Penny Green, chief executive of the Superannuation Arrangements to the University of London describes the fund’s UK investment strategy in the disarming words “really good”.
This is something of an understatement, as a quick glance at the benchmark figures will testify, especially the long-term performance. But as she explains, these are not always the statistics she would turn to first, nor do they represent the whole of the funds planning since it adopted a new investment strategy in 1991.
“I would look to the structure of our fund to help explain the success we have had,” she says. “First of all we have excellent investment committee members, who contest the advice given, so making for a better decision-making process. It is this committee structure which enables us to develop a good investment strategy, which ultimately produces the results which I think we can be justifiably proud of.”
Green also believes that the long-term view that the fund takes adds to the benefits that its members enjoy. “We do not take a tactical view, but rather a long-term strategic overview. That is not to say we would sit down and let matters drift, but rather that we would not opt for a strategic change with short-term objectives. The trustees for their part support this, which obviously helps. Our main board and investment committees have employer and union representatives, and they are also on board with the long-term plan.”
It is this consensus view to which she attributes the success of the scheme. “We sit down and take time to decide, but once that decision has been made we stick with it,” she adds. “It also helps that we are a well-funded on-going scheme which will be around for the foreseeable future, and so there is little point in reacting violently to fluctuations in the markets. We do, of course, also look at our benchmark, and consistently beat it, albeit that it currently has a negative sign in front.”
When the Myners Report was published, a check against the code of practice confirmed that the fund in essence complied, and Green confirms that a note to that effect will appear in the latest annual report. “It is another way of reiterating that our investment strategy is driven by the twin objectives of the security of the benefits of our members, and the stability of contribution rates.”
On the IPE awards, Green welcomes participation: “They raise our profile and stimulate debate across the industry. One should always be open to new ideas – they can only help decision making.”

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