When Diageo’s UK investment administration manager, Paul Charles, came across the IPE Awards he realised they fitted ‘hand-in-glove’ with the company’s strategy for a European benchmark, and their stated aim of providing a world-class service for their fund members.
“I am well aware of the importance of raising the quality of fund administration in the UK, and it has always been our philosophy to share information with colleagues in the industry, to that end. Consequently, it is important to have a benchmark to measure like-with-like. We have already won one domestic award this year, but the IPE Awards offer an opportunity to make comparisons across Europe.”
Charles says he is proud of a number of achievements by Diageo this year, but highlights the funds continuing dedication to providing a top-class service for members, and making their needs a priority. “We try to ensure that the pensions benefits we provide are a very important part of the overall remuneration package for the employees involved. I think the other main issue this year has been our commitment to a revamped communications system, again aimed at improving the situation for our members.”
Born of the merger between the GUD Pension Trust and the GrandMet Group Fund in April 1999, the new fund embarked on two years of dramatic change and progress. A mainspring for this has been the oft-stated desire to adopt a genuine long-term strategy, putting the members at the centre of that plan. “We have revised the investment strategy to embrace this view, including a specific decision to invest heavily in equities.” This is an unusual decision at the moment, but does suggest a longer-term outlook.
The fund’s commitment to a defined benefit (DB) scheme is also unfashionable at the moment. “Nonetheless, we believe it provides the best security for our members. It may be that this is easier for us to say, rather than some of our colleagues, since we are still extremely well funded,” says Charles.
Every part of the restructuring strategy puts the members first, Charles emphasises, and he is particularly proud of the communications set-up. “It is not only our 70-section-strong retirement associations, but also the day-to-day communications network we have established which I believe sets us apart,” says Charles. “The new members’ website (which was due to go live at the end of last month) is the result of six months’ development. It is a specifically tailored communication, producing a bespoke plan booklet which allows members to access information specific to them.”

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