Hymans Robertson Employer Asset Tracker (HEAT)

What does HEAT do?

The LGPS has changed in the last decade, and the way funds account for employer asset shares needs to change in order to meet higher standards and expectations. Our ground-breaking and unique tool, Hymans Robertson Employer Asset Tracker (HEAT), was developed in partnership with two LGPS funds to give you the ability to track employer assets on a monthly basis making your valuations more accurate and transparent. HEAT also allows you to efficiently and flexibly operate different investment strategies, meeting the specific needs of all employers in a LGPS fund. Here's how it works:

1. Each employer is allocated a notional asset share
2. Employer asset shares are tracked monthly, allowing for all cashflows in and out
3. Changes in the value of the fund’s underlying assets are reflected in the employers’ asset shares
4. A monthly asset statement is created for each employer

What are the benefits of using HEAT?

Our clients told us they wanted to track employers' asset positions quickly and accurately and they needed to be able to offer different employers different investment strategies. The benefits of using HEAT include:

• Accuracy: track assets more accurately and reduce cross-subsidy between employers
• Transparency: reduce risk with greater clarity and the ability to verify employer asset shares and monthly cashflows
• Streamline costs: get faster actuarial calculations at lower cost using HEAT to track assets
• Reduce workload: automate the monthly provision of cashflow data to reduce effort for your team at valuations & accounting exercises
• Better employer funding outcomes: implementation and operation of employer investment strategies is simple and straight-forward