Hot off the Press: Redington's Latest Press Releases
09 March 2017
Effective frameworks needed to encourage “honest dialogue” between consultants and trustees, says Redington’s Richards
London – 9 March 2017- The risk of negative impact on the consultant-trustee relationship could be adversely affecting the outcomes of millions of pension members, according to Paul Richards, Director of Strategy at pensions consultancy Redington. Frameworks are needed to encourage a frank and honest exchange between both parties.
Richards, speaking along with Chris Hogg, CEO of Royal Mail Pension Trustees, at this week’s PLSA conference in Edinburgh, said that research conducted on trustees and consultants found that 95% agreed that “honest dialogue” was essential for identifying and rectifying areas of weakness in scheme governance.
Despite this, critical feedback was uncommon: nearly one in five respondents had seen no instances of consultants delivering developmental feedback, while nearly six in 10 (58%) had observed this on between just 1 and 20% of schemes they worked on.
Richards believes this reluctance to provide frank feedback is down to concerns about damaging the working relationship between the consultant and their trustee client: many (68%) worried that it would negatively impact the ability to work effectively with the client while 67% were unwilling to take actions that might risk the client relationship. However, on a positive note, 86% of those surveyed said that putting assurances in place that offering critical feedback would not affect the trustee and consultant’s future ability to work together would increase chances of doing this effectively.
According to Richards:
“Feedback is an integral part of any healthy relationship, and with the potential to impact so many scheme members, it is crucial that trustees and consultants feel able to have frank and honest discussions with each other. In fact, studies have shown that effective governance can equate to an additional return of between 1-2% annually, so the ability to communicate effectively and honestly has a direct impact on members’ bottom line.
“But all too often, this is not happening and consultants find themselves keeping tight-lipped on issues of governance so as not to offend or upset the trustees. But it works both ways. We know instances where trustees have directly asked consultants for feedback and this has been met with shock, as it often isn’t the ‘done thing’.
“With the financial security of so many at stake, we need to find practical and workable frameworks in place to ensure both parties can raise areas of concern without fear of negative repercussions further down the line. Very often, raising concerns early on can prevent more serious issues later and it is essential that we find a way to express worries about governance as soon as possible in the process.
“One possible solution would be encouraging consultants to adopt what we have termed a “radical candour” approach, keeping trustees very much appraised of what they can expect throughout the procedure and enabling all involved to air concerns openly.”
08 March 2017
Redington signals continued commitment to diversity with launch of return to work programme
London – 8 March 2017 – Redington, the leading pensions consultancy, has renewed its commitment to improving diversity within the financial services sector with the launch of its return to work programme, ‘Redington Returners’, following a successful pilot. The scheme offers placements to women returning to work after periods of time away from the workplace.
Redington has teamed up with The Return Hub to implement the programme. Set up by former City headhunter Dominie Moss, The Return Hub works with firms to ease the transition of returning to work for women. This comes as the Chancellor announced plans in today’s Budget to make £5 million available to support women returning to work after career breaks.
Under the pilot, Redington took on five women for 10 weeks each, matching them up with ‘buddies’ within the firm and running tailored workshops throughout the programme.. The overarching aim of the scheme was to foster the sharing of ideas and knowledge from both sides: as well as learning and rebuilding their confidence in a supportive environment, the returning women were encouraged to draw on their professional and personal experience. This saw them make important contributions to running projects, picking up firm-wide issues, building processes and coaching others.
The success of the initiative so far (which still has a few weeks to run) means Redington is planning to extend the scheme, both by identifying ongoing roles within the firm for the women and through welcoming future returners through its doors.
Commenting on the programme, Mitesh Sheth, CEO, Redington, said:
“At Redington, we are passionate about maintaining a cognitively diverse workforce, which we see as an essential health check for us as the firm continues to grow. Not only do returners offer gender diversity, they also offer a wealth of experience, bringing a rounded and mature perspective to what is still a young business.
“The returners have all hit the ground running and within the first couple of weeks we found them all to be adding value. I knew we would see benefit, but we have all been surprised by how much their contributions have positively impacted the company already. This has shaped our thinking a lot on issues of diversity and how we can take such programmes further and build a good pipeline of unconventional talent.”
09 January 2017
Redington appoints communications agency MRM to support its ambitious growth plans
Redington, one of the UK’s leading independent investment consultants, has appointed MRM, the multi-disciplined financial services specialist communications consultancy, to support its growth plans and vision to make 100 million people financially secure.
Reporting to Redington’s Head of Marketing, Dave McGovern, MRM will work closely with Redington’s senior management and marketing team to support their plans through both traditional and new media. Senior members of MRM’s social & digital and public affairs teams will also provide tactical input and guidance.
The appointment comes at a time of rapid expansion for Redington, as it focuses on building a platform to support a bigger business, more clients and multiple business lines. 2016 saw the size of the firm increase by circa 30% and it continues to hire people with a shared sense of responsibility, openness, clarity and long-term focus.
Commenting on the appointment, Dave McGovern said:
“We have set ourselves a hugely ambitious target of making 100 million people financially secure. Throughout the selection process MRM showed us they really bought into our vision, showing clear passion and determination to help us engage with a much wider audience. They also demonstrated how their integrated approach can add value beyond a traditional outsourced press office, making them the perfect partner for us. We are excited to work with the team and wider business as we continue to grow our presence in the UK and internationally.”
MRM Director and co-founder Andrew Appleyard added:
“Redington is a hugely dynamic and exciting business at the vanguard of innovation within the UK pensions space. We are looking forward to working closely with the team to devise and implement an integrated communications programme that will help the company achieve its objectives and continue to evolve and adapt to meet clients’ long-term needs.”
Redington, led by CEO Mitesh Sheth, is the UK’s fourth largest investment consultancy with £368bn of assets under advice.
01 September 2016
Redington outlines ambitious expansion plans in year-end report
Securing the financial futures of 100 million people
Redington, one of the UK’s leading independent UK pensions consultants, has underlined its audacious vision to make 100 million people financially secure. As Redington reports another strong year of growth, it outlines why tackling the UK’s saving gap is central to its long-term focus. “Our vision is to make 100 million people financially secure. We know this is a titanic task. That is why we will further evolve our capability, culture and infrastructure to achieve this goal,” Redington CEO Mitesh Sheth says. “Against a backdrop of pension fund shortfalls, our clients continue to perform well and manage long-term plans with discipline. We care about the members that our clients represent; we care about future generations and their retirement objectives. This is what differentiates Redington."
A pivotal point in the Redington’s evolution
“In the last year we have passed several key milestones – including building out our active equity research capability; establishing our DC business; launching new software innovations; investing in business development and marketing and client reporting. My focus is on building a platform to support a bigger business, more clients and multiple business lines,” Sheth explains. “We have increased the size of the firm by circa 30% – as we continue to hire people with a shared sense of responsibility, openness, clarity and long-term focus.”
Redington remains focused on helping secure more members’ benefits in defined benefit (DB) pensions and has created a full-service investment consultancy to provide advice on the full spectrum of asset classes, risk management tools and investment strategies. It has also brought its innovative thinking to the DC (defined contribution) arena.
“Many of our longstanding DB clients want us to apply the ideas, innovation and discipline we have already implemented to their DC schemes as well. We are steadily building out our Workplace Savings, Private Wealth and Financial Education propositions,” Sheth says.
Over the 12 months to 30 April, Redington recorded a 19% year-on-year increase in revenues, to £11.85m, after witnessing strong continued demand for its investment advisory services.
Assets under consulting for retained clients grew 100% to £159bn over the period, taking the assets held by all Redington’s clients to £368bn – a 38% year-on-year rise. Redington added 10 new clients to its growing client base, taking the total number of engaged firms to 66, advising 11 of the top 30 UK pension schemes.
Already the UK’s fourth largest investment consultancy by assets under consulting, Redington also took significant steps forward in its ambitious growth plans over the past year – with continued investments in internal infrastructure, systems and processes and people - hiring 20 (net) new professionals into the firm.
Redington’s normalised earnings before interest, tax, depreciation and amortisation rose marginally to £2.3 million, after knocking off exceptional costs over and above normal running costs. The costs typically relate to new ventures.
“The next decade will see us adopt new geographies, business lines and technologies. Above all it will require us to test new ideas, empathise, innovate and take risks. We will be innovative, focused and pragmatic as we do so,” Sheth concludes.
16 June 2016
Redington appoints Dan Mikulskis to Head of Defined Benefit Pensions
Redington, one of the UK’s leading independent investment consultants, has appointed Dan Mikulskis as Head of Defined Benefit Pensions, a newly created role.
Mikulskis, who joined Redington in June 2012, previously co-managed the asset & liability modelling (ALM) team, along with Steven Yang Yu. Steven Yang Yu will now become the sole head of ALM.
Prior to joining Redington, Dan held derivatives-trading focused roles at Deutsche Bank in Sydney, Macquarie Bank and a macro hedge fund. He began his career in the Investment Consulting business with Mercer in London, where he qualified as a Fellow of the Institute of Actuaries in 2007, and where he became a member of the Financial Strategy Group. Dan holds a BA (Hons) in Mathematics from the University of Cambridge.
Commenting on the appointment, Redington CEO, Mitesh Sheth, said:
“Against a backdrop of pension fund shortfalls, our clients continue to perform well and manage long-term plans with discipline. Over the past decade, Redington has grown to a team of 83 individuals with investment consulting, actuarial, capital markets and asset management experience. We provide advice to 64 clients, including ten of the top 30 pension funds in the UK, and have over £350bn in assets under consulting.
“Looking forward, 10 years since the firm was founded, we remain very focused on growing our market share in the UK defined benefit market, with the end goal of helping more members reach financial security in retirement.
“I have every confidence in Dan’s ability to lead our Defined Benefit business from strength to strength.”
Mikulskis’ appointment follows a number of recent promotions at Redington. Patrick O'Sullivan and Karen Heaven were appointed managing directors within the client consulting team, Steven Yang Yu named managing director in the asset & liability modelling team, while Paul Richards joins Redington as Director of Strategy. Paul previously held a wide range of senior roles in the industry.
Commenting on his new role, Dan Mikulskis, said:
“Over the last ten years we have developed into a full service investment consultancy, and today we provide investment advice to DB pension funds (on both a project and retained basis) that are tasked with paying the pensions of almost a million individuals.
“While our roots 10 years ago lay in the areas of LDI and risk management, today we cover, and advise on, the full spectrum of asset classes and strategies (including for example, equity, property and illiquid assets).
“Having said that, there are still many UK DB trustees who haven't heard of us yet, or whose perception we need to update. Two of my key goals in the new role are: firstly, to be able to communicate clearly and widely to DB scheme trustees what Redington can offer today as an independent investment consultant, and what we believe differentiates ourselves from other consultants. Secondly, to continue the ongoing investment in tools and process that enables us to deliver our advice in the most helpful way for clients to make better investment decisions, and thereby pay members’ benefits with a greater degree of security.”
7 June 2016
Redington announces key promotions as it continues to reward talent within the business
Redington, one of the UK's leading independent investment consultants, has announced 20 promotions, as the innovative advisory firm rewards talent in the business following the year-end review.
In a series of high-level promotions, both Patrick O'Sullivan and Karen Heaven will assume managing director roles within the client consulting team, and Steven Yang Yu has been promoted to the position of managing director in the asset & liability modelling team.
Commenting on the promotions Redington CEO, Mitesh Sheth, said:
"The promotions are in recognition of individuals that are exceeding expectations in their day-to-day work, contributing to our wider business objectives and showing a commitment to demonstrate Redington core values. We reward and promote individuals who put our clients first, support their colleagues, openly share ideas, seek difficult feedback, commit to continuous improvement and take pride in the clarity of their communication both internally and externally."
Since formation in 2006, Redington has grown to a team of 83 individuals. The team has a combined total of more than 300 years of investment consulting, actuarial, capital markets and asset management experience. The firm provides advice to 64 clients, including ten of the top 30 pension funds in the UK, and has over £350bn in assets under consulting*.
In addition, Paul Richards has joined as Director of Strategy. Paul has previously held a wide range of senior roles in the industry. He has been a Managing Director of Goldman Sachs Asset Management, Head of Investment Manager Research at Aon Consulting and also led the UK Institutional Business of Isis plc (now F&C). In his new role, Paul will be contributing to a range of strategic initiatives across the firm.
11 April 2016
Redington strengthens investment consulting team
Redington, one of the UK’s leading independent investment consultants, has appointed Jinesh Patel as vice president of DC & Financial Well-being Consulting Practice. The appointment of Patel builds on the expertise and deep industry knowledge of Redington’s investment consulting team, which is increasingly supporting corporates and trustees in developing defined contribution (DC) pension strategies.
Jinesh joins from Willis Towers Watson, where he provided DC consultancy advice to a range of clients – including FTSE 100 businesses. He also spent time at HSBC in its internal reward team, supporting the management of its complex pension and benefit change programme.
Redington Head of DC & Financial Well-being, Lydia Fearn said:
“Jinesh’s appointment boosts our consulting team’s expertise in the DC space. Since Redington was formed 10 years ago, the pensions landscape has evolved beyond recognition – with more employees reliant on DC schemes to pay for their retirement. Our business is structurally aligned with our clients’ long-term success and Jinesh’s hire emphasises our commitment to serving the industry and will be fundamental in supporting clients through the changing pensions landscape.”
Jinesh Patel adds:
“This is a really exciting time to join Redington, with the business continuing to grow and evolve its DC proposition. Changes to pensions have left many individuals concerned about their retirement. Finding the right solution to ensure they have sufficient savings to retire is fundamental to work we are doing with our DC proposition. The Redington team has a passion for innovating and delivering long-term solutions to retirement saving which was instrumental in my decision to join.”
18 March 2016
Redington appoints Mitesh Sheth as CEO
Redington, the independent investment consultant, has appointed Mitesh Sheth as CEO, effective 5 April.
Since the firm’s launch in 2006, Redington co-founders Robert Gardner and Dawid Konotey-Ahulu have held the combined roles of client consultants and co-CEOs as well as undertaking a number of industry initiatives. Over this period, Redington has seen considerable growth and now advises on over £400bn in assets and employs more than 80 people. The appointment of Sheth allows Gardner and Konotey-Ahulu to dedicate more of their time to clients, innovation and people development whilst ensuring that Redington has focused leadership.
Gardner and Konotey-Ahulu remain the majority shareholders of Redington.
Sheth, who is currently Redington’s Director of Strategy, joined the firm in 2013. Prior to joining Redington, Sheth was Head of Fixed Income at Henderson Global Investors and has also held roles at both Watson Wyatt (now Willis Towers Watson) and Aon Consulting (now Aon Hewitt).
Commenting on his appointment, Mitesh Sheth said:
“In just a decade, Robert and Dawid have shaped Redington into one of the UK’s leading independent investment consulting firms. Redington is renowned for its commitment to its clients, unique culture and being at the cutting edge of innovation in the UK pensions industry. I look forward to building on these strong foundations as we tackle the UK’s savings challenge in the coming years.”
Redington co-founders Robert Gardner and Dawid Konotey-Ahulu added:
“At Redington we are fortunate to have an exceptionally strong next generation of leadership talent. Our reputation has been built on providing inventive answers to many complex questions facing the UK pensions industry. Mitesh’s appointment as CEO ensures we are well placed to accelerate our efforts in helping our current and future clients meet the challenges posed over the next decade.”
Mitesh Sheth – Biography
Redington: 2013 – present
Director of Strategy, Managing Director
Henderson Global Investors: 2005 - 2012
Investment Director, Deputy Head of Fixed Income, Head of Fixed Income, Director of Business Innovation
Watson Wyatt: 2003 – 2005
Investment Consultant, Manager Research
Aon Consulting: 2000 – 2003
Senior Investment Analyst
Education: London School of Economics, BSc Actuarial Science
Professional Qualifications: Qualified Actuary (FIA)
04 February 2016
Redington to appoint dedicated CEO
Redington, one of the UK’s leading independent investment consultants, plans to appoint a dedicated CEO as the business prepares for the next decade of growth.
Since inception in 2006, co-founders Robert Gardner and Dawid Konotey-Ahulu have held the combined roles of client consultants, co-CEOs, board directors and shareholders. Gardner and Konotey-Ahulu remain committed to Redington for the long term and will take steps to further enhance governance of the business by appointing a dedicated CEO. An internal selection process has begun and a formal announcement will be made in due course.
This change will allow Gardner and Konotey-Ahulu to dedicate even more time to clients and train the next generation of consultants, as well as continuing to lead innovation and industry-wide collaboration. They remain the majority shareholders of Redington and will continue to be actively engaged on a day-to-day basis.
Robert Gardner and Dawid Konotey-Ahulu comment:
“We took the leap and launched Redington a decade ago because we wanted to revolutionise the retirement and savings industry. We wanted to approach the industry’s obstacles with a fresh pair of eyes. Funding for retirement is one of the greatest challenges our society faces, and this is what motivates all of us at Redington as we continue our journey.
“We want to ensure this business is in the best possible position leading up to our 10-year anniversary in June this year. As we look to the future, it is important the business continues to have a clear and focused management team, alongside an effective board and shareholder group. A dedicated CEO will further enhance governance of the business as we look to capitalise on the opportunities and meet the challenges of the next decade.”
Redington, established by Gardner and Konotey-Ahulu in 2006, continues to play an instrumental and growing role in tackling the UK’s pensions problem – with current assets under consulting of £416bn and a staff count of over 80. ENDS
27 October 2015
UK linkers lead performance as most asset classes turn red
Redington's Risk-Adjusted Quarterly Update Q3 2015
UK index-linked gilts have been the top performing asset class on a risk-adjusted basis over the past year, according to Redington’s latest Risk-Adjusted Return Quarterly Update.
The report showed UK index-linked gilts recorded a Sharpe ratio of 0.98 over one year, while also exhibiting the highest excess return (+9.8%) of all analysed asset classes over the 12-month period. UK linkers have also demonstrated strong risk-adjusted returns over five and 10 years, recording the highest Sharpe ratio across these asset classes.
Many asset classes performed poorly over the past year, with just four of 15 posting positive returns. Commodities suffered the worst performance, seeing returns of -26.3%, while also exhibiting the highest volatility. Emerging market equities and risk parity followed, with returns of -19.6% and -8.8% respectively.
Commenting on the findings, Redington analyst and author of the report Tom Pilcher said:
“The majority of asset classes analysed had disappointing performance over the last 12 months, but longer-term performance continues to be robust across the asset classes, except for commodities.
While risk parity had performed poorly over one year, Mr Pilcher said the asset class produced an attractive Sharpe ratio and attractive excess returns over longer periods.
“The fall in commodity prices has been a large factor in the poor performance of risk parity strategies this year,” he added.
Developed equities see strong 5-year excess returns
Developed markets equities posted the highest excess returns of 8% p.a. over five years. With relatively low volatility for the asset class of 12.8%, it displayed a good Sharpe ratio of 0.62.
Commodities and emerging market equities posted the worst annualised excess returns of -9.2% and -3.9% respectively over the same five-year period. These two asset classes also exhibited the highest levels of volatility, at 15.7% and 17.9% respectively.
Commodities and macro strategies suffer over 10 years
European high yield and US high yield posted some of the highest annualised excess returns of 5.5% and 5.3% respectively over ten years. Again, both markets had moderate Sharpe ratios due to heightened volatility. Commodities and macro hedge funds consistently produced negative returns over the ten year period – with annualised returns of -7.5% and -1.5% respectively.
Click here to download the report.
15 October 2015
Redington launches Will Power & Pensions Panda to encourage youth saving
Leading UK independent pensions consultant Redington has launched animated comic strip duo ‘Will Power & Pensions Panda’ to help encourage young people and those entering the workforce to develop an understanding of saving and investing.
Will Power & Pensions Panda will use humour to engage young people on financial literacy topics, while distilling easy-to-understand saving and investment wisdom on issues such as risk, debt, diversification and the benefits of long-term compound interest.
Will Power & Pensions Panda is inspired by engaging young people on how to encourage their generation to save. Redington’s financial education initiative, RedSTART, hosted an Entrepreneurs in Action (EIA) Classroom to Boardroom session, where they tasked a group of teenagers with the challenge of encouraging younger generations. The classroom sessions found visual images and dialogue helped engage young people on issues crucial to their financial futures.
The creation of Will Power & Pensions Panda follows the recent publication of 'The Age of Responsibility' report, co-authored by Lord Hutton and contributed to by a collection of industry experts. The report addressed the current socio-economic shift in the retirement savings landscape and underscored the importance of young individuals taking more responsibility for their financial security in retirement.
“We are excited about the creation of Will Power & Pensions Panda and the impact it will have on financial literacy in the UK. We need to enable our young people and those entering the workforce to be more financially aware,” Redington head of strategy, Mitesh Sheth says.
“Many young people understand saving at its most basic level, but the reality is they need to improve their understanding of debt and risk and develop a long-term saving discipline. It is time to move beyond the basic idea of a piggy bank and embrace the Pensions Panda.”
Sheth believes the young generation faces a huge savings and investing challenge and creative initiatives such as Will Power & Pensions Panda are important to help develop basic financial habits.
Rob Gardner, co-CEO of Redington adds: “According to MyBnk, 9 out of 10 people in the UK have received no financial education. Through our RedSTART initiative, it has been demonstrated how willing young people are to engage on personal finance issues. Will Power & Pensions Panda channels the energy of these young people and the RedSTART sessions.
“Generation Y has a savings ratio of -2%. Life expectancy is increasing, with people aged 65 now expecting to live another 20 years. Those born today have a 50% chance of living to 100. As a result, our dependency ratio is falling from 9-to-1 100 years ago when pensions were started in the UK, to 3-to-1, and then 2-to-1.
“Now is the time to collectively address this huge savings challenge. We need to move away from a 'spend now, save later' culture. Will Power & Pensions Panda are here to help our young people develop their financial literacy and look forward to a brighter financial future. It’s time to engage young people in training their savings muscles, as early as possible, in a medium they find engaging.”
13 October 2015
Redington appoints Lydia Fearn to lead DC and Financial Wellbeing business
Leading independent investment consultant Redington has appointed Lydia Fearn to the newly created role of Head of DC and Financial Wellbeing.
Lydia, who will be joining Redington from Barclays Corporate & Employer Solutions, was previously responsible for creating solutions and leading investment advice to both pension scheme trustees and sponsors. Prior to Barclays, Lydia worked at Lane Clark & Peacock and Aon Hewitt, where she specialised in investment strategy and advice.
Lydia will join Redington in November 2015.
Commenting on the appointment, Redington co-CEO Robert Gardner said:
“Our purpose is to transform the public’s experience of pensions and savings from one of uncertainty, to confidence and control.
“While Redington has become best-known for providing independent, investment advice to defined benefit pension schemes, we have recently expanded our framework based approach to help clients in the DC, wealth management, charity and insurance sectors.
“Lydia’s appointment is a key strategic appointment and we are pleased she has chosen Redington. Her experience in DC implementation combined with her expertise in advising clients at Barclays, LCP, and Aon Hewitt strengthens our commitment to helping our pension clients across both DB and DC investment.”
Commenting on her appointment, Lydia Fearn added:
“I am pleased to join Redington at such an exciting period of growth for the company. Through its work in DC and wealth management, the firm already has 175,000 individuals invested in Redington-advised portfolios, while its alliance with PwC provides a breadth of expertise in DC benefit design and infrastructure.
“Redington is one of a small number of firms leading the way to provide better DC outcomes and I look forward to using this expertise to provide individuals greater certainty in retirement.”
10 September 2015
Redington’s disciplined growth strategy sees 30% revenue surge
Redington, the leading independent UK pensions consultant, increased revenue by 30.5% and continued to expand its client base over the last financial year. The group’s latest Annual (Strategic) Report, filed at the end of August 2015, also revealed the consultant plans to build on this growth by investing into several key business areas.
Continued demand for Redington’s investment advice saw its client base rise by 35% year-on-year, with assets-under-consulting for retained clients growing 32% to almost £83bn. Total assets held by Redington’s client base rose by 64% year-on-year, from £188 to £308bn.
Disciplined growth strategy
Dawid Konotey-Ahulu, co-CEO of Redington, attributes the group’s success to a disciplined growth strategy and continued re-investment in the business.
“Our goal is to be to be the largest independent investment consultant in the UK. We will achieve this by consistently delivering successful outcomes to pension funds and other long-term savings institutions. Redington helps all its clients make informed decisions in order to meet their goals and objectives, and leave them feeling in control,” Konotey-Ahulu says.
Mitesh Sheth, Managing Director/Head of Strategy, said “We begin with the end in mind and use a systematic process to help our clients achieve their long-term goals in a disciplined way. The same is true for how we manage our business. Over the past 12 months, we have continued to invest in our teams, processes and systems to help our clients. All teams have continued to innovate and implement new and effective processes to streamline operations. The growth in our capacity matches the progression of our client base, as we look to hire more professionals to meet our clients’ needs.”
Desire to remain impartial
In November 2014, Redington took the unprecedented decision not to pursue fiduciary management. Sheth says this was a key decision in the firm’s fundamental approach to continue to align its interests with those of its clients:
“We believe that a non-conflicted, advice-based business focused solely on investment strategy is best for clients. Our desire is to remain un-conflicted / impartial when giving advice was at the core of this decision.”
New growth phase
Redington employs a staged, disciplined approach to its growth strategy. Rigorous capacity and growth controls involve increasing its run rate* to a pre-defined (trigger) level – at which point a ‘platform’ phase is completed. This is supported by the fostering and hiring of leading industry talent, development of new software, and application of enhanced processes. Once the trigger level has been passed, a new ‘growth’ phase begins. Growth versus platform phases are not determined by financial or calendar years, rather they are driven by the capacity of the firm to meet current and future needs of clients.
This disciplined approach ensured that new client relationships are established only if the firm can confidently deliver on its high standards of client consultancy. This process also ensures Redington’s steady growth trajectory is maintained.
In its 2014-15 financial year, Redington successfully executed on its platform stage and achieved its 12 month targets: which included growing revenues by over 25%, as well as winning new retained and project clients. In current 2015-16 financial year, Redington has moved again into a new growth phase. The firm now aims to increase its capacity by circa £4m in revenue during 2015-16. This will result in the recruitment of up to 20 professionals.
Below are a number of initiatives Redington is actively seeking to develop over the following year:
The group’s recent diversification into private wealth management has added a new business line to its current suite of services offered to defined benefit pension funds. Redington’s first foray in this space brought cutting edge institutional investment strategies to the retail/private wealth space.
Redington is also actively developing a defined contribution service for pension funds, building upon its experience and expertise in defined benefit pensions.. The group’s profile in this space was heightened by the successful release of its Age of Responsibility Report in March 2015, in conjunction with Lord Hutton of Furness. This report highlighted the shift in responsibility from corporate to individual savers.
In response to a growing client need, Redington has started a governance advisory service for large pension funds and other long-term savings institutions. The service will help clients to structure their in-house teams, external resources and provide a more robust framework to make more effective and timely decisions to achieve long term goals.
Furthering the ‘strategic alliance’ with PwC established in March 2015, Redington is also continuing to explore the option of entering a broader joint venture to target regional and international markets.
Redington has been working in partnership with BNY Mellon to offer iRIS, Redington’s online monitoring tool, to BNY Mellon’s pension fund client base. The system has had notable success in the Netherlands, and therefore Redington will focus its efforts on the production of an enhanced asset liability reporting service for the Dutch pension industry.
RedSTART, Redington’s financial education initiative for young people, delivered 2,800 hours of financial education to over 700 young people from 17 schools in the UK during the last year. The group is seeking to expand on these foundations and position itself as the thought leader in the financial literary space.
*Run rate is defined as actual revenue expressed as a percentage of theoretical maximum revenue (Capacity).
08 June 2015
Redington announces key promotions as it prepares for next stage of growth
Leading independent investment consultant Redington has announced a number of key promotions, as the innovative advisory firm gears up for the next stage of its business growth.
The following have been promoted to managing directors of their respective business areas:
- Dan Mikulskis, asset liability management,
- Pete Drewienkiewicz, manager research and
- Mitesh Sheth, business development & communications.
In addition, Neha Bhargava and Rachel Johnson have been made directors within client consulting and operations respectively.
Commenting on the promotions, Jonathan Taylor-Cummings, chief operating officer, said:
“This is an exciting time for the firm as we enter our 10th year in business and prepare for our next stage of growth.
“It is encouraging to see managing director and director promotions in each of our asset liability management, business development & communications, client consulting, manager research and operations teams.
“The promotions are in recognition of excellence across the full breadth of the firm – and are another step forward in building out our leadership bench.”
Since formation in 2006, Redington has grown to a team of 64 individuals and 41 investment professionals. The team has a combined total of more than 300 years of investment consulting, actuarial, capital markets and asset management experience. The firm provides advice to 60+ clients, including ten of the top 30 pension funds in the UK, and has over £370bn in assets under consulting.
More about Redington
Redington is an independent and employee-owned investment consultant to UK pension funds and other long-term savings institutions. Redington has decided not to offer fiduciary or fund management services, to ensure full alignment with clients’ long-term success. All Redington consultants begin by building a deep understanding of their clients’ unique goals, objectives, and constraints. Clients value the clear, framework-based approach from Redington to help them stay focused, avoid distractions and make better decisions. Redington employees pride themselves on continuously searching for new investment ideas and risk management techniques to improve client outcomes. Success is measured by putting clients in control of their funding journey and helping them feel confident about achieving their goals.
For further information, please contact:
T: 0203 137 7823
18 May 2015
Redington and PwC join forces to meet the integrated needs of clients in today's challenging pensions environment
Redington and PwC, two of the UK’s leading innovators in pension solutions, have formed a unique strategic alliance to help trustees and sponsors better eliminate deficits, improve funding levels, and manage pensions risk. This alliance will provide clients with independent market-leading advice.
As concerns over conflicts of interest in the investment consultancy process continue to intensify, Redington and PwC believe an end-to-end independent advisory proposition is imperative to tackling the challenges faced across the pensions industry. The combined capability of Redington and PwC will provide any organisation tackling pensions challenges with independent advice, all the way from strategy through to execution.
The alliance seeks to harness Redington’s highly-regarded investment advisory business, alongside PwC’s leading multi-disciplinary pensions practice. Redington, with its expertise in investment consulting, will seek to add value to the asset side of the equation – by helping to drive returns from assets, improve funding levels and reduce downside risk. PwC will apply its expertise in reducing and financing deficits, modernising pension plan design and member options, as well as asset liability strategy.
Robert Gardner, co-CEO at Redington, comments: “Redington and PwC recognise that the challenges facing pension schemes and savers are volatile, uncertain and complex. Together, we are committed to help clients repair their deficits, and protect their funding levels. We believe an integrated solution, leveraging the breadth, depth and skills of both firms, is the best way to tackle the needs of our clients.”
Raj Mody, head of UK pensions consulting at PwC, comments: “By applying the firms’ knowledge, people and analytics in an integrated way, this alliance will help sponsors and trustees better understand and implement the necessary changes that will solve the challenges they face. Importantly, clients can be confident about the independence of advice particularly around asset strategy. The alliance of two leading innovators is hugely exciting.”
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15 December 2014
Redington will not offer fiduciary management to clients
Consultant warns of potential conflicts
London, 15 December 2014: After an extensive review, independent investment consultant Redington has decided not to develop a fiduciary management proposition for its clients. The independent consultant will continue to focus on a non-conflicted advice-based business with investment strategy at the core of its client offering.
“While the revenue potential from fiduciary management is significant,”Redington investment consultant Patrick O’Sullivan says, “this is outweighed by the necessity to provide clients with impartial advice.”
“We are hearing from a growing number of schemes that they feel pressured towards fiduciary management offerings and fear some consultants are even willing to lose the mandate if the client does not agree to move to fiduciary.”
Closing the governance gap
“Fiduciary management is put forward as the way to close a governance gap that may be prevalent within the management of a pension fund. However, if the governance gap can be closed without adopting fiduciary management, we will remain purely advisory only,” Patrick O’Sullivan adds.
“We believe there should be a greater alignment of consultant and client interests, with the fixed-fee model being an example of a win-win situation for both parties. There should be a greater debate about the relative merits of FM alternatives. Unfortunately, it may not be in the interests of fund managers and consultants to raise some of these concerns due to existing relationships and commercial interests.”
Fiduciary management on the rise in the UK
Since migrating from mainland Europe, fiduciary management has been on the rise in the UK. However, as it grows in popularity with UK defined benefit schemes, the benefits and concerns of fiduciary management adoption is under growing scrutiny. Redington’s O’ Sullivan believes that the push for fiduciary is putting an overemphasis on implementation over strategy:
“ We can distinguish which DB pension funds have performed well over the last 10 years in an asset-liability context and which ones have had disappointing performance simply by looking at their levels of interest rate hedging going into 2008, 2011 and 2014.
The overall level of risk, hedging and liquidity are the strategic factors that will drive the outcome, not the implementation.”
What are the relative benefits of the FM alternative?
O’ Sullivan believes that an LDI manager in an extended implementation role, whilst retaining an independent investment consultant, can mean the best of both worlds for trustee.
“They get the execution and operational capabilities of an institutional asset manager, but they also get clear lines of independence from the consulting firm providing the strategic and manager product advice.
“We fully anticipate that fiduciary management might be an appropriate choice in some specific circumstances. However, trustees and sponsors should at least be aware that many of the benefits of fiduciary management can be achieved without giving the keys away.”
1st May 2014
Redington makes senior appointment to investment consulting team
London, 1st May 2014: As we help our clients feel confident and in control of their financial futures, Redington is experiencing continued growth. Over the last year we have extended the work done for existing clients and are delighted to be working alongside new clients. In response to meeting the needs of the pensions and savings industry, we continuously strive to widen our service offering. To support this growth and ensure it is fully sustained, Redington is expanding its investment consulting arm and has hired Robin Claessens.
Robin, who joins as a Managing Director, was most recently CFO of BBOXX Ltd, a young and ambitious start-up which designs and manufacturs "plug-and-play" solar-based electric systems, where he had a wide range of responsibilities. Prior to this, Claessens was CEO and CIO of Invensys Pension Scheme (85,000 members, c. £4.5bn assets) where he was responsible for Liability Management, Asset Management, Corporate Strategy, Administration (Benefits, Accounts, IT and Payroll) and the Corporate Sponsor Liaison Strategy. He oversaw the fund's Trustee Board and Governance & Audit Committee and chaired its Asset and Liability Management Committee. As CIO, he designed and executed a three-step plan to upgrade the fund's investments and risk management capabilities.
Claessens started his career at Goldman Sachs working initially in Corporate Treasury before moving into the Corporate Pension Advisory Group where he advised European and US corporations and their pension scheme on all aspects of pension strategy. He is a member of the Milken Institute Young Leaders' Circle.
David Bennett, Head of Investment Consulting at Redington said, "I have known Robin for ten years and I am very much looking forward to working with him again. I'm sure our clients will benefit from his hands-on experience working with the Invensys Pension Scheme, as well as advising corporations and their schemes on all aspects of pension strategy. These are exciting times at Redington and we are delighted to be able to attract such outstanding talent to join the team."
Commenting on his new role, Claessens said, "I am thrilled to join the most exciting and fastest growing investments and risk maagement advisory firm."
17th January 2014
Redington hires Lord Hutton as Advisor to help design better DC outcomes
London, 17th January 2014: Lord Hutton, former Secretary of State for the Department of Work & Pensions, has joined London investment consultancy Redington Ltd. as an advisor. He will be working with the firm’s consultants and ALM team to design more resilient and sustainable Defined Contribution (DC) solutions, drawing on his background in pensions policy and reform. This is a concerted effort by Redington to extend its success in the Defined Benefit space to other areas of pensions; the firm aims to improve the financial futures of an ageing population by delivering sustainable and resilient long-term savings and investments outcomes.
In his role as Advisor, Lord Hutton will counsel Redington in the process of designing, developing and delivering DC solutions that help provide individuals with more financial security in retirement. Lord Hutton will also help grow RedStart, the firm’s charitable financial education programme, to extend financial literacy and planning among young people.
Following his tenure as Secretary of State for the Department of Work & Pensions, Lord Hutton led a commission set up by the coalition government to investigate the options for short and long-term reform of the pensions system; the final report was published in March 2011. He brings insight, understanding and wisdom in the field of pensions and pensions policy.
Robert Gardner and Dawid Konotey-Ahulu, co-CEOs and co-Founders of Redington, released the following statement: “We are thrilled that Lord Hutton is joining us, we will be working closely together to answer the question, "How can we improve DC pensions?". Lord Hutton not only brings unparalleled expertise in pensions policy to the role, he also shares our passion for designing a long term saving and investment model to ensure that everyone feels confident and in control of their financial futures."
Jonathan Letham, co-Founder of RedStart with Freddie Ewer, said: “RedStart’s success in the last year is testament to the necessity for the financial education of young people. Lord Hutton brings a new perspective to our mission, years of experience and a wealth of ideas. We are excited to start the new year with 20 education days on the horizon, and now the superteam is in place to take this initiative to the next level.”
Lord Hutton, Redington Advisor, said: “I’ve been impressed by what Redington has achieved in seven years in transforming the way Defined Benefit pension schemes manage and control investment risk to repair their deficits in an affordable way. Their passion for helping young people learn the importance of saving over consumption is one I strongly believe in; I am delighted to become an advisor to this entrepreneurial firm with a clear purpose to solve the pensions
challenge we face today and in the future."
18th November 2013
Mitesh Sheth joins Redington to help expand Manager Research capabilities
London, 18th November 2013: London investment consultancy, Redington Ltd., has hired Mitesh Sheth with immediate effect to our Manager Research Team. This is the first of a series of changes to expand our manager research capabilities and services. Mitesh has been working as a strategic consultant to the team for the past six months, helping to expand the depth and breadth of Redington’s fund manager research and monitoring services as client base and service offering grows.
In his new role as ‘Director of Strategy’ Mitesh will report to the Head of Manager Research, Pete Drewienkiewicz, and work with the Manager Research, ALM and Investment Consulting teams to help Redington design, develop and deliver the best investment strategies to help each of our clients to achieve their long term goals.
Mitesh was previously Director of Business Innovation and Head of Fixed Income for Henderson Global Investors, where he was instrumental in building an award-winning fixed income team, process and product range. Prior to Henderson he held senior manager research positions at Towers Watson and Aon Hewitt. Mitesh brings considerable asset management, investment consulting and manager research experience to Redington.
Robert Gardner, co-CEO and co-Founder said: “Historically, Redington has operated a bespoke model for manager selection based on specific client requests and strategic projects. As our business has grown, though, the number of clients has grown, and so have the number of investment strategies and underlying managers to review; our service must adapt to accommodate these changes. We are excited to bring on board Mitesh’s knowledge of institutional investing, consulting and fund management, and deliver even greater value to our clients.”
Pete Drewienkiewicz, Head of Manager Research said: “We have decided to create preferred manager
lists for each of the key stages in our Seven Step framework; that way, our clients, our colleagues and
fund managers know exactly what we think. Mitesh has been instrumental in helping us to develop a
broader framework and process for screening, selecting and monitoring managers. We look forward to
communicating, in coming months, how this new framework delivers more value to our clients.“
Mitesh Sheth, Director of Strategy said: “I’ve admired Redington since it was founded seven years ago
by Robert Gardner and Dawid Konotey-Ahulu. Over the past six months, it has been immensely
enjoyable working with Pete and the manager research team to review the Manager Research and
Selection service, and I am delighted to become a permanent member of this entrepreneurial,
intelligent, ambitious and innovative team.“
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