UK - More than £14bn (US$24bn) worth of assets flowed into liability-driven investment (LDI) and other hedging strategies in Q3, according to MandateWire.
And with the challenges facing pension schemes continuing to grow, Barnett Waddingham partner Marcus Whitehead explained LDI investments were just one way trustees could protect schemes against adverse movements in interest rates and inflation.
MandateWire also reported fiduciary management was taking off in the UK, with the Merchant Navy Officers pension fund recently appointing investment consultant Watson Wyatt to manage its assets in a fiduciary mandate worth approximately £3.2bn.
T. Rowe Price UK director of business development Stephen Millar commented: "The Merchant Navy deal is noteworthy because the size is comparative to those seen in the Dutch fiduciary management market."
The asset manager said fiduciary management in the UK was expected to focus on small and medium-sized schemes but was "obviously attractive" to larger schemes too.
Millar added: "This is an area that many of the LDI asset management houses will be considering, because some of these managers either are asked for or pro-actively provide their views on the strategy being proposed by a client while setting up the liability hedges."
MandateWire also reported that fiduciary management continued to rule on the continent, particularly in the Netherlands.
A spokesman for the SCA 't Anker pension scheme told MandateWire: "The main reason why we have chosen to go for fiduciary management is that we notice the increasing complexity of the investment market and how scale has become a more important factor."
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