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Fiduciary Management—AllianceBernstein Pension Strategies

Sophisticated yet Simple. Customised yet Cost-Effective

Fiduciary management is an investment strategy that aims to protect and improve a defined benefit pension scheme’s funding ratio as efficiently as possible.

Our fiduciary management strategy:

  • Allows trustees to stay firmly in control and focus their governance resources on setting objectives and monitoring our performance against them.
  • Ensures the assets are managed against the client’s specific liabilities/funding ratio.
  • Provides a daily window for trustees to check their funding ratio.
  • Ensures disciplined de-risking as funding levels improve.
  • Gives a smoother investment path as asset allocation decisions are implemented promptly in response to rapidly changing markets.
  • Offers potential cost savings by freeing clients’ time and allowing other activities to be streamlined.

Restoring funding ratios can be a considerable challenge for trustees and corporate sponsors alike. AB aims to bring the best techniques traditionally used to manage bigger schemes within reach of all DB plans, large and small. We believe the key to achieving better outcomes is not just selecting the right suite of investments, but also being able to adjust them in real time as funding and market conditions change.

Each client benefits from a customised strategy embracing sophisticated investments, chosen from a broad range of managers and all constructed in a simple, transparent framework that is easy to govern. Each client’s portfolio, regardless of size, is fully tailored to their specific needs; their funding objectives, liability profile, risk capacity and investment beliefs.

A Scheme Specific Glidepath: A customised de-risking glidepath that is dynamically managed to match the scheme’s changing risk capacity and funding level.

Client-Specific Investment Beliefs: Clients can choose between active or passive management and between AB investments or external funds.

Efficient Liability Management: Liability-driven investment (LDI) funds help efficiently hedge the scheme’s interest and inflation risks, while allowing a greater allocation to growth assets to improve the funding ratio.

Dynamic Management: Dynamic management of growth and liability-sensitive assets ensures timely decisions to navigate changing markets and ensure risk is effectively managed.

Our approach to designing and managing a client’s strategy according to their scheme’s specific needs is shown below.

Keeping the Strategy up to Date: The process is constantly refreshed and the trustees’ objectives periodically reviewed to ensure our portfolio management remains appropriate.

AllianceBernstein Pension Strategies brings over 40 years of asset management expertise to help pension schemes of every size achieve their desired objectives. We manage over £60 billion (as of December 31, 2012) of fiduciary management assets globally in strategic and dynamic asset allocation portfolios for DB and DC. Find out more about AllianceBernstein

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