We are thrilled to announce that we will remain signatories to the UK Stewardship Code after review of our report and assessment against the Code.

Isio’s Stewardship Report

This is Isio’s fifth report on the 2020 UK Stewardship Code principles. In this report, we set out our approach to the six principles applicable to service providers.

Sustainability and active ownership are at our core, guiding our advice to clients to manage sustainability risks, maximise long-term risk-adjusted returns, and capitalise on sustainability opportunities.

In this report, we highlight our focus areas over the year to 31 October 2025, as well as
actions taken since our submission from last year.

27 January 2026: Isio has launched PenUltimate, a new fully bundled service designed to help small to mid-sized DB pension schemes overcome operational bottlenecks and reach buyout more quickly.

Many schemes are now well funded but struggle to complete endgame transactions due to administrative delays, poor data quality and limited broking support. With insurers increasingly selective about which schemes they engage with, operational readiness has become as important as financial strength. PenUltimate was created in direct response to these challenges.

The service brings together administration, actuarial, investment, data and broking expertise into one co-ordinated package, removing the friction that often arises when multiple providers are involved.

Importantly, it enables schemes to change administrator close to buy-in with an endgame-focussed transition. This combines data cleansing, preparation of an insurance-ready benefit specification and prioritisation of GMP equalisation and any other data rectification projects, together with unrivalled, insurance broking expertise for smaller schemes.  Each project will be managed using Ensure, Isio’s digital trustee engagement platform, giving trustees clarity and oversight of the end-to-end process.

The PenUltimate service is primarily aimed at schemes up to £250 million but also offers a specialist pathway, PenUltimate Micro, for well-funded schemes with fewer than 100 members that delivers end-to-end buy-in to buy-out to wind-up, within a two-year timeframe for an all-inclusive fixed fee.

Andrew Goddard, Head of Trustee Services at Isio, said:

“PenUltimate gives small to medium sized schemes a clear route through the final stage of their journey to buyout and wind-up. It tackles the practical barriers that too often hold them back – from slow administration to fragmented advice and inconsistent data.”

“The name reflects its purpose: it’s the second-to-last move that matters – the step that clears the path to the final transition.”

Nick Johnson, Partner, Insurance and Settlement at Isio, commented:

“It’s an exciting time for schemes, with increasing funding levels, competitive insurance pricing and new and emerging alternative solutions. This creates opportunities but also shifts the problem from finding the right solution, to finding the best adviser to deliver it.”

“For too long, smaller schemes have been told to wait their turn while larger deals take priority. The reality is that many are financially ready, but face delays caused by outdated processes or a lack of joined-up support. PenUltimate changes that dynamic by prioritising GMP equalisation and other data projects for schemes at the point of administration transition, getting them data ready ahead of their final move to insurance.”

PenUltimate builds on Isio’s suite of DB end-game solutions, including Enplan, its operational consolidation platform for smaller schemes, and The Pensions Master Plan, which delivers scale efficiencies while retaining existing trustees. It also complements Isio’s DB endgame analysis service, helping schemes assess the best route to buyout or run-on.

Isio has already deployed the PenUltimate model across several smaller schemes, achieving fast insurer engagement and smooth transaction execution. It estimates there are thousands of schemes across the UK that face serious barriers to being considered by insurers in their current state but could rapidly turn this around with the dedicated support that PenUltimate provides.

16 December 2025 : Isio has launched a model portfolio service (MPS) for financial advisers and wealth managers. The new service, which has been available in-house since April 2025, brings Isio’s institutional investment expertise to the IFA and Wealth market for the first time through a range of seven high quality, low cost outsourced investment portfolios.

A response to expensive solutions lacking conviction

Isio has launched its MPS launched in response to a competitor landscape that is cluttered with solutions that are overly diversified with no conviction, priced expensively in a way that drags on performance, and lacking in clarity with an over reliance on active management. Isio will selectively employ active management only in areas where evidence has consistently proven to add value, ensuring clients benefit from the expertise of active managers while limiting underlying management fees and supporting risk adjusted returns.

Isio’s range comprises seven portfolios, including five multi-asset portfolio ranging from ‘Cautious’ to Adventurous’, as well as an equity focused portfolio and an income focused portfolio. Isio will charge an annual management charge of 0.15%, with total costs estimated to be in the region of 0.3% – 0.45%.

Isio’s MPS is now available on a range of adviser platforms, has been risk mapped by Dynamic Planner and Defaqto, and is live on Mabel Insights, FE Analytics and Morningstar.

Powered by institutional expertise and relationships

Isio was founded in early 2020 from the spin out of KPMG’s UK pensions and investment practice. It acquired Premier Pensions in 2022 and Deloitte’s UK pension and investment business in 2023, creating one of the UK’s largest and fastest growing pensions and investment businesses.

Isio leverages its institutional expertise and relationships to provide high quality asset allocation and portfolio construction at pricing generally not found in other MPS ranges. The MPS will benefit from Isio experience advising on over £300bn worth of institutional investor assets, including a third of FTSE100 pension schemes, and the collective expertise of its team of over 160 investment consultants and 37 dedicated research professionals.

Isio provides access to co-created funds, founder share classes and alternative assets not typically found in MPS portfolios. Its solution is powered by a clear, institutional-style investment philosophy focusing on strategic asset allocation to drive long-term returns.

Ambition to add private markets to MPS as Isio’s Wealth business evolves

The launch of Isio’s MPS follows a series of high-calibre appointments designed to support to growth of Isio’s Wealth business. These include:

• Chris Woodhouse, Chair at Isio (and former CEO of Evelyn Partners)
• Andy Tunningley, Head of Wealth at Isio (and former Head of UK Strategic Clients at BlackRock)
• Mike Hanlon, Head of Distribution for Wealth at Isio (and former Head of Business Development at Evelyn Partners)

Isio expects to make further appointments in the coming months as its Wealth business evolves. It also plans to integrate private markets investment solutions into its MPS, leveraging a long track record of investing in private markets which has seen it at the forefront of recent developments of semi-liquid structures.

Ajith Nair, Head of Portfolio Management and Research at Isio said:

“We are excited to launch a model portfolio service which channels our institutional innovation and quality in constructing portfolios to provide access to the best managers and funds at fees leveraging our buying power in the pensions world.

“Too many MPS solutions provide expensive, bland exposure with an overreliance on active managers. We prioritise active management only where it has consistently demonstrated an ability to outperform, and we are looking forward to leveraging our expertise and access to offer a sophisticated, low-cost solution to advisers with the full support of our institutional-grade service.”

Mike Hanlon, Head of Distribution for Wealth at Isio, said:

“We believe our  institutional quality, low-cost model portfolio solutions are a significant addition to the line-up of current offerings in the MPS market. The MPS along with other investment solutions we are developing  have the potential to drive a meaningful mindset shift in the industry, which will we believe will lead to better outcomes for retail investors.

“We want to provide something different by offering extensive coverage across asset classes and funds at great value, backed by our proven history of crafting pioneering and cost-effective investment solutions for large institutional clients. Our ambition is to grow the breadth of investment opportunities within our MPS over time as our Wealth business evolves, aligned to the latest innovations in the institutional marketplace.”

20 November 2025 : Isio, one of the fastest growing UK pensions, investments, employee benefits and wealth advisory businesses, has advised the British Business Bank on the development of its first British Growth Partnership fund. The British Business Bank is establishing the British Growth Partnership to encourage more UK pension fund and other institutional investment into the UK’s fastest growing, most innovative companies. 

The fund is currently seeking to raise hundreds of millions of pounds to invest in some of the highest potential opportunities in the Bank’s venture capital pipeline. It follows the Government’s Mansion House reforms to encourage more Defined Contribution (DC) and Local Government Pension Scheme (LGPS) investment in productive finance assets, including promising, high-growth UK companies which are the bedrock of economic growth.

Isio has supported the British Business Bank in the development of the fund, helping the Bank leverage its strengths and resources to develop a proposition that aligns its expertise and deal pipeline with institutional investors’ needs.

Leading DC pension fund investors, subject to final terms and relevant approvals, and an LGPS pool have already agreed to work with the Bank on the launch of the British Growth Partnership.

Helyne Slade, Director and Head of DC Investment at Isio, said: “This fund is an excellent proposition for institutional investors seeking new and diverse sources of attractive return. Fully aligned to the Government’s productive finance agenda, it enables investors to benefit from some of the most groundbreaking, high-growth business in the UK and, in doing so, support the domestic economy. The British Business Bank has extensive access and expertise, making this an exciting opportunity for a broad range of investors.”

Ajith Nair, Head of Research at Isio, said: “We are very glad to have been part of this project where we have utilised our venture capital knowledge, and our expertise working with investment managers in building new, high-quality propositions for institutional investors, to help the Bank deliver a product which is a true reflection of their expertise and market reach.”

Ian Connatty, Managing Partner at the British Growth Partnership, said: “The British Growth Partnership is expected to connect some of the highest potential opportunities in the Bank’s venture capital pipeline with the UK’s leading institutional investors, leveraging the Bank’s capability and market access to a range of promising high growth UK companies.

Our work with Isio to develop this fund and refine the offer has helped us to create and refine an investment proposition designed to give pension funds efficient access to the UK’s growth economy.”

• Total fiduciary mandates decline and assets remain flat for the first time since 2008, as UK defined benefit market matures
• Buy-ins more than doubled year-on-year, with almost half (48%) of mandate reductions linked to insurance transactions
• Seven in ten (72%) fiduciary management mandates have funding levels above 90%, and over one-third (37%) are fully funded – a 44% increase in three years
• These trends reflect the market’s maturity and fiduciary managers’ strategic importance as they support more schemes to reach their endgame

The UK’s fiduciary management market has entered a new phase of maturity and strategic importance as it supports more defined benefit (“DB”) pension schemes towards their endgame. Isio’s Latest Fiduciary Management Survey reveals that insurance transactions – particularly buy-ins – among schemes run by fiduciary managers have surged in 2025, more than doubling year-on-year to capitalise on improved funding positions and favourable pricing conditions.

Despite this rapid shift toward insurance, overall fiduciary market activity remains robust. Total assets under management (“AUM”) remain broadly the same at £241bn in 2025 (vs £242bn in 2024), while total mandates have decreased by 4% (down from 865 in 2024 to 832 in 2025).  

Over 60 new mandates were awarded over the 12 months to 30 June 2025 – largely through full delegation  – while partial-mandate assets managed increased by 4% (from £65bn up to £68bn). Large Outsourced Chief Investment Officer (“OCIO”) arrangements continued to expand and now account for over half (53%) of total fiduciary assets in the UK defined benefit fiduciary management market, helping offset the impact of scheme exits following insurance transactions.

Endgame momentum defines the FM market

Half of schemes (50%) are targeting insurance-based long-term objectives, reflecting an industry-wide pivot towards risk transfer. The volume of buy-ins has more than doubled (131%) from 13 in 2024 to 30 in 2025, while the number of buyouts remained broadly stable. Almost half (48%) of the reduction in FM mandates over the past year is directly attributable to insurance transactions.

The sharp rise in insurance activity highlights how fiduciary managers are supporting schemes through the transition to endgame – first and foremost in preparing portfolios for transaction.

Alongside this, run-on strategies are gaining momentum as schemes with surpluses choose to retain control of assets and manage them for long-term value. Fiduciary managers are responding with cashflow-driven investment (“CDI”) solutions and flexible growth strategies that balance liquidity with return potential.

Improving funding levels underpin the shift

Almost three-quarters (72%) of FM mandates are now funded above 90%, and over one-third (37%) are fully funded and in surplus on a Technical Provisions basis, representing a 44% increase in fully funded schemes over the past three years.

These improved funding levels have given trustees greater freedom to implement long-term objectives, whether through insurance transactions or run-on strategies. As schemes close deficits and move from recovery to surplus management, fiduciary managers are helping clients translate funding strength into portfolio resilience and readiness for insurer engagement.

Simplifying portfolios and refining strategies

As schemes mature and funding levels improve, fiduciary portfolios are becoming simpler, more liquid and more cost-efficient. On average, equity allocations have increased by around 4% to 23% compared with 2024, the largest equity allocation we have observed in recent years, while allocations to illiquid assets have fallen by approximately 2%. Fiduciary managers continue to favour traditional growth assets supported by derivative strategies that mitigate downside risk without compromising liquidity.

The use of active management has declined (8%) year-on-year, reflecting cost discipline and a reduced appetite for complex, higher-fee approaches. More than half (58%) of mandates now target returns of liabilities +1.5% per annum or below – a sign of a market focused on low-risk portfolios that support insurance or run-on outcomes.

Paula Champion, Partner and Head of Fiduciary Management Oversight at Isio, comments:
“This is the first time we have not seen major fiduciary mandate and asset growth since 2008, reflecting the higher numbers of defined benefit schemes taking advantage of improved funding positions and the greater variety of endgame options available to them. Despite this trend, the fiduciary management market has proven remarkably resilient, through a notable expansion of partial and OCIO mandates.

“Fiduciary managers are playing integral roles supporting defined benefit schemes in their journeys towards their endgame.  Their importance can be seen in the combination of a sharp rise in insurance transactions and flat year-on-year numbers for total fiduciary management assets and a marginal reduction in mandates.

“Fiduciary managers are responding to more schemes accelerating their endgame plans by focusing on insurer-ready portfolios, cost-efficient structures and governance frameworks that deliver clarity and control. They continue to demonstrate true value, helping schemes complete their endgame confidently while safeguarding member outcomes. For many trustees who choose to delegate their investment decision-making, a fiduciary approach can provide a high standard of portfolio management and governance for schemes targeting run-on.”

11 November 2025: Isio has successfully led the broking of bulk purchase annuity buy-ins with Utmost Life and Pensions for the Laurel Pub Pension Scheme and the Yates Group Pension Scheme (the ‘Schemes’). Both Schemes are sponsored by Stonegate Pub Company Limited, the UK’s largest pub group.

The £62 million transactions will insure the defined benefit pension liabilities for all the Schemes’ members, removing investment and longevity risk from the Schemes, and giving the 650 members improved security. The transactions were run by a joint working group of the Schemes’ Trustees and Stonegate Pub Company Limited, supported by their respective advisors including Isio (insurance broking) and Eversheds Sutherland LLP (legal).

Laura Parker, Senior Insurance Manager at Isio, said: ‘Presenting both Schemes to insurers at the same time led to highly competitive pricing, along with some interesting challenges to navigate. Dovetailing the data, benefit and illiquid asset considerations across the two Schemes led to an efficient transaction, and optimal value for money for the Schemes.’  

Andrew Campbell, Chair of Trustees of both Schemes from BESTrustees, commented: ‘Under Isio’s guidance, and with the support of the Company, we are pleased to have achieved the two transactions that exceed the objectives we set. It was a pleasure working with Utmost who impressed us with their flexibility. Having been involved with the Laurel Scheme since it was set up in 2001, I am particularly pleased that we have been able to secure its members’ benefits for the future.’

Gary Needham, Head of BPA Business Development at Utmost, said: “Utmost was pleased to secure members’ benefits for the two Schemes, further demonstrating our support for smaller and mid-sized pension schemes.  Completing the transactions was made easier through continuous positive collaboration with the Trustee and their advisers, and with the support of our external legal advisers CMS.”

3 November 2025, London: Isio, one of the UK’s fastest growing pensions, benefits, investment, and wealth advisory businesses, has appointed Naomi L’Estrange as a Managing Director.

In her role, Naomi will work alongside senior team members to strengthen relationships with professional trustees and other industry stakeholders. She will also contribute to the firm’s work across ESG and talent development, reinforcing Isio’s commitment to high standards of governance and responsible investment.

Naomi joins with over two decades of experience in pensions and trustee services, including leadership roles with 20-20 Trustees and Vidett. Earlier in her career, she trained at Herbert Smith Freehills, held a senior role at the Pension Protection Fund and was seconded to government, where she helped design the moral hazard powers in the 2004 Pensions Act. A respected industry leader, Naomi was named Pensions Woman of the Year in 2022 in recognition of her leadership and contribution to the sector.

Julie Gray, Partner and Head of Strategic Relationships at Isio, said: “We’re delighted to welcome Naomi to the team. Her deep industry experience will be invaluable as we continue to broaden our relationships with professional trustees and enhance the support we provide to clients. Her track record of innovation and strategic thinking across the pensions landscape will be a real asset as we continue to evolve our propositions. Naomi’s appointment strengthens our senior leadership team at an important time for the business.”

Naomi L’Estrange, Managing Director at Isio, commented: “I’m thrilled to be joining Isio, having worked with them frequently as a client in the past. They have an exceptional reputation for expertise and collaboration, challenging our industry to think and do things differently. Their inclusive and energetic culture, and committed and talented people, were a key part of me choosing Isio. I look forward to working closely with clients and the senior team to build on Isio’s successes to date and bring my own diverse experiences to continue their evolution.”