1. Power In Capable Hands
Lesley Williams
Chair - PLSA

3. Pension fund governance is too important To ignore

4. SCALE PRIVATE SECTOR DB PRIVATE SECTOR DC 34,000+ DC schemes
£1.5tn assets
5,945 schemes
Average:
1,800 members
£200m
c.9m members
Average £10m assets
12m
members
PRIVATE SECTOR DC

5. consolidation 800 schemes in 2005 365 schemes in 2015
5,000 in the 1990s
500 in 2009
25 schemes

6. BIGGER SCHEMeS DO BETTER
DNB:
a pension fund with 10 times more assets under management has 7.67 bps lower annual investment costs
State Street:
the largest local government and corporate pension funds generally out-perform the market
Keith Ambachtsheer:
scale is critical to achieving lower costs per member for operations

7. TPR AGREES
Large schemes generally displayed better governance than medium and small schemes... small schemes were found to be less likely to have the support of external advisers, meet TKU standards
and were less prepared for the new DC governance standards and charge controls.

8. Three reasons why
Economy of scale
Buying power
More available skill

9. A TYPICAL CORPORATE BOARDFD HR
CEO
Chair
Marketing
Operations
Legal IT
Commercial

10. AND FOR A PENSION SCHEME?
Actuarial
Commercial
Communication
Investment
Pensions technical
Operations
Legal
Corporate financial analysis

11. 83% 90% 80% The reality gender profile of LGPS Pensions Committee
gender profile of governance board
90%
gender profile of investment committee
80%
gender profile of LGPS Pensions Committee
Gender profile of LGPS investment committee
But we’ve got a long way to go.
There are lots of aspects to diversity – gender, ethnicity, socio-economic, age, disability, LGBT.
But let’s just look at one indicator – gender.
These data are taken from our own Annual Survey – the figures are pretty staggering. We don’t know if Boards and ICs are stale or pale – but they’re pretty overwhelmingly male.
Source: PLSA Annual Survey 2015

12. HOW CAN YOU INCREASE DIVERSITY?
Look at the way you advertise
Don’t elect, select
Diversify your short-list
Mentor women for senior roles
Pre-appointment training

13. PLSA Diversity project
What
When?
Investment Conference 2017:
Diverse Investments, Diverse Perspectives
March 2017
Leadership for Managers course
Trustee network
January 2017
Trustee chair dinner
January/February 2017
Publication
Mentoring/development programme
2017
Data gathering: analysis of PLSA members
Ongoing

14. Individuals are typically judged on the alignment between their skills and those of the existing organisation. It takes quite a leap of faith to choose instead the candidate whose skills are misaligned with the hiring organisation

15. THE SNEETCHES
It takes quite a leap of faith to choose the candidate whose skills are misaligned with the hiring organisation.

16. Power In Capable Hands
Lesley Williams
PLSA