10 second summary
- We designed an objective framework to help the Independent Governance Committee (IGC) of Standard Life measure value for money across hundreds of investment strategies.
What was the problem?
- The IGC of Standard Life wanted to measure value for money across their investment portfolio.
- Given there’s no clear definition of what value for money means, no established method for measuring it, and a large number of investment strategies to consider, this was a challenge.
What was our solution?
- Whilst performance is an obvious measure, it’s not the sole indicator of value. Therefore, we had to dig deeper to understand what was important for our client and, crucially, identify the features that could impact on outcomes for members across all generations.
- We looked at several areas including:
- Wider fund strategies and their propensity to deliver the expected returns for the risk taken;
- The fine details of the asset mix; and, of course
- Using this information, we were able to map funds against an objective framework to help assess value for money in over 160 strategies.
- To our knowledge, this was the first exercise of its kind. It provided the answers our client needed, and we continue to work with them to refine the model to ensure their members receive value for money.
What was the outcome?
- Our objective framework design provided the IGC with a clear and consistent picture, enabling them to delve deeper into those investment strategies that may not be giving value for money.
- This allowed the IGC to understand, in greater depth, why certain strategies were not scoring well and determine whether any actions were needed.
What does this mean for you?
- We can help you design an objective framework, which enables you to assess value for money across different investment strategies.
Want to know more?
If you would like further information, please contact:
Head of DC & Financial Wellbeing
I am the lead advisor for institutional clients and assist in-house functions of pension schemes with the delivery of consultancy services.
My role at Redington is working with clients who have any sort of DC arrangement to make sure it is best in class and provides good member outcomes
My experience working with institutional investors gives me insight into their challenges allowing me to connect them with the right information, people and solutions at Redington to achieve their desired outcomes.