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Centre of Excellence for Pensions

Our ambition is to become the governance partner of choice for UK pension schemes. We achieve this by bringing together flexible securities and fund administration services grounded in strong data governance, alongside solutions such as cost transparency, backed by strong technology and a dedicated team of highly experienced pensions professionals.

We’re redefining best-practice governance and data needs for UK Pension Schemes

The collation and enrichment of data is challenging given the increased investment into more complex markets and products, such as private assets. Furthermore, there are increasing regulatory pressures around governance, including cost transparency and ESG reporting.

The future direction of travel for UK pension schemes, therefore, is clearly towards stronger governance, supported by scalable, future-proofed data solutions to accommodate evolving markets and regulations. This requires a securities and administration partner that brings an end to end fund administration service, applying best-in-class processes and data standards across the board for all types of pension schemes.

Your governance partner of choice

Our ambition is to become the governance partner of choice for UK pension schemes. We achieve this by bringing together flexible securities and fund administration services grounded in strong data governance, alongside solutions such as cost transparency, backed by strong technology and a dedicated team of highly experienced pensions professionals.

Welcome to our Centre of Excellence for Pensions (CEP)

Our pensions heritage originates in the Netherlands, a market which is steeped in the highest levels of governance and oversight. This is also where our dedicated operational hub is based – the Centre of Excellence for Pensions, which is unique in the pensions arena. It brings together over 110 highly experienced pensions professionals who are solely focused on meeting the current and evolving needs of pension schemes. They bring scalable knowledge of pensions’ best practice through their partnerships with pension schemes of all shapes and sizes across countries such as the UK, the Netherlands and Germany.

Our core capabilities are built around the following principles:

Daily fund administration and look-through as standard  

The cornerstone of our securities and administration solution for UK pension schemes is the consistent application of daily fund administration, performance reporting and reconciliations. The high standards embodied in this approach help to put timely, better quality data in the hands of pension schemes, so they can future proof their governance framework and benefit from ‘look through’ solutions for full transparency on their assets. In short, it helps them to make more informed decisions, based on up to date accurate data.

Access to the latest technologies

The technology framework underpinning our Centre of Excellence for Pensions has been built from the bottom up. It leverages one of the world’s leading front-to-back administration platforms in the financial services industry - SimCorp Dimension.

This advanced platform provides UK pension schemes with a real-time overview on one fully integrated front-to-back system, benefiting from one data instance to achieve high straight through processing levels. This includes a core set of accounting principles.

Enrichment of data: One single version of the truth

Through SimCorp Dimension, we aggregate and enrich pension schemes’ data in one place, providing a fully integrated view of their total portfolio. As all data is all held to the same high standard, it brings a strong level of consistency to the information and insight that can be accessed by UK pension schemes, creating the foundations for strong governance and informed decision-making. 

Custody agonistic, modular thinking

We recognise that pension schemes have unique needs and that’s why our platform has been built with flexibility and scalability in mind, so it can stand the test of time.

Flexibility comes from our custody agnostic, modular approach, where pension schemes can select a full front-to-back solution, or specific solutions and services directly focused on meeting their needs. These include modules such as IBOR position keeping, alternatives administration, valuation of assets, ESG look through reporting, cost transparency, performance reporting, risk exposures, cash and collateral management, fund accounting (UK SORP compliant), compliance monitoring and order execution.

A commitment to developing long-term partnerships

Our centralised Centre of Excellence for Pensions hub is augmented by local on-the-ground pensions experts. In the UK, our team brings significant experience of the UK pensions, working with all types of schemes. 

CACEIS promises the highest standards of client service, working in partnership with the client to build a long-term relationship. We will maintain an independent, transparent position ensuring every action is taken solely on behalf of the client. We are committed to the UK pension market, working alongside our clients to ensure their needs lie at the heart of everything we do. We recognise that each pension scheme has a unique set of needs and this drives our ambition to be flexible and build long-term partnerships.

Why Daily Administration Matters

Monitoring liquidity

In June 2019, the Woodford Equity Income Fund was suspended as a result of rising redemption requests on a portfolio that encompassed higher than expected illiquid investments. The percentage of the portfolio in illiquid investments took some investors by surprise.

Monitoring ESG policies

Pension funds now need to develop policies on how they are managing ESG and climate change related risks. Understanding how these policies remain aligned with the pooled funds they are investing in is a key governance challenge. 

Managing market volatility

Post the financial crisis in 2008, global markets have generally experienced more volatility. Major events, such as financial crises, or global challenges, like the coronavirus, can have a significant impact on market liquidity and returns

Advantages of daily administration

In situations like this, look through reporting with quality data would provide pension schemes with better insight into issues such as illiquidity in pooled funds. As events move quickly, this requires daily fund administration and reporting, to provide the transparency that pension schemes require for good governance and decision making. 

Advantages of daily administration

Look through reporting that focuses on exclusions – either through a pension scheme’s policy on ESG, or in a company or sector that is not combatable with the scheme’s values – is designed to monitor an asset managers adherence to exclusion policies.

Advantages of daily administration

In times of market stress, monthly administration does not provide pension schemes with the visibility they need at times when they require it the most. In this environment, daily administration is crucial to good governance in understanding the impact of market volatility and potential illiquidity issues on the pension scheme’s assets

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