How might I select/appoint a fiduciary manager?

Fiduciary Management for UK Pension Schemes

  • Share

The fiduciary management market is complex and continually changing. It is therefore vital that trustees consider their options when deciding to make a change in order for them to find a manager that has the right fit for them. The fiduciary management model can clearly offer benefits through increased levels of delegation. But what do you delegate, how and to whom?

Open and competitive tenders are the most effective way of enabling trustees to understand the various models and then make the selection most closely aligned to their needs, objectives and culture. Such a process enables the client to set off on the right path both in terms of the style of the solution and the cultural fit with the fiduciary manager. Wrong decisions can be made if it is passively assumed that all solutions and supporting infrastructures are similar.

Interestingly, once the selection process starts, clients can go through it in very different and unpredictable ways. We often find that clients change their focus as they develop more understanding of the solutions, the way that the solutions will be implemented and what this would mean for their schemes. For example, some clients start out looking at full delegation but ultimately opt for a less delegated approach. Others, sceptical at the beginning, end up choosing a high level of delegation and some just let their approach evolve over time at a speed with which they are comfortable.