GLOBAL - Towers Watson has raked in $50bn in assets under advisement globally through its implemented investment services business, the firm's fiduciary management offering.
Fiduciary management - also called implemented consulting in the UK or investment outsourcing in the US - allows an outside provider to manage a pension fund's entire investment portfolio and risk. The trustees still set the risk and return targets for the overall plan.
"Implemented investment services address the wide gap that often exists between many companies' investment strategies and their governance capabilities, especially among the smaller funds, which are particularly strained," said Carl Hess (pictured), Towers Watson global head of investment.
Fiduciary management is traditionally considered a Dutch export, but the practice of consultants providing discretionary services for their clients has been around for years.
The practice proliferates the Dutch market and the UK is starting to follow suit.
However Hess said there has been a pick-up in activity in the US as well, where assets in this strategy have increased by more than $5bn over the past year.
*To read an analysis of how the UK fiduciary management compares to the Dutch market, read our feature: Lessons in fiduciary management
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