INVESTMENT SOLUTIONS. Fiduciary Management. Knowing our scheme is in good hands leaves me free to focus on where I add value.

Transcription

1 INVESTMENT SOLUTIONS Fiduciary Management Knowing our scheme is in good hands leaves me free to focus on where I add value.

2 ABOUT US The JLT fiduciary management service brings together the expertise of JLT Investment Consulting and JLT Investment Management. We have a proven track record of helping clients make the right decisions to keep their scheme on track, as well as saving them time and improving their efficiency. We work with pension schemes that have liabilities totalling anything from 3 million to more than 1 billion. So whatever your goals, we can help you make the decisions to achieve them. We are a division of JLT Employee Benefits, one of the UK s leading pensions and employee benefit consultancies. We are part of the global JLT Group, providing insurance, reinsurance, brokerage and associated services. Empowering transparent decision making for Trustees and Sponsors

3 1 CONTENTS In turbulent times, you need a team you can rely on 2 Fiduciary management gives you experienced support 3 Why JLT Fiduciary Management? 4 The JLT investment platform makes the complex simple 7 Don t just take our word for it... 8 Get in touch 9

4 2 JLT INVESTMENT SOLUTIONS Fiduciary Management IN TURBULENT TIMES, YOU NEED A TEAM YOU CAN RELY ON As a trustee, you will be forgiven for wondering where to start with the responsibility of managing your scheme investments. There is a complex mix of factors that can impact performance and your ability to achieve your scheme goals. To name a few: How to protect liabilities whilst meeting the needs of the sponsor. A vast array of investment options and how to navigate them. The impact of world events on market volatility. Ever changing legislation and regulation. This constantly shifting landscape means that staying on top of your scheme s estimated funding is paramount and needs more than just the traditional annual review. It s important to be able to adapt your investment strategy quickly and efficiently. However, with limited time and resources, it can be difficult to manage all these challenges and make the decisions that are best for your members. Fiduciary management can help. Delegating some of your investment decisions to JLT s expert advisers can assist you in achieving your financial objectives. In the last 10 years 65 life expectancy at age has increased by two years adding an estimated 135bn to DB scheme liabilities

5 3 FIDUCIARY MANAGEMENT GIVES YOU EXPERIENCED SUPPORT It is likely that if asked, many trustees would say their scheme s objective is: To pay members their benefits on time and in full. There can be little argument that achieving this objective requires trustees to have a longterm plan. Having an appropriate investment strategy must form part of this plan. Being able to implement this strategy efficiently is therefore important to many trustees and they are looking to fiduciary management to help. With fiduciary management, you should feel more in control of your scheme s strategy both long-term and short-term. You can access regular asset valuations and efficiently change and implement your strategy when your funding level changes. Let our fiduciary management team do some of the heavy lifting for you. Fiduciary management allows you to move quickly when making changes, in the large majority of cases, moving only takes a few days and should need little or no paperwork. Compare this with the traditional investment consulting approach where you could wait for weeks or even months to change an investment. In this brochure we will highlight how JLT s fiduciary management team can help to meet your scheme objectives. The 2.3 trillion gap between current assets and the cashflows required to pay out to members in the future will need to be closed through a combination of cash contributions, investment returns and reduction of liabilities. Source: JLT Research (2017)

6 4 JLT INVESTMENT SOLUTIONS Fiduciary Management WHY JLT FIDUCIARY MANAGEMENT? When we first meet with you, we ll discuss your scheme and help you understand where fiduciary management can add value. We can help you define your objectives, set your strategy, adjust your assets and monitor your investments. ACCESS TO A DEDICATED INVESTMENT CONSULTANT AND INVESTMENT MANAGER We see this dual approach as best practice governance, allowing you to concentrate on the bigger picture. Your JLT Investment Consultant will work with you to review your investment governance and investment strategy. In addition, they will: Advise on your short-term and long-term strategies. Provide guidance on which investment products to use. Help review the scheme s performance against the objectives you ve set and give the context you need to make decisions. Your JLT Investment Manager will keep a close eye on your portfolio and if delegated, will make investment decisions on your behalf, all within limits set by you. On a day-to-day basis they ll have access to your portfolio positions and how the allocation lies within your agreed targets. As a result: Cashflows can often be handled directly between the scheme administrators and the JLT Investment Manager. Fund Managers can be replaced if JLT believes the fund s ability to achieve its objective has changed and so should be replaced. This can happen the same day the news breaks of a key investment personnel departure, for instance. This is in contrast to the traditional approach, which typically can see delays as advice is sought and decisions are made and implemented.

7

8 6 JLT INVESTMENT SOLUTIONS Fiduciary Management TRANSPARENT DECISIONS JLT fiduciary management clients are not required to use JLT funds, which addresses any conflict of interest issues. INCREASED CONTROL The JLT Investment Platform allows schemes to buy, sell and hold investments in one place. It offers a wide range of fund managers across many different asset classes. It s also easier to adapt your portfolio to market conditions and update it straightaway - rather than the weeks or even months it might take with a traditional consulting service. MORE INVESTMENT CHOICES Fund managers view clients within the JLT Investment Platform as a single entity. This means you may be able to access manager s funds you might otherwise be too small to utilise. The use of only third party funds selected through whole of market research ensures that JLT has access to highly innovative investment ideas across a comprehensive, global range of asset classes. JLT then draws on our own experience to select the right investments to meet your scheme goals. FEE TRANSPARENCY AND VAT EFFICIENCY With significant assets invested on our clients behalf, our scale and influence means we can negotiate fee discounts for our clients. We are proud that our clients receive these discounts and that they don t disappear within the management fee of an in-house fund. You therefore get more for your money. What s more, the JLT Investment Platform also has a Life Company wrapper, so you don t pay VAT on your Investment Consulting advisory fees. GET UP AND RUNNING QUICKLY You ll have the support of a dedicated asset transfer team to oversee the onboarding process and make sure it runs smoothly. The team will create a comprehensive transfer timeline to make sure all associated risks are carefully managed. This is all part of the service at no extra cost. When combined, these advantages lead to an efficient and cost effective way to meet your scheme objectives.

9 7 THE JLT INVESTMENT PLATFORM MAKES THE COMPLEX SIMPLE Our approach to fiduciary management allows you to choose the level of delegation that s appropriate to you. This could be all or just a proportion of your scheme s assets. WITH OUR INVESTMENT PLATFORM YOU CAN CHOOSE: The asset classes used by your scheme; and with many you can also choose if this is active or passive exposure. The extent of the delegation. How many meetings you would like with us each year. The amount of detail that your regular reporting includes. You only pay for the service you feel you require.

10 8 JLT INVESTMENT SOLUTIONS Fiduciary Management DON T JUST TAKE OUR WORD FOR IT... The de-risking strategy we put in place for one client reduced their deficit by almost half. Transferring their assets to the pooled Liability Driven Investment solution using the JLT Investment Platform meant they paid less in investment management fees and their portfolio was more efficient. A practical and pragmatic approach to investment advice, with a fiduciary offering that helps us and the employer to achieve our long-term funding goals. The initial investment strategy has significantly improved our risk profile. For another client, moving to the JLT Investment Platform and adopting our proposed strategy, significantly improved their funding level. The total benefit of the strategy changes we implemented was estimated to be equivalent to around 30% of their assets. This is a brilliant result and better than we could have expected. It shows how worthwhile it has been putting the time and thought into the investment strategy, and is a result of the hard work which has been put in by the consultant, his team and the trustees.

11 GET IN TOUCH If you d like to talk to us about how we could help with your pension scheme, please get in touch. If you decide to work with us, our dedicated team will handle the process from start to finish. To find out more, visit our website: Or give us a call on: +44 (0) We ll be happy to help.

12 CONTACTS TONY PIKE Investment Solutions +44 (0) KIERON SNOW Investment Solutions +44 (0) PAUL CHAPPLE Investment Management +44 (0) JLT Investment Solutions The St Botolph Building 138 Houndsditch London EC3A 7AW Tel +44 (0) Fax +44 (0) JLT Investment Solutions is a trading name of JLT Benefit Solutions Limited, registered in England No and JLT Investment Management Limited, registered in England No Member of the Jardine Lloyd Thompson Group. Authorised and regulated by the Financial Conduct Authority. Registered Office: The St Botolph Building, 138 Houndsditch, London EC3A 7AW. VAT No July