Skip-to-content

Pensions & benefits

Sweating your
assets for higher returns

How we helped our client increase the expected return from an equity allocation

Our client wanted their equity assets to work a bit harder so we introduced a multi-factor approach.

The background

Our pension scheme client was holding a large proportion of its growth assets in index-tracking equities. While the trustees didn’t believe that fully active discretionary management could consistently add value, they did want their equity assets to work a bit harder and provide them with higher returns.

Our solution

We proposed an approach to equity investing that is part-way between index-tracking and an active approach – a multi-factor approach.  This provided a good chance of doing better than an index-tracking, but with lower fees than active.

What did we do?

  • helped the trustees to understand a multi-factor approach to equity investing; its potential and its risks
  • identified the leading managers offering this type of product
  • gave clear advice on a preferred manager and justified why
  • worked with the manager to deliver the product so that it met the unique requirements of the trustees
  • negotiated on fees
  • delivered pragmatic advice on the process for transferring assets to the new manager
  • monitored the new manager on LCP Spotlight to verify it was meeting the return expectations

The results

The enhanced investment return from the multi-factor equity allocation has boosted our client’s assets, making a real difference to the overall funding position. With their equity assets now working a harder for them, the trustees objectives were met.

Our client promise

In this video, Peter Thompson shares his personal experiences of working with us throughout his years as a professional trustee.

How we can help

Independent investment and manager advice

We help you make important investment decisions, and make sure that your investments are performing as you need them to.

Discover more
Investment strategy

We help you get your investment strategy right to ensure good member outcomes in your DB and DC schemes.

Discover more
LCP Spotlight

We can help you easily evaluate how well your strategy and managers are working, in real-time, with LCP SpotLight.

Meet some of our experts