Evercore Pan-Asset Capital Management Ltd (EPA), the specialist multi-asset investment manager, has unveiled a compelling new deal for occupational pension funds.
As EPA's main investment strategies reach their first three-year milestone, EPA is delighted to offer all pension schemes access to its successful flexible low-cost dynamic asset allocation portfolios.
"We are launching a new proposition for pension funds. Many pension trustees are looking for diversified investments that offer them the prospect of growth while managing their risk, which is why multi-asset or diversified growth funds have become so popular," says Bob Campion, Institutional Business Director at EPA.
"But trustees also want a portfolio which is not only low cost but also individually constructed to suit their specific risk appetite. That is what we are offering."
EPA manages diversified growth or multi-asset investment strategies tailored to the specific balance between 'growth' and 'defensive' assets required by a pension scheme. All portfolios benefit from EPA's dynamic asset allocation techniques and are managed on a daily basis by EPA's investment team which boasts 120 years aggregate investment experience.
"We believe the combination of dynamic asset allocation and low cost is exactly what pension trustees needs," says John Redwood, Chairman of EPA's investment committee.
"Trustees cannot control investment performance, but they can manage cost and risk. At time when all pension funds are trying to reduce their deficits, we believe low-cost diversification puts trustees in the best position to achieve their goals."
EPA portfolios invest in a wide range of equity, bond and alternative assets, accessing markets using index tracking funds to minimize cost. EPA's segregated portfolios can be accessed for two-thirds the cost of leading diversified growth funds, including custody and administration.
"Our research tells us stock picking doesn't work," says Christopher Aldous, Chief Executive of EPA.
"Index-tracking removes 'manager risk' and means you get most, if not all, of the return from the chosen asset allocation. ETFs are usually the lowest cost and most efficient trackers and are becoming increasingly popular with pension funds."
While cost-management is becoming increasingly important to all trustees, EPA believes it is smaller pension schemes with tighter resources who stand to benefit most.
"Our unique dynamic asset allocation process is a fresh approach that will be appealing to pension schemes of any size," says Campion.
"But for smaller pension schemes who have been struggling to access flexible diversified portfolios at an affordable price this is just what they have been looking for."
Source: Evercore Pan-Asset