Tackle those Pension Scheme challenges head-on

Fiduciary management is all about outsourcing some or all of the day-to-day tasks that are involved in running a pension fund to an expert third party. Trustees decides upon a scheme’s overall strategy. Based on those strategic decision they will start delegating the investment decisions and day-to-day management of the portfolio to a fiduciary manager. Fiduciary management is not a product. It’s a service, depending on what each client wants. Each of our clients is unique, so they each require a unique fiduciary management solution.

Delegation does not mean a loss of control for you as a trustees. As EY found many trustees feel they gain control by working with their fiduciary manager to set an effective strategy and agreeing on a framework within which the fiduciary manager needs to operate to achieve a successful outcome. Fiduciary management with Kempen is a partnership which ensures the strategy is right for the scheme, that it is reviewed on an ongoing basis and that everything that is done is transparent and reported back to the Trustees on a regular basis. It also hands back time to Trustees so that you can use that precious time to focus on strategy which adds most value. If anything, this leads to greater control.

In a word, no. Fiduciary management removes the traditional consulting costs, creates efficiencies between providers because the fiduciary manager acts as one point of contact, reduces underlying asset management costs due to the fiduciary manager’s buying power, and most importantly adds value – schemes using FM have outperformed those using traditional consulting models.

We build a customised portfolio for and provide a tailored solution to each and every one of our fiduciary management clients. This can involve integrating your goals and beliefs in your investment strategy, such as by prioritising low costs, certain asset classes or socially responsible investing. And it can also be in terms of exactly what you want us to do for you. For example, you might wish to set your strategic asset allocation yourselves or delegate that decision to us, or you might wish to maintain a veto when it comes to choosing which managers to invest with.

Delegation does not mean a loss of control for you as a trustees. As EY found many trustees feel they gain control by working with their fiduciary manager to set an effective strategy and agreeing on a framework within which the fiduciary manager needs to operate to achieve a successful outcome. Fiduciary management with Kempen is a partnership which ensures the strategy is right for the scheme, that it is reviewed on an ongoing basis and that everything that is done is transparent and reported back to the Trustees on a regular basis. It also hands back time to Trustees so that you can use that precious time to focus on strategy which adds most value. If anything, this leads to greater control.

Having been operating at the forefront of the UK and Dutch pension markets for many years, we’ve got extensive experience in finding innovative ways to add value for our clients. These include operating according to fully transparent cost structures that meet the high standards of our clients and their regulators, and providing a range of liability-driven investment solutions from multiple providers and private investments. We integrate ESG into every part of our manager research process and reporting, help to articulate and implement our clients’ ESG policies, and recognise the value ESG can add as a tool for determining long-term sustainable returns.

You won’t need to lose any sleep if you choose us to look after your assets. We have a long track record of helping schemes reach both their ongoing targets and their ultimate goal of self-sufficiency or buy-out. We’ve been doing this for over 12 years and are one of the largest FMs in the Netherlands, and growing in the UK. What’s more, we have all the in-house expertise we need to closely collaborate on key issues with other advisors, such as your scheme actuary or third-party investment managers, and we only entrust your assets to third-party asset managers that we’ve conducted exhaustive due diligence on.

You can be sure that we’ll ensure everything runs smoothly when you choose us as your fiduciary manager. We’ll set out a clear plan beforehand but we always adopt a flexible approach that minimises transaction costs, and once we’ve completed your transition we’ll provide you with a comprehensive transition report that sets out exactly what we’ve done.