Investment consulting and investment controlling for pension funds

At a glance

  • PPCmetrics has been providing investment consulting and investment controlling services since 1991
  • Comprehensive range of consulting services for pension funds (investment strategy, asset liability management (ALM), investment organization, asset allocation, asset manager selection, investment consulting, investment controlling and actuarial consulting)
  • Consulting services for pension funds of different asset volumes (between CHF 5 m and 30 bn)
  • Our clients are pension funds under both public and private law
  • Analysis of various key issues of the 2nd pillar such as interest rate risk management, currency hedge, actuarial, economic and risk-bearing funding ratio, conversion rate, asset management fees, recommendations on benchmarks, risk management, retrocessions, etc.

Pension funds and pension schemes

Due to regulatory developments, changes to liability structure and the increasing complexity of capital markets, pension funds continuously face new challenges. For more than 20 years PPCmetrics has been providing advice on the management of these challenges. We offer an exhaustive range of pension fund consultancy services and can therefore optimally cover all requirements in this sector. Our clientele consists of pension funds of all sizes and legal forms.

From investment strategy to investment controlling

We offer an exhaustive range of pension fund consultancy services and can therefore optimally cover all requirements in this sector:

  • Investment strategy: we advise pension funds on the best possible adaptation of the investment strategy to the liability structure (asset liability management (ALM)).
  • Asset manager selection: we support pension funds in the selection of asset managers and custodian banks (global custodian). PPCmetrics has an extensive expertise in various investment categories such as equities, bonds (government and corporate bonds), mixed mandates, real estate, and alternative investments (e.g., hedge funds, commodities, private equity, insurance linked securities, etc.).
  • Actuarial consulting: PPCmetrics operates as a pension fund expert and provides advice as an actuary on actuarial issues for pension schemes.
  • Investment consulting: PPCmetrics offers professional and innovative consulting services in the field of investment consulting. This includes the analysis of various key issues of the 2nd pillar such as low interest rates, management of interest rate risks, currency hedge, retrocessions, actuarial, economic and risk-bearing funding ratio, conversion rate, asset management fees, recommendations on benchmarks, risk management, analysis of risk premiums, etc.
  • Analysis of portfolio structure: analysis of possible risks of the implemented products, evaluation of asset management fees, and recommendations on investment style and mandate structure.
  • Investment organization: analysis of pension governance, the organization, the investment process as well as the formulation of investment guidelines and task specifications according to the legal requirements.
  • Legal advice: PPCmetrics advises pension funds on the increasingly complex legal requirements and questions.
  • Investment controlling: independent monitoring and controlling in the areas of strategy controlling, controlling of investment tactics, and controlling of mandates or asset managers.

 


Contact persons

Dr. Stephan Skaanes
Partner
Contact

Alfredo Fusetti
Partner
Contact


Publications

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Is faith in past winners justified?

Is faith in past winners justified?

Rankings of top performers are publicly available for retail funds. However, databases for institutional mandates (segregated accounts and institutional funds) are still incomplete and rare. For our historical simulation of picking past winners we use a set of track records that were submitted by asset managers as part of public and non-public mandate tenders for institutional clients in Europe.

Asset Liability Management Today – Is it Still Fit for Purpose?

Asset Liability Management Today – Is it Still ‘Fit for Purpose’?

The target of asset liability management is to align the assets to the liabilities, i.e. managing risks due to mismatches between the assets and liabilities.

Challenges Pension Funds Face due to Low Interest Rates

Challenges Pension Funds Face due to Low Interest Rates

Risk-averse asset-only investors should go for short duration as risk return is distributed highly asymmetrically.

What can I expect from my pension fund?

What can I expect from my pension fund?

Alfred Bühler and Lukas Riesen explain why the risk-bearing funding ratio could become the yardstick for Swiss pension funds.

Investment Strategies in the Year 2013 - English Version

Investment Strategies in the Year 2013 - English Version

In the year 2013, there were losses in the bond markets, while equity markets had high positive returns. As a result, the investment results of the different strategies varied widely. Pension funds, which have fully used their risk capacity through a large equity exposure, were able to benefit from this market environment. In addition, currency hedging and investments in corporate bonds, small caps, and non-listed real estate were positive as well...

Is factor-based allocation new?

Is factor-based allocation new?

Factor-based allocation may be theoretically interesting for Swiss pension funds but it is hard to implement in a practical way.

Asset Manager Selection based on historical performance - English Version

Asset Manager Selection based on historical performance - English Version

Historical performance is a frequently used criterion to select asset managers. Our empirical analysis, however, shows that after hiring an asset manager with such an outstanding performance, the asset manager performs significantly worse in the period after the selection. In some cases, the selected managers even performed significantly worse than a control sample.