Pension Funds Increasingly Turning to Fiduciary Managers
10 July 2012 (PLANSPONSOREurope.com) – UK plan sponsors could find their pension funds turn increasingly to fiduciary managers in the next year, according to research from Russell Investments.
The research reveals of those pension fund trustees and other institutional investors surveyed two thirds (68%) who do not currently use a fiduciary manager, two fifths (39%) are considering using one in the next twelve months.
When choosing a fiduciary manager, investors view portfolio management and risk management experience as the most important criteria. All trustees and investors (100%) believe that portfolio management experience is a key factor when selecting a fiduciary manager (69% strongly believe) with 100% also stating that risk management capability is a core capability (68% strongly believe). When selecting a fiduciary manager, 97% of those polled would like to see strong evidence of strategic advice experience (with 56% strongly agreeing) and 97% see investment research as important (with 65% strongly agreeing).
Meanwhile, 90% of respondents cite capital markets research as important, while 83% also would seek a provider with transition management expertise.