Pension funds and large asset managers are under pressure worldwide. They need to achieve higher returns, invest responsibly, report in greater detail, reduce management costs and comply with various European regulations. Fortunately, an innovative management solution now brings all these requirements together.

Managing a pension fund is more complex than ever. One of the reasons for this is the strong growth of alternative assets in portfolios, such as private equity and real estate. Their share has risen worldwide from 12% in 2003 to 20% today. However, 83% of asset managers have not yet smoothly integrated these assets into their operational models, leading to higher management costs due to time-consuming reporting.
In addition, European government policy on green financing plays a major role. Pension funds must invest more sustainably and explicitly take into account systemic risks such as climate change, which increases the demand for faster and more transparent reporting. Flexibility and access to detailed information are crucial.

Reporting

The workload and reporting requirements are also increasing in other areas. For example, under new legislation, the Netherlands will soon require pension funds to report clearly to participants on a monthly basis and to adapt their reporting infrastructure accordingly. All these changes require scalable solutions and expertise from external providers. In this framework, the CACEIS Pensions Centre offers global services in the areas of investment valuation and administration, reporting, compliance and more. It is the centre of expertise, based in Amsterdam. It offers an integrated system that allows clients to manage and report on traditional and alternative investments from a single system.
Wouter Peters, Global Head of CACEIS Pensions Centre (CPC), explains: “The shift towards alternative investments is a necessary evolution for more stable returns. We have invested in technologies that allow both traditional and alternative investments to be managed in a single system. This gives our clients more control and flexibility to respond more quickly to market changes.”

ESG

Sustainable investing is essential for pension funds. Peters emphasises: “ESG is indispensable in investment policy. It requires detailed, timely and reliable data to be effective. We support clients with comprehensive ESG data and reporting tools, giving them better insight into the sustainability of their investments.”
In addition, the need for speed and flexibility has increased significantly in recent years. “Pension funds need to be able to respond quickly to new information and circumstances, not only in investment decisions, but also in reporting,” says Peters. “Our systems are designed to meet the requirements of European legislation with daily updates and the ability to switch quickly between strategies.”

Customisation

Technology is therefore crucial. But so is local expertise. Ramy El Houayek, Global Head of Fund Services, emphasises: “Every client has unique needs, and laws and regulations vary from country to country. It is therefore important to combine the power of global expertise with knowledge of the local market, culture and regulations. Only then is it possible to provide customisation that precisely meets the client's needs.”

Consolidation

“Despite, or perhaps because of, consolidation, the pension market remains an interesting market for providers such as ourselves. People are living longer, so they need to save more for their retirement. Various pension schemes are not yet optimally geared to this. For example, there is increasing focus on providing insight into returns and costs,” El Houayek continues. “If pension funds start to focus more on this, there will be more scope in the chain for outsourcing all core tasks that lie ‘behind the front office'. All this offers tremendous opportunities and possibilities. We are enthusiastic about all the developments and ready to help our clients with all the new challenges.”

Partnerships

Wouter Peters concludes: “What customers see above all is that we want to enter into long-term partnerships. With flexibility, so not implementing a one-off solution, but continuing to develop and adapt to changing circumstances together. In addition to our long-term focus, service is a key concept in our services. The positive reviews from our clients have been increasing in recent years, which we are very pleased about. We have a very solid foundation and infrastructure to further put CACEIS Pensions Centre on the map in Europe in the coming years.”