Partners in Confidence: Independent oversight for a £300m Scheme looking to run-on
Sponsoring Employer: Large utility
The Long-Term Objective (“LTO”) of the Scheme (assets totalling £65m) was to fully secure members’ benefits through a buy in transaction over the next five years. However, the Scheme’s funding position had improved materially following favourable market conditions and an investment strategy that outperformed, creating an opportunity to move towards the LTO sooner than anticipated.
The Trustee of the Scheme asked us to support them in assessing affordability, preparing the assets and executing the buy in.
Providing a big name service on a first name basis
The challenge
Following the completion of a selection exercise with Quantum Advisory two years prior, the trustee board of a £300m defined benefit pension scheme looking to run-on over the medium-term appointed Quantum to provide independent fiduciary management oversight. While the trustees were broadly satisfied with the relationship, they sought enhanced assurance regarding the investment strategy, performance, governance and value for money.
The trustees aimed to obtain a clear, holistic review of their fiduciary manager’s activity, complemented by targeted deep‑dives into their higher priority areas. Success was defined as improving transparency, effectively challenging the manager where appropriate and providing practical insights to support governance decision‑making.
Our approach
We carried out a structured review across the full fiduciary mandate, focusing on areas of greatest relevance to the trustees. This included:
- A high level assessment of investment strategy, risk and performance
- A review of ESG integration, including ESG ratings at fund level and how responsible investment considerations were implemented in practice
- Evaluation of the cashflow matching portfolio construction, to assess alignment with the scheme’s cashflow profile
- Review of reporting, service delivery and fees to assess overall value for money
The review was designed to provide clear, independent challenge while working constructively alongside the existing fiduciary manager.
The impact – Outcome and results
- Stronger governance of the fiduciary management mandate.
- Greater comfort with the scheme’s cashflow matching strategy and how it supports the scheme’s medium and long-term objectives.
- Increased confidence in ESG integration and portfolio construction.
- More decision-useful reporting for the trustee board.
- Reduced fiduciary management fees, improving overall value for money.
“Our review helped the trustees strengthen governance, improve transparency and reduce fiduciary management fees.”
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