We believe that we are uniquely positioned to deliver a client’s required outcomes.
By combining our investment philosophy and investment approach with the experience of managing one of the largest corporate pension schemes in the UK.
| Customisation | While the obligations DB pension schemes have are similar, each has its own circumstances, whether that’s the stage of its lifecycle, sponsor situation or funded status. |
| Alignment | A deep understanding of the circumstances of the scheme and sponsor and the Trustee Board’s objectives and desired outcomes. As a pension scheme manager, this is an integral part of our identity. |
| Trust | We approach fiduciary management with a long-term partnership mindset. We build trust by working closely with trustees, discussing strategy and implementation in detail so that they are well understood. Reporting is designed to be transparent and focused on giving the Trustee Board the information needed to support its decision-making process and to be able to hold us, as fiduciary manager, to account. |
| Agility & innovation | Pension scheme strategy needs to adapt and reflect the continual need to focus on delivering Trustee objectives. |
| Unbiased perspective | We don’t manage or cross-sell other products, we are completely independent. Our investment teams are structured to seek the optimal outcomes addressing the needs of the investment strategy. |
Investment
implementation
beliefs
Market inefficiencies create the necessary environment for outperformance:
- The most inefficient asset classes offer the best alpha opportunity.
- Significant capital flows can lead to distortions (and opportunities).
Outperformance is captured through alternative beta and alpha:
- Alternative betas have positive expected returns; they are often mistaken for alpha.
- Beta can be harvested cheaply; alpha is more expensive and valuable.
ESG matters and offers a different “lens” for evaluating managers:
- The best long-term managers inherently consider ESG factors – sometimes without articulating it.
- Evaluating managers’ ESG approaches facilitates a different dialogue, giving another insight into their approach which helps us form a more complete picture.
Outperforming managers tend to have certain characteristics:
- A demonstrable “edge” that is known and on which their approach and process focuses.
- The desire and ability to understand and learn from past investment mistakes.
- Transparency – good managers are unafraid to share their research.
Cost control (fees, expenses, and transaction) leads to superior long-term performance:
- Fees are a given, outperformance is not.
Portfolio construction is critical to generate consistent performance:
- Risk based diversification is important and not necessarily the same as asset diversification.
- A focus on avoiding downside risks provides a more predictable and secure way of meeting client needs – particularly for long-term pension investors with sequencing risk.
Explore more within Funding & Fiduciary Services
Sustainable Investment
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Climate Change
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Investment Philosophy
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