UK - Credit Suisse Asset Management has stepped up its offering of asset allocation consulting services in the UK with the relaunch of its strategic asset allocation service for small to medium sized pension funds.
The service allows fund trustees to set a customised benchmark that is then matched using Credit Suisse Pooled Pension Limited’s (CSPP) pooled pension funds.
CSAM last year flagged the possibility of rolling out its asset allocation services offering in selected European markets including the UK, Scandinavia, Italy and Germany.
Global Pensions understands the relaunched service is UK-specific and there are not plans to expand the service across Europe at this stage.
CSAM said the UK service was developed in response to demand from pension funds wanting to move away from traditional balanced models and the CAPS median benchmark where the asset mix may not accurately represent liabilities.
Commenting on the relaunch, Jonathan Hayes, head of pooled pensions business development at CSPP in London said: “The majority of smaller pension funds are unable to take advantage of segregated mandates due to their size and the costs involved.
“However, this service allows them to develop a benchmark in conjunction with their advisers that more accurately reflects their liability profile, funding position and the trustees’ attitude to risk. Furthermore, as the funds are managed to the clients’ bespoke benchmarks, a more personal level of service is provided than if they were to pool their assets in a traditional balanced mandate.”
Hayes said previously, the provision of strategic asset allocation was labour-intensive but the service is now fully automated. He predicted positive take-up by funds and a reduction in the number of typical balanced mandates.
“We believe there’s a demand out there because we’ve already got clients,” he said.
“At the end of the day, pension funds want their assets to be matched as near as possible to their liabilities so this is obviously a trend that’s going to continue.”
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