Category Criteria

Points to consider?

Since each pension fund has a unique set of liabilities and assets, the IPE Awards involve a qualitative judging process involving written entries that describe the approach and the reasons the entrant believes make it stand out from its peer group
Data can and should be used to supplement the written entries but our judges have many entries to read so additional attachments should be to the point. We do not accept text-based documents other than PowerPoint presentations that are used solely in support of your entry
Short-term performance is less important than the implementation of strategies with a demonstrable level of long-term success. Does your fund have a clear long-term vision and can it prove it has stuck to that vision?
Does your fund have a good governance process that allows staff freedom to implement a dynamic investment strategy?
How has your fund made use of its internal resources? Has your fund gone beyond the norm in the way it has used advisers and asset managers?
Context and detail is important. Every investor has a unique set of challenges, resources and skills and our judges understand this
What lessons have you learned from your experiences, both negative and positive, and what could your peers learn from you
Finally, what has your fund achieved that stands out from the crowd?

Themed awards

Active management

This award covers multiple asset classes and entries may involve strategies managed internally or externally
What is your conviction on the use of active management and how have you applied it in practice?
Does your fund actively manage across asset classes or within individual asset classes?
How has the use of active strategies benefited your fund? What are your return expectations on a risk-adjusted or other basis and how has the strategy performed against these?
How do you select the best-in-class managers and monitor them to meet your portfolio requirements?

Climate related risk management

This award allows you to show how you position your investment portfolio to protect and benefit from climate change
How you are using innovative investment products and processes to offset or hedge the carbon risk in your portfolio and profit from the coming likely stranding of fossil fuels and or growth of eco-efficiency/renewable energy and other low carbon sources?
How have you integrated climate change and related risks/opportunities into your statement of investment principles or investment strategy and risk budgets?
How have you reviewed your core investment processes to meet the climate change risk challenge, including how you engage with core research suppliers
How have you engaged with other key players such as auditors, investment consultants, specialist asset managers and regulators?

Commodities

The category can include both active commodity and index approaches
Which strategies does the fund invest in and why?
What were the objectives of the strategy and how has it performed against these?

DC/hybrid strategy

Has your pension implemented a new defined contribution or hybrid pension scheme design? Or does it have an existing strategy that merits an award?
How does the scheme meet members’ and sponsors needs?
Is there a default investment strategy and how has it been designed?
Member participation, communication, costs, risks and volatility are also important

Diversification

This new award covers diversification in the broadest sense, across asset classes, geographies, styles, managers and strategies and is the first institutional pension fund award to focus on diversification
Diversification is one of the key aims of an investment portfolio but is rarely measured on its own terms - in this case through a largely qualitatively assessed award
We are looking for submissions that demonstrate creative intelligence and clarity of thought when implementing projects which lead to improved diversification in or across asset classes, in risk exposures, or through the selection of individual strategies or even managers
In a DC context, has it allowed individuals better access to a diversified strategy?
Have you changed your structure in a way that has helped your fund to diversify, for instance by adding new internal resources?
Lastly, how was the strategy conceived and implemented and how has it contributed to the overall objectives of the fund?

Emerging markets

This award covers emerging market equity and debt investment strategies, including those in frontier markets
In addition to describing your strategy, expectations and implementation, entries should cover any innovative steps taken to enhance returns and control risks
Lessons learned that have affected your approach and process can also be a valuable part of submissions

ESG

This is IPE’s overall award for socially responsible investing and environment/social/governance (ESG) investing
Strategies that apply across the fund are eligible, as are those that within a specific asset class
Voting and engagement policies, investment exclusion frameworks or carbon exposure management are all eligible
May apply to policies developed internally as well as to those applied in conjunction with advisers or asset managers
Were the wishes and interests of members incorporated within the framework?

Infrastructure

For this new award you should present a clear strategy that demonstrates your reasons for allocating to infrastructure
How was the strategy was chosen and implemented?
The award can cover infrastructure debt or equity allocations in domestic or foreign markets, in greenfield and brownfield projects
How has the fund ensured its interests are aligned with those of the manager?
Have you made investments with other similar investors?
How has the allocation contributed to the funds overall return and risk profile?

In-house investment team

Pension fund in-house investment teams and 100% pensions-owned asset managers with no third part clients are eligible to enter
Over what time frame has the team grown and how has it developed?
What is the balance of skills?
How is it structured? How is individual performance measured, monitored and assessed?
What overall results has the team achieved and how successful has it been in meeting the fund’s overall goals?

Innovation

The innovation award is a wide-ranging category but submissions should demonstrate to that you have developed a concept or means of implementing your strategy that has gone beyond what would be expected of your peer group
This is not limited to the investment area, but can cover risk control, management operations, technology, personnel strategies, communication and other areas of running a pension fund
Please outline how your approach or project would help other European pensions funds.

Portfolio construction

What process did you apply to the construction of your investment portfolio
What governance and oversight was involved on the part of the trustees/board?
What asset classes, regions and strategies are involved?
Does your fund break with convention in its approach to portfolio construction?
How has the fund made use of asset managers and what internal resources are deployed?
How are overall and individual portfolios structured and how do they go the long-term objectives such as risk-adjusted returns or matching of liabilities

Real estate

What role does real estate plays in your overall investment strategy?
How was the portfolio constructed and implemented?
Your entry should outline exposure to particular markets or segments through direct and indirect investments and ideally include deals and developments from the past few years

Risk management

What is the fund’s understanding of risk? How is this determined, set and monitored and trustee/board level?
At the level of implementation, what systems and methodologies are applied for the measurement of risk?
How is information used and applied at a practical level?
How is interest rate and inflation risk hedged, and how are LDI strategies applied?
Do LDI strategies involve use of synthetic matching instruments and are they dynamically managed to free up risk budget elsewhere in the portfolio?
How has your fund made use of external providers in the creation of its strategy?
How has risk management, including LDI strategies, benefitted the fund at the overall level?

Smart beta

Additionally known as alternative beta or advanced beta strategies
How has your fund gone about constructing a portfolio of smart beta indices? What criteria were involved for index selection and how were they implemented?
Can your fund prove it has a long-term vision with its smart beta strategy?

Specialist investment managers

How have you used investment managers differently or innovatively to meet your specific investment needs?
Which asset classes, strategies or markets are involved?
How have you worked with asset managers
What is the level of success and how do you measure it?
What could other funds learn from your approach?

Bronze Awards

Alternatives

The judges are keen to see evidence of a long-term approach to alternative investments that focuses on either a carefully selected and balanced range of alternative assets or one key alternative asset class such as hedge funds or private equity
The all-important strategy and thinking behind using alternatives and the contribution each type of asset can bring, as well as how these complement your traditional equity and fixed income portfolios
Of equal importance are the decision methodology, whether external providers or in-house resources are used and the subsequent implementation and monitoring of results.
Entries based on successful practical results can be particularly persuasive

Equities

Equities are a core building block of most investment strategies, so judges need to see a clear focus towards the role that equities play in the scheme in the long term, but also how the short-term issues are tackled shorter term equity volatility and downturns
Areas that might be covered are how equities fit in terms of portfolio construction, active versus passive, risk control, how decisions are made regarding in-house or external management, as well as accounts of successful outcomes in equity plays and strategies

Fixed income

The judges will be impressed by strategies that show how funds have made intelligent use of a range of fixed income assets and strategies
Of particular interest will be entries that demonstrate innovative and forward-thinking approaches that deal with the on-going challenges of low returns, anticipating increasing interest rates, liability matching, hedging strategies or other aspects of this crucial area of pension investing
How has your fund selected and implemented alternative fixed income assets and strategies?

Silver Awards

Best Small European Pension Fund

All pension funds with under €1bn in assets are eligible to enter

Please note that the other silver awards are not open for entries

Gold Awards

Long-term investment strategy

Here, strong evidence will be expected for the investment strategy and its evolution for at least the past five years and/or how you expect it to develop in the next five at least
How and why was the strategy adopted and implemented?
Analysis of the reasons for the outcomes, accompanied by long-term performance figures (as detailed as possible) to support the achievement of pre-set targets is essential.
Your case for this prestigious award would be greatly strengthened by details of any practical lessons learned on the way in overcoming obstacles

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