Governance
- The oversight of the quality and integrity of accounting and reporting practices, controls and financial statements
- Reviewing performance of the internal audit function and the independent auditors
- Taking a forward-looking perspective on risk matters
- The oversight, quality and performance of the Risk Management and Compliance functions
The ARC membership consists of three independent non-executive directors of Mobius Life Limited.
We commission BDO LLP to conduct an independent audit to test our compliance with the AAF 01/20 internal control framework principles. Our annual company audit is performed by E&Y. Both audits conduct detailed sample testing across all aspects of the investment platform, with particular emphasis on the investment administration function.
In line with good industry practice, we operate a three lines of defence model with appropriate monitoring of processes and controls provided by the risk and compliance functions and assurance on the effectiveness of those controls provided by internal audit.
Diversity of the governing body
Mobius Life’s governing body has a Board Diversity policy in place to ensure composition of the Board displays diversity in its broadest sense, to enable it to benefit from a range of perspectives, insights and challenges to support good decision making. Recruitment to the Board is made on merit whilst seeking to ensure diversity of thought and experience.
Reporting and disclosures
Stewardship policy
Corporate social responsibility
The platform solution for CDI strategies
Author
Investment managers have been developing Cashflow-Driven Investment (CDI) strategies to meet DB pension scheme’s need for income paying funds. Laura Catterick discusses the increasing demand to see funds on pension platforms.
Nearly three quarters of the UK’s defined benefit (DB) pension schemes are cashflow negative – and this figure is expected to rise to 90% in the next ten years1. So, it’s no wonder that trustees and their advisers want to be able to access income paying funds which can be used to meet cashflow requirements without selling assets.
Investment managers have been developing Cashflow-Driven Investment (CDI) strategies to meet this need and there is now increasing demand to see these funds on pension platforms.
CDI funds typically hold a range of corporate bonds and gilts of different duration. DB schemes investing in these strategies benefit from contractual income from the bonds. These funds typically follow a buy-and-hold strategy, giving schemes another known source of income on the maturity of the bonds.
DB schemes can hold CDI funds with different maturity dates to meet pension payments to members or blend funds to give a more bespoke solution. Income payments can be made straight into trustees’ bank accounts on a periodic basis. And of course, because no asset is sold, there is no bid/offer spread enabling trustees to receive income without incurring transaction costs.
By holding CDI funds on a pension platform, such as Mobius Life, schemes and their advisers benefit from simplified administration and a single view of all the scheme’s assets. Because investments are pooled on a platform, smaller schemes can easily access CDI strategies, which may be out of reach to them on a stand-alone basis.
Not all platforms have the flexibility to hold CDI funds, but at Mobius Life, because we are fully focused on delivering investment platform services, we are taking steps to make CDI strategies available to schemes of all sizes.
As more and more schemes become cashflow negative, they will be seeking ways to meet their income needs – with the administration handled seamlessly on platform. Mobius Life is ready to help.
Mobius Life Limited 2nd Floor, 2 Copthall Avenue, London EC2R 7DA
t: + 44 (0)20 7847 3300 f: + 44 (0)20 7847 3399 w: www.mobiuslife.co.uk
Mobius Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales at: 2nd Floor, 2 Copthall Avenue, London, EC2R 7DA. Registered No. 3104978. For your security telephone conversations may be recorded.
