Taking strategy to reality for Smart Pension Master Trust

Smart Pension Master Trust had ambitious investment strategy plans.

They had an ambitious vision. A sophisticated investment strategy that would set them apart from their peers – one that included synthetic segregated equity exposure, access to private markets and a pathway to their Net Zero objectives. Achieving their vision required a partner with equally ambitious capabilities.

One with the flexibility and open architecture to build innovative structures, access best-in-class managers, and future-proof members’ investment journeys, from accumulation through to decumulation.

Getting it right meant getting close to the client.

Before onboarding commenced, we initiated a series of workshops with key stakeholders to take a deep dive into the existing structure to design the optimal transition plan. We carefully explored the best method of transition and the best options to restructure.

We met regularly to build a clear understanding of how Smart Pension operated and their future objectives. We detailed their bespoke operational and reporting requirements, to build a solution that supported their business model. We understood Smart Pension’s ambition to enhance their default fund investment strategy, expand into new areas of private markets and develop innovative member-focused decumulation solutions.

A flexible, future proof solution.

We provided Smart Pension a platform capable of delivering their investment vision, as well as fitting into their member administration and governance framework. This included zero-cost equity exposure to free up budget for more complex asset classes, plus structuring solutions that opened access beyond LTAFs – spanning closed-ended funds and new forms of sustainable, unlisted infrastructure investment allowing them to create their own multi-asset portfolio selecting best in class managers for each asset class.

The default portfolio was designed with full flexibility to appoint managers across asset classes. We added tailored reporting – member factsheets, oversight dashboards and a client portal to retrieve data on demand – so Smart Pension could demonstrate leadership in transparency and governance.

And importantly, we aligned our platform capabilities with Smart Pension’s forward-looking plans.

Transitioning over £5bn of assets was no small task.

…especially given the complex structuring of the private market portfolio and the challenge of moving high value assets between 2 platforms.

Our transition team managed the process with the ease that comes with deep expertise, working closely with Smart Pension’s transition team to create a comprehensive transition plan. We aligned valuation points and settlements to minimise out-of-market exposure, while our technology enabled efficient trading throughout the process.

The complexity was significant – we invested across 6 external managers with varying deferral and settlement timelines. We re-registered the majority of assets, and supported pre-funding where re-registration wasn’t possible. This meticulous approach allowed Smart Pension to smoothly transition into their desired investment strategy, while minimising transaction costs and out of market exposure.

Evolving the investment strategy.

Soon after onboarding, we developed and implemented Smart Pension’s Net Zero Pathway Custom Equity Index Fund, working with the manager to manufacture a bespoke enhanced index strategy and overlaying it with derivatives at zero cost. We then moved onto their private markets portfolio, conducting comprehensive operational due diligence and regulatory review, ensuring compliance with the FCA’s permitted links and conditional permitted links rules.

Smart Pension remained hands-on throughout these projects, and we worked flexibly and closely with them to manage every aspect.

With a deep understanding of our clients’ needs, working collaboratively, a dedicated relationship manager overseeing all aspects of the projects and a multi-team approach – touching every area of the business – we had the nuanced know-how and experience to deliver it seamlessly.

Smart Pension Master Trust didn’t just transition. They transformed.

The move to our investment platform was seamless, with minimal out-of-market exposure and low costs to members. That meant their vision could come to life. With it, their ability to deliver genuine innovation in their default fund and better member outcomes.

We gave them tailored reporting tools for the visibility and control they needed.

We gave them access to innovative fund structures and investments, empowering their vision for growth.

Now, they’re firmly holding their market-leading position with a bold, future-focused business, winning new clients and earning glowing recognition across the industry and from government.

Together, we helped turn vision into reality and lay the foundations for Smart Pension to lead the next era of UK pensions.