KPMG in the UK has today unveiled “KPMG FusionTM”, a new online pensions analytics and modelling tool which it believes is set to revolutionise pensions consulting.
Andrew Cawley, Head of Pensions at KPMG in the UK, said: “Fusion enables a user to, at the touch of a button, see the scheme’s changing financial position in real time. But more than that, it allows users to look ahead, modelling the impact of different scenarios on their own scheme. For example, a Finance Director, Trustee or Pensions Manager contemplating a member option exercise, can see how that might reduce risk or impact on time to get fully funded. A user might want to model how a different investment strategy will affect their scheme’s profile in the future. Perhaps some asset-backed financing is an option? Again, Fusion can model this.”
Andrew Cawley explains: “Today, our access to live information online in most areas of business and personal lives is pretty much taken for granted. Just as people have become used to being able check their bank accounts and utility bills online, we believe that pensions stakeholders are now expecting access to real time online information. Indeed we believe such access will rapidly become the norm.
“The ability to look ahead however, to model the ‘what if’ scenarios is where genuine real value lies for all pensions stakeholders – whether employers or trustees. Currently if a pensions consultant is discussing how a scheme might de-risk, the consultant will model one or two scenarios to talk through with the client. A number of different approaches may have been considered but they don’t all make it to the actual client discussion. With Fusion, the pensions professional and their client are empowered to model an endless range of possibilities straight from their PC or tablet.”
In addition to the modelling functionality, Fusion holds a library of relevant information including documentation relating to the users’ own scheme(s) such as the latest Actuarial Statement or investment monitoring reports, or accounting advice together with details of how the various de-risking approaches operate.
Andrew Cawley continues: “For example, a Fusion user might have been modelling how changing investment strategy or offering a pensions increase exchange might affect their funding position. Through the site they can access information from KPMG about how pensions increase exchanges operate, what current best practice looks like, how market practice has evolved and examples of successful outcomes.”
“And in addition to this broader information, they have their own scheme data with details such as their member profiles, policies and so on.”
According to Andrew Cawley, by blending real time analysis and a data library with modelling functionality, KPMG FusionTM can give users a completely new perspective on the options for their pension schemes: “Using our expertise and insight, and in working closely with us, our clients will be able to develop highly effective strategies for their pension schemes in a way, we believe, not seen before.”
For more information about Fusion, click here: www.kpmg.com/uk/fusion
For further information please contact:
Margot Cowhig, KPMG Corporate Communications
T: 0207 694 4246
M: 07920 274856
KPMG Press Office: +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.