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Contents 06 PensionsAgeAwards2015overview

08 PensionsAgeAwards2015winner’slist

09 Thejudgingpanel

Highlighted winners

10 PensionSchemeInnovationAwardoftheYear:BlueSky Pension Scheme

12 FiduciaryManagementFirmoftheYear: Aon Hewitt

14 PensionsTechnologyFirmoftheYear:Equiniti

16 At-RetirementSolutionsProvideroftheYear:JLT

18 PensionsLawFirmoftheYear:CMS

20 PensionsAccountancyFirmoftheYear:Crowe Clark Whitehill

22 PropertyManageroftheYear:LaSalle Investment Management

24 LDIManageroftheYear:SEI

26 IndexProvideroftheYear:MSCI

28 RiskManagementProvideroftheYear:PIC

30 HedgeFundManageroftheYear:Aurum

32 InnovationAwardoftheYear:Capita

34 AdministrationProvideroftheYear:Premier


Growing upon the phe-nomenal success of its launch last year, the excitement in the air was palpable at the

2015 Pensions Age Awards. The amazing atmosphere was due to over 500 members of the industry elite gathering together in February at the glamorous London Marriott Hotel at Grosvenor Square to celebrate the

Oh what a night!

06


innovation and success of the pensions sector.

It’s no secret that managing a pension scheme is more chal-lenging today than it has ever been, thanks to the earth shatter-ing reforms to the sector over the past couple of years. The prepa-ration and adaption to these changes is taking place against a backdrop of increasing pressure on pension schemes to produce adequate returns whilst managing risks and navigating choppy investment markets.

This is why events such as the Pensions Age Awards are so important, to recognise and appreciate the hard work occur-ring within the sector to generate the best results for members. The Pensions Age Awards aims to reward both the pension schemes and the pension providers across the UK that have proved them-selves worthy of recognition in these increasingly challenging economic times.

By putting themselves forward for these awards, the most dynamic, dedicated and innova-tive UK pension schemes were given the opportunity to show-case their successes and demon-strate the lengths they have gone to in meeting the investment, reg-ulatory and governance challeng-es facing all UK pension schemes today, whilst the providers that

work tirelessly to meet the needs of their clients and display innova-tion, vigour and a passion for UK pension provision were also able to highlight the important work they offer in support of pension schemes.

This excellent work was evi-dent with over 250 high quality entries received, so just making the shortlist was an achievement in itself.

Taking on the difficult task of deciding the winners was our prestigious judging panel, a col-lection of 21 of the industry’s fin-est (see page 9), which worked tirelessly to choose the right win-ners across all categories via a rigorous, transparent and totally independent judging process.

The champagne flowed during the mingling and music of the drinks reception, before the deserving winners were announced at the glittering Gala Dinner and Awards Ceremony hosted by comedian Fred MacAulay, who kept the laughter coming from both the winners and nominees.

Whilst the 30 winners have all excelled within their chosen cate-gories, some notable winners include M&G Investments, the only company to win two of these prestigious awards, for Active Manager of the Year and Fixed income Manager of the Year.

On the pension scheme side, Kingfisher Pension Scheme was named the DC Pension Scheme of the Year for its excellent gov-ernance set up and its real focus on member outcomes, according to the judges, whilst Essex Pension Fund took the accolade for DB Pension Scheme of the Year for its enhancements to its administration, funding, invest-ment and people aspects, coming together to deliver a strong offer-ing, the judges stated.

Two subjects that have been the focus for pension schemes in recent years are risk manage-ment and auto-enrolment. Therefore the winners of these categories were subject to much anticipation. The winners were Total UK Pension Plan for Best Risk Management Exercise, due to its mitigation of risks with its high quality proposition, and Prospects for Best Auto-Enrolment Implementation, which the judges said clearly under-stood the needs of its employees and the auto-enrolment process was managed with a dedication to excellence.

Other pension scheme win-ners included My LV= Pension Plan for the their pension scheme communications, ZPen – Zurich Insurance Group for their pen-sions administration, MacMillan Cancer Support Pension Scheme


for their excellent investment strate-gy and BlueSky Pension Scheme for their innovative work (see page 10).

Meanwhile, other notable awards included the Pensions Administration Award, which went to ZPen – Zurich Insurance Group, while the Independent Trustee Firm of the Year award went to PS Independent Trustees.

The final award of the night, the Personality of the Year Award, was voted for by the readers of Pensions Age and went to Charles Cowling from JLT Employee Benefits.

Both the winners and those not so lucky celebrated in style after the prize-giving with the dual delights of a fun casino and DJ to dance the night away.

Our congratulations to the much-deserved winners on the night, along with our appreciation to all the pension schemes and pro-viders who took the time and effort to let us know of the quality work they are doing within their sectors in their submissions.

Our thanks go out to everyone who made these Pensions Age Awards such a success, including the judges who worked hard to evaluate the submissions, the sponsors who supported the event, and everyone who attended on the night to join in the celebration. We look forward to celebrating with you all again next year.

Pensions Age Awards winners 2015

08

DC Pension Scheme of the YearWinner: Kingfisher Pension Scheme

DB Pension Scheme of the YearWinner: Essex Pension Fund

Best Risk Management ExerciseWinner: Total UK Pension Plan

Pension Scheme Communication AwardWinner: My LV= Pension Plan

Best Auto-Enrolment Implementation AwardWinner: Prospects

Pensions Administration AwardWinner: ZPen – Zurich Insurance Group

Best Investment Strategy AwardWinner: MacMillan Cancer Support Pension Scheme

Pension Scheme Innovation Award of the YearWinner: BlueSky Pension Scheme

Pensions Consultancy of the YearWinner: LCPHighly Commended: Barnett Waddingham

Fiduciary Management Firm of the YearWinner: Aon Hewitt

Pensions Technology Firm of the YearWinner: EquinitiHighly Commended: SkyVal

At-Retirement Solutions Provider of the YearWinner: JLT

Independent Trustee Firm of the YearWinner: PS Independent Trustees

Pensions Law Firm of the YearWinner: CMS

Pensions Accountancy Firm of the YearWinner: Crowe Clark Whitehill

Passive Manager of the YearWinner: Legal & General Investment Managers

Active Manager of the YearWinner: M&G Investments

Equities Manager of the YearWinner: Majedie Asset Management

Fixed Income Manager of the YearWinner: M&G Investments

Alternatives Manager of the YearWinner: BlackRock

Emerging Markets Manager of the YearWinner: Ashmore GroupHighly Commended: SKAGEN Funds

Property Manager of the YearWinner: LaSalle Investment Management

LDI Manager of the YearWinner: SEI

Index Provider of the YearWinner: MSCI

Risk Management Provider of the YearWinner: Pension Insurance Corporation (PIC)

Hedge Fund Manager of the YearWinner: Aurum

Communications Provider of the YearWinner: SHILLING

Innovation Award of the Year Winner: Capita

Administration Provider of the YearWinner: Premier

Personality of the Year Winner: Charles Cowling, Director, JLT Employee Benefits


BarbaraSaunders,Director, AssetSolutions,PSolve

StephenNichols,Trustee Director,ExpressPensionScheme

KevinLeGrand,Principal and Head of Pensions Policy,BuckConsultants

Terri-AnnHumphreys,Development Executive, PensionsManagementInstitute(PMI)

AlanStone,Pension Manager, BechtelLimited

IanMcQuade,Client Director, Muse

PeterTimberlake,Head of Communications, FinancialReportingCouncil

RajMody,Partner,Head of the UK Pensions Group, PwC

JamesWalsh,Senior Policy Adviser: EU and International, NationalAssociationofPensionFunds

DavidMorley,Business Development Director, UK Institutional, EatonVanceInvestmentManagers

JonathanWatts-Lay,Director, WEALTHAtWork

NigelMoore,Partner,CMSCameronMcKenna

AndrewCheseldine,Partner in the DC team,LCP

AdrianCooper,Head of Business Development, BarnettWaddingham

MarceloDellavedova,Senior Investment Consultant, TowersWatson

DebbieForbes,Consultant - Client Services, AHC

ShonaGoulds,Head of Business Development and Governance, CapitalCranfieldTrustees

RobertBranagh,Non Executive Director, CivilServicePensionSchemes

JohnBroker,Director,ITM

RichardButcher,Managing Director, PTL

LesleyCarline,Director, KimGublerConsulting

The judging panel


Pension Scheme Innovation Award of the Year: BlueSky Pension Scheme

In today’s current landscape, and with the

influx of pension reforms over the past

year, innovation is key to keep up with this

ever-changing industry. This award looks to

reward a firm that has truly added value to

the pensions space with its originality and

innovation.

The Pension Scheme Innovation Award

of the Year went to BlueSky Pension Scheme

for displaying excellence and a true

commitment to the needs of its members.

The BlueSky Pension Scheme is a

master trust that has been operating for

almost 30 years, something that it has

achieved by adapting to the market; it was

the first scheme in the UK to offer target-date

funds and in 2014, in conjunction with

AllianceBernstein, they extended the product

with the launch of a new trust, Crystal, using

Retirement Bridge.

Having spent a significant amount of

careful planning in development, BlueSky

Pensions was proud to unveil the UK’s first

low-cost decumulation strategy that is

designed to be used as a default.

This dynamic product provides a

sustainable, growing income in the early

stages of decumulation, achieved by

investment in a range of age-based

retirement income funds. Unlike other

drawdown products in the UK, it is available

to defined contribution savers aged 55 to

75, regardless of the size of their pension

pots. Best of all, Retirement Bridge allows

customers to keep control of their

accumulated pension savings until they have

decided on their

retirement plans.

This simple and

intuitive product used

a target-date fund

structure to provide a

simple solution for

members to

understand,

administrators to

implement and for

trustees and

employers to

oversee. The target-

date fund’s age-

based multi-asset

structure means

investment risk is

reduced as members

move closer to drawing income from their

pension.

Actively managing the fund pre- and

post-retirement using the target-date fund

gives investors more sophistication than the

traditional lifestyle approach. It also provides

greater flexibility, with access to open

architecture and a huge choice of funds to

suit.

Crucially, this product gives members a

huge potential for growth because of the

attention for detail the investment manager

puts into the daily oversight of markets.

Research shows that, for a member retiring

at 65, Retirement Bridge will increase the

total income payout by the age of 75 to

more than 20 per cent above that of a

traditional non-escalating joint-life annuity.

This solution offers the ultimate flexibility

to members by giving members the time

they need to make decisions for their

retirement but allowing them to change their

mind tomorrow. This is key from the high

levels of uncertainty surrounding retirement

decisions.

Research by AllianceBernstein revealed

73 per cent of 55 year-old DC members do

not know what they want. For example, at 55

people tend to want cash but at the point of

retirement income becomes more important.

Furthermore, at 55, most people cannot

predict how their circumstances will change

in 10, 15 or 20 years.

It is this commitment to product

development that has lead the BlueSky

Pension Scheme to be awarded the Pension

Scheme Innovation of the Year award.

The Pension Scheme Innovation Award of the Year went to Bluesky Pension Scheme. Receiving the award was Paul Bannister, CEO, Bluesky Pension Scheme (centre). Presenting the award was awards judge James Walsh, EU and Policy Lead, NAPF (left) and awards host Fred MacAulay (right).

10

As one of the most forward thinking businesses in the UK, our knowledge and understanding of clients’ needs ensure innovative solutions which are tailored to each individual client.

Crystal is a new product launched by Bluesky, designed with the new fl exible income drawdown options in mind. Allowing the freedom to use your pension savings, full control of your fund, and the ability to change your decision at any time.

BlueSky Pensions UK Ltd provides a range of

workplace pension services to any employer,

trustee or consultant in the UK.

For further information please visit www.blueskypensions.uk or email [email protected]

INNOVATIVE SOLUTIONSINNOVATIVE SOLUTIONS

BlueSky_advert_idea1.indd 1 30/03/2015 10:13:49


Fiduciary Management Firm of the Year: Aon Hewitt

As institutional investors now have to

choose from an ever-growing and

increasingly complex range of asset

classes and investment strategies, it is no

wonder that fiduciary management services

are now firmly embedded in the UK pensions

space.

The Pensions Age Awards 2015

recognises the increasingly important role

fiduciary managers play in the pensions

industry, and its Fiduciary Management Firm

of the Year award rewards the fiduciary

management or implemented/delegated

consultancy firm that truly adds value to the

pensions space, meeting the specific needs

of its clients whilst also displaying the key

requirement of strong performance.

Therefore it is of no surprise that the

winner of this prestigious accolade for 2015

is Aon Hewitt.

Launched in 2009, with its first client’s

assets invested in March 2010, Aon Hewitt’s

Delegated Consulting Services has grown by

100 per cent with over £6.3 billion in UK

fiduciary assets under management and 69

UK pension scheme clients, as at 30/6/14.

The company’s delegated consulting

services prides itself on helping trustees and

sponsors in a flexible and transparent

manner to improve scheme funding levels

and, ultimately, pension scheme member

security through delegation of the day-to-day

activities.

To achieve this aim, Aon Hewitt’s

Delegated Consulting Services is constantly

evolving to meet its clients’ need for flexibility

and solutions that

meet their individual

requirements. In fact

Aon Hewitt’s

fiduciary

management work

with clients can vary

significantly

depending on the

level of delegation

and targets the

client sets.

Listening to

pension funds’

needs is what

drives innovation for

Aon Hewitt’s

Delegated

Consulting Services.

For instance, in October 2014, it launched a

complete end-to-end investment solution –

the only provider to offer this. This extended

Aon Hewitt’s overall fiduciary offering with

flightplan and dynamic de-risking programme

to include implemented annuities, enabling

clients to be able to move quickly and

secure a bulk annuity deal when the time

and price is right.

The company also caters to more cost-

conscious pension funds by launching a full

fiduciary solution that has a greater focus on

beta. The growth fund has fully active asset

allocation and utilises passive equity

managers (meaning costs are lower) and

alternative beta, alongside investments in

other return seeking asset classes. The

liability matching element is fully bespoke.

The result of Aon Hewitt’s work? Over the

24 months to 30 June 2014, 100 per cent of

Aon Hewitt’s full fiduciary clients

outperformed their bespoke liability

benchmark and their investment objective.

With results like this, it is no wonder that

29 per cent of all UK full fiduciary

appointments in the 12 months to 30 June

2013 were won by Aon Hewitt’s Delegated

Consulting Services.

The Pensions Age Awards judges

agreed, describing Aon Hewitt’s Delegated

Consulting Service as standing out for its

high levels of service, innovation and

performance, while as a company Aon Hewitt

has contributed to the fiduciary management

debate through white papers, articles and

research.

Congratulations to an impressive winner.

The Fiduciary Management Firm of the Year award went to Aon Hewitt. Receiving the award was Sion Cole, Head of Client Solutions, Aon Hewitt (centre). Presenting the award was Lauren Weymouth, Reporter, Pensions Age (left) and awards host Fred MacAulay (right).

12


A bespoke investment solution Sion Cole, partner & head of Client Solutions in Aon Hewitt’s fiduciary business, outlines why fiduciary management solutions vary and hence the importance of the selection process

Fiduciary management is an

established investment and

governance solution for UK defined

benefit pension schemes. It is very much

a bespoke solution where not only do the

elements and services vary significantly

between providers but they can also vary

within the solutions each provider can

offer. This means the right selection

process, with open/honest conversations

and asking the right questions to

understand the offerings available, is

critical to maximising the chances of

success.

Variations in the solution

Fiduciary solutions vary in a number of

ways. One of the key differences is in

the investment objective set as this will

have an impact on what the portfolio will

look like. For example, an investment

objective of liabilities +3% p.a. will have a

very different portfolio to a +1% p.a.

objective, and with very different growth/

matching splits.

If the trustees have some specific

investment beliefs, restrictions or

preferences this also affects the

underlying solution. For example, if the

scheme is close to buyout they may not

wish to hold any illiquid investments, or

they may want to put a restriction on

hedge funds. If there is a preference for

passive equities or a more cost conscious

solution (compromising on the volatility/

risk levels to achieve this), this will also

cause variations. As a result of all this, the

risk/return profile between different

solutions varies significantly.

Solutions also vary in terms of the

benchmark, use of internally or externally

managed funds, the fee levels charged

and their structure (bundled or unbun-

dled). The exact services included within a

fiduciary offering can be very different. For

example, some providers can include

flight planning and a dynamic de-risking

programme. The type of trigger used and

the speed of implementation of changes

also varies between providers.

Selection processSelecting the right fiduciary provider, and

the solution, is crucial and it is therefore

important to follow a section process that

works for your scheme and engages with

the fiduciary provider at the outset.

In a series of educational papers we

have previously released, we summarised

six key steps to selecting a provider,

drawing upon the best selection process

that we have experienced. These six key

steps are: establish the role; consider the

broad shape of the strategy; create a long

list; decide on a short list; work closely

with a couple of providers; perform a full

site visit.

Within the selection process it is

important to ask the right questions as

this will allow trustees to compare provid-

ers more easily through gaining a greater

understanding of the solutions on offer,

the merits of each and offer the chance to

flag any concerns. We believe it is impor-

tant for trustees to delve into the detail of

a provider’s offering, including the busi-

ness, the solution, performance measure-

ment, risk, operations and client service.

When we say bespoke we mean itWhen designed specifically to a scheme’s

unique needs, fiduciary management can

really add value and maximise the

chances of success. At Aon Hewitt we do

not just say bespoke, we mean it. Just as

no two schemes are the same, nor should

the solution put in place.

We are committed to listening to you,

your fellow trustees and company

representatives, in order to understand

your situation, your goals and your

investment beliefs or preferences. This

means we are able to create a truly

bespoke solution that helps you achieve

your objectives, that evolves over time to

ensure it meets your needs and reflects

our best ideas in the future too.

We are also the only fiduciary

provider in the UK that offers a complete

end-to-end investment solution that can

take you all the way to buyout through

our integrated annuities offering.

To find out more about fiduciary

management, watch our myth-busting

videos or download a copy of our survey

or educational papers. Please visit

our website: aonhewitt.co.uk/

delegatedconsulting. Alternatively, speak

to your usual Aon Hewitt contact or speak

to Sion Cole on 020 7086 9432 or email

at [email protected].

Free training from an award winnerOurfiduciarybusinesshaswontwoindependentindustryawardsinthepastsixmonths.Interestedinsomefreetrusteetrainingonwhatfiduciarymanagementisorhowitmightbenefityourscheme?

[email protected].

13


Pensions Technology Firm of the Year: Equiniti

As pension funds grapple with rapid

reform to the sector and the ongoing

implementation of auto-enrolment,

now more than ever effective and reliable

pensions technology and data management

are essential for the successful running of

any pension scheme.

This is why the Pensions Age Awards

2015 recognises the vitally important role

technology plays for the industry with its

Pensions Technology Firm of the Year

accolade. This award recognises the

company that is a leader in the field of

pensions technology through providing

solutions tailored to its clients’ ever-changing

and increasingly complex requirements.

Rising to this challenge is the 2015 win-

ner of this accolade, Equiniti.

As specialists in providing complex pen-

sion administration, Equiniti uses leading

technology to offer a range of services to

help pension schemes with project manage-

ment, compliance, complex and bulk calcula-

tions and systems expertise.

And the numbers it helps are staggering.

The capabilities of Equiniti’s technology has

enabled it to provide services that benefit

over 30 million people around the world; pro-

cess £92 billion in payments a year; pay 20

per cent of UK pensioners and support 7.4

million pension scheme members.

This has been achieved through Equiniti’s

renewed focus on innovation to engage and

empower members.

According to TRW, 25 per cent of users

now access the web exclusively by tablet or

mobile phone and OurMobilePlanet.com

found that 61 per cent of users will leave a

non-mobile-friendly site. Equiniti therefore

responded to this growing trend by creating

an advanced, responsive self-service portal

that can be easily viewed across any device

a member chooses.

Going further, Equiniti achieved a sector-

first by creating a smartphone app that sends

push notifications to deliver real-time informa-

tion to members – a striking contrast to the

member having to search websites or await a

letter in the post for information.

Equiniti also overhauled the architecture

of its Compendia administration platform to

create the powerful self-service portal, which

now gives members unprecedented insight

into and control over their own pensions via

tablet/mobile. It also caters to members’

needs through enabling them to explore ‘what

ifs’ for their pension fund, and as the portal

saves all member activity, they are able to go

back and access previous information.

Equiniti has a clear member engagement

strategy that has seen member numbers reg-

istering for self-service increase from 8,329 in

January 2014 to over 28,000 by the end of

the year - a 238 per cent increase. On aver-

age, around 3,000 members now access

their pension each month (compared to 500

in 2013) - a 500 per cent increase.

However, it is not just the technology that

keeps bringing members back. Instead,

Equiniti’s Member Charter, contact centre and

presentations have helped it receive a 95 per

cent good/excellent customer service rating.

Along with its commitment to clients, it is

this excellent selection of new and innovative

products Equiniti has brought to the pension

market that caught the eye of the judges,

enabling them to declare Equiniti a worthy

winner. Congratulations to a richly deserved

winner.

The Pensions Technology Firm of the Year award went to Equiniti. Receiving the award was Ric Williams, Managing Director, Equiniti Pension Solutions (centre). Presenting the award was awards judge Richard Butcher, Managing Director, PTL (left) and awards host Fred MacAulay (right).

14


It’s not what you do… it’s the way that you do itIn our world of technology, communication alone isn’t enough to guarantee engagement, as the pensions industry has discovered

Technology has radically transformed

the way we live our lives. From

online shopping to communicating

with our friends on the move, what you

get when you combine the internet with

mobile devices is nothing short of revolu-

tionary.

The 2013 Deloitte annual UK consum-

er media survey revealed that more than

80 per cent of people own laptop comput-

ers, 75 per cent own smartphones and

tablet ownership has increased by 25 per

cent to almost 60 per cent. What this

means is that the way people are consum-

ing content is changing. This presents a

challenge for the pensions industry, which

must factor all of this in when reaching

out to its members.

The considerations must, however,

reach beyond technology, as this alone

isn’t enough to drive up engagement.

Traditionally, pensions processes tend to

have been siloed, which no longer suits

today’s interconnected society. To over-

come this, a new approach is required to

improve member communications and

engagement.

Traditionally, pension schemes deliv-

ered infrequent communications to their

members. Recent regulatory changes

have brought about a new focus on com-

munications, with the result that schemes

need to communicate evermore frequently

with their members – and this can only be

effective if done in a more engaging and

interactive manner.

The permanent change in the way our

society engages with information allows

members to share information with whom-

ever they want to at the touch of a button.

In such circumstances, the user has effec-

tively taken the content provided and

made it their own. Factoring in social

media can greatly assist schemes in

engaging with members and transform

communications from a one-way conversa-

tion into a collaborative communications

experience.

As well as relationship building bene-

fits, taking communications down the elec-

tronic route generates additional data. This

can provide valuable information about

how a particular audience chooses to

interact with its engagement process. The

data can then be used not only to improve

the engagement process but also to give

an aggregated impression of the behav-

iour of a customer base. To reap such

benefits, the issues inherent in legacy sys-

tems must be addressed seriously.

A key feature of the pensions indus-

try’s reassessment of technology lies in

considering both mobile and cloud.

Although cloud has been around for a

while, initial concerns over security meant

that some industries were reluctant to

adopt it. Now, however, cloud has been

developed with security in mind, and more

industry sectors are realising its full bene-

fits. The use of cloud in the pensions envi-

ronment will be key for schemes, spon-

sors and providers to go beyond commu-

nicating with their member audience, and

truly engage with them.

Equiniti is leading the way in mobile

and cloud-based technology in the pen-

sions industry, which has allowed us to

deploy our enhanced and scalable suite

of self-service tools effectively. The recent

launch of our brand new member self-ser-

vice responsive website and Compendia

Mobile native iOS App (soon to be availa-

ble on Android) gives our clients the per-

fect platform on which to engage, inform

and educate their members both on their

retirement options and the value that their

pension scheme adds to their long-term

saving plans. This cutting-edge solution

satisfies the changes in user demand and

aims to improve the quality of member

engagement.

It’s not just member engagement

where mobile and cloud technology is

important, we are also deploying our new

administration platform Compendia Touch

in this manner. Compendia Touch has

been developed to allow the back-office

administration system to be reconfigured

without the need for a team of

programmers, and all from a touch-

based smart device.

A poor user experience results in little

or no engagement; if you make the user

experience an engaging one, you will

have an audience that is keen to under-

stand more. Schemes that can make the

most of what this new technology has to

offer will be better placed to satisfy both

their member’s demands and the ever-

increasing requirements of the regulator.

Written by Jason Hayes, product director, Equiniti

15


At-Retirement Solutions Provider of the Year: JLT

The at-retirement market has experi-

enced a considerable shake up over

the past year. It was, at one point, rela-

tively neglected. But following the 2014

Budget, the entire marketplace has never

experienced so much attention.

The Pensions Age At-Retirement

Solutions Provider of the Year award aims to

recognise the firm that has shown innovation

and dedication to improving the retirement

experience of its clients and has worked hard

to help those entering the retirement phase to

make the most of their pension pot.

Described by the judges as putting for-

ward an excellent submission, which detailed

“excellence, innovation and market adaptabili-

ty”, the winner of this year’s At-Retirement

Solutions Provider of the Year award is JLT.

The Annuity Bureau (TAB) has been an

integral part of JLT Wealth Management and

has undertaken a significant rebranding to

reflect the 2014 Budget announcements.

Until this year, it provided advice to retirees

wishing to purchase an annuity in the open

market. However, in the last year, JLT has

expanded TAB to further enhance members’

outcome upon retirement through its Road to

Retirement proposition.

Part of what made JLT stand out in the

eyes of the judges was its dedication to

quickly transforming TAB to be ‘Budget ready’

as soon as the Chancellor made the decision

to offer freedoms to pension savers. Within

hours of the announcement, TAB had formu-

lated and implemented a communications

plan for all clients that were part way through

the annuity purchasing process to ensure that

all were made aware of the changes.

TAB carried out all administration work

necessary to deal with clients who were no

longer required to purchase an annuity

and in keeping with its fair treatment of

customers, decided to waive any fee for

work carried out where a product was

not purchased. Despite the increased

workload, the team efficiently handled

the sheer volume of calls and dealt with

all queries.

Throughout a difficult year, JLT has

showed continued unwavering commitment

to innovation. The firm addressed a clear

knowledge gap for those approaching

retirement by launching TAB’s Road to

Retirement proposition, bearing in mind the

needs and experiences of members who are

particularly tech-savvy.

However, JLT also acknowledged the

needs of all audiences, by providing

educational seminars run twice a year at

venues around the country, tailored

communications in the lead up to retirement

and guides on what to expect in retirement,

conventional annuities and alternatives to

conventional annuities.

These services, together with the

adaptation of pre-existing services meant JLT

has pushed themselves ahead of the game;

ensuring members not only understand the

options available to them, but also how to

prepare for making the decision.

Congratulations to JLT, a firm that has

shown dedication to working creatively in a

market, which after undergoing sudden

change, faced considerable criticism,

pressure and a high level of competition.

For rising to the challenge in this stormy

environment, JLT is a worthy winner.

The At-Retirement Solutions Provider of the Year award went to JLT. Receiving the award was Charles Cowling, Director of Employee Benefits, JLT (centre). Presenting the award was awards judge Lesley Carline, Director, Kim Gubler Consulting (left) and awards host Fred MacAulay (right).

16

9210 JLT EB Sunday Times Brand Advert_204x271mm.indd 1 08/04/2015 14:15


Pensions Law Firm of the Year: CMS

In recent years more than ever, the

pensions sector has been subject to

industry-changing court cases and rapid

regulation reform adding to the maze that is

pensions law.

As understanding legal issues becomes

ever-more complicated for pension funds, the

Pensions Age Pensions Law Firm of the Year

award seeks out those law firms that not

only serve the pensions space, but do so

with the highest of standards, vigour and a

true dedication to meeting the needs of its

clients.

This year, the pension firm embodying

and exemplifying these criteria is CMS, a law

firm that makes service excellence and

innovation its top priorities.

Described by the judges as possessing

a clear understanding of the needs of the

whole pension market, with propositions

created to suit the needs of smaller-sized

schemes as well as larges ones, it is no

wonder CMS is regularly ranked the number

one law firm.

In fact, CMS proves its dedication to

pensions law by having one the largest

specialist pensions departments in the

country, with 39 lawyers practising in London

and Scotland.

Despite its impressive size, the firm’s

pensions department continues to innovate

and diversify to meet the complex needs of

its clients. For instance, it recently launched

five sub-groups within its practice. Along with

dispute resolution and longevity life risk it

now has dedicated, specific focuses on DC

pensions, asset-backed contributions and

investment.

However, with DB liabilities in the UK

estimated at £1.8 trillion, de-risking DB

schemes is becoming increasingly important,

resulting in the rapid development of the

market for longevity risk transfer.

CMS has therefore developed a

reputation at the forefront of these market

developments, acting on most of the

transactions announced to date. Over the

past 12 months CMS has advised on deals

worth over £10 billion to date, addressing

issues such as growing the capacity of the

longevity market, dis-intermediation and

making de-risking accessible to pension

schemes under £1 billion in size.

The skills of CMS is evident through its

work on major industry-affecting cases, such

as advising the trustee of the Monarch DB

pension scheme on the recent sale of the

company and the scheme’s entry into the

PPF and acting for P&O Ferries Limited in

the MNRPF case.

However, in the midst of this important

work, CMS never forgets to work closely with

clients, and to listen and respond to their

needs. The law firm’s full suite of

complementary services including regular

email updates, handbooks and topic guides,

along with regular trustee training seminars.

It is this leading combination of pensions

expertise and dedication to clients’ needs

that made CMS the clear winner of the

Pensions Law firm of the Year award in the

eyes of the judges.

Congratulations to a worthy winner.

The Pensions Law Firm of the Year award went to CMS. Receiving the award was CMS partner Simon Pilcher (centre). Presenting the award was awards judge Adrian Cooper, Head of Business Development, Barnett Waddingham (left) and awards host Fred MacAulay (right).

18

Leaders in pensions

www.cms-cmck.com/pensions

This ‘outstanding’ team … is ‘a really class act.’

The Legal 500

Please contact

Nigel [email protected]

Simon [email protected]

Alistair [email protected]

Pensions Experts

With 39 specialist pensions lawyers and litigators based across London and Scotland, we are one of the largest and most experienced pensions practices in the UK.

CMS, a global top 10 law fi rm, is proud to have been named as Pensions Law Firm of the Year 2015’ by Pensions Age and The Legal 500’s ‘Human Resources Firm of the Year 2014’.

CMS Longevity Team

Our market leading Life Pensions and Longevity Risk Team of 50 lawyers is dedicated to producing innovative products to provide value to our clients.


Pensions Accountancy Firm of the Year: Crowe Clark Whitehill

After a wealth of regulatory changes

that have bombarded the pensions

industry and during a time of

increased financial risk, pension schemes

are under more pressure than ever to

operate as cost-effectively and efficiently as

possible.

The Pensions Age Accountancy Firm of

the Year award aims to reward the pension

scheme accounting firm that recognises the

needs of the pensions market and has

tailored its services accordingly, with a focus

on excellence. Showing commitment to all of

these criteria, the winner of the Pensions Age

Accountancy Firm of the Year award is

Crowe Clark Whitehill.

Described by the judges as having been

at the “forefront of the industry issues” and

demonstrating a “clear understanding” of

meeting clients’ needs, while also

demonstrating value for money, this firm has

showed all-round excellence in the

accountancy field.

Over the past 12 months, Crowe Clark

Whitehill’s Pension Funds team has

dedicated much of its time to future-proofing

schemes by planning for emerging issues,

listening to clients’ needs, actively seeking

involvement and influencing resolutions to

sector issues, by providing timely solutions

with cost-saving impacts.

As a result of rapidly changing

regulations, the firm impressed the judges by

quickly adapting and strengthening its team

to help cope with a surge of queries around

scheme governance arrangements and

assurance related

activities.

Crowe Clark

Whitehill has also

shown dedication

to controlling

emerging risk,

helping schemes

to future-proof and

operate effectively.

Last year, the firm

undertook a

survey to

understand the

processes in

place when

identifying risks

and the

associated

mitigating controls. This enabled them to

help explore and support clients

to prevent them from being open to

undue risks.

Education has also proved to be at the

top of Crowe Clark Whitehill’s priorities as

the firm continues to hold regular forums,

allowing trustee chairs to meet and discuss

topical issues and share concerns with

counterparts. The Pension Funds team has

also helped to mould sector changes

through its involvement in external bodies,

ensuring clients are fully guided through any

changes made to the industry.

As well as ramping up its educational

activities, Crowe Clark Whitehill has also

shown exemplary skills in simultaneously

innovating. Its continual innovation has

helped trustees plan for new investment risk

disclosures required in pension scheme

accounts, helped clients to achieve

significant VAT savings and led to the

introduction of governance and

administration benchmarking

for clients.

The firm has also been appointed as

Reporting Accountant to a number of major

master trusts, notably due to its involvement

in the new AAF assurance framework for

master trusts and its understanding of how

this impacts schemes.

It is for these reasons; for its constant

dedication to understanding the needs of

schemes during turbulent economic

conditions that Crowe Clark Whitehill has

excelled in the accountancy field.

Congratulations to a well-deserved winner.

The Pensions Accountancy Firm of the Year award went to Crowe Clark Whitehill. Receiving the award was Andrew Penketh, Head of National Pensions Group, Crowe Clark Whitehill (centre). Presenting the award was Adam Cadle, Deputy Editor, Pensions Age (left) and awards host Fred MacAulay (right).

20

Always at the forefront of the pensions industry, our award winningteam provide audit, tax and advisory services, covering:

} Pension scheme internal and statutory audits

} Pensions SORP and other accounting advice

} Rsk assessment, internal controls and assurance reporting

} AAF reporting for master trusts, relevant trustees and scheme administrators

} Support to independent governance committees

} VAT planning and advice

} Employer covenant reviews.

Negotiating the pensions maze

Find out more about us at

www.croweclarkwhitehill.co.uk

For more information, please contact:

Andrew Penketh [email protected]

+44 (0)20 7842 7355


As pension schemes look to diversify

their assets, property has become a

popular choice, offering both capital

gains over a long-term period and the

possibility of regular income. This award

recognised a firm that has shown a true

understanding of the UK, European and

global property markets.

The Property Manager of the Year Award

went to LaSalle Investment Management for

being a committed, innovative and high

quality player in the property space. This firm

really understands the pension fund market

and the role property can play in helping

pension funds meet their needs.

Focused solely on investing in real

estate, LaSalle Investment Management is

able to combine its extensive property

knowledge with a disciplined investment

approach. Clients also benefit from its global

perspective, fostered by the insights of its

global research team.

With 27 per cent of its global assets

under management, managed on behalf of

UK pension clients, its commitment to

pension fund clients shines through. It is

highly responsive to the individual needs of

their clients, such as customising investment

strategies of their separate accounts to meet

each client’s investment objectives.

Realising that communication is

imperative, clients are able to meet with their

fund managers as often as they wish,

ensuring they are directly informed on

progress and initiatives in their programme.

In 2013, its UK IPD Benchmark Relative

Return Mandates (core, balanced, UK

property portfolios) outperformed the IPD

Pension Funds

benchmark over one,

three, five, 10 and 20

year periods.

Furthermore, LaSalle’s

UK Real Return

portfolios, all managed

on behalf of UK

pension funds have

also performed strongly.

LaSalle’s strong

performance track

record, client focus and

collaborative teams led

to the Greater

Manchester Pension

Fund awarding them a

new £750 million UK

separate account, the first time the fund has

outsourced its UK core real estate investment

management.

LaSalle Investment Management takes an

innovative approach to meet the needs of the

often dramatically changing needs of its

clients. Over the last few years LaSalle has

pursued a number of new initiatives to

ensure the portfolios under management are

best placed to take advantage of a changing

property landscape and continue to meet the

needs of its maturing pension fund clients.

These include targeting assets with Retail

Prices Index-linked leases, which are

attractive relative to index-linked bonds in

terms of pricing, control and the underlying

asset value, and are well-suited to matching

the liabilities of defined benefit UK pension

schemes. LaSalle has also invested £300

million in debt investments over the last 12

months. Their pension fund clients have

continued to benefit from the high, secure

income generated, which is meeting their

needs for increasing income to pay pensions

through an attractive risk-adjusted investment

class.

With an industry leading research team

and strong implementation skills, LaSalle

Investment Management is excellent at

adding value to property investments through

its 150 strong UK team, including 41 asset

managers.

Truly passionate about property

investment for its pension fund clients, well

done to LaSalle Investment Management

for winning the Property Manager of the

Year Award.

Property Manager of the Year: LaSalle Investment Management

The Property Manager of the Year award went to LaSalle Investment Management. Receiving the award was Tom Rose, director/fund manager LaSalle Investment Management (centre). Presenting the award was awards judge Jonathan Watts-Lay, director, WEALTH at work (left) and awards host Fred MacAulay (right).

22

Our active asset management teams worldwide are experts in maximising value. By employing a variety of management

strategies from acquisition through to sale, we are focused on driving returns and delivering value to our clients.

lasalle.com

Atlanta Amsterdam Baltimore Brisbane Chicago Hong Kong London Luxembourg Madrid Mexico City Milan Munich

New York Paris Prague San Diego San Francisco Seoul Shanghai Singapore Sydney Tokyo Toronto Vancouver

Focused solelyon our clients andinvesting in real estate


LDI Manager of the Year: SEI

Liability Driven Investment (LDI) is of

paramount importance to pension

schemes, especially in the current

deficit stricken environment.

Understanding what LDI really means

and applying it to the benefit of pension

scheme clients requires true skill and

understanding of pension scheme needs.

This award rewarded a provider that excelled

in the LDI space despite the challenges.

This year’s winner demonstrated a true

understanding of LDI and the importance it

plays in the pension scheme sphere today.

For SEI, the LDI Manager of the Year award

was richly deserved. In 2014 SEI

implemented LDI solutions that significantly

enhanced its clients’ abilities to achieve their

funding objectives.

Innovation is a key component to

succeeding in the LDI area, especially with

the changing needs of the UK pension

market. SEI’s enthusiasm and energy in this

area resulted in a £350 million client seeing

their portfolio risk cut in half, whilst ensuring

a high probability of meeting its objectives.

SEI achieved this by crafting an options

strategy that took advantage of a market

which was paying a relatively high premium

for monetising interest rate upside relative

to the cost of obtaining downside

equity protection.

Furthermore, for a £400 million client,

SEI created a fully

customised hedging

strategy at a low

cost with a heavily

reduced governance

burden. This solution

has yielded a

month-on-month

reduction in tracking

error at a lower

overall management

cost than with the

previous provider.

Bespoke

services in

innovation is where

SEI truly excels,

which is what it did

for a £130 million

client when it

created a

customised relationship between investment

strategy and discount rate methodology.

Trustees were provided with an overall risk

budget and the ability to prioritise market

based decisions.

SEI takes client satisfaction seriously

and the results of its latest annual client

survey prove it. Ninety seven per cent of

clients who responded to the survey would

use SEI again. In describing their experience

as a client, one trustee praised SEI’s ability

to deliver, “new ideas and solutions” to meet

their requirements.

SEI’s solutions involve exploiting the

opportunities presented by market trends.

Whilst these are tailored to individual client

requirements, there were some general

themes in 2014 that contributed to its

success. In general SEI has advised clients

to reduce their exposure to equity markets

and increase asset allocation to alternative

assets to reduce risks. In a number of

cases, funding level improvements resulted

in clients hitting funding level de-risking

triggers and implementing de-risking trades.

The effort and attention to detail paid off

for SEI as it saw excellent results from the

aggregate funding level progression of its

clients.

The results are no surprise and stem

from treating every client as a unique entity,

so schemes of all sizes benefit. The judges

clearly recognised this at this year’s

Pensions Age Awards.

Congratulations to SEI on becoming the

winner of the LDI Manager of the Year

award.

The LDI Manager of the Year award went to SEI. Receiving the award was David Hickey, Managing Director, SEI, Institutional Advisory Team (centre). Presenting the award was Sam Ridley, Advertising Manager, Pensions Age (left) and awards host Fred MacAulay (right).

24

Request an information pack today

Email: [email protected]

Visit: seic.com/institutionsuk

Call: 0207 297 6306

Issued by SEI Investments (Europe) Limited +44 (0)20 7518 8950, authorised and regulated by the Financial Conduct Authority.

For professional clients only. The value of an investment can fall as well as rise and is not guaranteed.© 2013-2015 SEI 150771 (04/15)

SEI: A trusted adviserto pension schemesfor over 20 years› Specialists in Investment Advice, Fiduciary Management, LDI, Dynamic De-riskingand Journey Planning› 482 Fiduciary Management/Implemented Consulting clients globally*› £162 billion in assets under management globally*›Winner of the Pensions Age LDI Manager of the Year award in 2015

*As at 31 December 2014. Calculatedwith an exchange rate of 1 USD to 0.64374 GBP.

Very few providers have a heritage in both Advice and Implementation.Find out how SEI could help you reach your funding level goals.


Pensions Index Provider of the Year: MSCI

As pension funds seek to further

diversify their portfolios, it is ever-

more vital they have indices to help

them achieve their investment goals. Given

the increasingly important role indices play in

pension provision, this award recognises the

index provider that has led the way in

displaying innovation in their product design

and an understanding of what the UK

pensions market really needs.

Described by the judges as having an

“unrivalled understanding” of the pension

fund space, the winner of the Pensions Index

Provider of the Year award is MSCI for its

innovation in the market, which put it “a cut

above the rest” in this category.

MSCI has been a leader in index

construction and maintenance for over 40

years, showing uncompromising commitment

to aligning its business, to address the

complex investment issues faced by its

clients, with high quality research, data and

enhanced index products.

Given the challenges surrounding

globalisation and the rapid integration of

markets, MSCI has stepped up to explore

advanced approaches to categorising the

global equity universe. The company houses

a research team of over 160 people, who

regularly meet and consult with clients on

emerging trends in the global industry,

gathering feedback to further enhance and

tailor future products.

Over the past 12 months, MSCI has

launched the industry’s first Multi-Factor

Indexes, which offer pension funds a new

approach to seeking factor returns. As a

result of its extensive research surrounding

these new indexes, MSCI found higher levels

of diversification can be achieved by

combining two or more MSCI Factor Indexes,

subsequently reducing overall costs.

Another area where MSCI has been

heavily focusing, is on the environmental

pressures faced by investors to manage

carbon risk in their portfolios. As part of its

attention to the increasing challenges

surrounding ESG, MSCI launched its

innovative family of Low Carbon Indexes.

The MSCI Global Low Carbon Leaders

Indexes are the first in the industry to

address both carbon emissions and fossil

fuel reserves, providing clients with an

efficient tool for cutting the exposure to

carbon risk from their portfolios.

As well as positioning itself as a leading

provider of ESG research, MSCI has more

generally shown an overarching dedication to

the quality and reliability of all its data. The

company proved this attribution with close to

zero tracking error rates over the last 12

months and high accuracy rates over the last

five years for implemented corporate events

and dividends of 99.88 per cent and 99.83

per cent respectively.

The company has data centres

worldwide, enabling it to process and

analyse market data from hundreds of

different sources. MSCI’s dedication,

accuracy and reliability have all been

significant factors to its resounding success

and have subsequently enabled pension

funds to reach their full investment potential.

Congratulations to a worthy winner for

this category.

The Pensions Index Provider of the Year award went to MSCI. Receiving the award on behalf of the firm was Sarah Whittington, Marketing Manager, Perspective Publishing (centre). Presenting the award was awards judge Alan Stone, Pensions Manager, Bechtel Limited (left) and awards host Fred MacAulay (right).

26

in assets aRe benchmaRked to msci indexes*

oVeR

$9.5 tRillion

* As of June 30, 2014, as reported on September 30, 2014, by eVestment, Morningstar and Bloomberg

Client Focus | Quality | Innovation

msci.com

271x204mm-9.5trillion-ad-en.indd 1 30/03/2015 14:18


Risk Management Provider of the Year: PIC

De-risking continues to be the long-term

goal of many defined benefit pension

schemes and this award rewards a

provider that has delivered innovative solu-

tions to truly help pension schemes manage

or remove their risks.

The Risk Management Provider of the

Year went to a company that demonstrated

excellence, innovation and is described by

judges as a true leader in its field. This year’s

winner, Pension Insurance Corporation (PIC),

refuses to stand still when it comes to pen-

sion fund risk management.

PIC’s high reputation in the risk manage-

ment field has drawn in blue chip clients such

as Total, EMI, NCR and Tate & Lyle. In June

2014, PIC completed a complex and innova-

tive pension insurance buy-in with the Total

UK Pension Plan, covering £1.6 billion of pen-

sioner liabilities, the second largest transac-

tion in the UK to date.

It included the design and implementation

of an additional innovative security structure,

due to the size of the transaction, building on

the existing high levels of security inherent to

the insurance regime. A key component to the

success of the buy-in was the close working

relationship PIC had with the company and

trustees, which is not a usual feature of such

a transaction, highlighting PIC’s commitment

and the great length it goes to for its clients.

The company has also proved its ability

to effectively manage scheme buyouts, as

done with EMI. In February 2014 PIC issued

annuity policies to individual members of the

EMI pension fund, just seven months after the

buyout; the buyout covered £1.5 billion of lia-

bilities and 20,000 members.

The company wrote to every member

within one week of the transaction happening

and dedicated helplines were set up.

However, due to the excellent written commu-

nications, fewer than 2 per cent of members

called the helpline, well below the industry

average.

PIC is exceptional in its approach to how

it treats its policyholders, offering unique com-

plementary events, which over the past 12

months have garnered almost 2,000 attend-

ees, across London, Birmingham and

Manchester.

The events give policyholders the chance

to reconnect with former colleagues and aim

to foster a community, building on the tradi-

tional values intrinsic to a defined benefit pen-

sion scheme. The events have been a triumph

for PIC, as some policyholders now meet up

outside these events.

Furthermore, in July 2014, PIC raised

around £300 million of subordinated debt

capital in its first ever foray into the capital

markets. The success demonstrates the confi-

dence investors have in PIC as a leading

brand in the wholesale pension insurance

sector. It has made around £300 million direct

investments in Manchester PFI, as well as

other investments in social housing and stu-

dent accommodation.

Over the year PIC has insured £2.7 billion

of defined benefit pension schemes and

transferred £1.5 billion EMI pension scheme

members to policy holders.

PIC is the epitome of good customer ser-

vice, reflected in the score of 99.8 per cent,

of satisfied and highly satisfied customers.

This combined with its dynamic market lead-

ing approach to de-risking make it a justifiable

winner of the Risk Management Provider of

the Year award.

The Risk Management Provider of the Year award went to PIC. Receiving the award was Anna Howlett, Corporate Communications Manager, PIC (centre left), Jay Shah, Head of Origination, PIC (centre right). Presenting the award was awards judge John Broker, Director, ITM, (left) and awards host Fred MacAulay (right).

28

Best Derisking Provider of the Year 2014

Pension Insurance Corporation

Pension Insurance Corporation plc is registered in England under registration number 05706720 with registered offices at 14 Cornhill, London EC3V 3ND. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. FRN 454345.

PIC is delighted to have won the Risk Management Provider of the Year award 2015, awarded in recognition of outstanding customer service.

Please contact:

Jay Shah: [email protected]

Head of Business Origination

Telephone: 0207 105 2111

Or

David Collinson: [email protected]

Head of Strategic Development

Telephone: 0207 105 2110

Telephone: +44 (0)20 7105 2000www.pensioncorporation.com

14 Cornhill, London EC3V 3ND. Telephone: +44 (0)20 7105 2000

PIC specialises in innovative, bespoke bulk annuity transactions, offering superior client service to our policyholders and to the trustees and sponsors of UK defined benefit pension funds.

Our clients include:

Risks transferred, pensions insured


Hedge Fund Manager of the Year: Aurum

Hedge funds have proved themselves a

worthy asset class profile for UK

pension funds over the years. As

schemes continue to weigh up their risk/

return options, many have included hedge

funds within their asset allocation structures

to help ride specific economic conditions.

The Pensions Age Hedge Fund Manager

of the Year award rewards the manager who

has proved themselves in the management of

this sophisticated asset class. Therefore, the

winner of this award is Aurum.

Founded in 1994, Aurum has developed

a range of commingled and bespoke multi-

manager portfolios with differing risk/return

objectives. Described by the judges as dis-

playing excellence, market participation, inno-

vation and meeting client needs, Aurum is

clearly highly recognised within the industry.

The company’s success is demonstrated

by its performance during periods of market

stress. In September last year, a month that

marked the 20th year managing hedge fund

portfolios for its clients, the Aurum funds

were positive despite global market

weakness. Furthermore, in September 1994,

Aurum launched the Aurum Investor Fund

amidst the massive bond rout, which hurt

both bond and equity markets globally. Not

only did the fund survive, it thrived and is

now Aurum’s longest running fund with a 20

year track record.

Aurum offers clients education on the

hedge fund industry, strategies and invest-

ment process such as the opportunity to

meet its CIO and analysts at manager meet-

ings and includes clients in aspects of the

‘due diligence’ process.

Advanced proprietary systems are at the

heart of Aurum’s research and investment

framework, facilitating thorough initial and

ongoing due diligence. This enables the com-

pany to manage port-

folios whilst mitigating

business risk and pro-

vide tailored reporting

that is current, relevant

and transactional.

In addition to this,

Aurum’s dynamic

transparency and

knowledge transfer

system, Proximity,

brings its investors

closer to the informa-

tion that affects their

investments and the

decision-making pro-

cesses. This includes up to date perfor-

mance, analysis and commentary, full trans-

parency of clients’ underlying investments

and fully customisable data and portfolio

modelling tools. This level of in-depth trans-

parency allows clients to effectively monitor

their investments and fully understand the

underlying portfolio and drivers of their

returns.

Aurum is also a business committed to

considering environmental, social and gov-

ernance issues and embraces the Ten

Principles of the United Nations Global

Compact and has signed the United Nations

Principles for Responsible Investment

Initiative.

In the field of innovation, Aurum has

delivered to the highest level. Identifying

where alpha can be found requires skill to

source the right managers with the talent to

produce returns that compound capital, irre-

spective of the movement of traditional mar-

kets. Recognising its capabilities in this area,

Aurum launched the Aurum Alpha Fund, one

of the first AIFMD-compliant fund of hedge

funds available to investors in Europe. The

company fully believes that an effective

hedge fund allocation can enhance long-

term performance and substantially limit the

downside risk of a portfolio. The right alloca-

tion provides diversification and capital pres-

ervation with low beta and low correlation to

traditional markets.

Congratulations to Aurum, a winner

dedicated to ensuring efficient and

sophisticated hedge fund management for

its pension fund clients.

The Hedge Fund Manager of the Year award went to Aurum. Receiving the award was Jason Sweidan, Director, Aurum (centre). Presenting the award was awards judge Peter Timberlake, Head of Communications, FRC (left) and awards host Fred MacAulay (right).

30


Scepticism and open-mindedness Kevin Gundle, chief executive officer of Aurum Funds, explains the importance of getting the balance right on hedge funds

How do you nurture the pension fund

assets under your stewardship

when interest rates are at an all-

time low, bond rates are negative in some

cases, the almost six year equity bull-run is

potentially running out of steam and the

macro economic climate globally is, well,

uncertain?

One way is to follow the rising trends

and keep your fingers crossed that you get

out in time to capture all the upside and,

more importantly, not too much of the

downside. The other way is not to lose

money. This might sound obvious but few

stop to really think about what the asym-

metry of loss means. Put simply, you

always need to make back (a lot) more

than you lose to get back to breakeven.

So how do you avoid losses? Despite

performance that has left some investors

feeling short-changed, we still believe that

the arguments for hedge funds in a diver-

sified portfolio remain strong: they can

substantially limit the downside risk of a

portfolio. Long-term results from many

studies prove this point strongly.

There are, however, at least three

points to consider when allocating to

hedge funds for tomorrow. The first is to

look at the world now and not at the histor-

ic performance of yesterday. Although per-

formance over the long term looks good,

until recently hedge fund performance has

been in decline and over the same time

frame the number of hedge funds has bal-

looned.

This has resulted in investors becom-

ing over-awed with the industry and allo-

cating to the largest names, or other

untested opportunities. As the number of

funds has grown, the average industry per-

formance has converged to low or index-

like returns due to an increase in mediocre

managers. Applying some healthy scepti-

cism is in order.

The 2015 Deutsche Bank Annual

Alternative Investment Survey highlights

manager selection as a critical factor. This

is the second point to consider: identifying

the top-performing managers. “Manager

selection is becoming increasingly impor-

tant, as the gap between outperforming

and underperforming hedge funds widens.

While the average hedge fund returned

3.33 per cent in 2014, the top fifth percen-

tile generated returns greater than 22 per

cent,” the survey found.

When building a hedge fund portfolio,

manager selection is of paramount impor-

tance and this intensive task requires skill,

expertise and resources. It is not enough

to rely on past or current performance, or

to choose strategies because they are per-

forming now. The key is to identify manag-

ers that have a proven ability to generate

returns through the different market cycles

and the ability to adapt to changing envi-

ronments. To add to the complexity, regula-

tion that has been designed to protect

investors may in fact be limiting choice,

competition and opportunity.

The third point to consider is not to

look at hedge funds as an asset class but

as an asset management tool. Those that

view hedge funds as an asset class are

unlikely to put a meaningful amount to

work even though analysis suggests that

30 per cent might make more of a differ-

ence over time.

We are in a world of low interest rates

and low growth. Traditional fixed income

allocations may not provide the protection

and diversification enjoyed in the past,

whereas hedge funds have demonstrated

a differentiated return stream to traditional

portfolios. Investors should be open-mind-

ed about what some hedge funds can

offer and how to implement hedge funds

in their portfolios optimally.

Gone are the days where all funds of

funds offer catch-all products with high

fees. As a sector, funds of funds have

been driving transparency, greater disclo-

sure, better liquidity, lower fees from man-

agers and insisting on improved and more

accountable governance, comprehensive

reporting and effective communication.

Seeking the assistance of a fund of hedge

funds, particularly one that has applied les-

sons learned through the many market

cycles over the last 20 years, may be the

most sensible route forward. If there is one

group of investors who know how to apply

scepticism to hedge fund investing – it is

the fund of hedge funds.

31


Innovation Award of the Year: Capita Employee Benefits

Innovation has been rife in the UK pensions

space, be that in the area of investment,

product design, de-risking or any other

area. Furthermore, innovation is needed for

companies and products to evolve with

industry development.

The Pensions Age Innovation Award of

the Year aims to reward those providers that

have truly added value to the pensions space

with originality and innovation.

The judges found Capita to have excelled

in this area. Described as a stand-out entry in

a very competitive category, Capita continues

to excel as an employee benefits consultancy

and its expertise ensures it continues to cre-

ate innovative consultancy and technology

solutions.

The firm has enhanced its Orbit benefits

portal using in-depth user experience pro-

cesses. Orbit allows clients to manage and

communicate pension and benefits and for

HR and finance, the system provides invalua-

ble management information and bespoke

reports, at the touch of a button that gives an

aggregated view of all pensions and benefits.

For members, Orbit creates a highly person-

alised experience allied with the supporting

Outer Orbit Communications to ensure they

feel special and engaged.

Capita believes in multi-channel commu-

nications strategies and added augmented

reality to its media options for clients; a first

in pensions and benefits communications. In

another industry first, Capita appointed Dr

Eric Tyree in January 2014 as chief data sci-

entist to build the firm’s quantitative analytics

capability – using

the mass of data

held on its proprie-

tary technologies to

build greater

insight into mem-

ber behaviours and

propensities.

On the diag-

nostic covenant

assessment side,

Capita in partner-

ship with Lincoln

International, has

developed a

unique covenant

service that

encompasses not

only the calculated

pension scheme liabilities but also the value

at risk inherent in the scheme’s investment

strategy so that the covenant, funding and

investment risks are looked at in context.

Using this methodology, Capita can quickly

identify cases of very strong or very weak

covenants, therefore making significant sav-

ings against the traditional desktop review

methodology.

The firm has also integrated its Orbit por-

tal and DB/DC administration platform. In

addition, Capita has launched Completetrace,

a seamless online tracing and verification

proposition and has launched Maestro, its

comprehensive DC consultancy proposition

delivering DC excellence.

Utilising the Completetrace portal,

scheme trustees can transfer all the existing

member data. Data is cleansed and tracing

and mortality commences. All results are

managed through the portal and correspond-

ence is automatically issued.

Traced members have the traditional

options of verifying by phone or post but they

are also able to use a simple electronic verifi-

cation online process to confirm their details.

By adding this online functionality Capita

has driven up verification rates to 60 to 65

per cent compared to an industry average of

25 to 30 per cent.

As genuine pioneers in the ever-chang-

ing pensions market, Capita’s submission

demonstrates an unrelenting commitment to

innovation and is a worthy winner.

Congratulations to all at the firm for winning

this category and for continuing to add value

in this field.

The Innovation Award of the Year went to Capita. Receiving the award was Susan Ring, Chief Executive, Capita (centre). Presenting the award was Francesca Fabrizi, Editor-in-Chief, Pensions Age (left) and awards host Fred MacAulay (right).

32

AD

1500

1

Capita Employee Benefi ts is a trading name of Capita Employee Benefi ts Limited and Capita Employee Benefi ts (Consulting) Limited. Part of Capita plc. www.capita.co.uk. Capita Employee Benefi ts Limited and Capita Employee Benefi ts (Consulting) Limited are registered in England & Wales No: 02260524 and 01860772 respectively. Registered Offi ce: 17 Rochester Row, Westminster, London, SW1P 1QT. Separately authorised and regulated by the Financial Conduct Authority.

Employee benefi ts

Data science

Our data science team, led by Dr Eric Tyree, is helping employersand trustees to apply consumer analytics to pension data.The outcome is better scheme design and better member engagement.

Technology solutions

Our tech team create innovative online solutions including:

• Tracing and ID verifi cation• Augmented reality communications• Online pension and benefi ts portal

To take your pension to the next level, come to Capita.

@Capita_EBCapitaEBCapita Employee Benefi ts

The Innovators

To fi nd out more, please email [email protected] visit our website capita.co.uk/employeebenefi ts

AD15001_Capita EB PensionsAge_Ad_271x204_April2015.indd 1 27/03/2015 11:18


Administration Provider of the Year: Premier

High quality administration is a key cog

in the smooth running of any pension

scheme and its importance within the

industry is growing all the time with

standards continually being driven up. With

increasing amounts of legislation sweeping

through the industry, trustees and employers

have never before been in greater need for

reliable, efficient and successful

administration providers.

The Pensions Age Administration

Provider of the Year award celebrates the

pension administration provider that offers

the strongest services to the market whilst

bringing with it both excellence and accuracy

to this vital role. Excelling in these criteria is

Premier.

Described by the judges as a firm that

has an almost unrivalled understanding of

the pensions administration space, Premier

has transformed the quality of administration

by setting a new standard for service and

delivery.

Over the past eight years, the firm has

managed to achieve a 99.9 per cent SLA

achievement rate, with remarkable average

process times of under two days. Combine

this with a very low error rate of 0.1 per cent

and the excellence of this firm becomes all

too clear.

Using Bizflow, the firm’s business

process, Premier has developed an

intelligent work processing solution that

adapts to individual scheme, member or

user experience. Through using a mixture of

past experience and management input, the

firm’s processes

now automatically

decide which work

cases require

escalation or

management review.

The processes

automatically adapt

by looking at the

past experience and

performance of each

user, scheme,

member or work

case to decide if the

work item is high

risk and requires

additional checking

or validation stages.

The system is now

so sophisticated it can look at individual

member records.

The Institute of Customer Service

measured client satisfaction levels at 74

compared to the market average of 69.

Premier’s unwavering focus on quality,

delivery and continuous innovation are just

some of the reasons why its administration

has never lost a single client and never

received a single complaint from a trustee or

employer.

Specifically within the DC retirement

outcome space, Premier’s web-based

education system, Gateway2Retirement,

helps members understand all pension

options and guides them to the right one for

them. If the annuity purchase is right for the

member, the service then provides a ‘whole

of market’ search engine where the annuity

takes into account the member/employee’s

lifestyle, health issues as well as post code.

This is particularly unusual as most

administrators currently only offer a panel

selection.

It comes as no surprise that the judges

were so impressed with the quality service

Premier offers and its dedication to the

industry. As the administration needs of UK

pension schemes intensify, the role Premier

plays as an administration provider will

become increasingly paramount. The

industry and judges have recognised the top

capabilities and achievements of this firm

and it should be seen as an exemplary

provider for all to see.

Congratulations to a much-deserved

winner.

The Administration Provider of the Year award went to Premier. Receiving the award was Dan Taylor, Head of Administration Services, Premier (centre). Presenting the award was awards sponsor Harpreet Badeshia, Marketing Executive, ITM (left) and awards host Fred MacAulay (right).

34

SHORTL

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NNOUNCED

www.europeanpensions.net/awards

Gold sponsor:

SHORTL

IST A

NNOUNCED

Grosvenor House Hotel, Park Lane, London25 June 2015

In association with:

EPawards2015_8april2015_single_for_PA.indd 5 08/04/2015 10:12:50

Documents

winners Brochure - Pensions Age · winners Brochure. 25 February 2015 - London Marriott Hotel, Grosvenor Square. 25 February 2015 - London Marriott Hotel, Grosvenor Square. PENSIONS