SPS Fiduciary Management, OCIO & Pension Fund Governance Issues
May 10, 2023
The View at the Royal College of Surgeons, London
• Understand the market, terminology and latest trends in the outsourcing of pension fund investment
• Consider the lessons learned and next steps for investment governance post LDI crisis
• Understand the role of fiduciary management as pension funds approach endgame
• Compare and contrast fiduciary management and advisory
• Learn from other pension funds, consultants and fiduciary managers
• Network with pension funds and providers in an educational informal setting
Session 1 – Fiduciary management and Investment governance trends
Partner and Head of Fiduciary Management Oversight
Trends, terminology, consolidation and regulation: how is the investment governance market evolving?
Terminology and trends in investment governance of pension fund assets
Market turmoil, consolidation and fees – how are managers faring?
Impact of ESG and funding code regulation on pension funds
Head of Investment Strategy UK
SECOR Asset Management
Comparing advisory & fiduciary management
How to think about governance and advice and what is appropriate for your pension scheme
Session 2 – Planning ahead with Fiduciary Management
Head of Investment Strategy UK
Van Lanschot Kempen Investment Management
How much complexity is enough?
Trustees are now faced with two particularly difficult choices, as our Dutch colleagues say “De keuze tussen twee kwaden”, which loosely translates to having to choose between two evils. In order to keep targeting the same return post-LDI crisis, schemes will either need to:
Accept a lower liability hedge, leading to higher investment risk; or
Allocate more to LDI to retain their previous level of hedging, but lose portfolio diversification, in turn leading to higher investment risk.
Higher risk, for no additional return, is an inherently unappealing choice. Such a market shift should lead to trustees reconsidering their investment approach.
This choice extends beyond a simple overall portfolio consideration and should delve into other questions including how much complexity is enough, and do alternatives still have a place in portfolios?
Lead Client Chief Investment Officer for EMEA Pensions
Do private market assets still fit in a defined benefit portfolios?
Following the events of last autumn, pension investors are more wary of illiquidity in their portfolios, and many are further along their journey to endgame than they expected to be. Further, the draft defined benefit funding code requires that investors ensure endgame portfolios have ‘sufficient liquidity’. Can private market alternatives still have a role in this world? Are they worth the effort? This session sets out the pros and cons, and a framework for sizing and structuring allocations to private markets for defined benefit pension portfolios.
Session 3- Developments in governance regulation and investment oversight developments
The Pensions Regulator
Update from TPR
Considering regulators’ updates following the LDI crisis
Trustees’ investment powers and the new funding code
Fiduciary management – appointment, monitoring and oversight
• Appointing a fiduciary manager and reviewing existing managers
• What role could fiduciary management play as schemes approach their end-games, either to buy-out or long-term run-off?
• How can you benchmark the performance of your fiduciary management
• Managing and monitoring a fiduciary management – what do you need to know and do
Session 4 - ESG and Fiduciary plus Pension fund perspectives
ESG – roles of advisory and fiduciary management
• Clarifying roles and responsibilities with advisors and fiduciary managers
• What sorts of questions should you asking advisors and fiduciary managers
• What can you expect from a fiduciary manager
• What your overall aim should be after answering the above
Case studies and views from pension funds
• How did fiduciary management and pension fund governance work in the LDI crisis?
• What are the experiences of pension fund governance
• Managing the regulatory burden
Close followed by drinks reception
The conference is by invitation only for pension funds and other institutional investors and we welcome new attendees from these investors. Therefore if you are not already receiving an invitation please contact us. A limited number of Complimentary invitations are available to genuine pension fund representatives (executives and trustees) and other approved institutional investors. However, to ensure we have room for as many funds as possible, we have to limit free places to 3 attendees per approved organisation thereafter a reduced rate fee is payable per delegate. Furthermore, SPS always reserves the right of admission (free or paid) and our decision is final.
The View at the Royal College of Surgeons
38-43 Lincoln's Inn Fields
Tel: 020 7869 6703
The View is centrally located at Lincoln’s Inn Fields within easy walking distance of Holborn (Piccadilly and Central lines) and Temple (District and Circle Lines) underground stations. It is a short taxi or underground journey from most major rail stations. Two NCP car parks are situated nearby.