What is fiduciary management?
It’s an arrangement whereby trustees delegate certain investment decision-making powers to a third party. This could include the selection of investment managers or asset allocation decisions.
Over recent years fiduciary management has grown in popularity. Annual survey data suggests that currently over 900 UK pension schemes (17%) make use of it in some shape or form.
How do you choose the right governance arrangements, the right fiduciary manager, and then make sure they’re performing as expected?
To deliver on your pensions promise, you need to be confident that you have good oversight in place and a clear framework for monitoring your manager’s ongoing suitability.
In this episode of Hymans Robertson On...we bring you the first episode of our two-part series exploring stewardship from a Fiduciary Manager’s perspective.
We look at how these Fiduciary Managers determine engagement priorities; whether ‘bespoke’ engagement is possible for clients with different priorities; and whether divestment is an appropriate action to create good outcomes.
How we can help
We don’t compete with fiduciary managers, but we do excel at working with them.
Our range of fiduciary oversight services is much more than manager selection exercises and performance reviews. We run training sessions if you need to get up-to-speed on the basics, we help with objective setting to make sure that your fiduciary mandate is best-aligned with your needs, and we provide ongoing oversight to make sure managers stay on track and deliver what’s expected of them.
All of our work draws on our independent consulting heritage. With over 100 investment consultants across our firm, we’re used to dealing with the same issues as the fiduciary managers, albeit within an advisory context. As a result, we know their business very well and can ask the right questions of the right people at the right time.
Our clients like the clarity which we bring to their arrangements, helping them understand what’s driven risk and return, where the fiduciary manager has been successful and where not, and what the client retains decision-making responsibility for and what’s been delegated away.
Our advice is underpinned by innovative technology and digital expertise. Adapting to an ever more digital world, we have over 200 digital experts ranging from data scientists, modellers, technical architects, developers to UX designers, all dedicated to creating transformative digital solutions.