It would be fantastic if all these services could be delivered in one place by one supplier – but for real, practical reasons, schemes need to rely on a range of different suppliers to meet their needs.
It would also help if the different suppliers were all used to working collectively, to provide a best-in-breed solution, where straight through processing and integrated systems worked seamlessly together.
The perfect pension administration eco-system is gradually emerging, like the butterfly from its chrysalis, and at Mobius Life we’re helping to nurture this process. Our wide range of client relationships and expertise in collaborative working across the spectrum of service suppliers to pension schemes, means we’re perfectly placed to enable the eco-system to thrive.
We already work closely with all the key providers involved in delivering workplace pension solutions. These include consultants, investment managers, member administration specialists, data and reporting analysts and governance experts. As well as bankers, technology and website suppliers, scheme accountants and member communication professionals.
And because we’re working collaboratively with these suppliers all the time, we know how they operate and we have developed our capabilities to integrate with theirs, making life easier for our clients.
So, the perfect pension administration eco-system may not be fully formed yet – but at Mobius we’re working to help the industry evolve, to deliver better and more efficient holistic solutions to sponsors and in turn improve member outcomes.
And of course, all of this helps to meet the regulators’ requirement that schemes deliver measurable value for money.
If you would like to discuss how the pension administration eco-system might develop and grow, please let us know. We’d be delighted to hear from you.
At the same time there is pressure from the government and regulators to keep costs for members as low as possible. There’s the charge-cap on default funds of 0.75% and the government is planning to stop providers levying a flat fee on members with small pots under £100. Now the Pension Regulator and Financial Conduct Authority has added to the challenge with their Value for Money discussion paper. This aims to ensure members’ funds are “well invested and their savings are not eroded by high costs and charges.” And rightly so!
Efficient operational delivery and execution is key to keeping costs down. One way for schemes to reduce administration cost and risk is to rethink the way the default fund is structured and delivered. Many default portfolios are constructed
using individual funds; managing these at a member level is largely inefficient, introduces risk, increases costs and can confuse members; reducing engagement and possibly member outcomes.
Or is there another way? Using the Mobius platform, pension trustees can benefit from sophisticated, thoughtfully constructed default funds, designed to Trustees’ exact specifications, blended into one or a choice of default funds, simplifying delivery and member communications.
Once trustees have defined their default fund investment strategy, we manufacture it from scratch or replicate an existing strategy, using our expertise and technology to meet our clients’ exact needs in a highly cost-effective manner. We’ve already created multiple bespoke default funds and other specialist funds for DC scheme members, including target date funds, zero-fee index funds, private asset and pooled property funds as well as structured equity solutions.
Efficient delivery models and blended fund structures can help reduce risk, improve schemes’ commercials, in turn helping manage the costs of the growing small-pot problem child. If you want to know more about how we can help you reduce your costs, call us today.
That’s why Mobius has an ongoing programme of innovation. We want our clients – from the largest to smallest pension schemes – to benefit from the latest= developments, without being held back by regulatory, governance or cost barriers.
In the last 12 months Mobius has:
Created a first for the UK DC pension market by working with Macquarie Investment Management to manufacture a zero-fee index fund for a major UK DC scheme.
Partnered with Aegon Asset Management to develop the UK’s first property fund to provide a diversified exposure to the UK institutional property market for DC pension schemes – avoiding the concentration risk of using a single manager.
Worked with River and Mercantile to manufacture an innovative Structured Equity solution. DB pension schemes of all sizes can now structure a growth asset tailored to meet their specific requirements through a Structured Equity approach without being restricted by legal and governance paperwork and costs and prohibitive minimum fees.
Established a range of income paying funds on the platform, which can pay income directly into DB schemes bank accounts. This innovation means DB schemes with negative cash flow do not need to sell as many units to generate cash to pay benefits, reducing transaction costs and increasing efficiency.
Launched an ESG reporting service to help schemes complete their implementation statements. Our service provides a bespoke report for scheme trustees setting out their scheme’s asset managers’ attitudes and capabilities for investing responsibly. By using our reporting service trustees do not need to contact the managers individually, saving them time and expense.
Rolled-out an innovative ‘Smart Rebalancing’ approach to fully automate the rebalancing process for DB and DC pension schemes, reducing risk and cost.
But you don’t need just to take our word for the benefit to schemes of our ongoing innovation programme. This year we have been recognised by two of the pensions industry’s most prestigious awards programmes. We are finalists in the UK Pensions Awards DB and DC Innovation Awards 2021 AND the Pension Age Innovation Award 2021.
Our approach to innovation is yet another example of the benefits to schemes of holding their assets on the Mobius platform.
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