Does fiduciary management offer relief?
It’s “not a panacea” as Zahir Fazal from BESTrustees concedes, but it certainly has a role going forward.
The concept has gained traction in 2013 – a flurry of new fiduciary mandates include SEI’s takeover of Epson UK’s £40 million DB Scheme, and Hertfordshire Local Authority’s decision to delegate its £300 million alternatives portfolio to LGT Capital.
The 2013 Fiduciary Management Summit is your chance to take stock. Is FM a viable option for your company pension scheme? If not, how should trustees survey the DB landscape? Here are some benefits of attending:
- Discuss governance structure with trustees from Volvo Group UK, E.ON and The Royal Shakespeare Company
- Learn about FM’s case for alleviating a trustee’s operational burden, and paving the way for reactive decision making with Pitmans, BESTrustees and Capital Cranfield
- Learn to set an appropriate risk framework for portfolio growth and diversity with insight from MN Services, Mercer and SEI
- Get to the heart of an investment ethos: Macro triggers, liability hedging activities, strategic asset allocation and ethical considerations
- Learn due diligence in fiduciary selection. Implemented consulting, full asset allocation, or both? How do you ensure transparency, and overcome potential conflict of interests in fiduciary referral? Who “watches the watcher?”
Richard Butcher, MD of Pitmans Trustees, discusses implications of the flat-rate state pension, auto-enrolment, the state of DB and DC schemes and if fiduciary management is a good thing. Download the transcript/podcast here.
Penny Green, Chief Executive at Saul Trustee Company, joins Finance IQ to discuss developments in Pensions and the role of Fiduciary Management and whether we can have faith in the current system. Download the transcript/podcast here.
Tim Jones, Chief Executive Officer of NEST, talks about what needs to be done in the pensions and fiduciary management space to provide today’s employees with a financially stable future. Download the transcript/podcast here.
Fiduciary Management Summit 2013
But there may be some respite in the fiduciary management model. The evolving structure of the trustee board has been necessitated by a decline in fortunes of most defined benefit schemes. Exponentially increasing life expectancy, poor stock market performance and rock-bottom interest rates have seriously ruffled DB feathers. With trustees looking to overcome deficits and establish risk mitigation, the fiduciary management model may reflect a timely innovation.
Bringing together trustees from Pitmans, Volvo Group UK, NEST and many more, IQPC's 2nd Annual Fiduciary Management Summit, 30th April 2013 offers a platform to debate the pros and cons of outsourcing. This is one-shop-stop to discuss:
- The fiduciary landscape: Lessons from the Dutch model, the sustainability of DB schemes, and the potential role of fiduciary management in public sector funds
- The case for good governance: With the fiduciary assuming a watchdog role, fiduciary management pledges to improve the funding ratio through efficient implementation and execution of scheme strategy. But does it impugn on trustee autonomy?
- Reactive decision making: With quarterly board meetings and protracted change management, pension scheme management structures are rarely conducive to agile decision making. Does the flexibility of fiduciary management provide a way of dealing with market volatility?
- De-risking investment strategy: FM investment strategy encourages portfolio growth and diversity, and may promote liability hedging activities. But is it better than the in-house alternative?
- Fiduciary selection: How can you guarantee accountability, transparency and budget constraints when appointing a fiduciary manager, and avoid potential conflict of interests? How does pension fund size impact on your decision?
The Fiduciary Management 2013 Summit offers a platform for independent and company trustees, financial directors and fiduciary institutions to discuss the merits of delegation and outsourcing. Hear from those who have engaged in FM, including the Merchant Navy Officers Pension Fund and The Royal Shakespeare Company.
Did You Know?
The fiduciary management model is gaining traction in the UK: a 2012 Q3 KPMG survey reveals the FM market comprises of £23bn of UK pension scheme assets, across 174 UK pension scheme mandates.
Very informative and thought provokingDavid Carstairs, Business Manager, THPA
The subject of fiduciary management touches on many vested interests. It was therefore important to pull together a broad spectrum of perspective and opinion, which was successfully achievedMark Hodgkinson, Director and Independent Trustee, Muse Advisory & Action for Children