1. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED ‘Bolstering the member voice in the investment dialogue’ TUC Pensions Conference February 4 th, 2016

2. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED Four conditions that characterise ‘wise trustee boards?’* Diversity of opinion Independence Decentralisation Aggregation *The Wisdom of Crowds, James Surowiecki

3. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED Impairing constructive investment dialogue Lack of time Lack of independence Lack of preparation Lack of control

4. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED What the FCA said ‘…. some pension trustees, those overseeing the selection and oversight of asset managers may lack the necessary resource and/or expertise to do this effectively.’ ‘Some asset managers commented that some institutional investors may not have the expertise to effectively monitor asset managers.’ ‘…. pension trustees often find it difficult to assess the quality of advice given by investment consultants ….’

5. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED Understanding investment information is challenging because Takes longer than many realise Takes more time than many readily have Difficult to understand what is in there Difficult to understand what is not in there “We are drowning in information but starved for knowledge.” - John Naisbitt

6. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED Investment Dialogue Problems vs Problem What is dysfunction Where is dysfunction Who is dysfunction

7. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED Fifty (thousand) shades of grey ???? ????

8. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED RESPONSIBILITY vs POWER Enable and empower those responsible

9. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED Do Do? vs Or Can Do?

10. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED Can Do? - We already have Consultants Investment committees Professional trustees or other assets

11. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED SOME PRACTICAL STEPS

12. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED Three questions Are we doing the right thing? How do we know it? How can we demonstrate it?

13. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED Investment Dialogue What has performed Were we there What will perform Will we be there

14. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED Three Key Steps Preparation Ask for independent help?

15. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED ASKING QUESTIONS = CONTROL Plan agenda to ask questions in a structured and coordinated manner to prioritise: Issues Trustees want discussed Questions Trustees want answered Trustee’s precise needs Take the guesswork out of communications

16. © Copyright JNM Research, 2016. ALL RIGHTS RESERVED In conclusion Training may not be as enabling as often presumed Ensure questions and answers are coordinated and structured Ensure ‘can do’ and ‘do do’ are the same Realise presumptions may offer false security If resources are a problem - ASK FOR HELP!!!!