Podcast, spotlights on Fiduciary Management
In this podcast Ian Brown, James Mullins and Nicholas Clapp consider some of the things that trustees need to think about as their scheme approaches its endgame and explain why Kempen is well placed to accompany you on your journey. Listen to the podcast!
Subscribe to the Fireside chat
Date: 21 June 2022
Time: 11:30-12:00 UK time
Location: Online via Microsoft Teams
Would you like to know more? Please join us for a fireside chat. We would like to get to know you and discuss the topics that are a priority for you. Please feel free to share your stories and experience. And ask any question that is top-of-mind. We are looking forward to hearing from you!
In order to keep these session interactive, we are limiting the number of people to join. However, these Fireside Chats will be regularly scheduled. If you are unable to join us, additional opportunities will follow in the coming months.
About the speakers
Nicholas Clapp: Head of FM Business Development at Kempen Capital Management
Nicholas is Head of Fiduciary Management Business Development for Kempen in the UK. As well as working with a wide range of DB schemes, he is responsible for the work we do with consolidators, for DC and for charities and foundations.
Iain Brown: Managing Director, Head of Strategic Clients FM UK at Kempen Capital Management
He works with large UK DB schemes and takes the lead in introducing asset-class specific solutions to larger UK institutional prospects. Ian has joined Kempen in April 2022. He was formerly EMEIA Pensions and Retirement Leader and UK Pensions Partner at EY where he built EY's Pension Consulting business and was a founding partner of EY's OCIO/Fiduciary Manager Evaluation team. He advised trustees, corporates and governments, including some of the world's largest pension funds, on governance.
James Mullins: Head of Risk Transfer Solutions at Hymans Robertson's
James is a partner and head of Hymans Robertson's risk transfer solutions team.
BlogIn this blog we consider some of the key investment matters that trustees need to think about as their scheme approaches its endgame and explain why Kempen is well placed to accompany you on your journey.
Factors to considerStarting with the end in mind is all well and good, but that’s the easy part. The difficult part is getting there and landing on the right option.
It’s important to follow an investment strategy that keeps as many of the possible endgames on the table for your scheme for as long as possible, so working with a fiduciary manager that understands the issues involved in each can be extremely helpful.
things to consider include:
Another is the interaction between the endgame journey and responsible investing. Portfolios are already being positioned for net-zero but this is going to accelerate in the coming years and will become particularly relevant for schemes in longer run-off. For insurance transactions, insurers are going to look for portfolios that are already.
Kempen’s approachWe can take you through all the new endgame options available to you, their relative pros and cons and then we help you position your investment portfolio for today but reshape for tomorrow.
In our discussions about the best approach for you, we don’t just say here’s the investment return you need and the risk you’re going to have to accept. Rather, we take a step back and think about what investment return you will actually need and, importantly, how it will be structured and refined between now and the endpoint. That investment return is determined by which endgame option you have in mind and when you intend to reach it.
We also highlight the importance of retaining flexibility to adapt your planned endgame if necessary. If there’s a change to the sponsor covenants, your funding position, the market backdrop or insurer pricing, you might need to change your goals. That means you need a solution that’s not tied solely to an insurer or a consolidator – you need to be able to flex between one and another depending on what happens.
And we ensure we deliver our advice in a jargon-free way. We’ll set out a plan for your scheme and clearly explain how the different options could work for you and your sponsor. As part of our approach we focus closely on ensuring our investment advice stays fully connected to your actuarial, accounting and governance activities in what is a comprehensive service. We also ensure there’s good communication between us, sponsors and trustees and other advisers, which is key in making sure nothing falls through a gap.
Why is Kempen well placed to help you reach the endgame
We believe what sets us apart is our team’s wide-ranging expertise, which is not just solely linked to fiduciary management. We understand all the different endgame options available to you as well as matters such as insurer pricing, how insurers and consolidators might construct their asset portfolios and how companies might offer parental guarantees.
Find out moreOften, there is a general perception that fiduciary managers aren’t keen to help you reach your endgame because it means they lose business. However, it’s now widely acknowledged that a good fiduciary manager can actually help you get there faster. Do you have any questions? Get in touch with our UK Fiduciary Management team, and subscribe via the form below to receive the latest updates.