Rubicon assists clients in determining, evaluating and choosing between, a range of
suitable investment strategies, having regard to the nature and duration of the client’s
It is essential that trustees ensure that their assets are invested in accordance with an
investment strategy that is appropriate for their particular scheme, having regard
to the scheme’s own liability profile. For Defined Benefit schemes, it is necessary
to consider the behaviour of both the scheme’s assets and liabilities. For Defined
Contribution schemes, it is important to offer an appropriate range of funds, which
members can select from in order to adopt an investment strategy suitable for their
own personal circumstances. The onus is also on the Trustees to adopt a default
investment strategy that is suitable for members who do not make their own investment
Whether selecting the investment manager (or managers) for a new pension
scheme, or reviewing the scheme’s existing investment managers, Rubicon can
guide trustees through the difficult task of selecting the most appropriate
investment managers for their scheme. Investment manager research is one of
our core activities, and we maintain a comprehensive database of investment
managers for a wide range of mandates. Using our expertise in this area, we can
help trustees select the most suitable manager, whether it is for a small defined
contribution scheme or for a large defined benefit scheme.
Independent performance monitoring offers trustees an unbiased analysis of their
investment managers’ performance. This is an essential tool for trustees,
who have a fiduciary responsibility to ensure that the assets of the pension
scheme are managed in an appropriate manner.
Rubicon’s performance monitoring service provides trustees with an in-depth
report, detailing the performance of the pension fund’s assets relative
to their benchmark and, more importantly, outlining the reasons for this
As of 1 February 2010, it is a regulatory requirement for pension trustees
to receive formal trustee training. New trustees must undertake
training within six months of their appointment and at least every two years
thereafter, while existing trustees must undergo training at least every two
Rubicon provides training and communications programmes to members of pension
schemes in respect of the principles of investing, risk, investment strategy,
fund selection and the operation of the pension scheme in general.
As a consequence of the advent of Defined Contribution schemes, the
responsibility for making investment decisions is falling to scheme members
more and more. At Rubicon we offer member education programmes, which can
be tailored for each scheme. This will enable members to have a full
understanding of the implications of their fund selections and the risks of the
various asset classes in which they may choose to invest.
We also offer member communication services. These include preparing detailed
fact-sheets on each of the fund options (including structure, risk, suitability and
performance), investment handbooks for members, regular performance updates
and online projection tools.
These services can also be of value for Defined Benefit schemes that offer
Additional Voluntary Contribution facilities.
Rubicon assists clients with reviewing their pension scheme operations in order to ensure that
these comply with best industry practice and prevailing pensions legislation.
In 2005, new regulations were introduced requiring all pension schemes with over
100 active and deferred members to produce a Statement of Investment Policy &
Principles (SIPP). The SIPP needs to be included in all future annual reports, and
must be reviewed at least once every three years, as well as immediately
following any change in investment policy. Rubicon can help trustees meet their
regulatory requirements in this regard by preparing and updating a Statement of
Investment Policy & Principles for their pension scheme.
In the event that the trustees decide to change the fund’s investment manager,
for whatever reason, their existing fund will be transferred to a new investment
manager. There can be considerable confusion on the part of trustees when it
comes to this process. Given the number of parties involved, it can be difficult to
coordinate the transfer, or to make sure that the process is completed quickly
and with minimum disruption to the scheme. It can be difficult to ascertain from
the parties involved in the transfer exactly what the exercise has cost the scheme.
Rubicon can act as a liaison between the incumbent and newly appointed
managers to ensure that the transfer is carried out in a cost-effective and timely
manner. Following completion of the transfer, we will prepare a clear and
comprehensive review of the process for the trustees, detailing exactly how the
transfer was carried out and how much it cost.