Pension scheme asset pooling now made simple for trustees | Pensions and Lifetime Savings Association

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Pension scheme asset pooling now made simple for trustees

11 March 2010

Pension funds looking to achieve a better return on their investments by pooling their assets with other investors now have an easy to understand guide thanks to Asset pooling made simple, published today by NAPF.

Pooled funds enable pension schemes to diversify their investments across more asset classes, strategies and managers than they can achieve individually. As fees can be proportionally lower for bigger investment mandates, pooling can make sense in terms of cost for schemes.

NAPF Director of Policy, Nigel Peaple, said:

“Today’s investment universe is vast and complex and asset pooling represents a possible way forward for some schemes so our Made
Simple guide will shine a light into this growing area.

“Our Made Simple Guides form an important part of the NAPF’s work. They seek to ensure that trustees are kept up-to-date with best
practice in a simple and straightforward manner.”

“Ultimately, our Made Simple Guides should help achieve better outcomes for scheme members.”

Asset Pooling Made Simple outlines the main benefits of asset pooling, the key areas those running schemes need to consider before implementing a pooling strategy and describes the key pooling structures for UK pension schemes.

Asset Pooling Made Simple guide (hard copy) costs £18 for NAPF members and £35 for non-members and can be ordered online at http://www.napf.co.uk/Publications/index.cfm.
The NAPF would like to thank Northern Trust, Clifford Chance, Citi and MN Services for their help in producing and sponsoring this guide
alongside KPMG UK and KPMG Netherlands.
Other recent guides produced in the Made Simple series include:

  • Custody Made Simple
  • Indices and Benchmarks Made Simple
  • Hedge Funds Made Simple

Download printable version