The Competition and Markets Authority (CMA) review into the UK fiduciary management market changed the landscape for many trustees.
It has enhanced the investment and service propositions on offer following re-tender and those that have been a success, have enjoyed significant fee savings - the average fee reduction has achieved circa 25%.
Yet research by Professional Pensions, A Tale of Two Tenders, also showed there are still a significant number of trustees hiring their incumbent investment consultants. In addition, those that hired their incumbent investment consultant face re-tendering their contracts in the coming years - a sign that the initial tender process was not thorough enough and did not yield value for money.
The report, based on the findings from a survey of over 100 pension scheme trustees and additional in-depth interviews from across the industry, found that many trustees are still finding it hard to get to grips with the lengthier tender processes, and around one-fifth did not run a formal competitive tender process to select their manager.
You can access the full results of the survey for free here.