Our bespoke, integrated model

As your fiduciary manager, our core responsibility is to implement manage the investment value chain, as illustrated in the following diagram, in accordance with the strategy set by the trustees.

Our responsibility is to ensure that each link in the chain (in blue) and the chain as a whole is reliable at all times and that it maximises the scheme’s expected net-of-fee return per unit of risk in a manner that is consistent with the scheme’s strategic goal. This requires continuous management of the chain on an integrated basis. Different fiduciary managers have different approaches in managing the investment value chain.  Our solution distinguishes itself from others in three key ways:

A complete solution

Our solution is more than a delegated version of traditional consultancy.  In addition to investment strategy advice and manager selection, we have in-house investment capabilities that reinforce our manager selection process and enable us to implement overlay strategies to hedge risks and to manage cash on an integrated basis.  We also have a proven process to identify medium-term risks and opportunities and to dynamically position the portfolio as the funding level or market conditions change.  We also maintain a strong multi-custodian operations platform that enables us to maintain continuous insight into your portfolio down to the individual security level.  This also enables us to measure, monitor and report investment risk and performance at any level.  Finally, we also have dedicated resources to implement securities lending programs to increase return, commission recapture programs to reduce transaction costs, tax transparent investment structures to reduce taxes, and socially responsible investment policies to meet your scheme's SRI and corporate governance responsibilities.

A bespoke solution

One of our core values is "freedom of choice".  After all, the whole point of fiduciary management is to strengthen the control that trustees have over their assets.  That means that you choose which modules you want to delegate to us and to what degree.  For example, if you do not want us to manage any asset class internally, then we will select one or more external managers.  If you want us to select only passive managers, then we will.  If you want to impose risk or asset allocation limits, then we will keep within those.  And if you want to retain a particular manager, then we will seek to work with that manager.  It's very simple: you are always in complete control.

An cost effective solution

Our clients have more than GBP 65 billion in combined assets as of October 2011.  As a result, we are able to deliver the benefits of economies of scale and purchasing power to gain access to the best managers and other service providers at the best possible fee.  While the key benefits of fiduciary management are in terms of governance, higher expected return, and lower expected risk, we often find that we are able to deliver substantial cost savings as well.