Industry Voice: Fiduciary management — pension fund doubts fade with experience

clock • 1 min read
Industry Voice: Fiduciary management — pension fund doubts fade with experience

The pensions industry is divided over fiduciary management, but new research finds those who have taken the plunge believe in its advantages.

Fiduciary management is a growing feature of the pensions industry, but some fund managers and trustees are still sceptical of the benefit it promised to bring.

However, research by Professional Pensions conducted in association with BMO Global Asset Management (part of Columbia Threadneedle Investments) has found that such doubts fall significantly when funds start using fiduciary managers for themselves.

The survey covered 104 pensions fund managers and trustees, half of whom had adopted fiduciary management and half who had not.

Among the non-users, 39% thought the lack of control over investment governance was a disadvantage to fiduciary management. But among those who already use some form of fiduciary management only 20% voiced such concerns.

Overall, the survey found users of fiduciary management were much more likely to see its benefits than those who did not. Users were three times as likely to see fiduciary management as improving risk management than non-users.

Almost half (44%) of those who had adopted fiduciary management identified increased speed of investment decisions as its main advantage. Other advantages included an improvement in the scheme's level of investment governance (35%).

Click here to download the full research.

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