Institutional investors

We are professional investors who invest money on behalf of other people. We pool their money together to invest in investment assets.

In our diagram, we focus on your most common investors, the pension schemes (defined benefit (DB), local government pension schemes (LGPS) and defined contribution (DC).

Other examples include: insurance companies Charities and endowment funds (e.g. your university’s endowments)

Note that the governance structure and the advice taken and required will differ across investors.

Retail and Wealth Investors

Retail investors: are private individuals. They trade on their own account, for their own profit (or loss) and not on behalf of financial institutions or other investment organisations. These investors are not deemed to be professional investors. Retail investors are often advised by an IFA (independent financial advisor). Asset managers do not deal directly with retail investors.

Instead, asset managers work with investment platforms who pool assets together from individuals to invest like an institution.

Professional trustee firms

There are different types of trustees: Individual trustees, Corporate trustees, Member-nominated trustees (MNTs), Employer-nominated trustees (ENTs), Professional trustees and Chair of trustees. We all act impartially and represent the best interest of the beneficiaries of the pension scheme in line with pension regulation and the scheme’s rules.

A Professional trustee, in particular is someone who normally acts in an independent capacity and has longstanding expertise in trustee matters generally. Professional trustee firms work alongside the pension scheme and the consultant to ensure that the execution and implementation is in line with the best interest of the scheme.

Asset Managers

Also known as investment managers and fund managers. (Although, a fund manager is the job title given to the professional managing the pool of assets). We manage the assets of our clients – institutional and retail investors. We do not manage for individuals directly.

Using the pension scheme example, we help to manage a client’s investment portfolio based on their investment objectives and appetite for risk. We work alongside investment consultants and professional trustee firms to ensure we continuously have the right products for our client’s demands.

Consultants

We provide a range of advisory services to asset owners, from funding decisions, to asset allocation, manager selection and reporting processes. We frequently train investors and trustees on approaches to investment and emerging investment trends.

We helps clients formulate and put into place investment strategies and construct and maintain portfolios to ensure that they’re meeting their long term funding goals.