Peer Intelligence | Fall 2024

You started the U.K. office back in September 2008. What were the initial steps you took and how is it different than it is today?

Back in 2008 CEM had just gained its first UK client – one of the largest DB pension funds.  It was a starting point, but it took a lot of work to really gain a firm foothold.  It was just me, a telephone and as much energy as I could muster, working out of my kitchen.  We soon connected with pension funds that were conceptually interested in what we wanted to build and slowly but surely we made progress.  Today we work with half of the UK’s top 100 largest funds and the CEM is known, if not widely, certainly in the ‘right circles’. 

Who else works with you in the UK office?

A fantastic group of people whom I love working with – Fleur Dubbelboer, Dave Jennings, Rhijuta Dahal and Joao Barata.  We all get on famously.

Can you tell us the growth trajectory of the UK office over the past decade?

Early traction came with pension administration benchmarking.  There was clearly a gap in the market for independent comparisons on costs and service measures.  The very largest public sector plans were interested but convincing enough plans to trust CEM and compare together was a challenge.  I had lots of conversations along the lines of ‘XYZ have authorised me to say they are ‘in’ if you are’.  We got there eventually. 

We then took a big step forward when the U.K. government started to look at the potential for investment cost savings in the Local Government Pension Scheme (LGPS) back in 2015 – a process that would eventually lead to ‘pooling’.  We convinced the LGPS community to allow us to collect cost and performance data from them in a consistent manner – we also convinced many that they would need high quality comparative analysis after pooling. We still work with many of the LGPS funds and pools today. 

What have been the major changes in the U.K. pension landscape, and what do these changes signify? 

Anyone working in the world of pensions in the UK will tell you just how much change they experience.  It is non-stop, and mostly driven by regulatory change.  The stand-out changes for me were: 

Auto-enrolment – where the UK Government legislated that almost every employee would be automatically enrolled in a pension plan chosen by their employer unless the employee chooses to opt-out (relatively few did opt-out).  Both the employee and employer would be required to contribute to that plan at least at a minimum level.  Suddenly, millions of workers in coffee shops, hospitality, retail and every other type of employment, would be saving consistently towards retirement.  We may not be saving enough as a nation – but we have created something special and have a very dynamic and competitive DC market as a result. 

The decline of corporate DB pension funds – which started before auto-enrolment but is now seemingly unstoppable.  Corporate DB plans are fast disappearing in the rear-view-mirror and the transfer of assets and liabilities into insurance ‘buy-out’ contracts is absolutely huge.    

The decline in DB is to be lamented, but successive governments legislated in a way that made them unsustainable.  The move to DC is very clear but what we need to do now is turn the handle and increase minimum contributions to make sure everyone can look forward to a ‘good’ retirement. 

 What are your favourite moments at CEM? 

Can I mention two? 

Of course!

First up - hiring people into the UK office.  I was on my own and overrun with clients, which was great, but I had resisted hiring people to help me.  Managing people wasn’t for me.  Eventually I relented, we found a nice office and hired Rhijuta, Dave, Joao and Fleur.  How wrong could I have been!  Working alongside them has just been the best experience. 

Second, I went to my first CEM global pension administration conference in Denver in 2009.  I was the first Brit to attend.  It bowled me over.  I met so many fantastic people and learned so much.  I made it my mission there-and-then to have UK administrators attend.  I like to think my sheer enthusiasm has since convinced so many people to get on a plane and I see the same light bulb moment for almost everyone that comes – ‘ah ha, this is what it’s all about!’  It is the best week in my annual work calendar by a mile. 

Switching gears, what’s something that people may not know about you? 

I fish. I’ve been hooked (!!!) since the age of 6 and I’m happiest when I’m by, or preferably in the water.  I get few opportunities these days so generally go for quality over quantity.  A day fly fishing on a chalk stream is heaven.  It’s like meditation for me – it absorbs me completely and I’m taken to another universe. 

What’s a hobby or interest you’ve always wanted to pursue but never had the chance to? 

I tend to make sure I do the things that interest me.  Life’s too short to put things off.  My one exception, perhaps weirdly, is windsurfing which I’ve just never got around to.  I’ve tried kitesurfing, surfing (I’m useless – wrong center of gravity), paddleboarding, sailing etc – just never windsurfing. 

Maybe next year... 

What’s your favourite place to travel? 

I have family in Australia, an Australian passport and my wife and I lived in Sydney for 3 years.  I’m not done there. Such a fantastic country. When we have time, we plan to drive the Gibb River Road through the Northern Territories. You might never see me again! 

Are you going to see Oasis next year? 

Blah (or should I say Blur) - nope, not in the least interested. 

Getting back to CEM, what’s something memorable that a client has told you still remember to this day? 

“Buying CEM was one of the most important decisions we ever made, and one of the best decisions we ever made.”  These words from the CEO of a big pension administration organisation.  I could have bottled that moment! 

Where do you see opportunities for CEM in the future, either in the UK or beyond? 

Big question.  In the immediate future I see UK pension funds that are very keen to compare with and learn from other pension funds around the world.   As CEM is a Canadian firm, with deep connections to the wonderful Canadian pension fund community, we’re so well placed to help and there’s such an appetite for high-quality comparative data.  We’re in a unique position and can do so much more with the data, network and research capabilities that are unique to CEM.  

There are also fantastic opportunities for CEM in the DC market globally.  We already serve many of the world’s biggest DC plans, but there is so much more to do and so many interesting avenues to explore.  The problem is always where to focus our attention – so many opportunities and so little time!