Fiduciary Management

Fiduciary Management

Fiduciary Management Solutions (FMS) is a service that allows our clients to outsource aspects of the management of their scheme’s assets, relative to their liabilities, to Investment Solutions. The service aims to enhance a pension scheme’s decision-making framework through agreed levels of delegated responsibility. The key benefits of Fiduciary Management Solutions are:

• The ability to outsource selected aspects of decision-making (within a pre-agreed mandate) to people whose everyday job is to look after investments.
• Vastly accelerated decision-making, enabling the scheme to take advantage of market movements to more appropriately position the scheme relative to its liabilities (e.g. move into growth or protection assets).

We believe that such a real-time approach to managing scheme assets, leveraging investment technology and outsourced decision-making, can add value to the financial health of a pension scheme.

Achieving Pre-agreed Scheme Targets
To achieve pre-agreed scheme targets, the following functions can be delivered by Investment Solutions through Fiduciary Management Solutions:

• Long-term Strategic Asset Allocation (SAA) between growth (such as equities) and protection (such as bonds) assets.
• Shorter term Tactical Asset Allocation (TAA) within growth and protection assets.
• Manager selection and monitoring. 

By assuming these functions, Investment Solutions will seek to lock-in pension scheme returns and reduce volatility over the longer term.