UK – In the current environment, you might think it would not be advisable to start a new pensions business, but Epic Investment Consulting thinks it’s found a worthwhile niche.

Epic aims to focus on providing independent investment advice to pension fund trustees.

Epic’s chief executive Christopher Edge said in an interview that the company has already signed up two clients, though he said they have declined to be named. The new firm, which announced its formation last week, began trading today.

The launch comes a day after Hewitt Associates said it is facing a “very challenging” market.

Edge said Epic aims to provide investment advice to pension fund trustees in the UK for a minimum fee of 12,000 pounds (18,000 euros) a year.

Initially the firm will market in London and its surrounding counties, targeting funds with 50 million pounds (76 million euros) in assets or more.

It has not done any formal market research into the market, though Edge says there is “anecdotal evidence” that there is a market for Epic’s services. “We’re convinced there is a need,” says Edge.

Other players in the trustee services field include companies such as Law Debenture; Epic does not see itself as competing directly with them.

Edge stresses that the new company has no formal relationship with Paul Myners, although Myners has commented on the new firm’s launch in an Epic news release. Myners’ review of institutional investment in the UK stressed the importance of trustee professionalism.

Trustees are often poorly equipped for their roles, Epic says. It sees its role as enabling trustees to be in a position to ask the right questions and be able to recognise the right answer. “We know how investment management firms actually work,” says Edge.

Chairman Jo Welman, an insurance industry executive, also makes it clear that the new firm is not an asset manager. “We are not after mandates,” he says.

Epic will also provide a socially responsible investing component. It has signed a revenue-sharing deal with SRI ratings agency Serm, under which Epic has the licence to distribute Serm’s SRI analysis. Edge and Welman say this is a key part of what they will offer clients.

Epic does not see itself as being in competition with the established pension consultancies in the market. “We have every intention of communicating with them at the earliest opportunity,” says Welman.

They aim for each advisor to handle around six accounts. Eventually they envisage growing to around 10 advisors.

The new consultancy is part of Epic Specialist Investments, itself part of Epic Investment Partners. Also under the same corporate wing is Epic Asset Management, which is also headed by Welman. The firm says there is a “Chinese wall” between the asset management and consultancy arms of the business.

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