Delivering outcomes for the real world: Q&A with Schroders’ Gillian Hepburn

IFA Magazine: why do you think that advisers should be considering Schroders as their investment partner in this arena? and what is it that distinguishes you from the competition?

GH: When we think about why, the simple answer could be just about ensuring a broad range of solutions are available for all the different clients within an adviser’s client bank. Of course, there are Schroders’ investment credentials which are a factor. We can offer the powerful combination of size, strength, investment reputation and expertise –all things which are so important to advisers when they are looking to select an outsourcing partner.

However, what’s really important to advisers is the range of options that we actually have available to them.

We have three sets of model portfolios, namely Active, Strategic index and Sustainable. We also have two sets of funds which are a blended active/passive solution and also a low-cost fettered solution with tactical asset allocation.

We like to talk about low cost of course, but also that these funds deliver active management.

Competition on price is always important and we have to keep in the forefront of our minds what is the underlying client actually paying for the service they receive?

I’d argue that our solutions offer excellent value for money. Our model portfolios have an annual management charge of just 15 basis points and no VAT. Our fund ranges start at 29 basis points for a capped solution – obviously blended is slightly different. There’s a keen focus on price.

On top of that, we have a consistent investment process which operates right across the range. This really helps advisers in terms of understanding exactly what we do and explaining that to their clients. Our multi-asset research process harnesses our global team of 100+ specialists. They are based throughout the US, Europe and Asia Pacific, looking at markets from every angle. A physical presence in our clients’ local markets gives us a better understanding of their specific requirements.

However, going back to the range of outcomes, we always have to consider clients’ risk tolerance levels. Across our Active and Strategic Index models we have nine different risk profiles. This ensures that there’s something for everybody and not just in the underlying investment strategy, but also in terms of the risk profile.

On top of this, we also offer six models in our sustainable range. This means that we can offer 25 models in total across 12 different platforms – something which I would stress is another important factor.

It’s a massive range in terms of choice and flexibility.

What’s also really important is the support that we give advisers to help them, in turn, to support their clients. This comes in various forms. There’s digital of course, because we’ve all moved to digital in the last year and a half, but also local face to face support if that is required. It’s about whatever works best for a particular adviser. With Schroders, they can choose between virtual or face to face meetings as our team is back out there now and ready to help.

One area of particular interest within the new range is that we have developed digital interactive factsheets for the model portfolio service. We think that’s market leading.

We also host quarterly webinars for any of the advisers that use both model portfolios or funds and these are really well attended. They’re almost like the investment committee. In the webinars, we explain exactly what we think the market’s doing and, as a result, how the portfolios are positioned and what changes we’re making.

Reporting is also really important. We follow up on all of that with monthly and quarterly reports which the advisers can then use to have good quality conversations with clients, because they’re in the driving seat after all.

Going back to sustainability, one of the things I think is really exciting is how can we deliver good quality reporting for the Sustainable models and really demonstrate to clients both that they can invest sustainably without a performance drag. But also how can we demonstrate the positive impact that their investments are having? Again, this is something that we’re doing within our sustainability reporting for advisers to use with clients. It’s all about making sure that the adviser/client relationship is fully supported every step of the way, both in terms of the range of proposition, but also in the support that we deliver.

I think if you put all that together, that advisers can be sure that by partnering with Schroders that they have an efficient and effective solution for clients which can stand the test of time.

About Gillian Hepburn, Head of UK Intermediary Solutions.

Gillian has over 30 years’ experience in financial services and joined Schroders in 2019 as Intermediary Solutions Director. She is responsible for investment solutions for the UK Intermediary channel which includes the new Schroder Investment Solutions, a range of model portfolios and multi-asset funds. Gillian is a well-known and respected industry figure and regularly judges industry awards.

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