Samora Stephenson: Even during dramatic market moves, most tactical decisions remain modest.
As we move into 2026, it feels like a good moment to look back at what 2025 meant for investors and for the fiduciary managers guiding them through a year that rarely stayed calm for long.
Growth markets ended up delivering impressive returns, but the route was often bumpy. The year's first real jolt arrived early, when tariff announcements from the Trump administration pushed uncertainty sharply higher. By April, markets were caught in their most intense wave of nerves, with volatility spiking.
When we reviewed the year's market data alongside the choices fiduciary managers made, a clear theme emerged.
Despite fiduciary management's reputation for ‘dynamism', the actual tactical shifts through the sharpest bouts of volatility were limited. For trustees and sponsors trying to understand the value of the approach and shape their future governance decisions, it's worth exploring how managers behaved when things heated up.
What we learned in 2025
Our review of fiduciary manager activity throughout 2025 reveals a consistent and deliberate pattern – managers overwhelmingly leaned towards stability rather than fast, reactionary shifts.
Even when volatility rose sharply in April, most managers maintained either a risk-off or neutral stance instead of making bold tactical bets. Where changes did occur, they were intentionally small and typically involved reallocations of just two or three percent of growth assets.
This restraint marked a real test of liquidity and risk controls. Even well-diversified growth portfolios can fall meaningfully in short periods when volatility jumps, and 2025 offered a reminder of that reality.
One area that stood out was liability hedging. Tactical changes here were unusual – managers showed a strong commitment to their long-term hedging frameworks and little interest in short-term trades. This makes sense because small shifts in hedging levels can have outsized effects on funding positions, and, unlike growth portfolios, there is less transparency to explain those moves.
Currency hedging told a different story. Managers were more willing to make selective changes to foreign exchange exposures, particularly around US dollar positions. These moves were still modest, but they show that currency is one of the few areas where managers feel comfortable making short-term adjustments.
Together, these patterns point to a measured, disciplined approach, even during periods of real market stress.
The market volatility of 2025 placed fiduciary managers under real scrutiny. Their judgment, communication and sense of balance were all tested. What emerged was an approach that leaned on long-term frameworks rather than short-term reactions. Managers chose to stay calm, rebalance thoughtfully and focus on capital preservation rather than chasing fast-moving opportunities.
Risk management processes remained resilient. Hedging frameworks were upheld, liquidity positions stayed stable and stress‑testing insights helped guide decision-making. Across the market, there was little evidence of significant deviation from established investment philosophies.
This tells us something important about the fiduciary management model. Its strength is structured, long-term stewardship. Trustees rely on managers to provide stability, especially when markets feel unpredictable. The events of 2025 reinforced that disciplined decision-making is at the heart of successful fiduciary management.
Looking ahead to 2026
The big lesson from 2025 is a simple one – even during dramatic market moves, most tactical decisions remain modest.
Short-term asset allocation changes usually amount to just a few percentage points of growth assets. This is an important reminder for anyone evaluating fiduciary management.
While the model is often described as ‘dynamic', the factors that really drive long-term outcomes are the strategic choices that sit beneath it. Careful asset allocation that balances growth and protection will continue to matter far more than any ‘dynamic' tweak.
As we head through 2026, it's worth keeping this in mind. The value of fiduciary management does not come from constant adjustment. It comes from the clarity of long-term strategy, the consistency of risk frameworks and the discipline to stay aligned with long-term objectives – even when markets are moving fast.
The temptation to focus on the appearance of dynamism is strong, but the evidence tells a different story. The real power lies in the steady, deliberate and carefully judged decisions that shape the whole investment journey.
Samora Stephenson is head of fiduciary manager oversight at Hymans Robertson
Read Hymans Robertson's latest fiduciary management oversight perspective report here.
