Investment Platform. A low cost governance solution for pension scheme investment

Transcription

1 Investment Platform A low cost governance solution for pension scheme investment

2 Contents An ever-changing investment landscape 1 Benefits of Punter Southall investment consulting platform 2 More about us 3 Punter Southall Investment Consulting

3 An ever-changing investment landscape Over the last decade we have seen the fallout from the worst financial crisis in over 100 years, the introduction of many new and complex asset classes and an explosion in the number of investment funds available into which pension schemes can invest. In this constantly-changing environment pension scheme trustees are not only challenged by the complexity and time required to evaluate investments, but they are also required to do this with a limited governance budget. Punter Southall s approach to Investment Consulting has been to take a low cost governance approach, advising clients to focus on the issues that will have the most impact such as determining the approach for asset allocation and limiting the number of investment managers. Punter Southall s approach to Investment Consulting Asset allocation the most important factor accounts for c.90% of variability in returns Costs are one factor trustees can control Diversification in return seeking assets is crucial Active management can work in certain key asset classes Unwanted and unrewarded risks should be hedged as much as possible Schemes resources are scarce. Spend resources where real value can be added Evolving low cost governance a new approach Balancing the costs and benefits of investment decisions is always a challenge for trustees. Therefore we are now developing our investment approach further and in partnering with Mobius Life, we are evolving our low cost governance solution by combining the investment expertise of Punter Southall with an investment administration platform from Mobius Life to provide easy access to multiple investment managers and funds. Accessing this platform is simple, governance is effective and streamlined and there is no complicated transition process or management fees between funds. A low cost governance solution for pension scheme investment 1

4 Punter Southall Investment Consulting Platform Getting started easy access 1 Trustees complete a single application form to establish their investment account and the Punter Southall administration team takes care of account set-up and ongoing support. All existing investment funds that are owned by the pension 2 scheme are simply re-registered onto the platform with no need to change existing asset managers or products, although, once on the platform it may be the ideal time to optimise your scheme asset across a broader range of asset managers. 3 Although the platform has the capacity to invest in thousands of different investment funds, for ease of use all clients will have access to the full range of Punter Southall buy-rated funds and managers. Benefits to you Single account set up Transfer of existing funds Access to all Punter Southall buy-rated investment funds Ongoing monitoring Benefits to you 1 All Punter Southall clients will have access to an online portal to allow them to see daily-updated fund performance figures and valuations for their pension scheme assets, giving trustees the ability to review their portfolio at a time that suits them. 2 All clients will receive an investment governance report for use in their quarterly trustee meetings to help evaluate their investment strategy and fund performance with their investment consultant. Online portal Investment governance reporting Simplified fees Benefits to you 1 A single fee covering investment advice, manager research & ratings, investment administration, governance and transition management is deducted quarterly from the assets via the platform. Single fee 2 Punter Southall Investment Consulting

5 Low cost governance solution Benefits to you 1 The investment platform is structured as a life company so trustees purchase a single policy and all other asset manager administration and documentation is taken care of by the platform. Single policy document 2 Before an investment fund is made available on the platform, full operational, risk and performance due diligence is completed to ensure it is a suitable asset for pension scheme users of the platform. Full investment fund due diligence On an ongoing basis Punter Southall Investment Consulting 3 will monitor all investment funds available on the platform, meeting with asset managers on a regular basis to ensure they are delivering as expected and reporting any issues to platform clients. Ongoing investment monitoring Trustees only need to complete a single switch form to move 4 money between different managers or funds on the platform. The money will move within the platform structure on the next dealing date, with no complicated transition management process. Single switch form with no transition management fees 5 The investment platform currently administers over 6bn of pension fund assets which means that it is able to negotiate discounts on asset manager annual management fees for the benefit of all platform clients. Bulk buying power All the funds available on the investment platform are 6 accessed by means of a life policy to provide the optim al tax treatment for UK pension schemes. The platform reclaims the additional withholding tax, which is not available in other fund structures. Optimal tax treatment A low cost governance solution for pension scheme investment 3

6 Punter Southall Investment Platform The new online investment platform, provides clients with access to daily-updated fund performance figures and valuations for their pension scheme. The platform also offers access to multiple investment managers and funds, with clients receiving quarterly investment governance reports designed to help trustees evaluate their investment strategy and fund performance. It also provides clients with the capacity to invest in thousands of different funds, including the full range of Punter Southall buy-rated funds and managers. Key benefits of the portal include: Single policy document Full investment fund due diligence Ongoing investment monitoring Single switch form with no transition management fee Bulk buying power Optimal tax treatment as all funds are accessed by means of a life policy About our partners Mobius Life Mobius Life is a UK life insurance company and institutional investment platform, established in 1996, with over 6 billion assets under administration. It delivers made-to-measure investment administration and life company services to DB and DC pension funds, asset managers and other institutions. It enables clients and their advisers to implement their investment strategies efficiently and cost effectively. 4 Punter Southall Investment Consulting

7 About Punter Southall Group Our plain speaking and pragmatic approach to investment advice has helped over 100 pension schemes streamline their investments, reducing the governance burden on employers and trustee boards. Punter Southall Investment Consulting is part of the Punter Southall Group which was founded in 1988 and provides a unique range of financial services including actuarial consulting, administration, employee benefits consulting, covenant assessment, independent financial advice and investment services for pension funds, corporates and individuals. Punter Southall Group and its associated companies key facts: Advising over 1,000 pension schemes, companies and organisations from a broad spectrum of UK businesses, charities, unions and institutions 3,500 private clients 113m Group turnover 10bn assets under advice Over 840 staff in 13 offices across the UK The Group is owned entirely by its staff. Administering the pensions for more than 250,000 scheme members Find out more Danny Vassiliades danny.vassiliades@puntersouthall.com Alternatively, please speak to your usual Punter Southall contact A low cost governance solution for pension scheme investment 5

8 Punter Southall Group office locations Birmingham 1 Colmore Row, Birmingham B3 2BJ T E craig.wootton@puntersouthall.com Bristol Queen s Quay, Queen Square, Bristol BS1 4LU T E chris.mapp@puntersouthall.com Edinburgh 7 Castle Street, Edinburgh EH2 3AH T E gerry.devenney@puntersouthall.com Guildford Tempus Court, Onslow Street, Guildford, Surrey GU1 4SS T E adam.gillespie@puntersouthall.com London 11 Strand, London WC2N 5HR T E guy.plater@puntersouthall.com Newcastle 36 Gallowgate, Newcastle upon Tyne NE1 4TD T E don.robson@puntersouthall.com Redhill Gatton Place, St Matthews Road, Redhill Surrey RH1 1TA T E nick.harvey@puntersouthall.com Wokingham Albion, Fishponds Road, Wokingham, Berkshire RG41 2QE T E gareth.jones@puntersouthall.com Other offices in Aberdeen, Baildon, Chester, London (City) and in Kent. Visit our website at Punter Southall Punter Southall Investment Consulting is a trading name of Punter Southall Investment Consulting Limited. Registered office: 11 Strand, London WC2N 5HR. Registered in England and Wales No Punter Southall Investment Consulting is authorised and regulated by the Financial Conduct Authority (FCA) with FCA reference number Please note that all material produced by Punter Southall Investment Consulting is directed at, and intended solely for the consideration of, professional clients. This document is intended for information purposes only and it does not constitute a recommendation to purchase or dispose of any securities that may be mentioned herein. This document should not be distributed to any third parties and is not intended to, and must not, be relied upon by them. Unauthorised copying of this document is prohibited. A Punter Southall Group Company _6