Fiduciary management

As pension schemes grapple with new fiduciary management and investment consulting rules, Charlotte Moore asks what trustees need to do

Fiduciary management is increasing in popularity among larger schemes seeking to overcome governance hurdles, KPMG says.

Although the focus of CDI is often on meeting assumed liability outflows, in reality it is all about securing the asset inflows.

Irrespective of size, funding level or maturity, defined benefit (DB) pension plans have one common goal: to pay members' pensions in full and on time.

Integrated Risk Management (IRM) brings together covenant, funding and investment risks, and assesses how these components interact with each other.

One of the key benefits of fiduciary management is that it gives trustees the time and resources to focus on high-level issues, which should mean they can make more informed decisions about strategy.

Pension funds that decide to invest in standalone fiduciary management funds are being reassured that they will not be subject to mandatory tendering requirements.

Pi Consulting and IC Select have launched a service to provide advice and support to pension schemes tendering fiduciary management mandates.

Trustees risk leaving their scheme ungovernable if they do not get in place strategic objectives for investment advisers, warns John Paterson.

One of the key benefits of fiduciary management is that it gives trustees the time and resources to focus on high-level issues, which should mean they can make more informed decisions about strategy.