Negotiating investment
fee reductions
Case studies
How we saved our client over £3m pa in investment fees
The background
At the start of 2019, we began advising the trustees of a large pension scheme on their investments. They weren’t happy with their incumbent advisor, and with prior experience of working with LCP in other areas, were keen to bring in our investment advisory team.
Our solution
As a first step, we reviewed the Scheme’s investment arrangements, identifying several red flags – uncompetitive fee rates (that hadn’t been revisited for nearly half a decade in some cases) and overly-complex mandates split across dozens of managers.
We embarked on a process of negotiation and consolidation, simplifying the scheme’s investment strategy and ensuring economies of scale were realised. As the leading independent advisor, we are in a strong position to negotiate on behalf of our clients.
The outcome
We reduced the investment fees that this Scheme pays by around £3.3m pa. Following consolidation, the governance burden placed on the Trustees was eased, meaning more of their time could be spent on issues that really impact the investment strategy’s success and ultimately the outcome for members.
How we can help
We help central banks design and implement investment strategies to get the most out of their reserves in a risk-controlled manner.
We help charities and endowments construct investment strategies and pick the right investment funds to both meet their financial objectives and be aligned with their missions.
We help our clients to maintain a competitive edge by improving their investment strategies, generating extra returns in a risk-controlled way.
The LCP Wealth Drawdown tool is designed to help advisers explore the impact of charges and other factors on your pension in drawdown.
Our investment team works with trustees of DB and DC schemes to set bespoke investment strategies and select fund managers. Using our market-leading technology, we help you navigate your journey by providing you with clear, actionable insights which enable you to make better short and long-term investment decisions.
Setting a good investment strategy and picking the right funds is fundamental for wealth managers and advisers to be able to deliver better outcomes for their clients. Our role is to advise clients on investment strategy and fund manager selection bringing institutional discipline to the retail market.
Every sovereign wealth fund has its own unique circumstances and challenges. As an independent consultancy, we’re not linked to any asset manager and we don’t sell investment products.
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