Tackle those pension scheme challenges head-on
In the face of rapidly changing market conditions in a fast moving financial world and increasing investment complexity, managing pension assets relative to its liabilities is a major challenge for UK pension schemes. With our Fiduciary Management expertise we help Trustees to focus on strategic issues. Our additional expertise helps to enhance funding security, raise funding levels, reduce volatility and take unwanted day-to-day management of multiple third-party relationships off your hands. At the same time, an informed strategic sparring partner can help make the path you have set out towards your long-term goals both smoother and shorter. In summary, working with us helps you to:
Have more time to focus on your business
If you lack time, resources or in depth know-how – delegating to us will give you peace of mind. We are focused on finding the best solution for you.
Make informed decisions by working with investment experts
In an ever changing environment and increasing investment complexity, our expertise will benefit you along the way.
Make agile decisions
We monitor your assets and liabilities constantly and we lock in profit and remove risk to achieve your goals efficiently.
Kempen’s Core Service for Clients
Kempen provides a comprehensive fiduciary management service with a hands-on approach.
Everything we do is with one ultimate goal in mind: helping your pension fund achieve its specific investment goals and meet its liabilities.
As one of the Netherlands’ biggest fiduciary managers, we know what it takes to succeed in this field. Fiduciary management has been our core business since it was ‘invented'.
“Turning long-term goals into achievable plans and solid results”Nicholas Clapp
Why choose Kempen as your fiduciary manager?
In our eyes there are five great reasons to trust us to be your fiduciary manager:
1.We’ll provide you with an entirely bespoke solution
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.
2.We’re a transparent and accountable partner
Everything we do is centred around meeting your needs in a fully transparent way, whether that means continuing to invest with your existing managers or providing complete transparency about your portfolio in terms of its funding levels, asset allocation, asset managers, performance and all the costs it incurs. What’s more, all of our UK clients are invested in external managers’ funds rather than our own, so you can be sure there are no conflicts of interest in terms of the funds we recommend. And if for any reason you choose to move to another fiduciary manager you’re able to continue to invest in your underlying asset managers. That’s because you’re the owner of your assets, not us.
3.We’re constantly innovating
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.
4.We’re a safe pair of hands
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.
5.We’ll onboard your assets smoothly
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.
Three frequently cited concerns
Fiduciary mangement, what is it all about?
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.
Does fiduciary management mean a loss of control for us?
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.
Does fiduciary management add extra costs?
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 (need to find a source for this).
Webinar Fiduciary Management - Recorded June 2018 - What are the topics?
- Dealing with 15 providers to manage your assets is a lot of balls to keep in the air, what is the solution?
- Is Fiduciary Management a small or large scheme solution?
- Why are bigger schemes better funded with less volatility?
- Does Fiduciary Management increase investment costs?
- Does delegating to a Fiduciary Manager cause a loss of control?