UK-based investment management firm TPT introduces a fresh fiduciary management service tailored for UK pension funds.
TPT Investment Management (TPTIM) has launched a standalone fiduciary management offering for UK pension schemes, aiming to provide better value, operational simplicity, and the ability to invest at scale in private markets. This new service builds on the successful model of scheme consolidation and offers a unique approach to fiduciary management.
Distinctive Ownership Model
TPTIM's distinctive ownership model sets its fiduciary management services apart from others in the market. As part of TPT Retirement Solutions group, TPTIM is owned by a pension scheme with no external shareholders, providing a unique advantage in terms of alignment of interests and long-term focus.
Asset Consolidation and Scale Benefits
The service enables pension schemes, primarily defined benefit (DB) schemes, to benefit from asset consolidation through master trust arrangements. This consolidation allows for scale benefits across asset classes by pooling assets, providing immediate scale benefits across a wide range of strategies.
Integrated Asset-Liability Risk Management
TPT's technology platform includes tools to manage each client's portfolio in line with risk budgets, offering an integrated approach to asset and liability risk management. The service emphasises sophisticated, customizable risk analytics—including climate and sustainability impact quantification—to provide a granular understanding of portfolio risks and realistic, detailed investment outlooks.
Long-Term Investment Horizon
TPTIM's offering maintains a long-term investment horizon consistent with an asset owner philosophy, focusing on the delivery of good outcomes with a flexible proposition. The service is set up to deliver better outcomes for members, with a focus on responsible investing and the quantification of climate/sustainability risks.
Dedicated Investment Risk Management
The offering includes a comprehensive investment risk framework managed by specialists like Vanessa Poon, who oversee systemised risk modelling, analysis, and reporting to support client investment objectives and navigate market volatility effectively.
Access to a Range of Investments
TPT's fiduciary management service provides access to a range of investments not necessarily available to smaller, standalone schemes. This allows schemes to benefit from increased diversification, better value through economies of scale, enhanced governance, and on-going investment expertise.
Transparent Total Portfolio Views
TPTIM offers trustees transparent total portfolio views with deficit at risk insights, providing a clear understanding of the scheme's investment performance and risk profile.
Emphasis on Responsible Investing
Sustainable investing plays a central role in TPTIM's decisions, ensuring the responsible allocation, management, and oversight of capital. The new service aims to provide better value to the schemes, incorporating the highest levels of stewardship.
First-Class Customer Service and Advanced Reporting
The service includes first-class customer service with new technology and advanced reporting, providing trustees with the tools they need to make informed decisions about their scheme's investment strategy.
Bridging the Gap in the Market
The service is designed to bridge the gap in the market, especially for medium-sized pension schemes, offering a cost-effective, scalable solution for managing investments.
TPT's Extensive Experience in Asset Allocation
TPT has extensive experience in asset allocation, notably a significant allocation to private markets including infrastructure and private credit. The new offering provides trustees with access to a best-in-class pension scheme investment management capability, as stated by Peter Smith, Head of Investment at TPTIM.
Responsible for £9.6bn in Combined Assets
TPT is responsible for £9.6bn in combined assets and attracts around £270m a year of new inflows, demonstrating the trust and confidence placed in the company by pension schemes across the UK.
In conclusion, TPTIM's new fiduciary management service offers a unique approach to fiduciary management, combining asset and liability risk management with a long-term investment horizon, sophisticated risk analytics, and a focus on responsible investing. The service aims to provide better value, operational simplicity, and the ability to invest at scale in private markets, making it an attractive option for medium-sized pension schemes in the UK.
[1] TPT Investment Management (2022). TPT Investment Management launches standalone fiduciary management offering for UK pension schemes. [online] Available at: https://www.tpt-pm.com/news/tpt-investment-management-launches-standalone-fiduciary-management-offering-for-uk-pension-schemes/
[2] Pensions Age (2022). TPT Investment Management launches standalone fiduciary management offering for UK pension schemes. [online] Available at: https://www.pensionsage.com/2022/04/26/tpt-investment-management-launches-standalone-fiduciary-management-offering-for-uk-pension-schemes/
[3] Professional Pensions (2022). TPT Investment Management launches standalone fiduciary management offering for UK pension schemes. [online] Available at: https://www.professionalpensions.com/risk-and-regulation/tpt-investment-management-launches-standalone-fiduciary-management-offering-for-uk-pension-schemes/
- TPTIM's distinctive ownership model, as part of TPT Retirement Solutions group and owned by a pension scheme with no external shareholders, provides a unique advantage in terms of alignment of interests and long-term focus.
- TPTIM's new service offers access to a range of investments not necessarily available to smaller, standalone schemes, providing increased diversification, better value through economies of scale, enhanced governance, and ongoing investment expertise.
- TPT's technology platform includes tools to manage each client's portfolio in line with risk budgets, offering an integrated approach to asset and liability risk management, including climate and sustainability impact quantification.
- Sustainable investing plays a central role in TPTIM's decisions, ensuring the responsible allocation, management, and oversight of capital, with a focus on the quantification of climate/sustainability risks.
