U.K. Pension Schemes Receive a New Fiduciary Management Service from TPT Investment Management
TPT Investment Management (TPTIM) has announced the launch of a standalone fiduciary management offering for UK pension schemes. This new service aims to provide better value to pension schemes and incorporates the highest levels of stewardship.
Key Features and Benefits
The offering allows pension schemes, particularly defined benefit (DB) schemes, to pool their assets in collective investment vehicles or a master trust, achieving immediate scale benefits across multiple asset classes. This consolidation of assets can lead to increased diversification, better value through economies of scale, enhanced governance, and on-going investment expertise.
TPTIM provides a sophisticated, customizable risk analytics framework developed in collaboration with MSCI. This tool delivers a detailed and granular total portfolio view that helps trustees understand asset and liability risks, contributors to deficit changes, and align investment goals with realistic risk outlooks.
Responsible investing and quantifying climate and sustainability impacts are core parts of TPTIM's risk and investment framework. The firm retains the "DNA" of an asset owner with a long-term investment horizon but invests using the methods of an asset manager.
The provision of new collective investment vehicles allows schemes to access a wide variety of strategies while benefiting from the efficiency and value generated by pooled asset management. TPTIM has extensive experience in asset allocation, notably, a significant allocation to private markets including infrastructure and private credit.
TPTIM has appointed a specialized Investment Risk Manager (Vanessa Poon) to develop, implement, and evolve its risk framework. This role supports delivering client outcomes, navigating market volatility, and addressing regulatory and ESG risks.
Improved Outcomes for Pension Schemes
The new service is set up to deliver better outcomes for members. Peter Smith, Head of Investment at TPT Investment Management, is thrilled about the launch of the new fiduciary management service. He believes that this service will help bridge the gap that currently exists in the market, especially for medium-sized pension schemes.
The service focuses on the delivery of good outcomes with a flexible proposition. It provides trustees with access to a best-in-class pension scheme investment management capability and offers the ability to invest as scale in private markets.
TPTIM's ownership model creates a large internal market for assets, potentially allowing for assets to be exchanged internally with no costs or transaction fees. The firm is responsible for £9.6bn in combined assets and attracts around £270m a year of new inflows.
The new service is underpinned by first-class customer service and new technology. TPTIM's distinctive ownership model sets its fiduciary management services apart in the market. The firm is owned by a pension scheme with no external shareholders, ensuring a singular focus on delivering consolidation for pension schemes.
Sustainable investing plays a central role in TPTIM's decisions, ensuring the responsible allocation, management, and oversight of capital to create long-term value for scheme members. This commitment to responsible investing, combined with TPTIM's expertise and dedication to risk oversight, makes the new fiduciary management service an attractive option for UK pension schemes seeking improved outcomes for their members.
- The new fiduciary management service by TPT Investment Management aims to provide better outcomes for pension scheme members, bridging the gap in the market for medium-sized pension schemes.
- TPTIM's new service offers a flexible proposition, providing trustees with access to a best-in-class pension scheme investment management capability and the ability to invest as scale in private markets.
- As part of their risk and investment framework, TPTIM's responsible investing strategy ensures the responsible allocation, management, and oversight of capital to create long-term value for scheme members, aligning with the commitment to sustainability in their decisions.
