Fiduciary management

Fiduciary Management Oversight and Selection Services
 
Fiduciary management can be a very effective solution to aid pension schemes attain their preferred outcomes. But it is a very complex decision and information is not always readily available or easily comparable. Many schemes have been introduced to fiduciary management through existing relationships and the Financial Commission Authority is questioning the competitive nature of these relationships. As a result some investment consulting organisations who do not have a fiduciary management service are offering independent selection and oversight services; Punter Southall is part of this growing industry.
 
Selection Service
 
Our approach is to review the pool of potential fiduciary managers objectively from the outset against the backdrop of a scheme’s specific requirements or situation. This enables us to focus the rest of our due diligence more cost effectively. 
 
There are approximately 15 organisations offering delegated investment services to UK Defined Benefit Schemes. Most of these have a specific style of delegation and a core client base. Our in-depth knowledge of the demographics of the sector allows us to reduce this list quickly, according to the specific needs of the Scheme.
 
We have an efficient 3 stage process to review the market, focused on extracting maximum value from the available budget.  We are able to narrow down the options to a small number of potential providers in order that more of the resources available for the review can be targeted to solutions that will actually be appropriate for the Scheme, ultimately enabling us to make a firm recommendation.
 
Oversight Service
 
Any investment solution should be monitored against the Scheme’s objectives and any objectives additionally applied by the underlying management arrangements. This ensures that the organisation hired to do the investing is doing its job effectively and also that the solution is still fit-for-purpose in terms of the Scheme’s needs.
 
This is as applicable to fiduciary management as it is to other more traditional asset manager / fund arrangements but certain differences may be appropriate depending on the nature of the engagement. We have a standard Fiduciary Oversight Governance Report which use to underpin the oversight of the fiduciary manager; this report can be tailored to meet the Scheme’s requirements and tends to evolve over the time.
 
The report would ordinarily be split into 4 main sections:

1. Strategic Success
2. Controls
3. Drivers of Success
4. Macro Views and Market Commentary
    Speak to us

    Speak direct to our specialists in this area
    Danny Vassiliades
    Principal
    Or call us on
    020 3327 5000