NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTIONCHAIR’S STATEMENT FOR YEAR ENDING 31 MARCH 2023

SEPTEMBER 2023

STRICTLY PRIVATE AND CONFIDENTIAL
Copyright © 2023 Nomura
This document is the sole property of Nomura. No part of this document may be reproduced in any form or by any means – electronic, mechanical, photocopying, recording orotherwise – without the prior written permission of Nomura.

NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Introduction
This Chair’s Statement relates solely to the Money Purchase Section (Defined Contribution (“DC”)) of the Nomura
London Retirement Benefits Plan and additional voluntary contributions paid by Defined Benefit Members. This
document is not relevant to members who only have Defined Benefits (Final Salary Section Members) in the Nomura
London Retirement Benefit Plan.
You have built up valuable benefits in the Nomura London Retirement Benefits Scheme (Money Purchase Section)
so it’s important to know that the Plan is well run and your benefits are being looked after. Each year the Trustee
produces a Chair’s Statement which sets out important information about the money purchase benefits in the Plan(including additional voluntary contribution ‘AVC’ savings) and demonstrates how the Plan has met its legal
requirements in a number of key areas. This Chair’s Statement covers the Plan year 1 April 2022 to 31 March 2023.
If you have any questions about this Statement or would like a printed copy, please contact the Scheme Secretary
at jonathan.summerlin@isio.com or by calling 0161 518 4644.
This statement sets out how the Plan has complied with the DC governance requirements introduced in April 2015
under Regulation 23 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 the“Regulations”.
In the preparation of this Statement, I have gathered information from the following organisations:˗˗

Isio Group Limited* (“Isio”) – The Plan’s Administrator
Lane Clarke and Peacock LLP (“LCP”) – The Plan’s Investment Consultant* Members will recognise the “Premier” brand as the Plan’s administrator. “Premier”, which is Premier Pensions
Management Limited, became part of the Isio Group of companies on 31 January 2022. The Plan administrator isswitching its branding from “Premier” to “Isio” in October 2023. In this document, we refer to the Plan’s administrator
as “Isio”.
I have also considered the Pensions Regulator’s ‘A quick guide to the Chair’s Statement’, published in March 2022
and updated in August 2023.
A copy of the Plan’s latest Statement of Investment Principles for the Money Purchase Section is attached to thisStatement (see Appendix A).
Throughout this document I refer to ‘pension pot’. The Pension Pot means the value of the Member Account invested
in the Money Purchase Section of the Plan.

1

Core Financial Transactions

The Trustee is required to report on the processes and controls in place in relation to “core financial transactions”.
The law specifies that these include the following:

Investing contributions into the Plan (not applicable as the Plan is closed)Transferring assets related to members into or out of the PlanTransferring assets between different investments within the Plan; andMaking payments from the Plan to, or on behalf of members.

Under Regulation 24 of the Regulations, the Trustee must ensure that these important financial transactions areprocessed promptly and accurately. In practice the Trustee delegates responsibility for this to the Plan administrator,
Isio.

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NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Isio provides regular reports to the Trustee to allow it to assess how quickly and effectively the core financialtransactions are completed. This includes a quarterly unit reconciliation of the total unit holdings allocated tomembers compared to the total holdings invested in each investment fund. This is reported each quarter through a
Stewardship Report. The Trustee bank account is monitored daily and a bank reconciliation is carried out every
month. All investment and banking transactions over £75,000 are checked by two members of the Isio team.
Any mistakes or delays are investigated thoroughly and action is taken to rectify things as quickly as possible. The
administration services provided by Isio are audited by an independent firm as part of the annual audit of the Annual
Report and Accounts. The Trustee receives a copy of the Isio AAF 01/06 Assurance report, which describes andgives assurance on the control environment and internal controls operating for the pension administration service
and related information technology controls. There were no exceptions reported within the audit in relation to the
Money Purchase Section. The Trustee is confident that the processes and controls in place with the Administrator
are robust and will ensure that the financial transactions, which are important to members, are dealt with properly
and accurately. During the year under review there was one instance of late processing of a transfer out of a memberof the Defined Benefit Section who had Additional Voluntary Contributions invested in the Money Purchase section.
There were no further issues identified with the processing of financial transactions for the Money Purchase Section.
2

Scheme Administration/Financial Transactions

A Service Level Agreement (SLA) is in place with Isio. The agreed timescales for the key transactions are as follows:
Transaction

SLA

Processing disinvestments

2 days from request

Processing Retirements

Within 5 days of receiving required member documentation

Processing Investment Switches

3 days from request

Processing Transfers-Out

5 days from date member confirms that they wish to transfer

Issuing Annual Benefit Statements

Within 6 weeks of statement date/resolution of data queries

The overall service target is to complete 95% of all tasks within the above timescales.
On a quarterly basis, Isio provides the Trustee with a Stewardship Report, which includes details of performanceagainst the SLA. The Trustee reviews these reports to monitor that expected service levels are being achieved.
The results for the 2022/23 Plan year, for both the Money Purchase Section and Final Salary Section combined,
were as follows:
Quarter

Items of post

Performance against target

Q2 2022761

99%

Q3 2022763

99%

Q4 2022714

99%

Q1 2023933

98%

Members are encouraged to give feedback on their level of satisfaction when they are provided with a service fromthe administrator and their feedback is included within the quarterly Stewardship Report. The Trustee is satisfied
that Isio is performing core financial transactions promptly and accurately.

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NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

3.

Investment Arrangements

This Plan is not used as a Qualifying Scheme for auto-enrolment.
Many DC pension schemes are required by law to have an investment default arrangement in place. This is anarrangement whereby contributions paid in respect of a member are automatically invested in an investment
arrangement chosen by the Trustee (the ‘default’ arrangement) if the member does not make a positive election in
respect of the investment of their contributions. The Money Purchase Section of this Plan closed to new entrants
and future accrual with effect from 31 October 2005 and therefore no new contributions were paid after this date.
Therefore, the Plan is not required to have a default strategy.
A lifestyle strategy is not an investment fund but a strategy that automatically switches members’ funds from higher
risk to lower risk asset classes through their working life without any action required from the member. The Nomura
London Retirement Benefits Plan does not offer a Lifestyle strategy. This means all members are responsible forchoosing how their pension pot is invested throughout the life of the pension and because there has never been adefault strategy the members have made an active decision to choose the investment funds in which they are
invested. Members have the option of investing in a choice of actively and passively managed investment funds,
which give reasonable access to the basic asset classes and have different risk/ return profiles. A copy of the DefinedContribution Statement of Investment Principles is attached.
4.

Charges and Transaction Costs

The level of charges and transaction costs applied by the investment managers to the Plan’s investment funds during
the year to 31 March 2023 were as shown in the table below. The investment manager costs are deducted from theunderlying investments and therefore this cost is paid by the member, with the exception of the LGIM Global Equity
Fund where the investment manager charges are met by the Plan:

Passive (P)or Active(A)AnnualManagement
Charge (AMC)(% pa)On Going
Charge Figures(OCF)(% pa)

Transaction
costs (%)

Schroders Managed Balanced

A

0.500

0.62

0.13

Schroders Global Equity

A

0.500

0.50

0.13

Schroders Global Core Equity

A

0.270

0.27

0.20

LGIM Cash

A

0.125

0.12

0.04

LGIM UK Equity

P

0.100

0.18

0.03

LGIM Global Equity *

P

0.170

0.22

0.06

LGIM UK Bonds

A

0.225

0.24

0.01

LGIM Index-Linked Gilts

P

0.100

0.10

0.21

* Note: The AMC charges (of 0.17% pa) for the LGIM Global Equity Fund are met by the Plan. The charges andtransaction costs have been supplied by the Investment Consultant, LCP. Legal and General and Schroders havereported costs using the CTI template. LGIM is Legal and General Investment Management.
In addition to the charges levied by the investment managers, the members pay a flat fee of £25 per annum which ispaid via the disinvestment of units they hold in the underlying investments. Prior to September 2022 the flat fee was3Statement available on: https://www.nomuraholdings.com/company/group/europe/

NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

collected on a quarterly basis at the rate of £6.25 per quarter. The flat fee was deducted by all Money Purchasemembers up until September 2022 (the last quarterly deduction was 1 September 2022).
Following last year’s Value for Money Assessment the Trustee agreed to remove the flat fee for all members with apension pot of £10,000 or less due to the disproportionate impact it had on those with small holdings. In addition,
the Trustee agreed that the flat fee would be collected annually in arrears rather than quarterly. The first annual
deduction will be made effective 1 September 2023. The flat fee is not intended to cover the full cost of running thePlan but is a contribution towards the total running costs of the Money Purchase Section of the Plan. The runningcosts include the cost of communications, administration services, professional adviser fees and support services atretirement and other adviser costs. The other costs of running and administering the Money Purchase Section are
paid from the Plan.
The distribution of costs and charges between the member and the Plan is shown below:

Investment Manager Fees,
except for LGIM Global Equity
Fund
Investment Manger Fees for
LGIM Global Equity fundService and Administration
GovernanceSupport at Retirement
Communications

MemberCost met by the Plan
Cost met by the Plan with a £25
per annum contribution fromeach member with a pension
pot of over £10,000 (effectivefrom October 2022)

The annualised return for each of the investment funds net of the investment management fees and the flat
administration charge of £25.00 per annum (where appropriate) are shown in Appendix I for an assumed pension
pot of £1,000, £5,000, £10,000 and £50,000. Whilst the Trustee has taken account of statutory guidance when
preparing this section of the Statement, the returns are shown over a 1 year, 3 year and 5-year time period only as
this is consistent with the information provided in previous Chair’s Statements and is information that is readily
available. Providing illustrations over a longer time period would incur additional costs and the Trustee does notbelieve that these would be helpful for members.
5.

Impact of charges and transaction costs

Disclosure Regulations require the Trustee to illustrate the potential impact of charges and transaction costs on thevalue of members’ pension pots (Members’ Accounts). To do this, we must make a number of assumptions. The
Trustee has taken account of statutory guidance when preparing this section of the Statement. For this Chair’s
Statement, the assumptions are as follows:1.

Projected pension pot values are shown in today's terms, and do not need to be reduced further for the effect of
future inflation.

2.

The starting pot size is assumed to be £26,099 before allowing for inflation.

3.

Inflation is assumed to be 2.5% each year.

4.

As the Scheme has no active members, no contributions are paid in the first or subsequent years of theillustration.

5.

Values shown are estimates and not guaranteed.

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NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

6.

The projected growth rates for each fund are as follows:

Schroders Managed Balanced
Schroders Global Equity
Schroders Global Core Equity
LGIM Cash
LGIM UK Equity
LGIM Global Equity
LGIM UK Bonds
LGIM Index-Linked Gilts

7.

Before expenses
6.42% pa
6.87% pa
6.88% pa
4.25% pa
6.90% pa
6.90% pa
4.40% pa
3.90% pa

After Expenses
5.92% pa
6.37% pa
6.61% pa
4.13% pa
6.80% pa
6.90% pa
4.18% pa
3.80% pa

The above returns are illustrative only and typically higher returns are achieved by taking more risk. Eachindividual should assess their own risk appetite when selecting funds and, if necessary, seek their own
Independent Financial Advice.

Based on the assumptions detailed above, the results are as follows:
Projected pension pot at 60 in today’s money
Youngest member (age 38)
Average age member (age 53)
Before charges
After all charges
Before charges
After all charges
and costs are
and costs are
deducteddeducted
Schroders Managed Balanced£59,584£53,096£33,938£32,662
Schroders Global Equity£65,367£58,301£34,954£33,646
Schroders Global Core Equity£65,546£61,319£34,984£34,190
LGIM Cash£37,876£36,385£29,382£28,970
LGIM UK Equity£65,797£63,761£35,026£34,617
LGIM Global Equity£65,797£65,094£35,026£34,845
LGIM UK Bonds£39,094£36,774£29,679£29,068
LGIM Index-Linked Gilts£35,175£33,952£28,699£28,341
Fund

6.

Assessing Value for Members (“VFM”)

The Trustee is required to assess the extent to which member borne charges and transaction costs represent goodvalue for members, often referred to as a Value for Money Assessment. It is difficult to give a precise legal definitionof “good value”, but in making their assessment of Value for Money the Trustee has given consideration to thePensions Regulator’s suggestion of value for money definition; “that the combination of costs and the quality of what
is provided in return for those costs is appropriate for the scheme membership as a whole, when compared to otheroptions available in the market”. The Value for Member Framework document is appended to this Statement.
When considering whether the benefits and services provided to members in exchange for the member borne costs
and charges, are of a good quality, the Trustee considers the following core elements: Investment, Governance,
Communications, Support at Retirement and Service & Administration. The Trustee has assessed the extent towhich the charges and costs represent good value for money for members. Although, the Trustee appreciates that
Value for Money can mean different things to different members, the Trustee believes that low cost does notnecessarily mean better value.
Following the results of the Value for Money Assessment undertaken last year, the Trustee decided to remove theflat administration charge for members with a pension pot of less than £10,000. The flat administration fee formembers with pension pots of more than £10,000 will remain at a flat rate of £25 per annum but will be collectedannually in arrears rather than on a quarterly basis. This change came into effect during the period covered by thisChair’s Statement.
As investment returns net of charges have such a major impact on member outcomes, the Trustee pays particularattention in their VFM assessment to the investment return delivered to members and the member charges. In
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Chair’s Statement for the Year Ending 31 March 2023

addition to the charges levied by the Investment Managers, members with a pension pot of over £10,000 pay a flat
administration charge of £25 per annum, payable annually in arrears.
The Trustee received a written report from their investment advisers LCP setting out their assessment of the valuethat members receive for the fees that they pay. The report concluded that the average member receives “good”
value for money with regards to charges they pay within the Plan for the investment options available. LCP did raisewith the Trustee that the fees for the Balanced Managed Fund with Schroders are at the higher end of the spectrum
when compared to other funds within this asset class. As a consequence, the Trustee requested and have secured
an effective reduction in the annual management charge for this fund, from 0.5% pa to 0.4% pa. This will be provided
via rebate to members and the change will come into effect after the period covered by this Chair’s Statement.
For the year under review the Trustee has concluded that, overall, the Plan delivers a high-quality pension schemeand service with excellent standards of governance and administration.
7.

Trustee Knowledge and Understanding

The requirements under Section 248 of the Pensions Act 2004 (requirement for knowledge and understanding) havebeen met during the Plan year by:

Regular studying of pension related articles in the pensions press and training within Trustee meetings andexternal courses. Regular updates are received on a monthly basis on topical issues affecting occupational
pension schemes. Relevant issues requiring the Trustee’s specific attention are addressed either at a
meeting or by email circulation.



The Trustee’s advisers provide training and advice as required. The Scheme Consultant and Scheme
Actuary attend every Trustee meeting. The investment consultant attends the annual Investment SubCommittee meeting and other Trustee meetings periodically, as required. The legal advisers are invited toattend the meetings periodically.



There is a formal induction process in place for new Trustee Directors who are invited to attend a bespoke
introductory training session with their professional adviser. This covers a range of topics including pension
and trust law, funding and investment.



The combined knowledge and understanding of the Trustee Directors, together with the advice that isavailable to them, enables them to properly exercise their functions as Trustee. As at 31 March 2023 theTrustee Board included three long standing Directors who have each served the Plan for over ten years. The
Trustee holds regular meetings with professional advisers to keep abreast of current issues and discuss how
they may impact the Plan or its members.

All of the Trustee Directors are familiar and have access to the current Plan governing documentation,
including the Trust Deed & Rules, the Statement of Investment Principles (SIP) and key policies andprocedures. In particular, the Trustee refers to the Trust Deed & Rules as part of considering and deciding
to make any changes to the Plan and, where relevant, deciding on individual member cases. In addition, the
SIP is formally reviewed at least every three years and as part of making any change to the Plan’sinvestments.



Trustee training is formally recorded in a Trustee Training Log.

In early 2019 the Trustee Board considered the results of a Trustee Effectiveness Survey to evaluate the performanceand effectiveness of the Board as a whole. The Trustee expects to take a further review during the coming year to
identify if there are any areas that require further consideration or action.
The Trustee has previously assessed the extent to which the Defined Contribution Section of the Plan complies with
the Pension Regulator Code of Practice No. 13 Governance and Administration of Occupational Trust Based
Schemes providing Money Purchase Benefits (‘Code’). The Trustee is pleased to report that the standards havebeen met as set out in the Code or the Trustee has an equivalent approach that they have taken to comply with theunderlying law.
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MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

The Trustee also has in place a Risk Register which is reviewed regularly.

R KingChair of the Trustee
Signed for and on behalf of the Trustee of the Nomura London Retirement Benefits Plan
insert date 2023
24/10/2023

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NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Nomura London Retirement Benefits Plan
Money Purchase Section
Value for Money (VFM) Framework

There are many ways a trustee might assess value for money and evaluate benefits and costs against other schemes.
Any evaluation, whether in isolation or when compared to peers, will inevitably involve some subjective judgement.
The Pensions Regulator website states that ‘a scheme offers value for money where the costs and charges deductedfrom members provide good value in relation to the benefits and services they receive, when compared to otheroptions available in the market. For instance, if your scheme has higher costs and charges, it should offer improved
benefits and services. There is no common definition of what represents value for money. You need to understandwhat your members will value most when assessing the overall value of the Plan and its individual components.’
The Trustee have agreed a Framework to consider if the Plan is offering value for money. The Framework considers
the following core elements, Investment, Governance, Communications, Support at Retirement, Costs and Charges
and Service & Administration.

Assessment
Investments - choices and returns and costs
This includes investment fund choices, investment returns and investment charges and costs. ‘Choices’ and ‘returns’ mean therange of funds available and whether the funds have performed as expected. ‘Charges’ and ‘costs’ mean the charges the Plan
members pay in terms of investment manager charges.
Evidence
Have the investment
funds offered performed
against their objectives
in both the last Plan
year and over the longterm?

The Trustee offers a rangeof actively and passively
managed funds with Legaland General and Schroders.

The Trustee receives annual
updates from theirinvestment adviser on theperformance of the DC
funds.
The Investment SubCommittee reviewed theperformance of all the
Defined Contribution Funds
offered at the annual
Investment Sub Committee
Meeting.

Assessment

Possible future
Actions

Over the period covered by this Chair’s
Statement, the three passively managed funds
and the cash fund have all performed broadly
in line with benchmarks, as would be
expected.
The Schroders Global Equity and Global Core
Equity funds, as well as the LGIM UK Bondfund, all of which are actively managed, haveoutperformed their benchmarks.
The Schroders Managed Balanced
underperformed its benchmark by 2.5% over
the year. This underperformance was driven
more by stock selection than overall asset
allocation and Schroders remain confident that
performance can be delivered over the longer
term. Over a 3-year period, the fund has
broadly met its benchmark, and achieved an
acceptable return in absolute terms (10.7%
pa).

Schroders attended themeeting to present the8Statement available on: https://www.nomuraholdings.com/company/group/europe/

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Chair’s Statement for the Year Ending 31 March 2023

performance of their funds
and to provide their views onmarket outlook.
The Trustee‘s assessmentof value for money included
a review of the performanceof the Plan’s investment
funds (net of investment
management charges) in thecontext of their investment
objectives.

The Trustee is satisfied, overall, with theinvestment funds offered and the performanceof the Funds.
The ISC received a presentation from
Schroders on the performance and outlook foreach of the three Schroders active funds. The
Trustee was pleased with the quality of
information provided.
The Trustee will continue to keep the
performance of the Funds under review.

Fund investment
performance information isprovided in Appendix 1.

How do the investment
manager charges for the
DC options compare
against other DC
schemes?

Evidence

Assessment

Section 4 of the Chair’s
Statement includes detailsof the investment manager
costs.

Overall, the investment management fees for
the Plan are generally competitive whencompared to its peer group.

Legal and General(“LGIM”) and Schroders
have reported costs using
the CTI template.
The AMCs for all of the DC
funds are below 0.75%(charge cap). Although the
charge cap does not apply
to this Plan the Trustee
considers it is a goodbenchmark for thecomparison.
The AMCs do not include
the flat administration fee of£25 per annum that applies
to pension pots over
£10,000.

Possible Future
Actions

Fees for most of the Plan’s passive funds arenear or below median compared to their peergroup.
Fees for majority of the Plan’s active funds(Schroders Global Equity Fund, Schroders
Global Core Equity Fund and LGIM UK
Bonds) are deemed to be very competitive.
The fees for the Balanced Managed Fund with
Schroders are at the higher end of thespectrum when compared to other funds
within this asset class. As a consequence,
the Trustee requested and have secured aneffective reduction in the annual management
charge for this fund, from 0.5% pa to 0.4% pa.
This will be provided via rebate to members
and the change will come into effect after theperiod covered by this Chair’s Statement.

LCP, the Trustee investment
advisers, benchmarked thePlan’s fees (before theadministration fee isapplied) against other DC
schemes in their peer groupand presented the findings
in a report to the Trustee.

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When was the last
review of the current
investment options andwhat were theconclusions of thisreview?

Evidence

Assessment

The Trustee considered
the range of investment
options available tomembers during thereview period.

The Trustee is satisfied that the Plan offers
members a range of passive and active funds.
The Trustee notes that compared to theinvestment fund range offered by otherfinancial services firms the Plan does offer alower number of options than the averagescheme. However, most of the financial
services pension schemes in the analysis aremuch larger. The Trustee is satisfied that thefund range offered gives reasonable access tothe basic asset classes and is wide enough toreflect a range of risk/return requirements formembers, without there being too many funds
which could cause confusion.

Potential Future
Actions
The fund range
choice willcontinue to beconsidered.
The Trustee willcontinue toengage withmembers to see
if the members
would like further
fund options to
be considered.

The Trustee has not received any requests
from the members of the Plan for additional
funds to be added.
The Trustee notes that many schemes of asimilar size offer members the option of
specialist asset classes such as an Ethical
Fund or Sharia Fund. The Trustee has notreceived any specific requests from themembers for specialist funds and the numberof funds switches in the Plan are low. The
Trustee has invited comments from memberson their preference for an ethical fund or
Sharia Compliant fund previously. The
Trustee has not received any requests frommembers so no further action is being taken.
The Trustee does not offer an investment
default option. The Trustee believes their role
is to ensure the DC funds are performing inline with expectations. They would need agood reason to unilaterally change or remove
an investment fund currently offered as it may
override a decision made by a member on an
individual basis.

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Chair’s Statement for the Year Ending 31 March 2023

Communications
This includes how easy it is for Plan members to contact the Administrator and how clear, timely and appropriate thecommunications are:Is it clear who themembers should contact
in the event of a queryand how easy it is forthem to make contact?

Evidence

Assessment

There is a designated Administrator for
the Plan with a designated email
address and phone number. The
contact details are provided on every
communication to members.

The Trustee is satisfied that thecommunications provided tomembers are timely, helpful andengaging.

Member feedback is provided to theTrustee in the quarterly Stewardship
Report.
Do members receive
regular communications
from the Trustee?

The following communication is sent tomembers:

Positive feedback has been
received from members.
The contact details for the key
contact for information is clear
on all communications.

Possible Future
Actions
The Trustee iskeen to explore if
there is a costeffective way toprovide enhanced
on-line access andfunctionality formembers of the
Money Purchase
Section of thePlan.

˗ Annual Benefit Statement andStatutory Money Purchase Illustration
˗ Annual DC Newsletter˗ Members within 10 years of NRD
receive a letter encouraging them toreview their investment options as
they approach retirement.

Is communication
provided to members
engaging, informative
and accessible?

The administration communications carrythe ‘Crystal’ watermark. This is a seal of
approval from the Plain English
Campaign.
The Annual Newsletter is designed by apension communication specialist.
All Announcements are reviewed by theTrustee Directors before being issued.
Members have access to ‘’Your Premier”(soon to be rebranded “Your Isio”), an
easily accessible website where
members can request a quotation of theirbenefits, update their personal details orcomplete an investment switch form,
amongst other things.

Is communication fair,
clear and not
misleading?

Administration communications carry the‘Crystal’ watermark. This is a seal of
approval from the Plain English
Campaign.

Does communication
include relevant
messages about
investments i.e., risk
warning in preretirement
communication about

A pre-retirement letter is issued tomembers within 10 years of retirement toencourage them to review theirinvestment choices as they approachretirement and in light of ‘Freedom andChoice’ in pensions.

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the risks of remaining inequity type funds close
to retirement and out ofmarket warning on
switch requests?

The Switch Request form has been
updated to include an out of market
warning.
The Annual Statement clearly states the
Administration fee deducted during theyear and makes it clear that this does notinclude the investment manager
charges.

Does Communication
Comply with therequirements set out in
the Occupational andPersonal Pension
Schemes (Disclosure ofInformation)(Amendment)
Regulations 2015?

Members are issued with a retirement
quotation 6 months prior to retirement
and this includes a ‘Retirement Pack Your Options’ leaflet. This leaflet covers
all the DC options available along withdetails of the ‘Risks and Considerations’that members should take into accountwhen making decisions about theirretirement.

From 6 April 2015 where
the disclosure
regulations apply, youmust automatically tellaffected members about
how to access Pension
Wise (now part of the
Money Helper service)as part of theinformation you send out
at least four months
before the member
reaches their retirement
date or at other times if
the member asks for
information on taking
flexible benefits.

The ‘Your Pension: your choices’ booklet
produced by MoneyHelper is issued withany quotes requested by members.

12Statement available on: https://www.nomuraholdings.com/company/group/europe/

NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Administration & Service
This includes the range and quality of services provided to Plan members.

Are member queries/requests
dealt with promptly andaccurately?

Evidence

Assessment

The Trustee has agreed Service
Level Targets with the administrator,
Isio. Isio report on the performanceagainst the Service Level Agreement(SLA) within the Quarterly
Stewardship Reports and any itemsof work processed outside of theagreed SLA are explained within thereport. The Administrator has
achieved above 95% SLA, measured
on a quarterly basis, during the period
under review. Member feedback issought and detailed within thequarterly report.

The Trustee is notified ofany errors in the quarterly
administration report.
During the period underreview no errors werebrought to the Trustee’s
attention.

Possible
Future Actions

The Trustee is confident thatmember requests are
responded to accurately andon time and the information
provided is clear and easy tounderstand.

Isio is an award-winningadministrator.
Are core financialtransactions recorded
accurately and on time?
- Transferring assets related
to members into or out of the
Plan.
-Transferring assets between
different investments within
the Plan.
-Making payments from thePlan to or on behalf ofmembers.

The Trustee has delegated the
responsibility of administration andfinancial transactions to Isio. Isio hasagreed Service Level targets for key
transactions with the Trustee andcompliance with these targets isreported in the quarterly Stewardship
Report. Any items that are processed
outside of the SLA are reported on
separately and investigated. Whereavailable, Isio uses Straight ThroughProcessing (STP) for investment
switches to limit the room for humanerror. Investment switch requests
carry an SLA of 3 days.
The Trustee produces annual reportand accounts on a yearly basis which
are independently audited. On
completion of the audit theindependent auditor produces aformal report setting out their findings.
The Trustee receives a copy of the
Isio AAF 01/06 Assurance reportwhich describes and gives assurance
on the control environment andinternal controls operating for thepension administration service andrelated information technology
controls.

During the year underreview there was one
instance of late processingof a transfer out of amember of the Defined
Benefit Section who had
Additional Voluntary
Contributions invested in the
Money Purchase section.
This was investigated andprocesses and controls
have been revised as aconsequence.
There were no further
issues identified with theprocessing of financialtransactions for the Money
Purchase Section over thereview period.
Overall, the Trustee isconfident that the processes
and controls in place withthe administrator are robust
and that the financialtransactions that areimportant to members aredealt with properly.

13Statement available on: https://www.nomuraholdings.com/company/group/europe/

NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Support at Retirement
This includes the range of support services provided to members to assist them in making decisions prior to retirement and at
the decumulation stage. This should give appropriate outcomes for the members using them.

Does the Plan offer
advice/support on the varietyof options available tomembers in light of Pension
Freedoms and how does thePlan contribute to the cost of
this service?

Evidence

Assessment

The Trustee offers member’s
access to a website(Gateway2Retirement-G2R),
which aims to help members
understand the options
available at retirement.
Members also have accessto a telephone helpline.
There is no additional costlevied on members for thisservice

The Trustee is confident thatthey are offering members
extensive support at
retirement. Prior to
retirement the G2R website
gives clear and simple details
about planning for retirement.

Possible Future
Actions

In addition, members
approaching retirement are
offered an ‘at retirement
service’ provided by an FCA
regulated independent
financial advisor from
Premier Wealth Planning.
The service assists members
in understanding andchoosing the right option tomeet their needs. The cost of
the initial advice is met by theTrustee.
Further details on thecommunications issued tomembers approachingretirement is given in theCommunication section
above.

14
Statement available on: https://www.nomuraholdings.com/company/group/europe/

NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

GovernanceGood governance ensures there is proper oversight, control and review of all the services. This covers the Trustee Board
activities and the external advice provided to the Trustee. Effective governance is more likely to result in good outcomes formembers.
Evidence

Assessment

Potential Future
Actions

Are the Trustee Adviser’s
formally appointed

The Trustee has formallyappointed professional
advisers to support them inproviding high levels ofgovernance.

Are the advisers regularly
reviewed or appraised

The advisers regularly attend
Trustee meetings and theservice levels are reviewed
through quarterly stewardshipand performance reports.

The Trustee is confident thatrobust Plan governanceprocesses are in place andthat the processes areactively monitored to ensure
they remain effective.
Processes and controls are inplace to monitor service
levels and appropriate action
is taken in the case of any
concerns.

Does the Plan governanceframework allow for clear
accountabilities andresponsibilities?

The Trustee has a formal
Business Plan which details
the key tasks to beundertaken during each Plan
year setting out the
responsibilities. The
adviser’s service agreements
set out their responsibilities.

It is anticipated that thePensions Regulator will
shortly release its new
General Code. Oncereleased, the Trustee
will review its
governance processes
to ensure compliancewith this Code. The
Trustee is alreadyworking with Isio toprepare for thisrelease/review.

What documents does theTrustee use to assist inbuilding an effective
governance framework? i.e.,budget planner to monitor
costs

The Trustee has the following
Governance documents:
Trustee Induction Policy for
new trustees.
Annual Business Plan.
Annual Budget Planner;
Risk Register.
Internal Controls document.
DC Compliance Register.

15
Statement available on: https://www.nomuraholdings.com/company/group/europe/

NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Total Member Costs (including both the investment manager costs and the flat admin. fee)
The costs of running and administering the Plan are shared between the member and the Plan. Members pay the majority of
the investment manager charges (implicit charges) and a £25 per annum flat administration fee (where the member’s pot is over
£10,000) which is deducted from their Pension Pot. The remaining costs of running the Plan are met from the Trust assets as
and when they fall due.

Have the total
costs and charges
been comparedagainst otheroptions available inthe market place?

What is the
distribution of costs
and charges
between the Plan
(employer) and themember?

Evidence

Assessment

The Trustee, with the help of the investment
adviser LCP, has benchmarked theinvestment manager charges.

Overall, the investment
management fees for the Plan
are generally competitive whencompared to its peer group.

Details on the investment manager charges
are given under the Investment section
above.

The total costs of running and administering
the Money Purchase Section are
predominantly paid from the Plan. The flat
administration charge that applies to memberswith a pension pot of over £10,000 is acontribution towards the total costs. The
running costs include the cost ofcommunications, administration services,
professional adviser fees and support services
at retirement and other adviser costs.

Potential Future
Actions

The fees for the Balanced
Managed Fund with
Schroders are at the higher
end of the spectrum whencompared to other funds
within this asset class. As aconsequence, the Trustee
requested and have secured
an effective reduction in theannual management charge
for this fund, from 0.5% pa to
0.4% pa. This will be
provided via rebate tomembers and the change will
come into effect after theperiod covered by this Chair’s
Statement.

The Trustee is satisfied that the
distribution of costs and charges
between the employer and themember is fair.

16
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NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Conclusion
The Trustee assessment of value for money is based on the considerations as described at the beginning of thisdocument.
Based on this assessment the Trustee believes that The Nomura London Retirement Benefits Plan Money Purchase
Section delivers a high -quality pension plan and service with excellent standards of governance and administration.
As investment returns net of charges have such a major impact on member outcomes, the Trustee pays particularattention in their VFM assessment to the investment return delivered to members. The Trustee is satisfied that theinvestment fund charges are broadly competitive for the types of funds available to members. On this basis theTrustee has concluded that during the year under review the Plan offered good value for money overall.

September 2023

17
Statement available on: https://www.nomuraholdings.com/company/group/europe/

NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Appendix 1
Investment Options Net Returns after deduction of Investment Manager Cost and Administration
Charges for the period to 31 March 2023.
The following tables illustrate the annualised net returns for each of the investment options based on an assumed
initial pension pot. The illustration shows the net return after deduction of the investment manager costs (thisinformation has been supplied by the investment managers using the CTI template) and also the net return after
deduction of both the investment manager costs and the flat administration charge of £25 per annum where thisapplies. The annual management charges for the LGIM Global Equity Fund are met by the Trust.

Annualised Net Returns for an initial pension pot of £1,000

Investment Option

SchrodersManaged Balanced
Schroders Global
EquitySchroders Global
Core Equity
LGIM Global Equity
LGIM UK Equity
LGIM UK Bonds
LGIM Index-Linked
Gilts
LGIM CashInvestment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)

Investment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)

Investment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)(1 year %)(1 year %)(3 year %)(3 year %)(5 year %)(5 year %)-2.50%-2.50%

10.70%

8.60%

4.80%

2.40%

-0.40%-0.40%

18.00%

16.10%

12.30%

10.20%

0.80%

0.80%

17.80%

15.90%

11.10%

8.90%

1.00%
2.90%
-12.70%

1.00%
2.90%
-12.70%15.20%
13.80%-5.30%

13.20%
11.70%-7.90%

6.50%
5.00%-1.40%

4.10%
2.50%-3.90%-30.50%-30.50%-9.30%-11.80%-4.20%-6.70%

2.10%

2.10%

N/A

N/A

N/A

N/A

The LGIM Cash fund was introduced in August 2021. As such, the net return for one year has been provided.

18
Statement available on: https://www.nomuraholdings.com/company/group/europe/

NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Annualised Net Returns for an initial pension pot of £5,000

Investment Option

SchrodersManaged Balanced
Schroders Global
EquitySchroders Global
Core Equity
LGIM Global Equity
LGIM UK Equity
LGIM UK Bonds
LGIM Index-Linked
Gilts
LGIM CashInvestment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)

Investment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)

Investment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)(1 year %)(1 year %)(3 year %)(3 year %)(5 year %)(5 year %)-2.50%-2.50%

10.70%

10.30%

4.80%

4.40%

-0.40%-0.40%

18.00%

17.60%

12.30%

11.90%

0.80%

0.80%

17.80%

17.40%

11.10%

10.70%

1.00%
2.90%-12.70%

1.00%
2.90%
-12.70%15.20%
13.80%-5.30%

14.80%
13.40%-5.80%

6.50%
5.00%-1.40%

6.10%
4.60%-1.90%-30.50%-30.50%-9.30%-9.80%-4.20%-4.70%

2.10%

2.10%

N/A

N/A

N/A

N/A

The LGIM Cash fund was introduced in August 2021. As such, the net return for one year has been provided.

19
Statement available on: https://www.nomuraholdings.com/company/group/europe/

NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Annualised Net Returns for an initial pension pot of £10,000

Investment Option

SchrodersManaged Balanced
Schroders Global
EquitySchroders Global
Core Equity
LGIM Global Equity
LGIM UK Equity
LGIM UK Bonds
LGIM Index-Linked
Gilts
LGIM CashInvestment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)

Investment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)

Investment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)(1 year %)(1 year %)(3 year %)(3 year %)(5 year %)(5 year %)-2.50%-2.50%

10.70%

10.50%

4.80%

4.60%

-0.40%-0.40%

18.00%

17.80%

12.30%

12.10%

0.80%

0.80%

17.80%

17.60%

11.10%

10.90%

1.00%
2.90%-12.70%

1.00%
2.90%
-12.70%15.20%
13.80%-5.30%

15.00%
13.60%-5.60%

6.50%
5.00%-1.40%

6.30%
4.80%-1.70%-30.50%-30.50%-9.30%-9.50%-4.20%-4.40%

2.10%

2.10%

N/A

N/A

N/A

N/A

The LGIM Cash fund was introduced in August 2021. As such, the net return for one year has been provided.

20
Statement available on: https://www.nomuraholdings.com/company/group/europe/

NOMURA LONDON RETIREMENT BENEFITS PLAN
MONEY PURCHASE SECTION
Chair’s Statement for the Year Ending 31 March 2023

Annualised Net Returns for an initial pension pot of £50,000

Investment Option

SchrodersManaged Balanced
Schroders Global
EquitySchroders Global
Core Equity
LGIM Global Equity
LGIM UK Equity
LGIM UK Bonds
LGIM Index-Linked
Gilts
LGIM CashInvestment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)

Investment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)

Investment
Fund
Performance(annualised)

Investment
Fund
Performance
net of adminfee(annualised)(1 year %)(1 year %)(3 year %)(3 year %)(5 year %)(5 year %)-2.50%-2.60%

10.70%

10.60%

4.80%

4.80%

-0.40%-0.40%

18.00%

17.90%

12.30%

12.20%

0.80%

0.80%

17.80%

17.80%

11.10%

11.10%

1.00%
2.90%-12.70%

1.00%
2.80%
-12.80%15.20%
13.80%-5.30%

15.20%
13.80%-5.40%

6.50%
5.00%-1.40%

6.50%
5.00%-1.50%-30.50%-30.60%-9.30%-9.30%-4.20%-4.30%

2.10%

2.10%

N/A

N/A

N/A

N/A

The LGIM Cash fund was introduced in August 2021. As such, the net return for one year has been provided.

21
Statement available on: https://www.nomuraholdings.com/company/group/europe/