Investment Management for Workplace Pensions

Investment Management for Workplace Pensions

A fully transparent investment valuation solution for the workplace member. We believe that the working community should have the opportunity to have full transparency to their invested monies and follow their pension as it accrues over time. We proudly challenge the thesis that small values are less important. They are not. This straightforward online service enabling you to break down the barriers to understanding your investment and have in depth, transparent, 24/7 access to your invested pension.

WHY TAM?

Who is managing your money?
TAM Asset Management Ltd (TAM) manages the monies inside your investment pot with its team of seasoned professionals. TAM is authorised and regulated in the UK by the Financial Conduct Authority (no. 208243). and has been managing workplace pension monies for over 9 years. TAM's administrative ability to manage, invest and ultimately report via its TAM Workplace Pensions portal is groundbreaking.

How can we help you?
TAM has partnered with key master trusts and auto-enrolment administrators to help employers navigate workplace pensions, including the provision of a complete investment solution. These solutions will give you access to TAM’s professional investment management across a spectrum of three portfolios encompassing Cautious, Balanced and Growth investments options. Furthermore custody of client assets is with one of the worlds leading custody agents, Pershing Securities Ltd, part of the BNY Mellon Group.

How do the funds perform?
Our workplace pensions clients benefit from full portfolio transparency, in-depth delivery and reporting no matter what size the investment. Our Cautious, Balanced and Growth clients benefit from a 9-year fund track record which have performed well against their benchmarks. The long-term performance is illustrated below.

 

INVESTMENT OPTIONS

The fund’s investment structure is that of a “fund of funds” portfolio which seeks to provide investors with a diversified investment portfolio consisting of UCITS compliant funds or “collectives” from across the global investment universe. Collectives invested in within the fund can include unit trusts, mutual funds and exchange traded funds (ETFs) whose managers aim to outperform their respective markets. Asset classes you could find in this portfolio are equities, government bonds, corporate bonds, multi-asset, alternatives, and cash.

Clients can select a fund that most closely reflects their investment return objectives and attitude to risk. We offer three risk-graded fund options, ranging from lower risk bond-based returns, to higher risk equity-based returns.

The diagram is for illustrative purposes only. The value of investments, and the income from them, may go down as well as up and may fall below the amount initially invested. Weightings may deviate from these levels at the Investment Team's discretion whilst staying within specific guidelines, so the above asset allocation is intended as a guide only.

Cautious
This fund seeks to generate modest capital growth over the short to medium term (3 to 5 years or more) by employing a more cautious investment strategy. The fund will typically comprise 30% equity and 70% non-equity - though weightings may deviate within set parameters, allowing our managers to react to market conditions.


Balanced
This fund seeks to generate capital growth over the medium term (5 years or more), with the aim of riding out short-term fluctuations in value. The fund will typically comprise 50% equity and 50% non-equity - though weightings may deviate within set parameters, allowing managers to react to market conditions.


Growth
This fund seeks to generate higher capital growth over the medium to long term (5 to 7 years or more) by employing a more dynamic investment strategy. The fund will typically comprise 70% equity and 30% non-equity - though weightings may deviate within set parameters, allowing managers to react to market conditions.

 

LITERATURE

TAM Workplace Pensions Factsheet

 

 

PERFORMANCE

Five Year Workplace Pension Fund Performance

Source: TAM Asset Management Ltd. Five year fund performance from 1 April 2019 to 31 March 2024. Past performance is not necessarily a guide to future returns. The value of investments, and the income from them, may go down as well as up and may fall below the amount initially invested.

REGULAR SAVINGS


Possible Monthly Contributions
YEAR
2% GROWTH
4% GROWTH
6% GROWTH
5 6,220 6,552 6,907
10 13,095 14,553 16,224
15 20,691 24,321 28,791
20 29,086 36,249 45,742
25 38,363 50,813 68,606
30 48,615 68,595 99,446
40 72,464 116,817 197,157

The financial markets do not always offer a smooth ride but investing regularly each month allows savers to build up their investments and can help to smooth out fluctuations over time.

For example, the illustration on the left shows how a monthly investment of £100 can grow when we assume certain growth rates.

The growth rates used in this report are purely for illustrative purposes and are not guaranteed. The actual growth rate will depend on the investment option selected and the performance of the underlying funds. Performance of the underlying funds is not guaranteed and your investment return may be lower than the contributions paid into the plan.

The illustrative investment values have been calculated assuming growth rates of 2.00%, 4.00% and 6.00% per annum. The three rates include a overall fee of 0.5% per annum plus a fixed monthly fee of £1.50. The three rates of return are industry standand and purely for illustrative purposes and do not represent upper or lower limits on the investment performance.

HOW WE INVEST

TAM Workplace Pensions

Approach to building clients’ wealth  

Founded upon a decade-long experience in the discretionary investment management space, TAM’s investment process centres on the following key principles.

  1. Providing clients with a range of well-balanced portfolios to fit different needs.
  2. Ensuring all portfolios are adequately diversified to target ‘the smoothest ride’ possible.
  3. Proactively selecting and blending funds from some of the best investment talent in the world to build diversified portfolios in the pursuit of building clients wealth.
Getting the balance right 

Our aim is to protect and nurture your wealth whatever the environment. Our experts analyse economic, market, political and social trends aiming to anticipate which blend of investments give the best chance of growth without the rollercoaster ride. This ongoing process is known as ‘asset allocation’.

Diversification to protect your nest egg 

Good asset allocation includes smart and comprehensive diversification by blending together investments that do not all do the same thing at the same time especially during periods of market turmoil. The available portfolios only invest in funds, not single stocks, shares or bonds allowing your money to be spread over a more diverse range of investments.

Active portfolio management 

TAM actively manage portfolios with both short and long term tactics aiming to protect investors from extreme events. Active management can take advantage of fast moving developments which is a crucial difference when compared with machine managed portfolios that have automated rule based limitations.

Putting investment talent to work 

The managers at TAM select investments for each portfolio using comprehensive research including face-to-face due diligence fund manager meetings. No single fund manager can be a top performer in every area. Additional diversification is therefore required by selecting different best-of-breed managers with proven track records to enable portfolios to benefit from the investment styles and strategies of a diverse set of specialists.

Keeping on target with portfolio objectives 

Portfolios are continuously monitored and if necessary changed in context of market changes and house views on the economic outlook. The TAM investment committee oversees the investment management team with the latter responsible for changes to asset allocation and fund selection, known as ‘rebalancing’.

INSIGHT

CAPITAL PROTECTION

The best way to build wealth is not to lose it in the first place. Producing reliable annual performance and then compounding through reinvestment provides stronger and more consistent growth for your nest egg. For example, if you make 5% per year and re-invest, then after 9 years your portfolio is over 50% larger and in 15 years it has doubled.

MANAGING RISK LEVELS IN THE PORTFOLIOS
Portfolios are meticulously built and managed to ensure they remain aligned with TAM’s views on possible market changes and the economic outlook. Each individual fund is selected by TAM in context of the choice of portfolio you make during the initial account opening process.

DIVERSIFYING TO PROTECT YOUR NEST EGG
The funds in each portfolio are diversified by geography, sector, asset class, fund manager, currency and investment strategy. Each fund in a portfolio will invest in numerous assets such as individual company stocks or bonds. The aim is always to blend together investments that do not all do the same thing at the same time especially during periods of market stress

PUTTING INVESTMENT TALENT TO WORK
TAM Workplace Pensions’s chosen investment manager TAM has 100% independence to select funds from any provider that meet their research and due-diligence criteria. TAM’s award-winning experience enables you to access a blend of some of the best investment talent from a cost of only a few pounds a month.

TRANSPARENCY

24/7 ACCOUNT ACCESS
Our TAM platform offers 24-hour access to clients and their advisers. It allows instant consolidation of all your investments, real-time portfolio valuations, detailed analysis of investments, performance measurement and details of asset exposure.

BESPOKE REPORTS
You can obtain instant exposure analysis and asset allocation modelling information for every portfolio. Once logged into our secure website, you can access the exceptionally fast and efficient management reporting tools available.

Our investment platform allows for immediate and comprehensive internet based valuations, the “reasons why” each investment decision was made and urgent commentary – all in a comprehensive and understandable format.

With a few clicks it is possible to draw a full management report and have it delivered as a .pdf file instantly. This reporting package allows for you to choose the dates and style of your report and it is all available at the touch of a button.