4LA at the historic low of 0.5%, and market jitters and low inflation are likely to hold off raising it EC2V 7BP Tel: 020 7163 4000 anytime soon. Tel: 0230 759 2000 Website: www.insightinvestment.co.uk Despite this, schemes are being urged to prepare for rises in the long-term gilt rates to which Website: www.bnpparibas-ip.com they are most exposed.
104 Professional Pensions Handbook 2016 www.professionalpensions.com 105 JPMORGAN – UBS GLOBAL AXA ROSENBERG – LEGAL & GENERAL MULTI-MANAGERS
JPMORGAN NORTHERN TRUST GLOBAL AXA ROSENBERG INVESTMENT FIDELITY WORLDWIDE 25 Bank Street INVESTMENTS (EUROPE) LIMITED MANAGEMENT LTD INVESTMENTS London 50 Bank Street 8th Floor 25 Cannon Street E14 5JP London 155 Bishopsgate London Tel: 020 7742 6000 E14 5NT London EC4M 5TA Website: www.jpmorgan.com Tel: 020 7982 2000 EC2M 3XJ Tel: 020 7283 9911 Website: www.ntrs.com Tel: 020 7003 1800 Website: www.fidelity.co.ukinstitutional KPMG LLP Website: www.axarosenberg.com Arlington Business Park PIMCO EUROPE LTD FUNDQUEST Theale, Reading 11 Baker Street BDO LLP BNP PARIBAS GROUP Berkshire London 55 Baker Street 5 Aldermanbury Square RG7 4SD W1U 3AH London London Tel: 0118 373 1369 Tel: 020 3640 1000 W1U 7EU EC2V 7BP Website: www.kpmg.com/uk/pensions Website: www.pimco.co.uk Tel: 020 7486 5888 United Kingdom Website: Tel: 020 7595 1000 LEGAL & GENERAL RIVER & MERCANTILE GROUP www.bdo.co.uk/investmentmanagement Website: www.fundquest.com INVESTMENT MANAGEMENT 11 Strand One Coleman Street London CLOSE INVESTMENTS GOODHART PARTNERS LLP London WC2N 5HR 10 Exchange Square Queensland House EC2R 5AA Tel: 020 3327 5100 Primrose Street 393 Strrand Tel: 020 3124 3000 Website: www.riverandmercantile.com London London Website: www.lgim.com EC2A 2BY WC2R 0LT STANDARD LIFE INVESTMENTS Tel: 020 7426 4000 Tel: 020 7379 3000 M&G 1 George Street Website: www.closeinvestments.com Website: www.goodhartpartners.com Governor’s House Edinburgh Laurence Pountney Hill EH2 2LL COLUMBIA THREADNEEDLE HENDERSON GLOBAL INVESTORS London Tel: 0131 225 2345 INVESTMENTS 201 Bishopsgate EC4R 0HH Website: www.standardlifeinvestments.co.uk London Liability-Driven Investment Liability-Driven 60 St Mary Axe Tel: 020 7626 4588 London EC2M 3AE Fax: 020 7548 3495 UBS GLOBAL ASSET MANAGEMENT EC3A 8JQ Tel: 020 7818 1818 Website: www.mandg.co.uk 21 Lombard Street Tel: 020 7464 5000 Website: www.henderson.com London Website: www.columbiathreadneedle.co.uk MORGAN STANLEY INVESMENT EC3V 9AH LEGAL & GENERAL MANAGEMENT LTD Tel: 020 7901 5000 CREDIT SUISSE INVESTMENT MANAGEMENT 25 Cabot Square Website: www.ubs.com One Cabot Square One Coleman Street London London London Multi-Managers E14 4QA E14 4QJ EC2R 5AA Tel: 020 7425 8000 Tel: 020 7888 8888 Tel: 020 3124 2000 Website: www.morganstanley.co.uk Website: www.credit-suisse.com Website: www.legalandgeneral.com
106 Professional Pensions Handbook 2016 www.professionalpensions.com 107 s n e P MERCER – SEI INVESTMENTS s n o i s i D u o c t n MERCER R 1 Tower Place West a S Tower Place t trat London The e eg R y EC3R 5BU Professional et I Tel: 020 7626 6000 irem n Website: www.mercer.com Strategy Insig e s Pensions ht nt Em Inv i MOMENTUM GLOBAL INVESTMENT esti g er ng P MANAGEMENT Handbook 2016 g olic h Pensions Buzz Comment Feature y Should investment Governance in Reclassifying i F consultants be fully contract-based money purchase n t The Rex Building regulated? page 22 schemes page 25 benefits page 28 g idu M E c i 62 Queen Street 20 February 2014 www.professionalpensions.com a a k r m ry London Walkingintheshoes t t e e e ofaTPASadviser s s M How three volunteers conduct their roles r page 26 A A g EC4R 1EB e e s s s s n i Tel: 020 7489 7223 b b - - t t g a Financialc c Assistancea a Scheme M FASk k regulations offer ‘last chance’ entry n c c d d e e to ineligible schemes page 4 r a Website: www.momentumgim.com t t n n o o DB Code of Practice k o o i i t t u u b b i i r r Regulator’s code branded ‘garbage’ due e a h c S n n to lack of guiding principles page 6 s t e FCA annuity review m Did the Financial Conduct Authority’s A g e reviewintoannuitymarketsgofarenough? s s page 14 e s m NORTHERN TRUST GLOBAL - - t t e ADVISERS LIMITED b b fotoaloja n c c a a 50 Bank Street Is it time for a new towerswatson.com +44 1737 241144 [email protected] perspective on your administration? Copyright © 2013 Towers Watson. All rights reserved. TW-EU-2012-28548c. April 2013. A TowersWatsonisrepresentedintheUKbyTowersWatsonLimited Canary Wharf and Towers Watson Capital Markets Limited. k k u e e o t London d E - E14 5NT r n Tel: 020 7982 2000 m l o Website: www.ntrs.com Access the latest pensions insight with n e o G RUSSELL INVESTMENTS Professional Pensions. Subscriben r e today.v Rex House c n a 10 Lower Regent Street e
Multi-Managers Professional Pensions is the market London 45 printed issues of Professional Pensions leading source for those in the SW1Y 4PE Monthly supplements, including DC World, the occupational pensions industry. Top 100 Pension Funds and specialist reports Tel: 020 7024 6000 The annual Professional Pensions Handbook Website: www.russell.com/uk To ensure your Following an extensive, independent Exclusive access to premium content inclusion in the audience research study, Professional SEI INVESTMENTS LTD UK 1 YEAR: £499 Pensions has been further improved to NAME: 1st Floor 2017 include greater depth of analysis, insight COMPANY: Alphabeta and content. JOB TITLE: 14-18 Finsbury Square Handbook ADDRESS: London POSTCODE: EC2A 1BR Professional Pensions has taken into contact Nita Hulme account your information needs which can TEL: FAX: Tel: 020 3810 8000 EMAIL: be accessed whether in print, in person, NOW on I enclose cheque/banker’s draft* for £499 made payable to online or via your smart device. Incisive Financial Publishing. +44 (0) 20 7316 9309 or *(delete as applicable) You can subscribe using the form to [email protected] the right or online at: DATE: SIGNED: Send details and cheque, payable to Incisive Financial professionalpensions.com/register Publishing, to: Haymarket House, 28-29 Haymarket, London, SW1Y 4RX 108 Professional Pensions Handbook 2016
Untitled-2PP Subs Ad.indd 1 1 28/04/201418/05/2016 12:0111:28 PPPP14-AD145x210-SUBS.indd 1 17/03/2014 17:18 PENSIONS MASTER TRUSTS
Mounting concerns about master trust regulation
aster trusts have been attracting increasing attention from the government and regulators concerned about how members’ savings are protected if a master trust collapses and the low barriers to entry in the marketplace. In February 2016, economic secretary to the Treasury Harriet Baldwin revealedM the government wanted to introduce legislation to boost the governance and monitoring of master trusts “as soon as practically possible”. Then in March, pensions minister Ros Altmann told the Work and Pensions Committee that legislation must be crafted to stop the cost of master trust wind-ups falling on members. The Pensions Regulator’s (TPR) corporate plan released on 15 April highlights master trusts as one of its top ten priorities. Its focus is partially explained by figures showing the rising prominence of master trusts. Since 2009, membership of defined contribu- tion (DC) occupational schemes has almost trebled to over seven million, which is split between master trusts (71%) and other DC-only schemes (29%). Up to 55% of members are in the four largest master trusts while there are 69 much smaller open master trust schemes, according to the Green Book as at 1 January 2016 - covering DC trust based provisions. Meanwhile total trust-based scheme volumes have reduced by 33% from 2006 to approximately 35,000. Your pension scheme In an interview with PP about TPR’s corporate plan, chief executive Lesley Titcomb explains the regulator’s approach to reviewing master trusts: “We are proactively visit- Lower cost, better funded ing master trusts as part of our ongoing regulation. We have identified an initial group based on a number of factors. This is our normal approach to anything like this. We are Run your defined benefit pension scheme at lower cost. actually going out and talking to them, getting to understand their business model, how • A new multi-employer scheme. they set up their business and what standards they are following. That is a proactive • Transfer your scheme for lower costs and improved governance. part of work on our agenda the moment. It is at a very early stage and we will keep it • You stay in control – no changes to trustees or investments. under review.” These comments combined with TPR’s figures point to the hard questions being asked of master trusts: What happens when a master trust fails and who pays for it? For more information visit Are the barriers for entry too low? Should the two qualifications for master trusts - the www.deloitte.co.uk/DeloittePensionsMasterPlan, email [email protected] Master Trust Assurance Framework (MAF) developed by the Institute of Chartered or contact Alexandra Kitching on 020 7007 3687. Accountants in England and Wales (ICAEW) or Pension Quality Mark (PQM) Ready standard - be mandatory? There are four possible options to make master trusts more secure: enhanced super- vision, capital adequacy requirements, living wills and licenses. But the catch is parlia- DeloittePensions ment will have to legislate for this as TPR does not have the power to do so. MasterPlan With master trusts here to stay, it is essential politicians and regulators find the proper framework to strengthen them to make them sustainable in the long term. The savings of millions of members depends on effective policies. Important note It is the responsibility of employers and trustees to satisfy themselves that any transfer into the Deloitte Pensions Master Plan is appropriate for their needs and the needs of pension scheme members. Employers and trustees retain responsibility for the remainder of the ceding pension scheme post-transfer. Independent professional advice should be sought where appropriate. Trustees should always seek legal advice in advance of a transfer.
110 Professional Pensions Handbook 2016 © 2016 Deloitte Pensions Services Limited. All rights reserved.
J6323Untitled-3 sm Deloitte_Pension_Master.indd 1 1 01/06/201603/05/2016 16:52 13:21 AON HEWITT – CAREY DELOITTE – PENSIONS TRUST
AON HEWITT framework of member support and FIDELITY RETIREMENT SERVICE 10 Devonshire Square guidance. Pascall House London Westridge Business Park EC2M 4YP Through our plan, employers and employees Cothey Way Tel: 0800 279 5588 receive a complete end-to-end service, from Ryde Website: www.aonhewitt.co.uk contribution collection through to benefits’ Isle of Wight payment. PO33 1QT Tel: 0500 50 65 75 (freephone) Atlas Master Trust has achieved the Pension Website: www.fidelity.co.uk Quality Mark and is committed to achieving DELOITTE PENSIONS MASTER Powered by Capita the Master Trust Assurance Framework. PLAN GODDARD PERRY CONSULTING ATLAS MASTER TRUST c/o Deloitte Pensions Services Limited 8th Floor From Capita B&CE THE PEOPLE’S PENSION Hill House Corinthian House 65 Gresham Street Manor Royal 1 Little New Street 17 Lansdowne Road London Crawley London Croydon EC2V 7NQ West Sussex EC4A 3TR Surrey Tel: 020 7709 4500 RH10 9QP Tel: 020 7007 3687 CR0 2BX Email: [email protected] Tel: 0800 612 8080 Email: Tel: 020 8603 3700 Website: Website: www.thepeoplespension.co.uk [email protected] Website: www.goddardperry.com www.capitaemployeebenefits.co.uk/atlas Website: THE BLACKROCK MASTER TRUST www.deloitte.co.uk/DeloittePensionsMasterPlan NEST CORPORATION We have brought together our consultancy 12 Throgmorton Avenue Riverside House The Deloitte Pensions Master Plan is a skills, administrative know-how and London 2a Southwark Bridge road defined benefit pension scheme designed proprietary technology propositions to EC2N 2DL London to cater for pension benefits for many create Atlas Master Trust, a professionally Tel: 020 7743 3000 SE1 9HA unrelated employers. Employers can governed, multi-employer, trust-based Website: www.blackrock.co.uk Tel: 020 3056 3600 transfer their existing schemes into the pension plan. Atlas Master Trust is designed Website: www.nestpensions.org.uk to meet the exacting requirements of THE CAREY WORKPLACE PENSION Plan with each employer having its own fully the Pensions Regulator and the needs of TRUST segregated section. Joining the Plan has a number of key NOW PENSIONS employers, while providing the opportunity Carey Corporate Pensions UK Limited benefits: 3rd Floor for its members to accumulate assets in a 1st Floor Pensions Master Trust • Lower costs – As a single trust with 164 Bishopsgate quality pension arrangement with access Lakeside House assets from many schemes in different London to all of the new flexibilities on drawing Shirwell Crescent Furzton Lake sections, the Plan enables sections to EC2M 4LX pension benefits easily, engagingly and on Milton Keynes benefit from economies of scale. Tel: 0333 332 2222 competitive terms. MK4 1GA • Improved governance – An Website: www.nowpensions.com Tel: +44 (0) 1908 336010 independent trustee runs the Plan providing Our approach is founded on three pillars Website: www.careypensions.co.uk oversight and improved governance. THE PENSIONS TRUST to ensure that the plan delivers the best Verity House possible value for members: • High quality advice – Deloitte provides scheme actuarial and pensions 6 Canal Wharf Leeds Trust Master Pensions Service – plan delivery through robust, administration services to the sections. • Retain control – The company and Yorkshire proven and scalable technology, supported LS11 5BQ by an experienced team of administrators. trustees remain in control. On transfer into the Plan, there are no changes to Tel: 0113 234 5500 Governance – a strong, expert and Website: www.thepensionstrust.org.uk independent trustee board adds value and members’ benefits, the scheme’s insight through its management of the plan. investments, the employer’s responsibilities Engagement – a structured and focused or to the trustees and their key powers.
112 Professional Pensions Handbook 2016 www.professionalpensions.com 113 PREMIER PERFORMANCE MEASUREMENT
Pensions Management Ltd. Premier Benefit Solutions Ltd. Manager spin on performance THE PREMIER DB SOLUTION, THE Other Offices: Bristol still a big problem PREMIER LIFE MASTER TRUST & THE PREMIER RETIREMENT SAVER Company Profile: anagers putting spin on performance is still a huge problem and may even be 8th Floor Premier was established to challenge the getting worse, according to Cerulli Associates. The research firm’s 2Q 2016 AMP House status quo in the pensions industry and to Europe Edition cites a series of interviews with eight investment consultants Dingwall Road offer a range of services which actually meet who complained managers are submitting back-tested performance data as Croydon customer needs at competitive costs. Surrey theM numbers of a real fund. CRO 2LX Premier clients will be either trustees, Another common complaint was the lack of clarity over whether the numbers in perfor- Tel: 020 3727 9800 employers or individuals and our services are mance data are net or gross of fees. Fax: 020 3014 8768 focussed on their particular requirements. “While consultants may be more forgiving of the latter issue, the overriding concern is that Email: some managers are willing to ‘fudge’ their way to success,” according to senior analyst Tony [email protected] For trustees, a full range of advisory and Griffiths, who conducted the interviews. Website: www.premiercompanies.co.uk support services are offered including A fund selector at one UK-based institutional adviser said they are seeing managers putting pensions consulting, secretary to the a gloss on their achievements more often. The interviewee was still surprised by the number Contacts: Ian Gutteridge trustees, actuarial advice, administration, Title: Sale & Marketing Director the insurance of risk benefits and all relevant of basic issues arising from performance reporting, even among larger fund managers. Email: communications. Our approach is to offer “There was frustration on behalf of consultants that while they didn’t necessarily think man- [email protected] either a full range of services to manage the agers were trying to deceive them, they felt clarity wasn’t there and they had to ask questions scheme or to allow the trustees to pick and about whether it was net or gross of fees,” says Griffiths. “Maybe it’s borne out of an environ- Paul Couchman choose from the range available. ment whereby performance feels more important than it has been for a while.” Title: Managing Director Consultants also complained about a number of other red flag behaviours including: sweep- Email: For individuals, independent advice can be ing a poorly performing product under the carpet either by changing its name or its mandate; [email protected] provided on a fully FSA regulated basis to ensure aggregated assets of a manager or a product including segregated mandates the consultant impartiality and a focus on individual needs. cannot verify; data being changed without explanation between pitch and proposal; and man- Association Memberships: NAPF, ACA For companies, we can provide strategic agers launching or adapting products based primarily on market demand. Services offered: To Trustees: Consultant, benefits advice, the management of group Issues for DC Pensions Master Trust Actuarial, Administration Services, Risk personal pension plans including selection and Benefits and I.F.A Services on-going governance support, the insurance Punter Southall Aspire chief executive Steve Butler has been dealing with performance data of benefits such as private medical cover, issues for the past 14 years and the only way he has gotten round them is by being “brutally To Companies: Strategic Consulting disability and critical illness cover, salary strict” about the data given by managers. He says looking at numbers gross of fees is the only and Actuarial advice and on-site support. sacrifice and high earners’ support. In addition, way to compare apples with apples. “It’s just as frustrating because I want to do it in gross actuarial support for pensions’ accounting or Advice on contract based pension and but the providers want to give it to me in net,” he says. “Yet net means something different for flexible benefit plans. actuarial funding negotiations with trustees is every single client they have – so there’s no standard net. I’m forcing them to use gross with also offered. me but the managers will always present the one that represents them in the best light.” To Individuals: Financial Planning Significant on-going investment in technology Another issue is where assimilated returns are used to demonstrate performance. One Total Employees (UK): 160 ensures that our service is responsive, example is a firm saying ‘our new fund manager had this great track record before us and if he relevant and accurate and assists us greatly had been with us during that time, he would have achieved this return’. Number of Pensions Fund Clients: 300 with the communication of our consulting “It’s almost a weekly conversation with managers asking us ‘can we give you these returns support. Premier are fully committed to long which are not actual but a good reflection’,” says Butler. standing relationships with clients, Value of Funds Advised: £15bn “We’ve always said absolutely not, we don’t want assimilated returns in any way. The managers think we’re being unreasonable by wanting to see a three-year track record before Experience the difference…. See change. Associated Companies: Premier investing money. 114 Professional Pensions Handbook 2016 www.professionalpensions.com 115 AMACES LTD – STATPRO GROUP PLC WILLIS TOWERS WATSON – WM COMPANY
AMACES LTD INTERACTIVE INVESTOR WILLIS TOWERS WATSON 10-11th Floor 2 West Regent Street Watson House 88 Wood Street Glasgow London Road London G2 1RW Reigate The EC2V 7RS Tel: 0845 200 3637 Surrey Tel: 0870 240 1314 Website: www.iii.co.uk/funds RH2 9PQ Professional Tel: 01737 241144 BERKELEY BURKE INVESTMENT PROPERTY Website: www.willistowerwatson.com Pensions Berkeley Burke House DATABANK (IPD) Regent Street 1 St. John’s Lane WILSHIRE ASSOCIATES Handbook 2016 Leicester London 23 Austin Friars LE1 7BR EC1M 4BL London Tel: 0116 204 2988 Tel: 020 7336 9200 EC2N 2QP Website: www.berkeleyburke.com Website: www.ipdglobal.com Tel: 020 7920 3100 Website: www.wilshire.com BNY MELLON ASSET SERVICING JP MORGAN Performance & Risk Analytics 25 Bank Street WM COMPANY BNY Mellon Centre London 525 Ferry Road 160 Queen Victoria Street E14 5JP Edinburgh London Tel: 020 7742 6000 EH5 2AW EC4V 4LA Website: www.jpmorgan.com Tel: 0131 315 2000 Tel: 020 7163 5566 Website: www.statestreet.com Website: www.bnymellon.com/ MERCER assetservicing 1 Tower Place West Tower Place HR TRUSTEES LTD London Xafinity House EC3R 5BU 42-62 Greyfriars Road Tel: 020 7626 6000 Reading Website: www.mercer.com RG1 1NN Tel: 0118 958 3683 PORTFOLIO EVALUATION LIMITED Website: www.hrtrustees.com The Bourse Performance Measurement Boar Lane To ensure your INALYTICS LTD Leeds 12th Floor LS1 5EN inclusion in the Emerald House Tel: 0113 242 9381 2017 15 Lansdowne Road Website: www.portfolioevaluation.net Croydon Handbook Surrey STATPRO GROUP PLC CR0 2BX Statpro House contact Nita Hulme Tel: 020 8666 0656 81-87 Hartfield Road Website: www.inalytics.com Wimbledon NOW on
London Measurement Performance SW19 3TJ +44 (0) 20 7316 9309 or Tel: 020 8410 9876 Website: www.statpro.com [email protected]
116 Professional Pensions Handbook 2016 www.professionalpensions.com 117 UK Pensions Awards 2016 PROPERTY SERVICES
Looking beyond the UK for property Property Manager of the Year
K pension schemes have historically held a strong home bias when it comes to real estate allocation. Such a stance makes sense given that it is always easier to invest in what you know and the UK market is also highly transparent. UWhile such an approach has served schemes well there are now signs pension funds are starting to look further afield for their real estate exposure. “There is an element of home bias but you can understand this given managers have more knowledge of their local market – it is harder to achieve this level of knowledge on a global scale,” says MSCI’s vice president – client coverage, Douglas Rowlands. “However, after the global financial crisis it was seen that investing on a more global scale could bring you more diversification and less risk for your portfolio.” Lucy Williams, M&G Real Estate’s director of institutional business in UK & Europe, agrees schemes are widening their outlook when it comes to real estate and are exploring other geographical locations. “UK defined benefit schemes have invested in core plus UK balanced funds for the past five years and have seen great returns,” she says. “More recently we have seen them looking further afield – maybe looking to invest in the regions or looking at more alternative areas such as student accommodation or the private rental sector. Now we are seeing them looking tentatively at European property markets.” While overseas markets, such as those in Continental Europe can offer real benefits to a scheme portfolio memories of the global financial crisis mean many have been hesitant. However, Williams believes now is a good time in the cycle to get involved. “In the past, pension funds would do this through fund of fund structures investing Andrew Parry of Hermes Investment Management collects the award from Rich Hall and in highly leveraged funds with complex loan structures around the investments,” she Kathleen Miles of Mind at the UK Pensions Awards 2016 says. “Investors lost money on such vehicles during the global financial crisis and so FINALISTS WINNER there has been some reticence about re-entering this market. However, we believe that now is a good time to get back into European markets as they tend to follow the ✤ AEW UK UK, which has seen yield compression followed by rental growth.” ✤ Aviva Investors However, she adds: “You do still need to be careful where you invest in Europe.” ✤ Fidelity International Schroder Real Estate’s head of indirect investment and research Neil Turner ✤ Hermes Investment Management agrees that times are changing and that schemes are now able to access appropriate vehicles to help them invest overseas: “I think things have been ✤ ICG-Longbow changing for quite some time,” he says. “If you look at scheme portfolios their equity ✤ Kames Capital portfolios went global some time ago. I think what has held real estate back is that ✤ LaSalle Investment Management there weren’t the vehicles available to schemes to help them do this and so 10-15 years ago schemes had to go direct which brought significant hurdles.” ✤ M&G Investments ✤ Schroders
118 Professional Pensions Handbook 2016
000_PPBH16_Hermes.indd 48 07/06/2016 12:54 AVIVA INVESTORS – CORNERSTONE EUROPE CREDIT SUISSE PROPERTY – KENETH PETERS
AVIVA INVESTORS CBRE GLOBAL INVESTORS CREDIT SUISSE PROPERTY GREENOAK REAL ESTATE No1 Poultry Third Floor INVESTMENT MANAGEMENT LTD ADVISORS LLP London One New Change One Cabot Square 4 Sloane Terrace EC2R 8EJ London London London Tel: 020 7809 6000 EC4M 9AF E14 4QJ SW1X 5DQ Website: http://www.avivainvestors.com Tel: 020 7809 9000 Tel: 020 7888 1000 Tel: 020 7866 8800 Website: www.cbreglobalinvestors.com Website: www.credit-suisse.com/uk Website: www.greenoakrealestate.com BLACKROCK 12 Throgmorton Avenue CLUTTONS DEUTSCHE BANK GVA London Portman House 1 Great Winchester Street 10 Stratton Street EC2N 2DL 2 Portman Street London London Tel: 020 7743 3000 London EC2N 2DB W1J 8JR Website: www.blackrock.co.uk W1H 6DU Tel: 020 7545 8000 Tel: 08449 02 03 04 Tel: 020 7408 1010 Website: www.db.com Website: www.gva.co.uk BMO REAL ESTATE PARTNERS Website: www.cluttons.com 5 Wigmore Street DTZ INVESTMENT MANAGEMENT HENDERSON GLOBAL London COLLIERS INTERNATIONAL 125 Old Broad Street INVESTORS LIMITED W1U 1PB 50 George Street London 201 Bishopsgate Tel: 020 7499 2244 London EC2N 1AR London Website: www.bmorep.com W1U 7GA Tel: 020 3296 3269 EC2M 3AE Tel: 020 7935 4499 Website: www.dtzinvestors.com Tel: 020 7818 1818 BNP PARIBAS REAL ESTATE UK Website: www.colliers.com Website: www.henderson.com 5 Aldermanbury Square EDWARD SYMMONS & PARTNERS London COLUMBIA THREADNEEDLE 2 Southwark Street EC2V 7BP INVESTMENTS London Tel: +020 7595 1000 60 St Mary Axe SE1 1TQ Website: www.relestate.bnpparibas.co.uk London Tel: 020 7955 8454 EC3A 8JQ Website: www.edwardsymmons.com BROWN & CO Tel: 020 7464 5000 Granta Hall Website: www.columbiathreadneedle.co.uk FLETCHER KING SERVICES LIMITED Finkin Street 61 Conduit Street Grantham CORNERSTONE REAL London Lincolnshire ESTATE ADVISERS EUROPE W1S 2GB NG31 6QZ (“CORNERSTONE EUROPE”) Tel: 020 7493 8400 Property Services Property Tel: 01476 591991 Southwest House Website: www.fletcherking.co.uk To ensure your Website: www.brown-co.com 11A Regent Street inclusion in the London GERALD EVE CHARTERED CAPA SW1Y 4LR SURVEYORS 2017 37 Duke Street Tel: +44 (0)20 7297 0900 72 Welbeck Street Professional Pensions London Website: www.cornerstoneadvisers.com London W1U 1LN W1G 0AY Handbook Tel: 020 7224 7222 Tel: 020 7493 3338 contact Nita Hulme Property Services Website: www.capa.uk.com Website: www.geraldeve.com NOW on +44 (0) 20 7316 9309 or [email protected]
120 Professional Pensions Handbook 2016 www.professionalpensions.com 121 HERMES – KNIGHT FRANK LASALLE – LOTHBURY
JONES LANG LASALE LEGAL & GENERAL PROPERTY INVESTMENT ADVISORY One Coleman Street 22 Hanover Square London London EC2R 5AA LASALLE INVESTMENT W1S 1JA Tel: 020 3124 2700 MANAGEMENT Tel: 020 7493 6040 Website: www.lgim.co.uk One Curzon Street Website: www.joneslanglasalle.co.uk London 2016 W1J 5HD WINNER Property Manager KENETH PETERS of the Year Tel: 020 7852 4200 56 Queen Anne Street Fax: +44 (0) 20 7852 4404 LOTHBURY INVESTMENT London HERMES INVESTMENT Website: www.lasalle.com MANAGEMENT LIMITED MANAGEMENT W1G 8LA 155 Bishopsgate Tel: 020 7317 3104 Lloyds Chambers Contact: London Website: www.keneth-peters.co.uk 1 Portsoken Street Head of UK EC2M 3TQ London Switchboard: 020 3551 4900 KNIGHT FRANK INVESTORS Alan Tripp ([email protected]) E1 8HZ UK CIO Website: www.lothburyim.com Woolgate Exchange Tel: +44 (0)20 7702 0888 Julian Agnew ([email protected]) 25 Basinghall Street Email: [email protected] Client Executive, Client Capital Group Contact: Barbara O’Riordan London Website: www.hermes-investment.com Anne Lucking ([email protected]) Title: Associate Director EC2V 5HA Email: [email protected] Tel: 020 7861 1220 Contact Name: Mark Miller, Main services: LaSalle Investment Website: www.knightfrankinvestors.co.uk Head of UK & MENA Institutional Management is one of the world’s leading We are an independent UK real estate Tel: 020 7680 2205 real estate investment managers with over investment manager, formed in 2010. Our Email: [email protected] 35 years of experience. LaSalle manages strong and cohesive senior fund management US$59bn of assets on behalf of institutions team has worked together for nearly 20 Hermes Investment Management is focused and private investors across the world, years and has a track record of delivering on delivering superior, sustainable, risk- investing in private real estate equity and outperformance for investors. adjusted returns – responsibly. debt, and public real estate through a complete range of investment vehicles. Our LIM manages unlisted property vehicles Our investment solutions include: products include separate accounts, open on behalf of institutional investors seeking and closed-end commingled funds, joint indirect exposure to the UK. Lothbury Private markets: International real estate, ventures, and public securities. Property Trust (LPT) is our flagship fund. UK commercial real estate, UK private rental We also manage a European Fund of Funds sector real estate, infrastructure and private and a segregated secure income portfolio
Property Services Property From the London office of 167 people we equity. To ensure your manage £12.1bn assets of which £11.8bn are for a UK pension fund. We offer an innovative High active share equities: Asia, global inclusion in the located within the UK. We have extensive solution to clients, through our core/active emerging markets, Europe, US, global and 2017 successful experience of managing strategy. Our predominantly core portfolio of small and mid cap. portfolios to both MSCI relative and real prime assets provides stable returns, while Professional Pensions return performance targets as well as assets our active management initiatives create Credit: Absolute return credit, global high yield Handbook and strategies targeting index-linked and additional value and enhance returns. bonds, multi strategy credit, real estate debt Since LIM’s launch, we have progressively
absolute returns. Property Services and direct lending. contact Nita Hulme grown our funds under management to £1.8 Multi asset: Multi asset inflation. NOW on We have 700 people located in 24 offices billion. We have attracted new investors to our around the world, as well as access to JLL’s Funds and significantly diversified our robust Responsible investment services: Corporate +44 (0) 20 7316 9309 or offices in 80 countries worldwide. base of UK and overseas institutional clients, engagement, intelligent voting and public [email protected] the majority of which are corporate and public policy engagement. sector pension funds. Our clients also include
122 Professional Pensions Handbook 2016 www.professionalpensions.com 123 LOTHBURY – UBS GLOBAL AM RISK REDUCTION PROVIDERS
treasury investors, collective investment ROCKSPRING PROPERTY schemes, insurance companies and charities. INVESTMENT MANAGERS LTD Could British Steel go down the 166 Sloane Street Further information on our company, London bulk annuity route? strategy and products can be found at www. SW1X 9QF lothburyim.com Tel: 020 7761 3300 Website: www.rockspringpim.com he future of the UK steel industry has dominated the news ever since Tata Steel MATTHEWS & GOODMAN announced the sale of its entire British business in March 2016. 33 Robert Adams Street RUGBY ESTATES A major challenge in finding a potential buyer for the Port Talbot plant in Wales London 4 Farm Street has been the £15bn British Steel Pension Scheme (BSPS). Its financial results as W1U 3HR Mayfair Tof 31 March 2015 show the defined benefit (DB) scheme had a £485m deficit with a 97% Tel: 020 7747 8847 London funding level. Although experts predict the deficit could have risen significantly since then. Website: www.matthews-goodman.co.uk W1J 5RD Tel: 020 7016 0050 Figures released by Tata Steel show it was preparing to put £35m of deficit contributions M&G REAL ESTATE Website: www.rugbyestates.plc.uk into the scheme, increasing to £60m in 2017 and to £65m in 2018. As a result, questions City Place House remain over how a potential buyer could support the scheme and keep the deficit at a low 55 Basinghall Street SAVILLS FUND MANAGEMENT level once it is reduced. London 33 Margaret Street The Pension Protection Fund (PPF) is a plausible option but the assessment period EC2V 5DU London would only be triggered if the sponsoring company goes insolvent, which is not currently Tel: 020 7548 6600 W1G 0JD the case with Tata Steel. Website: www.mandg.co.uk Tel: 020 7499 8644 However, another option is to put the scheme out to the bulk annuity market as a buy-in Website: www.savills.co.uk NGAM UK LTD or buyout transaction. One Carter Lane SCHRODER PROPERTY That possibility strengthened in mid-April when the business secretary Sajid Javid London INVESTMENT MANAGEMENT LTD offered a rescue package to save the UK steel business. This included a minority EC4V 5ER 31 Gresham Street government stake of up to 25% in Tata Steel’s Port Talbot steelworks and up to £1bn of Tel: 020 3405 2173 London taxpayer loans to potential buyers. Website: www.ngam.natixis.co.uk EC2V 7QA The government’s move partly addresses industry concerns of how the scheme’s Tel: 020 7658 6000 significant funding deficit would be plugged with remaining funds expected to come from PRAMERICA REAL ESTATE Website: www.schroderproperty.com the eventual scheme sponsor. INVESTORS The UK bulk annuity market transacted £12.3bn of written business in 2015, falling just Grand Buildings, 1-3 Strand STRUTT & PARKER short of the £13.2bn record set in 2014. The £3.5bn buyout of the Philips scheme was the Trafalgar Square 13 Hill Street largest UK market transaction in 2015. Since BSPS dwarfs these sums the bulk annuity London London
Property Services Property market’s capacity to cope with such a large scheme has come into question. WC2N 5HR W1J 5LQ Tel: 020 7766 2400 Tel: 020 7629 7282 However, Rothesay Life’s £6bn purchase of Aegon’s annuity book in April demonstrates Website: www.pramericarei.com Website: www.struttandparker.com the market’s eagerness to do larger deals. Increasing capacity of providers may also result in a growing market appetite to generate new business by transacting part of the PRINCIPAL GLOBAL INVESTORS UBS GLOBAL ASSET MANAGEMENT BSPS. (EUROPE) LIMITED 21 Lombard Street Legal & General head of strategic business Cheryl Agius says lessons could be drawn 1 Wood Street London from the American bulk annuity market which has seen significantly larger pension risk London EC3V 9AH transactions deals. This includes Verizon, Motorola Solutions, Kimberley-Clark, and EC2V 7JB Tel: 020 7901 5000 particularly General Motors’ record $26bn (£18bn) bulk annuity in 2012, which was Tel: 020 7710 0220 Website: www.ubs.com transacted in several tranches over a long period. Website: www.principalglobal.com However, Spence and Partners director Hugh Nolan warns market capacity could be heavily affected in terms of the time and resources in taking on the BSPS, which could mean other schemes coming to the market getting non-preferential treatment.
124 Professional Pensions Handbook 2016 www.professionalpensions.com 125 AEGON TRUSTEE SOLUTIONS – MOODY’S ANALYTICS PENSION INSURANCE CORPORATION – UNUM
AEGON TRUSTEE SOLUTIONS GRANT THORNTON UK LLP PENSION INSURANCE SCHRODER INVESTMENT Edinburgh Park 30 Finsbury Square CORPORATION MANAGEMENT LIMITED Edinburgh London 14 Cornhill 31 Gresham Street EH12 9SE EC2P 2YU London London Tel: 08456 100 056 Tel: 020 77865 2402 EC3V 3ND EC2V 7QA Website: www.aegonts.co.uk Website: www.grant-thornton.co.uk Tel: 020 7105 2000 Tel: 020 7658 6000 Website: www.pensioncorporation.com Website: www.schroders.com AON HEWITT JLT EMPLOYEE BENEFITS 10 Devonshire Square The St Botolph Building PRUDENTIAL UBS GLOBAL ASSET MANAGEMENT London 138 Houndsditch DC Solutions 21 Lombard Street EC2M 4YP London Craigforth London Tel: 0800 279 5588 EC3A 7AW Stirling EC3V 4TZ Website: www.aonhewitt.co.uk/derisking Tel: 020 7528 4000 FK9 4UE Tel: 020 7901 5000 Website: www.jltgroup.com/eb Tel: 0118 968 6951 Website: www.ubs.com BATH ACTUARIAL CONSULTING LTD Website: PO Box 5110 LEGAL & GENERAL www.pru.co.uk/employers/corp_pensions/ UNUM Bath Legal & General House Milton Court BA1 0QY Kingswood PUNTER SOUTHALL Dorking Tel: 01225 470 036 Tadworth 11 Strand Surrey Website: www.bathactuarial.com Surrey London RH4 3LZ KT20 6EU WC2N 5HR Tel: 01306 887766 BROADSTONE CORPORATE Tel: 01737 370370 Tel: 020 3327 5000 Website: www.unum.co.uk BENEFITS LTD Website: www.legalandgeneral.com Website: www.puntersouthall.com 55 Baker Street London LONGACRE LIFE RIVER & MERCANTILE GROUP W1U 7EU 2nd Floor 11 Strand Tel: 020 7893 3456 77 Kingsway London Website: www.broadstoneltd.co.uk London WC2N 5HR WC2B 6SR Tel: 020 3327 5100 DEUTSCHE BANK Tel: 020 7632 9400 Website: www.riverandmercantile.com 1 Great Winchester Street Website: www.longacrelife.com London RISKFIRST EC2N 2DB MERCER 90 Long Acre Tel: 020 7545 8000 1 Tower Place West London To ensure your Website: www.db.com London WC2E 9RA Risk Reduction Providers Reduction Risk inclusion in the EC3R 5BU Tel: 020 7632 9100 GOLDMAN SACHS INTERNATIONAL Tel: 020 7626 6000 Website: www.riskfirst.com 2017 Peterborough Court Website: www.mercer.com Professional Pensions 133 Fleet Street ROTHESAY LIFE London MOODY’S ANALYTICS 25th Floor Handbook EC4A 2BB 7 Exchange Crescent The Leadenhall Building contact Nita Hulme Tel: 020 7774 1000 Conference Square 122 Leadenhall Street Website: www.goldmansachs.com Edinburgh London NOW on EH3 8RD EC3V 4AB Tel: 0131 625 0203 +44 (0) 20 7316 9309 or
Tel: 020 770 5300 Risk Reduction Providers Website: www.moodysanalytics.com Website: www.rothesaylife.co.uk [email protected]
126 Professional Pensions Handbook 2016 www.professionalpensions.com 127 SIPPs o i s n e P D s n o c s i Quality mark for ‘new wave’ of SIPP n u R t savers to be launched a St ension Quality Mark (PQM), a subsidiary of the Pensions and Lifetime Savings te rate Association, has designed an award that aims to help a new wave of self-invested gy personal pension (SIPP) consumers choose products without the help of an adviser. Re The award, to be launched sometime during summer 2016, has been created tir In toP help guide a new generation of customers taking out income drawdown plans following e Strategy In m s pension freedom without advice. It will be available for all defined contribution schemes, sigh en t E t In i whether trust or contract-based. m vesti g g The PQM is “the highest standard of excellence” for pension offerings, according to the e ng g g r r r Polic h h organisation’s website, and is recognised by the human resources and pensions industry, as i i y F t t g g n n idu well as the government. M M E E E E E c i Pension Quality Mark chairman Adrian Boulding said that pension freedom has seen more a a m m ar e e k k r r y people opt for SIPPs over annuities as a result of inheritance tax (IHT) benefits and the s s t t r r e e M drawdown flexibility afforded, but this award reflects growing industry concern that many of A A g g t t e e s s s s n n i i a these customers will be investing in products they do not understand. c c a a b b - - M M g g c c d d e e k k r r a a n n He went on to say that traditional SIPPs were curated and designed for customers of t t n n o o Pensions Buzz Comment Feature k k o i t u b b i i r r Should investment Governance in Reclassifying e e a a S n consultants be fully contract-based money purchase s s t t h c regulated? page 22 schemes page 25 benefits page 28 advisers, who tended to receive advice throughout the plan’s lifetime. e m e s s A A g g Boulding explained that the award was designed to help a new generation of unadviseds e e s s m m 20 February 2014 www.professionalpensions.comt t customers. “They will have considerably smaller funds than previous generations, be less able b b - - e e Walkingintheshoes n n to take market shocks, and won’t have much of a clue as to where to invest.” ofaTPASadvisera a How three volunteers conduct their roles c c page 26 He explained that there was a need for a different type of income drawdown scheme aimed k k u u u A A A A at the new market. Financial Assistance Scheme e e FAS regulations offer ‘last chance’ entry t t to ineligible schemes page 4 o o The retirement quality mark will be offered to schemes that have an Independent DB Code of Practice - Regulator’s code branded ‘garbage’ due d to lack of guiding principles page 6 E Governance Committee (IGC) as well as quality default funds if the customer doesn’t want to FCA annuity review n Did the Financial Conduct Authority’s reviewintoannuitymarketsgofarenough? r page 14 o choose their own. Similarly, they will alert customers when they are drawing down too little or m l too much. n e
fotoaloja Boulding said: “The organisation hopes the owners of workplace pension schemes and o G advisers will use the award to direct a new wave of employees to schemes that are designed to Is it time for a new towerswatson.com +44 1737 241144 [email protected] Unrivalledv coverage perspective on your administration? Copyright©2013TowersWatson.Allrightsreserved. TW-EU-2012-28548c. April 2013. e TowersWatsonisrepresentedintheUKbyTowersWatsonLimited and Towers Watson Capital Markets Limited. n r look after their needs.” c n a The SIPP industry has undergone turbulent times recently. e Recently AJ Bell’s head of platform technical Mike Morrison announced he is to launch his Professional Pensions continues to be the market leading source own investigation into where responsibility really lies for SIPP failures. for those in the occupational pensions industry. This follows mixed decisions from the industry’s ombudsmen, and conflicting signals Print Online Events Tablet from the regulator and other bodies as to whether the provider or individual should bear Following an extensive, independent audience research study, Professional Pensions has been further improved to include responsibility. greater depth of analysis, insight and content. Speaking after the SIPPs and Retirement Options conference in May, Morrison said the big message of the conference for him was a lack of clarity around who is responsible for SIPP Professional Pensions has taken into account your information failures and complaints. needs which can be accessed whether in print, in person, online The failures will cost the industry 13% more in compensation this year - via the Financial or via any smart device. Services Compensation Scheme (FSCS) - than in 2014/15. Just over one-fifth of this will be shouldered by life and pensions advisers. www.professionalpensions.com 128 Professional Pensions Handbook 2016
PPPP14-AD145x210-launchPP house ad.indd 1 ad.indd 1 20/03/201425/05/2016 14:4516:04 AEGON – EBS FRIENDS LIFE – PREMIER COMPANIES
AEGON CANADA LIFE LTD FRIENDS LIFE LONDON & COLONIAL SERVICES Edinburgh Park Canada Life Place PO Box 1550 LIMITED Edinburgh Potters Bar Milford Perrymount House EH12 9SE Hertfordshire Salisbury 38-42 Perrymount Road Tel: 0870 6000 337 EN6 5BA Wiltshire Haywards Heath Website: www.aegonse.co.uk Tel: 0845 606 708 SP1 2TW West Sussex Website: www.canadalife.co.uk Tel: 0845 602 0624 RH16 3DN A J BELL LIMITED Website: www.friendslife.co.uk Tel: 0203 479 5505 Trafford House CAREY PENSIONS UK LLP Website: www.londoncolonial.com Chester Road 1st Floor HORNBUCKLE Manchester Lakeside House Tyman House MAC ROBINS M32 0RS Shirwell Crescent Furzton Lake 42 Regent Road 40 Great Portland Street Tel: 0845 40 89 100 Milton Keynes Leicester London Website: www.ajbell.co.uk MK4 1GA LE1 6YJ W1W 7ND Tel: +44 (0) 1908 336010 Tel: 0845 345 2555 Tel: 08456 300 740 AVIVA PLC Website: www.careypensions.co.uk Website: www.hornbuckle.co.uk Website: www.macrobins.co.uk PO Box 4 Surrey Street CLERICAL MEDICAL INVESTMENT IPM TRUSTEES LTD Norwich GROUP LIMITED 3 Victoria Court ORIGEN FINANCIAL SERVICES LTD NR1 3NG PO Box 28121 Bank Square 1st Floor, Infor House Tel: 01603 622 200 15 Dalkeith Road Morley 1 Lakeside Road Website: www.aviva.co.uk Edinburgh Leeds Farnborough EH16 9AS LS27 9SE Hampshire BARNETT WADDINGHAM Tel: 0845 603 6770 Tel: 0845 230 3553 GU14 6XP (BW SIPP LLP) Website: www.clericalmedical.co.uk Website: www.ipm-pensions.co.uk Tel: 0844 209 3000 Decimal Place Website: www.origenfs.co.uk Chilton Avenue DENTONS PENSION MANAGEMENT JAMES HAY PARTNERSHIP Amersham Sutton House Dunn’s House POINTON YORK SIPP SOLUTIONS Buckinghamshire Weyside Park St Paul’s Road LIMITED HP6 5FG Cattleshall Lane Salisbury Pointon York House Tel: 01494 788 100 Godalming SP2 7BF Welland Business Park Website: www.bwsipp.co.uk Surrey Tel: 0845 850 4455 Valley way GU7 1XE Website: www.jameshay.co.uk Market Harborough BDO LLP Tel: 01483 521521 Leicestershire 55 Baker Street Website: www.dentonspensions.co.uk LEGAL & GENERAL LE 16 7PS London ASSURANCE SOCIETY Tel: 01858 419300
SIPPs W1U 7EU EBS (MANAGEMENT) PLC Legal & General House Website: www.sippsolutions.com Tel: 020 7486 5888 25 Luke Street St Monica’s Road Website: www.bdo.co.uk/ London Kingswood PREMIER COMPANIES LTD SIPPs investmentmanagement EC2A 4AR Tadworth Corinthian House Tel: 020 7149 6560 Surrey 17 Lansdowne Road Website: www.ebsmanagement.co.uk KT20 6EU Croydon Tel: 01737 370 370 CR0 2BX Website: www.legalandgeneral.com Tel: 020 8663 5800 Website: www.premiercompanies.co.uk
130 Professional Pensions Handbook 2016 www.professionalpensions.com 131 s n e P ROWANMOOR – WEALTH AT WORK s n o i s i D u o c t n ROWANMOOR GROUP PLC HORNBUCKLE R Rowanmoor House Tyman House a S 46-50 Castle Street 42 Regent Road t trat Salisbury Leicester e eg y Wiltshire LE1 6YJ Re I SP1 3TS Tel: 0845 345 2555 tir n Tel: 03445 440 440 Website: www.hornbuckle.co.uk Strateg em y Insigh en s Website: www.rowanmoor.co.uk t E t I i m nvesti g WEALTH AT WORK er ng P SCOTTISH LIFE 5 Temple Square g olic h Pensions Buzz Comment Feature y Should investment Governance in Reclassifying i F consultants be fully contract-based money purchase n t regulated? page 22 schemes page 25 benefits page 28 id Royal London House Temple Street g uc Alderley Road M E i Liverpool 20 February 2014 www.professionalpensions.com a a k r m ry Wilmslow L2 5RH Walkingintheshoes t t e e e ofaTPASadviser s s M How three volunteers conduct their roles r Cheshire page 26 A A g Tel: 0800 234 6880 e e s s s s n i SK9 1PF Website: www.wealthatwork.co.uk b b - - t t g a Financialc c Assistancea a Scheme M FASk k regulations offer ‘last chance’ entry n c c d d e e to ineligible schemes page 4 r a Tel: 0845 60 50 050 t t n n o o DB Code of Practice k o o i i t t u u b b i i r r Regulator’s code branded ‘garbage’ due e a h c S n n to lack of guiding principles page 6 s t e FCA annuity review Website: www.scottishlife.co.uk m Did the Financial Conduct Authority’s A g e reviewintoannuitymarketsgofarenough? s s page 14 - - t t e s m SCOTTISH WIDOWS PLC b b e fotoaloja a a n PO Box 17036 c c Is it time for a new towerswatson.com +44 1737 241144 [email protected] perspective on your administration? Copyright © 2013 Towers Watson. All rights reserved. TW-EU-2012-28548c. April 2013. A TowersWatsonisrepresentedintheUKbyTowersWatsonLimited and Towers Watson Capital Markets Limited. k k 69 Morrison Street e e t u Edinburgh d E - o EH3 8YH r n Tel: 0131 655 6000 m l o Website: www.scottishwidows.co.uk Access the latest pensions insight with n e o G STANDARD LIFE Professional Pensions. Subscriben r e today.v Sipps Centre c n a Edinburgh e EH15 1ET Professional Pensions is the market 45 printed issues of Professional Pensions Tel: 0845 0845 000 leading source for those in the Monthly supplements, including DC World, the Website: www.standardlife.co.uk occupational pensions industry. Top 100 Pension Funds and specialist reports The annual Professional Pensions Handbook Exclusive access to premium content SUFFOLK LIFE ANNUITIES LIMITED To ensure your Following an extensive, independent 153 Princes Street audience research study, Professional UK 1 YEAR: £499 Ipswich inclusion in the Pensions has been further improved to NAME: include greater depth of analysis, insight COMPANY: SIPPs Suffolk 2017 JOB TITLE: IP1 1QJ and content. ADDRESS: Tel: 0870 414 7000 Professional Pensions Professional Pensions has taken into POSTCODE: Website: www.suffolklife.co.uk Handbook TEL: FAX: account your information needs which can EMAIL: contact Nita Hulme be accessed whether in print, in person, online or via your smart device. I enclose cheque/banker’s draft* for £499 made payable to NOW on Incisive Financial Publishing. *(delete as applicable) +44 (0) 20 7316 9309 or You can subscribe using the form to [email protected] the right or online at: DATE: SIGNED: Send details and cheque, payable to Incisive Financial professionalpensions.com/register Publishing, to: Haymarket House, 28-29 Haymarket, London, SW1Y 4RX 132 Professional Pensions Handbook 2016
Untitled-2PP Subs Ad.indd 1 1 28/04/201418/05/2016 12:0111:28 PPPP14-AD145x210-SUBS.indd 1 17/03/2014 17:18 SOFTWARE & SYSTEMS
How will NIC reforms impact DB schemes?
he abolition of contracting out on April 6 is making defined benefit (DB) provision more costly for many sponsors. Under the reforms companies with DB schemes lose their national insurance (NI) rebates and face increases in their own and their employees’ NI contributions (NIC). TEmployers are considering how to address the increased costs at a time when providing DB pensions is already increasingly expensive. Equiniti received the ‘Technology Innovation of The effects of NIC depend on the earnings of individual employees, although the biggest impact is expected to fall on companies that have large numbers of staff in their DB schemes. the Year’ award at the Professional Pensions, UK Figures from Barnett Waddingham show members on a £30,000 salary would pay an extra Pensions Awards 2016, for the ground-breaking £338 and the employer £822 annually. On a £40,000 salary this would rise to £478 for the drawdown app, RetireMe. employee and £1,162 for the employer. Delivering pensions administration, software and Companies with employees in contracted-out employment on 5 April 2016 are also affected. associated solutions for an unparalleled member This includes DB schemes open to new members, or schemes closed to new entrants but experience across the whole life of your scheme. with members who joined before this closure occurred. Around 60% of DB schemes and up to 1.75 million active members could potentially be affected by the changes according to figures from the 2015 Purple Book. Those who have already closed their schemes to entrants or have depleted numbers of active members will not be affected, nor those with little or no accrual on their schemes. Options for sponsors facing an increase in employer NICs range from absorbing the extra cost, passing them onto employees, amending the scheme rules, or even closing down the scheme. The government legislated for an override power option allowing companies to offset the rise by changing their scheme rules. This includes reducing benefits accrued by members, increasing their scheme contributions or raising the scheme’s retirement age to spread out the costs. Employers have a statutory period of up to 60 days to consult members before altering their contributions or benefits. This power does not apply to public sector schemes, however. The least expensive option is for companies to pass the costs onto their staff. However, such attempts by Royal Bank of Scotland, the transport manufacturer Bombardier and automobile producer Bentley Motors have led to disputes with the organisations’ trade union representatives. Barnett Waddingham senior consultant Malcolm McLean says this reaction from unions is unsurprising given employees are also subject to a NIC increase. He argues the two costs combined would be a ‘double whammy’ for employees which could lead to some thinking they Equiniti need to work longer. Sutherland House However, he adds some employers already struggling to grapple with state pension reforms Russell Way 2016 and increasing longevity of their members may feel this reform is the ‘straw that breaks the Crawley camel’s back’. West Sussex WINNER Technology Innovation RH10 1UH of the Year T 01293 601 880 134 Professional Pensions Handbook 2016 W equiniti.com AQUILA – CIVICA UK DST SYSTEMS – IDEA GROUP
AQUILA Communications Innovation of the DST SYSTEMS ESHARE Aquila House Year: DST House 1 Oxford Road 35 London Road UK Pensions Awards 2016 St Mark’s Hill Newbury Redhill Innovation of the Year: Surbiton Berkshire Surrey Pensions Age Awards 2015 Surrey RG14 1PD RH1 1NJ KT6 4QD Tel: 0845 200 7829 Tel: 01737 859 859 Capita Employee Benefits is the largest Tel: 020 8412 5000 Website: www.eshareuk.com Website: www.aquilauk.co.uk UK-owned employee benefits consultancy Website: www.dstsystems.com and software provider with over 1 million EURAPLAN LTD BNY MELLON ASSET SERVICING employees’ pensions and benefits serviced by DUNSTAN THOMAS 2nd Floor Performance & Risk Analytics in-house teams using our software. HOLDINGS LIMITED Alexandra House BNY Mellon Centre Rawlings Office 55A Catherine Place 160 Queen Victoria Street With offices across the UK, we are part of Gunwharf Quays London London Capita plc, a FTSE100 company. Portsmouth SW1E 6DY EC4V 4LA PO1 3TT Tel: 020 7963 4080 Tel: 020 7163 5566 We offer a full suite of pension, benefits and Tel: 023 9282 2254 Website: www.euraplan.co.uk Website: engagement software systems. Website: www.dthomas.co.uk www.bnymellon.com/assetservicing HEYWOOD LIMITED These can be run in-house or through our own 1st Floor implementation and management teams or BROADRIDGE FINANCIAL Hamilton House a combination of the two; whatever suits your SOLUTIONS Church Street needs or strategy. The ISIS Building Altrincham 193 Marsh Wall Cheshire Likewise systems can be hosted within London 2016 WA14 4DR WINNER your IT infrastructure or ours - full flexibility Technology Innovation E14 9SG of the Year Tel: 0161 613 4200 giving you access to accurate, effective Tel: 020 7551 3000 Website: www.heywood.co.uk administration software, comprehensive Website: www.broadridge.com EQUINITI PENSION SOLUTIONS workflow management, full online benefits Sutherland House HS ADMINISTRATIVE and scheme web and online member Russell Way engagement. SERVICES LIMITED Crawley Daresbury Park West Sussex All delivered how and where you want it. Daresbury CAPITA EMPLOYEE BENEFITS RH10 1UH Cheshire 65 Gresham Street Tel: 01293 601 880 CASHFAC PLC WA4 4HS London Website: www.equiniti.com Tel: 01928 707 900 50 Mark Lane EC2V 7NQ Website: www.hsadmin.com London Tel: 020 7709 4500 For further information or to arrange a EC3R 7QR Email: [email protected] demonstration, please contact our sales Tel: 0844 871 8717 IDEA GROUP LTD Website: team. 2 Kingsbourne Court Software & SystemsSoftware Website: www.cashfac.com www.capitaemployeebenefits.co.uk Tel: 01293 601 880 96-100 Luton Road Contact: Robin Hames Email: [email protected] Harpenden CIVICA UK LTD Twitter: @Capita_EB Website: www.equiniti.com Hertfordshire Vanguard House Facebook: Capita Employee Benefits AL5 3BL Dewsbury Road Linkedin: www.linkedin.com/groups/ Tel: 01582 766 899 Leeds Capita-Employee-Benefits-4681308 Website: www.ideagroup.co.uk LS11 5DD Employee Benefits Consultancy of the Tel: 0113 244 1404 Year: UK Pensions Awards 2016 Website: www.civica.co.uk Software Systems &
136 Professional Pensions Handbook 2016 www.professionalpensions.com 137 IRESS – PROFUND SOLUTIONS RETIRE EASY – WILLIS TOWERS WATSON
IRESS OBJECTWAY LTD RETIRE EASY STAFFCARE LTD 1 Kingmaker Court 25 Canada Square 20 Manor Courtyard Leatherhead House Gallows Hill Canary Wharf Hughenden Avenue Station Road Warwick London High Wycombe Leatherhead CV354 6DY E14 5LQ Buckinghamshire Surrey Tel: 0845 068 8000 Tel: 020 7071 3000 HP13 5RE KT22 7FG Website: www.iress.co.uk Website: www.objectway.com Tel: 020 3434 0000 Tel: 0845 372 6644 Website: www.retireeasy.co.uk Website: www.staffcare.net ITM LIMITED PENSIONS FIRST LTD 2nd Floor 90 Long Acre SCOTTISH LIFE STRAIT LOGICS LTD Minster House London 19 St Andrew Square Software House 42 Mincing Lane WC2E 9RA Edinburgh 20 Chapel Street London Tel: 020 7632 9100 EH2 1YE Billericay EC3R 7AE Website: www.pensionsfirst.com Tel: 0131 470 1365 Essex Tel: 020 7648 9990 Website: www.scottishlife.co.uk CM12 9LU Website: www.itmlimited.com PENSIONPAL LIMITED Tel: 01277 634844 9 The Dell SOURCE PENSIONS Website: www.straitlogics.com L&P SYSTEMS Kingsclere 80 Coleman Street New Oxford House Newbury London SUNGARD 75 Dale Street Berkshire EC2R 5B7 25 Canada Square Liverpool RG20 5NL Tel: 020 7104 2220 London L2 2HT Tel: 01635 297400 Website: www.sourcepensions.co.uk E14 5LQ United Kingdom Website: www.pensionpal.co.uk Tel: 020 8081 2000 Tel: 0151 255 1553 SS&C TECHNOLOGIES Website: www.sungard.com Website: www.lpsystems.com PROCENTIA LTD DST House 8 Brook Office Park St Marks Hill WILLIS TOWERS WATSON LINEDATA SERVICES (UK) LTD Emersons Green Surbiton Watson House Bishopsgate Court Bristol Surrey London Road 4/12 Norton Folgate BS16 7FL KT6 4QD Reigate London Tel: 0117 332 7800 Tel: 020 8390 5000 Surrey E1 6DB Website: www.procentia.co.uk Website: www.ssctech.com RH2 9PQ Tel: 020 7360 1800 Tel: 01737 241144 Website: www.ldsam.com PROFUND SOLUTIONS LIMITED SSP Website: www.willistowerwatson.com 100 Victoria Street 2nd Floor MSCI Bristol G Mill 10 Bishops Square BS1 6HE Dean Clough London Tel: 0117 927 8400 Halifax E1 6EG Website: www.profund.com West Yorkshire Software & SystemsSoftware Tel: 020 7618 2222 HX3 5AX Website: www.msci.com Tel: 01422 330 022 Website: www.ssp-uk.com Software Systems &
138 Professional Pensions Handbook 2016 www.professionalpensions.com 139 SOLICITORS & LEGAL ADVISERS ADDLESHAW GODDARD – BURGES SALMON
ADDLESHAW GODDARD BLAKE MORGAN How independent is advice in the Milton Gate New Kings Court 60 Chiswell Street Tollgate bulk annuity market? London Chandler’s Ford EC1Y 4AG Eastleigh he final quarter of 2015 saw £5.4bn of pension buy-in and buyout deals transacted, Tel: 020 7606 8855 SO53 3LG the largest volume recorded in any quarter. Website: www.addleshawgoddard.com Tel: 023 8090 8090 As deal size and volumes grow, the need for independent advice becomes ever Website: www.blakemorgan.co.uk more important. However, finding the right sort of advice has become challenging. ALLEN & OVERY THowever, independent advice is particularly important when trustees look at a full One Bishops Square BOND DICKINSON buyout. This is partly because it’s a one-off investment winding up the scheme, which London St Ann’s Wharf EC1 6AD 112 Quayside normally takes long period of time. Tel: 020 3088 0000 Newcastle upon Tyne “It boils down mainly to two elements,” LCP partner Charlie Finch says. “Independent Website: www.allenovery.com NE1 3DX advice from the ongoing information received, and the expertise from experienced advis- Tel: 0844 984 1500 ers who can evaluate the full range of options and decide which ones are relevant to that BAKER & MCKENZIE Website: www.bonddickinson.com scheme.” 100 New Bridge Street Aviva managing director of bulk annuities Nick Johnson says less than a third of defined London BURGES SALMON LLP benefit (DB) schemes that come to market are successfully transacted. He argues EC4V 6JA One Glass Wharf schemes need to be well-prepared to give themselves the best chance of transacting. Tel: 020 7919 1000 Bristol That includes seeking the best advice. Website: www.bakermckenzie.com BS2 0ZX “If you’re getting advice on a buyout, do you actually understand the process that you’re Tel: 0117 939 2000 going through and do you know that the adviser is going to get you there?” Johnson says. Website: www.burges-salmon.com However, KPMG pensions insurance director Tom Seecharan argues there is a sufficient supply of advisers for bulk annuities. Instead, trustees should be aware if advisers are attached to companies or products adding that agendas can start to diverge if advice is not independent. “What’s best for you as the client might not be best for the person giving the advice,” he says. “That’s where issues can start to rise.” Tendering for different advisers is also a valuable way of avoiding conflict of interest al- lowing trustees to obtain different points of view as well as helping match the adviser with TRUSTED ADVISERS Our UK pensions team provides advice that is both commercial and industry specific. We cover every the scheme’s priorities. aspect of pension provision, including the creation, operation, regulation and restructuring of all types of Gowling WLG principal associate Christopher Stiles says any conflicts of interest should pension funds in the private and public sectors, as well as the management of pension disputes. be known and the provider should be upfront about them. OUR SKILLS ARE PROVEN “It’s largely impossible to avoid a conflict of interest,” Stiles says. “The main point the What sets us apart is the sheer quality and breadth of our client base: from the largest pension schemes to trustees need to be aware of is that these conflicts are expressed and managed rather the smallest, working for corporates and trustees alike, and from medium-sized businesses to multinationals. Solicitors & Legal Advisers than avoided altogether. We are uniquely placed to provide a full service international offering including advice relating to “When there is the case of the advisory arm of an organisation providing advice in employment, corporate, finance, tax and funds. relation to a product offered by another arm of the same organisation that needs to be CONTACT US For further information about our UK pensions practice declared upfront. please contact David Wright on 0870 011 1111 or [email protected]. “Trustees should start from a position of thinking whether there is another adviser that is equally competent in all other respects to provide advice without that conflict of inter- est. However, it’s not entirely incompatible if there are reasons for that advice to be given www.dlapiper.com as long as the conflict of interest is managed,” he adds. Copyright © 2016 DLA Piper. All rights reserved. | APR16 | 3087213
140 Professional Pensions Handbook 2016 www.professionalpensions.com 141 BURNESS – DLA PIPER DLA PIPER – HERBERT SMITH FREEHILLS
BURNESS DENTONS UKMEA LLP Company Profile: FOX WILLIAMS 50 Lothian Road 1 Fleet Place The Pensions and Benefits Group is one of 10 Dominion Street Festival Square London the largest pension teams within the UK. London Edinburgh EC4M 7WS It enjoys a high profile and is perceived EC2M 2EE EH3 9WJ Tel: 020 7242 1212 as being dynamic and different, offering Tel: 020 7628 2000 Tel: 0131 473 6000 Website: www.dentons.com proactive pensions advice in a wide range Website: www.foxwilliams.com Website: www.burness.co.uk of areas. The principal objectives of the Pensions and Benefits Group are to provide FRESHFIELDS BRUCKHAUS CHARLES RUSSELL SPEECHLYS commercial solutions to clients’ problems DERINGER 5 Fleet Place and to work with them to achieve their 65 Fleet Street London business objectives. As one of the market London EC4M 7RD leaders the Group is uniquely placed to EC4A 1HT Tel: 020 7203 5000 DLA PIPER UK LLP provide a full range of pension services Tel: 020 7936 4000 Website: www.charlesrussellspeechlys.co.uk 3 Noble Street and advice to employers, trustees and Website: www.freshfields.com London scheme members as well as actuaries, CLIFFORD CHANCE EC2V 7EE accountants, consultants, insurance GORDONS LAW GROUP 10 Upper Bank Street Tel: 08700 111 111 companies and other providers. Forward House London Email: [email protected] 8 Duke Street E14 5JJ [email protected] Contact: David Wright Bradford Tel: 020 7006 1000 Website: www.dlapiper.com Title: Head of Pensions and Benefits BD1 3QX Website: www.cliffordchance.com Email: [email protected] Tel: 01274 2502202 Other Offices: Website: www.gordonsllp.co.uk CLYDE & CO LLP Victoria Square House DWF Beaufort House Victoria Square 1 Scott place GREENWOODS SOLICITORS LLP 15 St. Botolph Street Birmingham 2 Hardman Street Monkstone House London B2 4DL Manchester City Road Solicitors & Legal Advisers & Legal Solicitors EC3A 7NJ Email: [email protected] M3 3AA Peterborough Tel: 020 7247 2277 Tel: 0161 603 5000 PE1 1JE Website: www.clydeco.com Princes Exchange Website: www.dwf.co.uk Tel: 01733 887 700 Princes Square Website: www.greenwoods.co.uk CMS CAMERON MCKENNA Leeds EVERSHEDS LLP Mitre House LS1 4BY 1 Wood Street HERBERT SMITH FREEHILLS LLP Email: 160 Aldersgate Street [email protected] London Exchange House Email: London [email protected] EC2V 7WS Primrose Street EC1A 4DD Tel: 0845 497 9797 London India Buildings Tel: 020 7367 3000 Website: www.eversheds.com EC2A 2EG Water Street Website: www.law-now.com Tel: 020 7374 8000 Solicitors & Legal Advisers Liverpool FIELD FISHER Website: www.hsf.com DECHERT LLP L2 0NH WATERHOUSE SOLICITORS Email: 160 Queen Victoria Street [email protected] Riverbank House Email: London [email protected] 2 Swan Lane EC4V 4QQ London 101 Barbirolli Square Tel: 020 7184 7000 EC4R 3TT Manchester Website: www.dechert.com Tel: 020 7861 4000 M2 3DL Website: www.ffw.com Email: [email protected] Email: [email protected]
142 Professional Pensions Handbook 2016 www.professionalpensions.com 143 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 Heron Tower 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 Solicitors & Legal Advisers & Legal Solicitors MACFARLANES London St Katharine’s Way EC4A 3LX 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 Solicitors & Legal Advisers Tel: 0141 248 5011 Tel: 020 7329 6699 Website: www.mms.co.uk OSBORNE CLARKE Website: www.sackers.com STEPHENSON HARWOOD LLP 2 Temple Back East 1 Finsbury Circus MACROBERTS SOLICITORS Temple Quay SHEPHERD & WEDDERBURN London Capella Bristol 1 Exchange Crescent EC2M 7SH 60 York Street BS1 6EG Conference Square Tel: 020 7809 2261 Glasgow Tel: 0117 917 3000 Edinburgh Website: www.shlegal.com G2 8JX Website: www.osborneclarke.com EH3 8UL Tel: 0141 303 1100 Tel: 0131 228 9900 Website: www.macroberts.com Website: www.shepwedd.co.uk
144 Professional Pensions Handbook 2016 www.professionalpensions.com 145 TRAVERS SMITH – WRAGGE LAWRENCE GRAHAM AVIVA PLC – LONDON & COLONIAL SERVICES
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 2016 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 WRAGGE LAWRENCE GRAHAM & www.bdo.co.uk/investmentmanagement Tel: 0845 230 3553 CO LLP Website: www.ipm-pensions.co.uk Two Snow Hill CANTWELL GROVE LIMITED Birmingham The Old Registry JAMES HAY PARTNERSHIP 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 LEGAL & GENERAL Solicitors & Legal Advisers & Legal Solicitors LIMITED ASSURANCE SOCIETY 1st Floor Legal & General House Lakeside House St Monica’s Road Shirwell Crescent Furzton Lake Kingswood Milton Keynes Tadworth MK4 1GA Surrey To ensure your Tel: +44 (0) 1908 336010 KT20 6EU Website: www.careypensions.co.uk Tel: 01737 370 370 inclusion in the Website: www.legalandgeneral.com 2017 EBS (MANAGEMENT) PLC 25 Luke Street LONDON & COLONIAL SERVICES London LIMITED Handbook SSASs EC2A 4AR Perrymount House contact Nita Hulme Tel: 020 7149 6560 38-42 Perrymount Road Website: www.ebsmanagement.co.uk Haywards Heath NOW on West Sussex RH16 3DN +44 (0) 20 7316 9309 or Tel: 0203 479 5505 Website: www.londoncolonial.com [email protected]
146 Professional Pensions Handbook 2016 www.professionalpensions.com 147 ORIGEN FINANCIAL – STANDARD LIFE o i s n e P D s n o c s i ORIGEN FINANCIAL SERVICES LTD SKANDIA LIFE ASSURANCE n u 1st Floor, Infor House COMPANY LTD t 1 Lakeside Road PO Box 37 R Farnborough Skandia House a Str Hampshire Portland Terrace te ate GU14 6XP Southampton gy Tel: 0844 209 3000 SO14 7EJ Re Website: www.origenfs.co.uk Tel: 023 8033 4411 tir In Website: www.skandia.co.uk Strate em PREMIER COMPANIES LTD gy Insig e s ht nt Corinthian House STANDARD LIFE Em Inve i 17 Lansdowne Road sti g g Sipps Centre er r r ng P Croydon Edinburgh g g olic h h i i y F t t CR0 2BX EH15 1ET g g n n idu Tel: 020 8663 5800 Tel: 0845 0845 000 M M E E E E E cia Website: www.premiercompanies.co.uk Website: www.standardlife.co.uk a a m m r e e k k r r y s s t t r r e e M ROWANMOOR GROUP PLC s s A A i i g g - - t t e e s s g g n n a Rowanmoor House k k c c a a b b M M n n 46-50 Castle Street c c d d e e r r a a t t n n o o Pensions Buzz Comment Feature k k o i t u b b i i r r Should investment Governance in Reclassifying e e a a S n consultants be fully contract-based money purchase s s t t Salisbury h c regulated? page 22 schemes page 25 benefits page 28 e m e s s A A g g Wiltshire s e e s s m m 20 February 2014 www.professionalpensions.comt t SP1 3TS b b - - e e Tel: 03445 440 440 Walkingintheshoesa a n n ofaTPASadviser How three volunteers conduct their roles Website: www.rowanmoor.co.uk c c page 26 k k u u u A A A A Financial Assistance Scheme e e FAS regulations offer ‘last chance’ entry t t SCOTTISH LIFE to ineligible schemes page 4 o o DB Code of Practice - Regulator’s code branded ‘garbage’ due Royal London House d to lack of guiding principles page 6 E FCA annuity review n Did the Financial Conduct Authority’s Alderley Road reviewintoannuitymarketsgofarenough? r page 14 o Wilmslow m l Cheshire n e SK9 1PF fotoaloja G Tel: 0845 60 50 050 o Is it time for a new towerswatson.com +44 1737 241144 [email protected] Unrivalledv coverage perspective on your administration? Copyright©2013TowersWatson.Allrightsreserved. TW-EU-2012-28548c. April 2013. e TowersWatsonisrepresentedintheUKbyTowersWatsonLimited Website: www.scottishlife.co.uk To ensure your and Towers Watson Capital Markets Limited. a n r e c n SSASs SCOTTISH WIDOWS PLC inclusion in the Professional Pensions continues to be the market leading source PO Box 17036 2017 for those in the occupational pensions industry. 69 Morrison Street Professional Pensions Print Online Events Tablet Edinburgh Following an extensive, independent audience research study, EH3 8YH Handbook Professional Pensions has been further improved to include Tel: 0131 655 6000 greater depth of analysis, insight and content. Website: www.scottishwidows.co.uk contact Nita Hulme NOW on Professional Pensions has taken into account your information needs which can be accessed whether in print, in person, online +44 (0) 20 7316 9309 or or via any smart device. [email protected] www.professionalpensions.com 148 Professional Pensions Handbook 2016
PPPP14-AD145x210-launchPP house ad.indd 1 ad.indd 1 20/03/201425/05/2016 14:4516:04 TRACING COMPANIES ACCRATE DATA – GB GROUP LEXIS NEXIS – TARGET
ACCURATE DATA SERVICES LTD and award-winning Completetrace™ tracing LEXIS NEXIS Suite 2, The Old Dairy solutions, trustees can be confident that Global Reach Elm Farm we will ensure that their member records Dunleavy Drive Norwich Common are accurate, that they are protected from Cardiff The Wymondham identity fraud and meet all the regulatory CF11 0SN NR18 0SW requirements. Tel: 029 2067 8555 Professional Tel: 01603 813366 Website: Website: www.accurate data.co.uk With typical find rates of 80% and verification www.lexisnexis.com/risk/tracesmart Pensions rates of 65%, we typically trace over a million ATMOS DATA SERVICES LIMITED members per annum for clients and mortality NATIONAL FRAUD INITIATIVE Handbook 2016 Aquila House screen over 2 million. 1 Horse Guards Road 35 London Road London Redhill Our end-to-end online solutions have SW1A 2HQ Surrey delivered demonstrable results for our clients. Tel: 07977 340 550 RH1 1NJ Website: www.gov.uk/national-fraud- Tel: 01737 857 187 EXPERIAN initiative-private-sector-services Website: www.atmosdataservices.co.uk PO Box 9501 Nottingham NG80 1WD THE PENSION TRACING SERVICE Tel: 0844 481 8180 The Pension Service Website: Tyneview Park www.experian.co.uk/pensionsolutions Whitley Road CAPITA EMPLOYEE BENEFITS www.uar.co.uk Necastle upon Tyne 65 Gresham Street NE98 1BA London FARADAY TRACING BUREAU LTD Tel: 0845 6002 537 EC2V 7NQ Christopher Wren Yard Website: www.thepensionservice.gov.uk Tel: 0800 731 1267 119 High Street Email: [email protected] Croydon Surrey SWIFT CREDIT SERVICES LTD Website: www.capitatracing.co.uk CR0 1QG 2 Penydarren Road Tel: 020 8667 2444 Merthyr Tydfil Contact: Alex Mitchell Website: www.ftb-ltd.com CF47 9AH Twitter: @Capita_EB Tel: 0844 546 6910 Facebook: Capita Employee Benefits GB GROUP PLC Website: www.swiftcredit.co.uk Tracing Companies Linkedin: www.linkedin.com/groups/ The Foundation To ensure your Capita-Employee-Benefits-4681308 Herons Way TARGET PROFESSIONAL SERVICES Chester Business Park (UK) LTD inclusion in the Employee Benefits Consultancy of the Chester First Floor Offices 2017 Year: UK Pensions Awards 2016 CH4 9GB Unit 4 Ellis Square Tel: 01244 657333 Manor Road Handbook Capita Employee Benefits is the largest Website: www.gb.co.uk Selsey
UK-owned employee benefits consultancy Chichester contact Nita Hulme Companies Tracing servicing over 1,200 clients and more than 4 West Sussex million scheme members. PO20 0AY NOW on Tel: 0844 576 8080 / +44 1243 601333 With offices across the UK, we are part of Website: www.targetprofessional.co.uk +44 (0) 20 7316 9309 or Capita plc, a FTSE100 company. [email protected] Through our mortality screening service
150 Professional Pensions Handbook 2016 www.professionalpensions.com 151 AON HEWITT – OPDU AON HEWITT – XEROX TRANSITION MANAGEMENT
AON HEWITT NATIONAL ASSOCIATION OF AON HEWITT MORGAN STANLEY INVESTMENT Parkside House PENSION FUNDS LTD (NAPF) 10 Devonshire Square MANAGEMENT LTD Ashley Road Cheapside House London 25 Cabot Square Epsom 138 Cheapside EC2M 4YP Canary Wharf Surrey London Tel: 0800 279 5588 London KT18 5BS EC2V 6AE Website: www.aonhewitt.co.uk E14 4QA Tel: 013 7273 3907 Tel: 020 7601 1700 Tel: 020 7425 8000 Website: Website: www.napf.co.uk BNY CONVERGEX GROUP Website: www.morganstanley.co.uk www.aonhewitt.co.uk/pensionstraining 160 Queen Victoria Street THE OCCUPATIONAL PENSIONS London NORTHERN TRUST AVIVA INVESTORS DEFENCE UNION EC4A 4LA COMPANY LONDON 1 Poultry 90 Fenchurch Street Tel: 020 7163 3300 50 Bank Street London London Website: www.bnyconvergex.com Canary Wharf EC2R 8EJ EC3M 4ST London Tel: 020 7809 6000 Tel: 0207 204 2432 CITI TM E14 5NT Website: www.avivainvestors.com Website: www.opdu.com City Group Centre Tel: 020 7982 2000 London Website: www.ntrs.com BNY MELLON ASSET SERVICING E14 5LB Performance & Risk Analytics Tel: 020 7986 2531 RUSSELL INVESTMENTS BNY Mellon Centre Website: www.citigroup.com Rex House 160 Queen Victoria Street 10 Lower Regent Street London CREDIT SUISSE London EC4V 4LA One Cabot Square SW1Y 4PE Tel: 020 7163 5566 London Tel: 020 7024 6000 Website: E14 4QJ Website: www.russell.com/uk www.bnymellon.com/assetservicing Tel: 020 7888 0802 Website: www.credit-suisse.com XEROX HR SERVICES LCP 160 Queen Victoria Street 95 Wigmore Street DEUTSCHE BANK London London Winchester House EC4V 4AN W1U 1DQ 1 Great Winchester Street Tel: 0800 066 5433 Tel: +44 (0) 20 7439 2266 London
Training Provider Guide Email: [email protected] Fax: +44 (0) 20 7439 0183 EC2N 2DB Website: www.xerox.co.uk/hrservices Email: [email protected] To ensure your Tel: 020 7545 8000 Website: www.lcp.uk.com inclusion in the Website: www.deutsche-bank.com MERCER 2017 GOLDMAN SACHS ASSET 1 Tower Place West Professional Pensions MANAGEMENT INTERNATIONAL London Peterborough Court EC3R 5BU Handbook 133 Fleet Street Tel: 020 7626 6000 contact Nita Hulme London Website: www.mercer.com EC4A 2BB NOW on Tel: 020 7774 1000 Management Transition +44 (0) 20 7316 9309 or Website: www.gs.com [email protected]
152 Professional Pensions Handbook 2016 www.professionalpensions.com 153 TRUSTEE LIABILITY INSURANCE ... a guiding light for all your pension trustee liability insurance needs Run Off/Overlooked Beneficiary - A Case Study
n December 2012, a scheme adviser rang ULP to notify that a client company’s Pension Trustee Liability Insurance policy was being terminated with immediate effect due to the fact that the Sponsoring Employer had become insolvent. This created a dilemma for the Trustees and advisers, which is why they Iimmediately sought the assistance of ULP. Within two weeks an indication was made available for consideration. The indication was firmed up on receipt of additional information and cover placed. It had been thought that only one year’s cover would be required before the scheme Universal Legal Protection went in to Run Off, however due to queries from HMRC relating to contractingout data, entry into the Financial Assistance Scheme as well as equalisation issues, the formalisation of the wind up took longer than expected. As a specialist Insurance Broker, we add value by advising clients on the cover they need In July 2013, the wind up was finally completed and the Run Off (Discontinuance) and by shopping around for the best and/or most appropriate Pension Trustee Liability plus Overlooked Beneficiary insurance policy taken out for a twelve year period. Insurance (PTL) policies. Not many of the 'players' in the PTL market approach more than In 2015 an overlooked/missing beneficiary came forward and after the necessary one Insurer or deal with Schemes that have been, or are being, 'wound up' as well as with due diligence and record checking had been completed a claim was notified to the Insurer. Live Schemes. This claim has now been settled for well in excess of £100,000. Luckily the Trustees had the foresight to buy plenty of cover so, even though it was a large Our team has been arranging PTL insurance for over ten years and is considered by many claim, the limit is an aggregate one (reducing by the amount of any claim). to be the market leader in broking PTL risks. We help by keeping the process as simple as Therefore there is still plenty of cover available should any other claims arise over possible, and we steer our clients through that process. the remaining nine years or so that the policy has left to run. Many Trustees do not consider Pension Trustee Liability Insurance until the scheme is being closed (wound up) i.e. the Sponsoring Employer will no longer be around. We are independent of all the PTL Insurers we do business with. The Trustees in this example had the foresight to take out an annually renewable We shop around, so you don't have to. policy prior to the scheme being wound up. Had they not, and had they received a We suggest what coverage options might be worth considering. claim for Breach of Trust, Wrongful Act or Maladministration during the wind up Above all, we offer and promote choice and can help differentiate between what is period, they would have been unprotected. available.
We encourage clients to get a quotation and to consider taking out cover sooner rather than later - thereby not leaving anything to chance. Doing so tends to make it easier to get Run Off (Discontinuance) and Overlooked For further details, please contact Beneficiary cover when it is needed. Richard Myrtle or Ruth Stevens T: 01234 340266 E: [email protected] Universal Legal Protection W: pensiontrusteeliability.co.uk
154 Professional Pensions Handbook 2016 Universal Legal Protection Ltd, Bedford Heights, Manton Lane, Bedford, MK41 7PH Members of the British Insurance Brokers' Association
Untitled-3 1 04/05/2016 15:06 CHUBB INSURANCE – ZURICH ASSURANCE TRUSTEE TRAINING
CHUBB INSURANCE The Chubb Building TPR chief wants ‘more capable and 100 Leadenhall Street London competent 21st century trustees’ EC3A 3BP UNIVERSALUniversal LegalLEGAL ProtectionPROTECTION Tel: 020 7956 5000 LTD he Pensions Regulator (TPR) wants an open debate about what a good 21st century Website: www.chubb.com/uk Bedford Heights trustee should look like and do in an increasingly complex world, according to chief Manton Lane executive Lesley Titcomb. THE OCCUPATIONAL PENSIONS Bedford DEFENCE UNION MK41 7PH Speaking at Punter Southall’s annual conference in London in October 2015, 90 Fenchurch Street Tel: 01234 340266 Tshe revealed the regulator will be raising its focus on the capabilities of trustees across London Website: www.pensiontrusteeliability.co.uk both defined contribution (DC) and defined benefit (DB) to ensure they evolve to the EC3M 4ST needs of the changing pensions sector. Tel: 0207 204 2432 Contact: Richard Myrtle, MA, ACII This will be a theme in TPR’s communications with schemes in the coming months, Website: www.opdu.com Email: [email protected] during which it will look at how to give additional support to trustees in areas such as training. PENSION INSURANCE Specialist Independent Pension Trustee Titcomb said there needs to be “more capable, competent 21st century trustees” as Liability Insurance Brokers CORPORATION both DC and DB pensions experience significant changes. 14 Cornhill She said: “Given that safeguarding pensions for DB or DC is a core priority for TPR, it is London ZURICH ASSURANCE LTD only right that we increase our focus on the competence and capability of trustees and EC3V 3ND Uk LIFE Centre the structure of trustee boards. Tel: 020 7105 2000 Station Road Website: www.pensioncorporation.com Swindon “Trustees, from professional to member-nominated, many of whom may not come SN1 1EL from a pensions background, are required to do an increasingly complicated job. There STANDARD LIFE ASSURANCE LTD Tel: 01793 514514 are important questions to ask about trustees for the future, and we are starting to do Standard Life House Website: www.zurich.co.uk/life that with a view to developing a vision of what a 21st century trustee needs to look like 30 Lothian Road and do.” Edinburgh Titcomb wants a “big open debate” with the industry about what a good 21st century EH1 2DH trustee looks like, the challenges they face, and what this means for the regulator. Tel: 0131 245 0319 Initial findings of the watchdog’s research on trustee capability show that trustees of Website: www.standardlife.co.uk larger schemes are more capable than those of smaller schemes. The regulator surveyed more than 800 trustees over the summer months to better understand the challenges they are facing in the evolving pensions landscape. It will Trustee Insurance Liability publish themed reports on what it has found out, heard, and what it will be doing to support trustees.
TPR’s findings • Trustees of larger schemes are more capable when compared to those of smaller schemes. • Half of schemes said all trustees met TPR’s minimum standards for knowledge, but 14% said no trustees met them and have not heard of the regulator’s trustee toolkit. • Small schemes spend on average nine days on their duties per year, compared to 12 days for medium and 16 days for large schemes. • Around half of small schemes say trustees spend less than five days on their duties per year.
156 Professional Pensions Handbook 2016 www.professionalpensions.com 157 ABERDEEN ASSET – GODDARD PERRY HYMANS ROBERTSON – PINSENT MASONS
ABERDEEN ASSET BUCK CONSULTANTS AT XEROX HYMANS ROBERTSON LCP MANAGEMENT PLC 160 Queen Victoria Street One London Wall 95 Wigmore Street Bow Bells House London London London 1 Bread Street EC4V 4AN EC2Y 5EA W1U 1DQ London Tel: 020 7429 1000 Tel: 020 7082 6000 Website: www.lcp.uk.com EC4M 9HH Website: www.xerox.co.uk/consulting Website: www.hymans.co.uk Tel: 020 7463 6000 Contact: Chris Green Website: www.aberdeen-asset.com BURGES SALMON LLP ICSA (INSTITUTE OF Title: Partner & Head of Trustee Training One Glass Wharf CHARTERED SECRETARIES AND Tel: +44 (0)20 7439 2266 AON HEWITT Bristol ADMINISTRATORS) Fax: +44 (0)20 7439 0183 Parkside House BS2 0ZX Seminars Policy and Development Email: [email protected] Ashley Road Tel: 0117 939 2000 Department Epsom Website: www.burges-salmon.com 16 Park Crescent MERCER Surrey Regents Park 1 Tower Place West KT18 5BS CAPITA EMPLOYEE BENEFITS London Tower Place Tel: 013 7273 3907 65 Gresham Street W1B 1AH London Website: London Tel: 020 7612 7033 EC3R 5BU www.aonhewitt.co.uk/pensionstraining EC2V 7NQ Website: www.icsaevents.com Tel: 020 7626 6000 Tel: 020 7709 4500 Website: www.mercer.com BARNETT WADDINGHAM LLP Website: INVESTMENT EDUCATION PLC Cheapside House www.capita.co.uk/employeebenefits 4th Floor NABARRO LLP 138 Cheapside Oddfellows House 125 London Wall London CMS CAMERON MCKENNA 40 Fountain Street London EC2V 6BW Mitre House Manchester EC2Y 5AL Tel: 020 7776 2200 160 Aldersgate Street M2 2BE Tel: 020 7524 6000 Email: trusteeseminars@barnett- London Tel: 0161 832 3800 Website: www.nabarro.com waddingham.co.uk EC1A 4DD Website: www.investmenteducation.net Website: www.barnett-waddingham.co.uk Tel: 020 7367 3000 OAC ACTUARIES AND Website: www.law-now.com JLT EMPLOYEE BENEFITS CONSULTANTS BDO LLP The St Botolph Building 141-142 Fenchurch Street 55 Baker Street EVERSHEDS LLP 138 Houndsditch London London 1 Wood Street London EC3M 6BL W1U 7EU London EC3A 7AW Tel: 020 7278 9500 Tel: 020 7486 5888 EC2V 7WS Tel: 020 7528 4000 Website: www.oac.co.uk Website: Tel: 0845 497 9797 Website: www.jltgroup.com/eb www.bdo.co.uk/investmentmanagement Website: www.eversheds.com PINSENT MASONS LLP KPMG LLP Crown Place BOND DICKINSON GODDARD PERRY CONSULTING Arlington Business Park Earl Street St Ann’s Wharf 8th Floor Theale, Reading London Trustee Training Trustee 112 Quayside Corinthian House Berkshire EC2A 4ES Newcastle upon Tyne 17 Lansdowne Road RG7 4SD Tel: 020 7418 7000 NE1 3DX Croydon Tel: 0118 373 1369 Website: www.pinsentmasons.com Tel: 0844 984 1500 Surrey Website: www.kpmg.com/uk/pensions Website: www.bonddickinson.com CR0 2BX Tel: 020 8603 3700
Website: www.goddardperry.com Trustee Training
158 Professional Pensions Handbook 2016 www.professionalpensions.com 159 s n e P PRICEWATERHOUSECOOPERS – XAFINITY CONSULTING s n o i s i D u o c t n PRICEWATERHOUSECOOPERS LLP R Hays Galleria a St 1 Hays Lane The t rat London e eg R y SE1 2RD Professional et I Tel: 020 7583 5000 irem n Website: www.pwc.co.uk Strategy Insig e s Pensions ht nt Em Inv i WILLIS TOWERS WATSON esti g er ng P Watson House Handbook 2016 g olic h Pensions Buzz Comment Feature y Should investment Governance in Reclassifying i F consultants be fully contract-based money purchase n t regulated? page 22 schemes page 25 benefits page 28 id London Road g uc Reigate M E i 20 February 2014 www.professionalpensions.com a a k r m ry Surrey Walkingintheshoes t t e e e ofaTPASadviser s s M How three volunteers conduct their roles r RH2 9PQ page 26 A A g e e s s s s n i Tel: 01737 241144 b b - - t t g a Financialc c Assistancea a Scheme M FASk k regulations offer ‘last chance’ entry n c c d d e e to ineligible schemes page 4 r a Website: www.willistowerwatson.com t t n n o o DB Code of Practice k o o i i t t u u b b i i r r Regulator’s code branded ‘garbage’ due e a h c S n n to lack of guiding principles page 6 s t e FCA annuity review m Did the Financial Conduct Authority’s A g e reviewintoannuitymarketsgofarenough? s s page 14 s m XAFINITY CONSULTING - - t t e Phoenix House b b e
fotoaloja a a n Astation Hill c c Is it time for a new towerswatson.com +44 1737 241144 [email protected] perspective on your administration? Copyright © 2013 Towers Watson. All rights reserved. TW-EU-2012-28548c. April 2013. A TowersWatsonisrepresentedintheUKbyTowersWatsonLimited and Towers Watson Capital Markets Limited. k k Reading e e t u Berkshire d E - o RG1 1NB r n Tel: 0118 958 3683 m l o Website: www.xafinity.com n e Access the latest pensions insight withG v o Professional Pensions. Subscribea n r e today. e c n Professional Pensions is the market 45 printed issues of Professional Pensions leading source for those in the Monthly supplements, including DC World, the occupational pensions industry. Top 100 Pension Funds and specialist reports To ensure your The annual Professional Pensions Handbook Following an extensive, independent Exclusive access to premium content inclusion in the audience research study, Professional UK 1 YEAR: £499 Pensions has been further improved to NAME: 2017 include greater depth of analysis, insight COMPANY: and content. JOB TITLE: Handbook ADDRESS: POSTCODE: Trustee Training Trustee Professional Pensions has taken into contact Nita Hulme account your information needs which can TEL: FAX: EMAIL: be accessed whether in print, in person, NOW on I enclose cheque/banker’s draft* for £499 made payable to online or via your smart device. Incisive Financial Publishing. +44 (0) 20 7316 9309 or *(delete as applicable) You can subscribe using the form to [email protected] the right or online at: DATE: SIGNED: Send details and cheque, payable to Incisive Financial professionalpensions.com/register Publishing, to: Haymarket House, 28-29 Haymarket, London, SW1Y 4RX 160 Professional Pensions Handbook 2016
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