Independent professional trustees most value collaboration and responsiveness in advisors

As the pensions market endures a series of headwinds, independent professional trustees are looking for advisors to help them navigate end-game options, notably risk transfers and scheme run-on. A new study from First Actuarial finds that amid the need for quick turnarounds and adaptive advice, three-in-five trustees also prefer to engage with advisors through live online sessions, rather than in-person events.

First Actuarial, a Gallagher company, has published its first survey of independent professional trustees (IPT) in the UK pensions industry. The survey questioned 65 trustees from 12 IPT firms with responsibility for diverse scheme types. Among the findings, the survey identifies key factors IPTs look at when selecting advisers, and areas where they are likely to need support in future.

Sam Mullock, partner at First Actuarial, commented, “Like every advisor, we increasingly work with IPTs. Their experience is both broad and deep. Most have spent years working on a range of schemes, and this equips them to handle the complexity of today’s landscape. We’re keen to understand their experiences of working with advisers such as First Actuarial and what they need from us.”

The survey also revealed the qualities that surveyed IPTs valued most in advisory partners. And while generalist firms have long sought to expand into every corner of the market, one surprising discovery was that only 5% of respondents ranked breadth of services as a key factor in selecting advisors.

While value for money being the top factor – noted by 75% should be no surprise, meanwhile, the things which firms identify as helping to contribute to that value will not spread evenly across firms of all sizes either. With 51% prioritising a collaborative working style, and 46% highlighting personal relationships and trust, the ability of a smaller boutique to offer tailored and specialised advice may give them the edge in this market.

Similarly, while technical expertise – selected by 40% – could be seen across big and small advisories, a clearer line of communication is something which might also be easier to access with a more personal advisor. To that end, 29% said responsiveness was more important to them than the 20% who pointed to track record – opening up opportunities for start-ups and challenger firms too.

Looking ahead, the respondents were also asked which areas they would most likely need support in the future. Most commonly, the researchers found IPTs are looking for advisers to help them navigate risk transfers. The market has recently opened up to smaller schemes following a period in which few insurers provided quotations.

Elsewhere, another finding that stands out is data – administration is finally having a moment. Some schemes are struggling to manage business as usual while addressing member data quality, procuring suitable systems and recruiting administrators with relevant experience.

Mullock concluded, “IPTs play an important role in the pensions world. Whereas a member-nominated trustee may only work with one or two actuaries or administration teams in their career, an IPT may be working with up to 10 at a time. They know what a good advisor looks like and what reasonable costs are. It turns out that IPTs rate First Actuarial’s services highly. Some 96% of survey respondents rated their overall experience of working with us as at least seven out of 10. This survey will help us meet their ongoing expectations.”