Fiduciary management: Adding bright sparks to your scheme.

Q: What were the challenges you were looking to solve when you appointed SEI?

A: None of the trustees on our board were qualified investment professionals, so we needed to ensure they were supported by the right expertise.

Implementing changes to address underperforming funds typically took between six to 12 months in a consulting model. The aim of moving to a fiduciary manager was to be able to anticipate and respond to market events much faster. 

We have three schemes, and we put the two smaller ones with SEI: the APC Pension Scheme with £25 million in assets, and the Schneider Electric Group of the Electricity Supply Pension Scheme (ESPS) with £18 million in assets. Just because they are smaller schemes doesn’t mean we don’t look after them just as much as we do with the biggest scheme.

We wanted a different voice. It’s easy to get stuck in an echo chamber hearing the same advice from the same people repeatedly. SEI offered a fresh perspective, which we valued very highly.

Q: Why did you choose SEI?

We didn’t want to just appoint a provider. We were looking for a partner who shares our goals. 

Some companies put their marketing or sales team forward for a tender, but we wanted to meet the people who would be doing the job and working on the account day to day. 

SEI came in and opened investment opportunities that we may not have been able to pursue before.

Q: What was the onboarding process like with SEI?

A: The onboarding process for the first scheme (the APC Pension Scheme) was an absolute delight; it was so simple. 

The other scheme (The Schneider Electric Group of the ESPS) was a bureaucratic nightmare due to its legacy as part of the old electricity supply pension scheme, which made it highly complex. Despite this, SEI helped where they could, and their part was easy to implement.

Q: What have been the benefits of having SEI as fiduciary manager?

We feel like we’re talking to real people, not someone who’s a small cog in a big machine. They’re authentic and the trustees enjoy talking to them, though, of course, we don't always give them an easy time.

It would be great if all funds increased in value all the time, but markets don’t work like that. When there is bad news, SEI has a way of delivering it, with a massive cup of optimism about how they’re going to handle it. Not everybody has that optimism and confidence, and that sets SEI apart.

We have an oversight report carried out every year, and the feedback for SEI is very positive, from the trustees and from the sponsor.

When we moved the APC scheme to SEI, it was clear from the start that it was going to move towards a buy-out further down the line. That scheme is now ready for that.

Q: Have there been any specific situations that SEI has helped you manage?

A: The obvious one was the Liz Truss mini-budget debacle. At the time, we had already appointed SEI for one of the schemes but were still in the process of moving the other. For the scheme they were already managing, SEI kept us updated with everything that was going on and protected our money. They were there to deal with everything, like the collateral calls, which gave the trustees the comfort they needed.

The fund that was not yet with SEI didn't do quite as well. To be fair, that was more due to the restrictions put on it by the sponsor, rather than the work of the previous fiduciary manager. But those restrictions are now looser, and that is partly to do with SEI’s relationship with the sponsor.

Lately, there’s been the Trump tariffs, and again we’ve had lots of communication from SEI to reassure us when there has been volatility in the market. They put a lot of thought into their communications, whereas with some managers you feel they’re just putting stuff out without thinking how their message comes across.

Q: What would you say to any other scheme that was looking for a fiduciary manager?

A: Remember, you are handing over some of the responsibility for looking after investments, and so communication with the manager is key. You need someone you can talk to and trust, so you know that if there’s something that needs to be raised with the trustees, it will be. That’s what SEI does really well. 

SEI hit the ground running with our schemes. They did what needed to be done, and they’ve got a great relationship with trustees and with the sponsor. It’s all about authenticity.

Important information

This is a marketing communication. 

This webpage is provided by SEI Investments (Europe) Ltd (""SIEL""). SIEL is authorised and regulated by the Financial Conduct Authority. Financial Services Register Firm Reference Number (FRN) 191713. Registered office; 1st Floor, Alphabeta, 14-18 Finsbury Square, London EC2A 1BR. Registered in England and Wales – company number 03765319. This webpage is only for the intended recipient and should not be distributed further. While considerable care has been taken to ensure the information contained within this webpage is accurate and up-to date and complies with relevant legislation and regulations, no warranty is given and no representation is made as to the accuracy or completeness of any information and no liability is accepted for any errors or omissions in such information or any action taken on the basis of this information. The views and opinions in this webpage are of SEI only and are subject to change. They should not be construed as investment advice.