19th February 2019 Anna Copestake comments in Pensions Expert on Caffyns Pension Scheme appointing a fiduciary manager to help restructure its investment portfolio
Trustees of the £86m Caffyns Pension Scheme have appointed a fiduciary manager to improve the performance of the fund’s assets, leading to a restructuring of its investment portfolio.
Advisory firm KPMG’s 2018 UK Fiduciary Management Survey estimated that 15 per cent of pension schemes now appoint a fiduciary manager, about 70 more schemes than 2017.
Anna Copestake says that Trustees from smaller schemes might have limited resources, mainly in terms of the time available to handle investments and assets.
However, Anna adds that “it is a common misconception that once the contract is signed trustees become passengers, leaving the manager in the driving seat without any supervision”.
Anna stresses that in order to benefit from statutory protections, it is important that trustees employ a degree of oversight.“Boards that feel they don’t have the expertise in-house will look to a third party to help. Third-party oversight is a continually growing market and the CMA’s new requirements for mandatory tendering will only increase trustees’ understanding of the offerings out there,” she says.
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