How we saved our client over £3m pa in investment fees
The background
At the start of 2019, we began advising the trustees of a large pension scheme on their investments. They weren’t happy with their incumbent advisor, and with prior experience of working with LCP in other areas, were keen to bring in our investment advisory team.
Our solution
As a first step, we reviewed the Scheme’s investment arrangements, identifying several red flags – uncompetitive fee rates (that hadn’t been revisited for nearly half a decade in some cases) and overly-complex mandates split across dozens of managers.
We embarked on a process of negotiation and consolidation, simplifying the scheme’s investment strategy and ensuring economies of scale were realised. As the leading independent advisor, we are in a strong position to negotiate on behalf of our clients.
The outcome
We reduced the investment fees that this Scheme pays by around £3.3m pa. Following consolidation, the governance burden placed on the Trustees was eased, meaning more of their time could be spent on issues that really impact the investment strategy’s success and ultimately the outcome for members.
