AMNT Members Survey 2017 Current Overview No. of Members = 715 ( 10% - - PowerPoint PPT Presentation

AMNT Members Survey 2017

Current Overview

• No. of Members = 715 (10% increase since Aug.16)

Pension Schemes represented = 516 Pension schemes in value = £682bn Respondents to Survey = 185 (prev. = 119) RepresenKng £1.26b (prev. = £113.5bn)

A Typical AMNT Member

• Male (80%), 55+ (80%)
• Full-Kme working (38%), ReKred (41%)
• Elected MNT in a contest (54%)
• av. 9.5 years (range 1 – 29years)
• Not paid (60%) (prev. 68%) Paid up to £5k (45%) 69% believe MNTs should not be paid
• Training priority = holding advisors to account (23%) and

investments (24%) Similar to last year, but 32% and 32% respecKvely

• 1 of 3 MNT’s, 7 Trustee Board, I Chair (51% Employer Nominated)
• In regards to social media – AMNT (35%); PLSA (13%); LinkedIn (11%);
• However, the social media considered most beneficial = AMNT

(34%), PLSA (14%)

• Prefers to read Professional Pensions (Hardcopy = 32%) 21% last year

54% 27% 7% 6% 3% 1% 0% 2% 0%

Job Role:

Manager/Director/Senior Official Professional Technical AdministraKve/Secretarial Skilled Trades Person Caring/Leisure/Other Service Provider Sales/Customer Service Process/Plant/Machine OperaKve Other

23% 18% 16% 8% 7% 5% 5% 4% 3% 3% 3% 2% 2% 1%

Job Func4on

Technical Project Manager Finance Pensions General Management & Admin Human Resources Sales CommunicaKons Consultant MarkeKng Senior Management Unions Academic Legal

0% 5% 10% 15% 20% 25% Other - General Press Porfolio InsKtuKonal Responsible Investor IPE (Investment Pensions Europe) Pensions World Pensions Insight PMI News Journal Financial News Pensions Expert Financial Times Engaged Investor Pensions Age Professional Pensions

What do we read - hardcopy

A Typical AMNT Pension Scheme

• Trust Based – 81% prev. = 88%
• 71% are DB schemes; 13% are DC schemes
• 63% are either closed or closed to new members prev. = 63%
• Av. scheme size in members = 42,000 (excl. LGPS)
• Av. scheme size in AUM = £1.2b prev. = £1.0b
• Av. no. of Trustees per scheme = 7 (range 3 – 25)
• Av. No. of MNT’s per scheme = 3
• Typical Scheme Chair = EMT (50%) NB. MNT = 8%
• Typical Funding = 90% or above (Tech.Provs) = 46%
• Typical Sponsor Covenant is Strong (47%)

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% Climate Change (prev. = 1%) Other - Government; M & A; Brexit; QE (prev. = 3%) Guaranteed Minimum Pension (GMP) implicaKons (prev. = 5%) Longevity InflaKon Other: Overseas Parent/Sale of Sponsor by Parent Environmental, Social and Governance implicaKons (prev. = 10%) Giving members ‘value for money’ (prev. = 10%) Poor AdministraKon pracKces (prev. = 6%) Tax Changes (e.g. relief, tax treatment of funds) (prev. = 0%) ImplicaKons of Brexit (prev. = 0%) Inappropriate Funding Strategy (prev. = 13%) Regulatory changes (e.g. TPR/government/accounKng changes) (prev. = 0%) Employer Covenant (prev. = 19%) VolaKlity/under performance in the investment world (prev. = 33%)

Biggest risks facing schemes

Responsible Investments

• Scheme Boards having had discussions on ESG issues = 67%
• Scheme Boards having no explicit policies on ESG issues = 31%
• Schemes leaving share-hold voKng to asset managers = 50%
• Schemes not knowing how asset managers voted = 54%
• Schemes with pooled funds = 50% 39% are in global pooled funds
• Schemes who have not yet discussed Red Line VoKng = 92%

83% of Members know what Red Line VoKng is about

• Schemes not having adopted any stock selecKon policies on

the basis of ethical consideraKons = 81% Same

• Investment Consultants who have raised ‘responsible

investment’ with Trustee Board = 67% (prev. = 45%)

AMNT & General Issues

• What would apract new MNTs – Payment (28%), Training (17%)

and key benefit communicaKons on the importance of pensions

(21%)

• Days per year spent on MNT acKviKes = more than 10 (55%)
• AcKvity where MNTs can be most effecKve – Challenging

everything (18%); AcKve parKcipaKon (12%); Members viewpoint

(12%)

• Key developments being considered – Addressing Funding (36%)
• Should Trustee Boards should reflect the diversity of their

members? (84% said yes)

• Should there be a compulsory Trustee QualificaKon? (54% said

yes)

Do you think that the (AMNT) should be offering different services? 2016

• Greater focus on DC
• Helpline
• Guidance on Investment Manager fees and charges
• Campaign against mark-to-market valuaKon methods,

which are destroying pensions.

• Offering regular Google Hangout/webex type events (to

allow members to speak directly to it).

• Offer formal training QualificaKon, e.g. PMI CerKficate
• Idiots guides and benchmarking, e.g. when appoinKng

advisors; what quesKons to ask and fees

Do you think that the (AMNT) should be offering different services? 2017

• Best pracKce guidelines for investment charges
• Best pracKce guidelines for Triennial ValuaKons
• Best pracKce guidelines for what make a good

MNT.

• Assistance network for trustee queries.
• Discussion Forum
• More Training Events
• Parliamentary Group
• More Regional Events
• ResoluKon service for Trustee Board disputes

AcKons to take

• Review diversity issues – more women; more under 40’s
• Look to increase number of Members, including LGPS
• Take acKon to get Trustee Boards to use Red Line VoKng
• Understand beper what apracts and makes a good MNT
• Consider if pay for MNTs is something to promote?
• Work closely with tPR to develop effecKve trustee training
• Encourage membership to take a more acKve role in AMNT
• Develop and conKnually improve AMNT Website
• Aim to make AMNT Website the key online support tool
• Greater focus on DC issues
• Work closely with other pension bodies and sponsors
• Campaign key pension issues to raise awareness and

understanding