Kempen Fiduciary Management UK

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.

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.

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.

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%.

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.

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.