Kempen Fiduciary Management UK

Fiduciary management involves outsourcing some or all of the investment-related tasks that running your pension fund entails to an expert third party. It provides you with the additional expertise needed to help enhance your funding security, raise funding levels,  and reduce both risk and volatility. 
A good fiduciary manager gives you the time you need to focus on the bigger picture, safe in the knowledge that your portfolio’s management is being taken care of by a specialist.

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. Managing conflicts of interest

Fiduciary management presents a number of conflicts. We help to minimise and manage these by only providing fiduciary services. We are not a Scheme Actuary or a Covenant Adviser. We believe our version of fiduciary management can help Schemes reach their funding goal meaning we don’t let the provision of ancillary services distract us from that core objective.

3. Open architecture

We use an open architecture model that employs the best external managers for our clients. Our clients delegate their authority through a power of attorney which together with the external managers, provides transparency and removes the conflict of investing in internal funds.

4. Client service

Collaborating with our clients is the cornerstone of what we do, and we have created solutions to meet specific client challenges. We have a client satisfaction score of 83%.

5. ESG

We are the leading fiduciary manager in the UK with regards to ESG. ESG is embedded in our organisation so we can accommodate clients who want to meet the minimum legal requirements or those that have a stronger sense of long term stewardship, and others who simply want to future proof themselves against increasing public opinion and regulatory requirements.

Three frequently asked questions

Fiduciary management, 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.

Client quotes: 

“Our schemes have a highly tailored governance structure, with experienced trustees and a sophisticated sponsor. Kempen has adapted their model of fiduciary management to be bespoke to our needs. The team is responsive and pro-active, and is at the core of our overall investment structure, working most collegiately with both our other advisors and those of the sponsor. It is a long and trusted partnership”

Ian Pittaway 
Partner, Sackers

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OUR ANNUAL STEWARDSHIP AND RESPONSIBLE INVESTMENT REPORT OF THE YEAR 2021: 


This report details our stewardship activities of 2021, giving an overview of our sustainability ambition, action and accountability.
It details our voting and engagements and the thought leadership pieces we worked on. We wish you a pleasant reading experience. 

Read the whole report here

In focus: Monthly views on UK markets

Since the start of the year, the biggest talking point in markets has been the prospects for inflation – and more importantly, how Central Banks might deal with it. The issue is particularly acute in the UK, and the choice for the Bank of England (BoE) is stark. This raises the question for the BoE “how to proceed?” And where does this leave markets and investors?
 

Discover more

FM Webinars

This webinar focused on: The changing of governance – “post CMA”. We really enjoyed hearing the perspectives of experts from Isio, XPS and also from Eversheds Sutherland on the topic, both looking back and looking forward. It was a very interactive session and good to be able to take some questions that covered the spectrum of fiduciary management. 

Highlights of the webinar:

02:41 to 5:45 – Lara Edmonstone-West provides some background to the CMA’s order
1.15.50 to 1.28.50 – Alastair Greenlees explains why it is important to think about your objective when using different asset classes.
1.54.35 to 2.01.10 – Lara Edmonstone-West shares with us her views on how investment governance will change over the coming years

Watch more webinars

Whitepapers

2020, 16 September

The rise, role ,risks and rewards of the sole trustee

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2019, 09 April

Governance Report

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Get in touch

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KCM UK Disclosures

2021, 20 July

Van Lanschot Kempen Code of Conduct

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2021, 26 July

GDPR Privacy Notice

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2020, 30 September

Regulations concerning the managing of conflicts of interest

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Kempen Capital Management (UK) Limited is a company registered in England and Wales with company number 02833264. Kempen Capital Management (UK) Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) with Firm Reference Number 166063.