What is fiduciary management?
Fiduciary management or Delegated Investment Consulting is a solution which enables pension scheme trustees to execute their long term strategies efficiently and target better outcomes through a more effective governance structure.
It is very much a bespoke solution rather than a product, with a scheme-specific benchmark and portfolio. Fiduciary management provides the ability to react quickly to changes in market conditions and capture opportunities, without the need to wait for quarterly trustee meetings or trustee education.
For many trustee boards, fiduciary management is about having access to a level of expertise that might otherwise be missing on a day-to-day basis. It involves investment experts who understand the complexity of investment markets, managing a scheme’s portfolio on a day to day basis, while also taking into account the unique needs of the trustees and their objectives. Ultimately it is about trying to help them achieve their objectives of closing scheme deficits and meeting their liabilities in the quickest or most efficient way.
Fiduciary managers are aligned with clients' interests and directly accountable for results. This is because they take clear responsibility for investment decisions on behalf of trustees, and manage assets relative to liabilities within a clear performance measurement framework. Typically the fiduciary manager will appoint multiple underlying specialist fund managers on the trustees' behalf to manage each section of the investment portfolio.
Pillar 3 Disclosure
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