With our new Pension and Asset Management practice, Alta Via is bringing its managerial cost accounting expertise into the pension industry, providing funds with the tools they need to understand their costs and the cause and effect relationships behind them, guiding them on the path to increased operational efficiency.
Pension funds, in the US, often referred to as retirement systems, are some of the largest institutional investors in the world. A typical state-wide fund can manage anywhere between $20 and $250 billion dollars in assets. Funds abroad, such as in the EU, are even larger. At the same time, these funds service hundreds of thousands of active and retired members. The organizational structure of a pension fund is often similar to that of a government entity, while its operations are similar to service providers such as insurance companies.
Funds are under pressure to strictly control their costs, especially as funding levels are a liability on individual states’ and cities’ balance sheets. Each fiscal year, funds are required to submit a comprehensive financial report (CAFR) based on financial accounting principles akin to Generally Accepted Accounting Principles (GAAP). Crucially, while the CAFR serves to fulfill external financial reporting requirements, it does not provide a source of actionable management information in support of internal strategic or tactical decision-making.
Alta Via has developed newly adopted global costing principles and specialized techniques to help clients transform financial accounting information into internal decision support information. This allows complex organizations like funds to have a better understanding of the functions that consume their resources and what the cause and effect relationships are that management must change to optimize operations. These principles and tools enhance organizations’ ability to control their costs, improve organizational efficiency, and optimize decision outcomes. Our efforts will also focus on pension asset management, utilizing proEO to help funds make sense of the overwhelming amount of cost and fee data they receive from their Private Equity partners.
The director of the Alta Via Pension and Asset Management practice is Rogier Slingerland. He is a former Principal of CEM Benchmarking and has extensive experience in the global pension industry, specializing in cost and performance analysis.