Investment Advice (Pensions)
Maximising returns and minimising risk from pension scheme investments continues to be a priority for clients as they attempt to reduce pension contributions and manage funding levels. As a truly independent advisor, we offer genuinely impartial advice on how to tackle constantly evolving and challenging markets.
What's on your Mind?
- Underfunding of pension schemes where higher, more consistent returns need to be generated from investments.
- Desire to mitigate risks caused by not understanding the risks within the pension scheme or under which circumstances funding will deteriorate.
- Dissatisfaction with existing investment advisors and seeking clear advice that takes advantage of market opportunities as they arise.
- Concerns about current investment strategy and its cost implications.
- Considering Fiduciary manager or implemented consulting, but need independent advice and want to be able to challenge providers.
Bringing you Peace of Mind
- We provide a range of pension scheme investment advice to over 120 UK clients with total assets of over £10bn.
- We advise both Trustee and Corporate clients on their pension schemes' investment policies and objectives for both defined benefit and defined contribution pension schemes.
- The KPMG Investment Advisory team is independent, as we do not have an asset management or implemented consulting business.
- As such, we are a leader in the market in providing independent advice to clients employing a fiduciary manager or implemented consulting manager.
What's in it for you?
- Receiving truly independent advice - assurance that the advice provided is totally impartial and not linked to how monies are managed or fiduciary management.
- The entire team is involved in generating research and investment ideas as well as providing advice.
- The depth of knowledge helps ensures an understanding of the issues involved.
- Confidence at every step, by working together.
- Clear and practical advice is provided when developing strategies, which gives confidence when implementing.
Why KPMG
- A Market leader - in providing independent advice to clients employing a fiduciary manager or implemented consulting provider
We have the largest Investment Advisory (Pensions) team - amongst the Big Four. - Research driven - focused and insightful research (capital markets research and fund manager research) drives our advice and involves the entire team.
- Proactivity - bringing new investment ideas to keep you at the forefront of industry thinking and to help solve issues in the best way.
- Getting off the fence - having the confidence to express our opinions, providing clear direction so you can make informed decisions - by setting out 'what we would do if it were our money'.
Case Study
- UK scheme (c.£400m) with traditional equities/bonds investment portfolio: Following consultation with Company/Scheme Actuary it was agreed to target higher returns with lower expected risk by improving diversification and risk management.
- Specialist training followed on Liability Driven Investing ("LDI”), hedge funds, GTAA, currency, bond-like property, private equity, commodities and structured products.
- The bond manager's mandate was revised, aligning better with objectives, while gilts were switched into alternative index-linked bonds picking up extra yield (£350k pa). The equity portfolio was restructured, while hedge funds and active currency managers were added. LDI was implemented and later enhanced, taking advantage of relative pricing between swaps and gilts.
- The changes to the matching portfolio have already added over £10m of value, while the expected additional return from the revised strategy was £3.6m pa. Risk as measured by 1 year VaR reduced by £31m and negotiating fees with managers saved the client £1.5m pa.
Contact
Patrick McCoy
Partner
KPMG LLP (UK)
Head of Investment Advisory
020 7311 2393 | patrick.mccoy@kpmg.co.uk
KPMG Investment Advisory's 'key ideas alert' is a quarterly communication, which provides trustees with an overview of the latest hot investment topics. Each edition features a summary of our research view on the hot topics, together with a more comprehensive analysis in the supplementary briefing sheets.
Click on the links below to download recent editions:
Second edition - April 2010
First edition - January 2010
To sign-up to automatically receive future key ideas e-alerts from KPMG's Investment Advisory practice, please click here.