General Motors Asset Management

Repositioning General Motors' Pension Fund

 

Overview

 
General Motors Asset Management is resonsible for managing GM's pension plan — the largest corporate plan in the US. However, lagging stock markets and low interest rates caused GM's pension plan to be signficantly underfunded. In 2003, GM announced the largest corporate debt deal in history and GMAM took charge of developing an investment strategy for the $14 billion raised. Makovsky + Company, in turn, was charged with devising a communications plan to announce and publicize this innovative investment strategy. 
 

Objectives

 

  • Enhance recognition and stature of GMAM as the organization to turn to for help with pension management and other pension issues.
  • Raise awareness among plan sponsors and their influencers (i.e. media) of GMAM's pension outsourcing business.
  • Provide support to the sales and marketing team in opening doors and developing leads

 

Strategy

 

  • Leverage media attention regarding the December 12, 2003 GM pension call to reinforce the concept of GMAM as "The Pension People."
  • Use the call as a springboard for media opportunities.
  • Position GMAM as a long-time pension manager with experience, perspective and a partnership approach.
  • Ensure the media's understanding of GMAM's complicated investment strategy
  • Protect proprietary information
  • Position GM as having a chighly competent management team that can address complicated issues.

 

Results

 

  •  GMAM gains credibility as "real" with current prospects
  • Efforts are a door-opener with future prospects
  • Sets stage for productive phone conversations, mailings, conference participation, etc.
  • Makovsky's efforts helped move focus from pension underfunding to GMAM's comprehensive investment strategies, Alpha generators, and prducts.