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.

Introduction to FM

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FM Cost Transparancy

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. 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.

UK Monthly Commentary

Our UK monthly commentary gives insights into economic developments and financial markets.

Read our previous versions:

August 2020 - Money, Money, Money

June 2020 - It was the best of times, it was the worst of times

May 2020 - Flying Felines

April 2020 - Market Meltdown

March 2020 - The Earth Move

Our downloads:

2020, 30 September

Group regulation on managing conflicts of interest

Download
2020, 30 September

Privacy and protection of personal data

Download
2020, 30 September

Regulations concerning the managing of conflicts of interest

Download
2020, 16 September

Governance white paper

Download
2020, 26 May

Illiquidity issues

Download
2020, 21 April

ESG report 2019

Download
2019, 09 April

Governance Report

Download
2018, 12 July

Fiduciary Management USP's

Download

ESG report 2018

Download

Webinars FM

Webinar Integrating Responsible Investment
Recorded October 2019

 During this webinar we talked about:

  • How to implement ESG principles as an integral part of an investment process
  • Taking the next steps on your sustainable journey.

Fiduciary Management & Investment Governance
Recorded May 2019

 During this webinar we talked about:

  • The main principles of Fiduciary Management and the latest developments
  • Why pension schemes might consider Fiduciary Management and the for pension schemes within the current regulatory environment (including the proposed CMA remedies)
  • Why should schemes care about governance, the value of good governance, and our insights from our research paper

Webinar Fiduciary Management
Recorded June 2018

 

During this webinar we talked about:

  • 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? 

Get in touch

Nicholas Clapp
John MacDonald
Vicky Casebourne