15+ years of investment excellence: a case study

Key challenges

In 2013, the client launched a new hybrid pension scheme, combining career revalued benefits with a defined contribution (DC) top-up. As an established master trust with a particularly strong investment proposition, SEI were appointed to support the DC top-up component of this new scheme.

For this client, our offering stood out for three main reasons. First, we had an established track record, having launched our master trust back in 2007. 

Second, we were able to create a custom glidepath based on the scheme’s unique objectives and member demographic. Few providers were able to tailor a solution in this way, particularly given the modest size of the scheme (less than £1 million, as at June 2012).

Third, and perhaps most importantly, the client believed our ability to tailor an investment strategy could maximise growth potential for their members. Unlike many off-the-shelf strategies of the time, we could allow for the ‘underpin’ provided by the defined benefit (DB) element within the design of our default strategy. This enabled us to maximise equity investment for members in the early years of saving, before gradually de-risking into more ‘stability focused’ multi-asset investments as they neared retirement.

Progress

Since the introduction of pension freedoms in 2015, we have extended the client’s fund range to support the increasing number of members who want to use flexible drawdown. Our stability focused multi-asset and factor funds – which also form the basis of our through-retirement default—have become an integral part of the client’s extended fund range.

More recently, our regular review of the client’s default strategy offered an opportunity to further improve member outcomes and create cost efficiencies.

Partnering with SEI since 2013 has ultimately helped the client achieve:  

• A steady, but significant, growth in member assets, growing to c.£38m—this was predominantly achieved through ‘employer-only’ contributions
• Proactive fee reductions for all members, thus rewarding client growth and tenure

Source: SEI.

Next steps

With a robust investment strategy in place, and having achieved a reduction in fees, the client can now turn their attention to member communication and engagement.

We’re supporting the client in this endeavour, particularly in relation to our member portal—which we’re continuously improving—and member app—which will give members the opportunity to see all their pension savings (and more) in one place.¹

¹Our app looks to improve engagement by showing members their current accounts, debts, savings, ISAs, mortgages, credit cards, and pensions all in one place.

Important information

This case study describes the attributes of a specific client that SEI has determined is comparable based on objective criteria, including organisational goals, asset size and industry sector. Any discussion of specific asset allocations is intended to help clients understand SEI’s customised investment approach, and should not be regarded as a recommendation. Information concerning SEI’s recommendations over the last year is available on request. The information expressed herein represents the current, good faith views of SEI at the time of original publication, and has not been updated.

This is a Marketing Communication. This webpage has been created in relation to the SEI Master Trust, an occupational pension scheme which is authorised by the Pensions Regulator. The trustee of the SEI Master Trust is SEI Trustees Limited. SEI Trustees Limited has appointed SEI Investments (Europe) Ltd (“SIEL”) as investment adviser to the SEI Master Trust and pursuant to its investment advisory agreement.

This information is issued and approved by SEI Investments (Europe) Ltd (“SIEL”) 1st Floor, Alphabeta, 14-18 Finsbury Square, London EC2A 1BR. This webpage and its contents are directed at persons who have been categorised by SIEL as a Professional Client and is not for further distribution. SIEL is authorised and regulated by the Financial Conduct Authority. While considerable care has been taken to ensure the information contained within this webpage is accurate and up-to-date and complies with relevant legislation and regulations, no warranty is given and no representation is made as to the accuracy or completeness of any information and no liability is accepted for any errors or omissions in such information or any action taken on the basis of this information. The information in this webpage is for general information purposes only and does not constitute investment advice. You should read all the investment information and details on the funds before making investment choices. Please refer to our latest Prospectus (which includes information in relation to the use of derivatives and the risks associated with the use of derivative instruments), Key Investor Information Document, Summary of UCITS Shareholder rights (which includes a summary of the rights that shareholders of our funds have) and the latest Annual or Semi-Annual Reports for more information on our funds, which can be located at Fund Documents (https://seic.com/en-gb/fund-documents). And you should read the terms and conditions contained in the Prospectus (including the risk factors) before making any investment decision. If you are in any doubt about whether or how to invest, you should seek independent advice before making any decisions. The UCITS may be de-registered for sale in an EEA jurisdiction in accordance with the provisions of the UCITS Directive. Past Performance does not predict future returns. Investment in the range of the SEI Master Trust’s funds are intended as a long-term investment. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. This document and its contents are for Institutional Investors only and not for further distribution.