Fiduciary management is a crucial tool for many pension scheme trustees. But concerns over the competitiveness of this market and the effect that could have on member outcomes has grown in recent years.
Professional Pensions research, conducted in association with Goldman Sachs Asset Management, demonstrates a similar story; with over half of trustees in our survey opting to appoint their incumbent investment consultant as fiduciary manager, rather than going through a more complex tender process.
Of course, that's not an issue in itself, assuming that tender processes have been conducted openly, competitively and rigorously.
Our research, however, shows that this is not always true, and that trustees appointing their incumbent consultant tend to run less rigorous selections.
We spoke to trustees and third-party experts for their view on the subject in this video, as we delve into our research results.
