BUSINESS SITUATION
Our client, a multinational provider of financial analytics solutions, sought to assess the scope of alternative investments within pension schemes and insurance companies, including objectives such as:
- Understanding the role and adoption of alternative investments in pension funds.
- Evaluating the challenges and opportunities involved in selecting different investment types.
SGA STRATEGIC APPROACH
To address the client’s requirements, SG Analytics designed and executed a comprehensive study targeting 265 respondents across six key European markets, namely the UK, the Netherlands, Germany, Italy, Switzerland, and France, via online research.
Survey Design and Delivery:
- Target Respondents: Engaged professionals and managers responsible for investment decisions within banks and financial institutions managing their organization’s pension funds.
- Study Focus Areas: The survey was structured around the following themes.
- Current state of investments in pension fund portfolios.
- Allocation trends across different pension fund types, including Defined Benefit pensions (public/private) and industry-wide/company pensions.
- Expected changes in asset class allocation in the coming years.
- Criteria for selecting fund managers for fixed-income and private-debt portfolios.
Data Analysis:
- Delivered final data sets using MS Excel and SPSS.
- Created detailed data tables segmented based on demographics, providing trends and insights by firm type and geography.
- Shared topline insights and interim updates with the client through the course of the study.
ENGAGEMENT
The study addressed the following themes:
- Analyzing current investment patterns in pension funds and insurance portfolios.
- Evaluating shifts in allocation to asset classes, including alternative investments.
- Understanding the selection process and criteria for fixed-income and private-debt portfolios.
BENEFITS & OUTCOME
SG Analytics provided actionable insights that enabled the client to:
- Evaluate Strategic Roadmaps: Identify key criteria and frameworks for fixed-income and private-debt portfolio allocations.
- Understand Portfolio Restructuring: Gain clarity on how companies plan to restructure liability-driven investment (LDI) and cash-flow-driven investment (CDI) portfolios.
KEY TAKEAWAYS
- Comprehensive Portfolio Insights: Delivered a nuanced understanding of alternative investments within pension funds across key European markets.
- Strategic Allocation Guidance: Helped the client align investment strategies with market trends and emerging opportunities.
- Actionable Recommendations: Enabled the client to refine its approach to alternative investments, ensuring informed decision-making and a competitive advantage.
