Evercore Pan-Asset has created a specialist investment service to help with pension recovery and investment management.
Many Trustees are conscious that the recent performance of their fund has made the financing issues more costly and difficult. Very often Trustees pay for expensive advice on how to manage individual components of the portfolio actively, using different managers or specialist funds to invest in equities in various regions, in property and in bonds. Quite often Trustees do not have access to advice on the overall balance of the fund between equities, bonds and other assets. They may from time to time commission an Investment Review to try to cover this issue.
At Evercore Pan-Asset we specialise in providing asset allocation advice for pension funds, and in implementing the agreed strategy in a cost effective way with a view to minimising tracking difference compared with the relevant indices. We think for good governance Trustees do need continuous advice on asset allocation. Of course we do not recommend frequent changes of allocation, nor do we advocate too much churning of the portfolio. There are, however, occasions when big decisions need to be taken promptly to protect the assets of the fund or to take advantage of better conditions in markets. For example, the gathering credit crunch in the summer of 2007 was a time to move to a much more defensive stance to protect values.
The team at Evercore Pan-Asset has considerable experience of pension fund management and of the problems facing Trustees. Controlling the costs of investment management can help raise returns. Concentrating investment judgements on the broad allocation issues will ensure Trustees fulfil their duties properly, in possession of advice and information that goes to the heart of how well their fund will perform.