Why choose Kempen to be your fiduciary manager

At Kempen, we see it as our role to be the long-term stewards of your assets as well as to empower you by being transparent in everything we do.  This ensures that help you keep the promises you have made to your members. For decades now, Fiduciary Management has been our core business. As a result, we have the experience and know-how to provide you with the right solution for your scheme’s particular requirements, customised to your specific goals and preferences. 

Our curious nature enables us find the right asset classes and managers to build completely bespoke solutions

We start out by finding out exactly what makes each of our potential clients tick. We are fully aware that every client has certain nuances in their circumstances and different perspectives on what they are trying to achieve. From here we can build customised portfolios and provide relevant solutions for each of our fiduciary management clients, using only the best-in-class managers and asset classes available. Our curious nature means we are continuously looking to bring you the best investment propositions to help achieve your goals. 

All new asset classes brought to you are reinforced by a significant manager research presence with a depth of experience across both liquid and illiquid markets. This can involve integrating your goals and beliefs in your investment strategy, such as prioritising low costs, including certain asset classes or incorporating more sustainable investment approaches. And it can also be in terms of exactly what you want us to do for you. For example, you may 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. In short, no two strategies or services that we provide  are the same.

We are long-term stewards on your assets
You won’t need to lose any sleep if you choose us to look after your scheme. At Kempen, we see our role as the long-term stewards of your assets. We have a track record of helping schemes reach both their ongoing targets and their ultimate goals of self-sufficiency or buy-out. By working with us, you will be getting an experienced client team with clear objectives who are highly engaged with our clients.

We pride ourselves on building a trust-based relationships based on the transparency that we provide at every level, from governance through to fees, account management and reporting. We are truly client centric in our thinking, and do everything we can to meet our clients’ goals – and put their needs as being paramount. 

We’ll find new ways to help you achieve your aims
Through operating at the forefront of the UK and Dutch pensions markets for many years, we have extensive experience in finding innovative ways to add value for our clients. Our open architecture approach enables us to implement our solutions in the most efficient way possible, making sure that your membership can see value for money and stability of returns.  

Over the years we’ve been amongst the first fiduciary managers to introduce solutions that are now seen as industry standards. These include cost transparency, ESG or responsible investment, bespoke liability-driven investments solutions, to the use of illiquid asset classes, , and over-hedging interest rate risk. Current projects include analysing how we can incorporate biodiversity issues into our investment decision making, and the implementation of asset classes that enhance biodiversity. 

We will help you meet your sustainability goals

Sustainability pervades everything we do at Kempen, which of course means a responsible approach forms a big part of our fiduciary management service. 

We are widely recognised as one of the UK fiduciary managers that places the greatest focus on sustainability issues. We are focused on taking a lead on responsible investment issues, from positioning our equities to be climate aware, to our bonds which are ethical and governance focused, through to developing a clear framework for “net zero” for all of our clients. This is further reflected in the way we create fully integrated ESG portfolios for our clients by embedding their ESG criteria and beliefs into each solution.

We analyse the ESG credentials of all the managers we invest with and report on the alignment of our fiduciary portfolios with our clients’ priority themes. 
No matter where you are on your sustainable journey, our team of experts will support you in understanding our industry-leading approach to ESG, and more importantly help develop your own ESG beliefs and work with you to reflect those within your portfolio. 

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.

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.

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