Innovative investment strategies for UK pension schemes – why not rent a UK life company?

01 July 2020

Craig Brown Institutional Distribution Director

Author

Craig Brown
Institutional Distribution Director

Craig Brown discusses the advantages of life-wrapping funds on the Mobius Life platform.

Growth in pooled pension assets is fuelling demand for a greater range of investment strategies to be available to pension trustees and their advisers.

Specialist asset managers are responding by creating new structures, including zero-fee index trackers, private asset strategies, absolute return and governance strategies, commercial property and many more.

A UK Life company structure has proved to be a very effective means to pool assets as a result of its flexibility and tax efficient status for UK pension schemes. For many asset managers the cost, capital reserving and regulatory burden of creating their own life company structure are prohibitive.

That’s where Mobius Life comes in. We effectively ‘rent’ our life company to asset managers to life wrap segregated portfolios which are then available to investors on the Mobius Life platform and other third-party platforms.

These funds can include wrapping bespoke portfolios, created for a single pension scheme, or pooled funds available to all schemes. Mobius now works with an increasing number of asset managers to make their funds available to UK pension schemes in a cost-effective and flexible manner.

The rent-a-life company approach means that trustees and consultants can consider a far wider range of strategies – many of which can be bespoke to their exact requirements.

Using Mobius Life to life-wrap their strategies offers asset managers significant cost advantages as well as taking away the regulatory burden and need for regulatory capital.

So why would you own when it’s much easier to rent?

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t: + 44 (0)20 7847 3300 f: + 44 (0)20 7847 3399 w: www.mobiuslife.co.uk
Mobius Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales at: 7th Floor, 20 Gresham Street, London, EC2V 7JE. Registered No. 3104978. For your security telephone conversations may be recorded.

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