United Kingdom

Fiduciary Management Advisory 

Fiduciary Management (FM) is a way of running a pension scheme’s investment strategy.

Under fiduciary management, scheme trustees make high level strategic investment decisions, and the fiduciary Manager is responsible for the lower level investment choices needed to make that strategy happen.

 

The areas which are the responsibility of the trustees and the areas which are the responsibility of the fiduciary manager will vary between mandates.

 

Fiduciary management is therefore a way of running a pension scheme, not an investment strategy in itself.

 

For example, scheme trustees might set the overall required level of investment return (and maximum acceptable level of risk), and work with the fiduciary manager to establish the scheme asset allocation.  The fiduciary manager might then have some freedom to vary the scheme’s asset allocation and complete freedom to choose the underlying investment managers.

 

The fiduciary manager will almost always appoint investment managers rather than trade equities and bonds themselves.

 

The aim of FM is to better utilise trustees’ limited time and allow decisions to be taken and implemented more quickly with clear accountability.

 

2014 KPMG UK Fiduciary Management Market Survey

Our Services

    KPMG’s Fiduciary Management (FM) advisory service for pension schemes combines investment consulting experience, with firm-wide audit and internal-controls expertise.

     

    Because KPMG does not provide fiduciary management services or Investment Management services we are able to offer completely independent advice to pension schemes.

     

    KPMG can provide advice on all aspects of fiduciary management, including:

     

        • Advice on investment governance structures. This is most useful for pensions trustees who would like help deciding whether or not fiduciary management – or other investment governance structures – is right for them.

     

        • Advice on selecting a Fiduciary Manager. Different fiduciary managers suit different pension schemes.  We provide advice to trustees from the initial stages on how to refine their criteria for selecting a fiduciary manager, right through to assisting trustees in fiduciary manager beauty parades.

     

        • Fiduciary management mandate and guideline setup advice. Setting up the mandate correctly is crucial when commencing Fiduciary Management.  This will control what the fiduciary manager can and can’t do, and provide the framework against which to measure their ongoing success. We help trustees in their discussions with their Fiduciary Managers.

     

        • Ongoing monitoring of your fiduciary manager. We help trustees get the most out of their fiduciary manager by providing challenge where necessary, and by providing an independent assessment of the progress of the FM against their objectives.

     

        • A “one-off” assessment of your Fiduciary Manager. For Trustees who do not use ongoing monitoring of their fiduciary manager we are able to provide a “one-off” review of the fiduciary manager, assessing their progress since inception, and providing insight into the capabilities of the fiduciary manager.

 

Contact us

Patrick McCoy

Patrick McCoy

Partner

KPMG in the UK

020 7311 2393

patrick.mccoy@kpmg.co.uk

Anthony Webb

Anthony Webb

Head of Fiduciary Management Advisory

KPMG in the UK

020 7694 1880

anthony.webb@kpmg.co.uk

Investment Advisory Brochure

This brochure gives brief descriptions of our work with a selection of clients and illustrates the three guiding principles of KPMG's Investment Advisory practice:


  • Client centric ideas
  • Proactive thinking
  • Clear direction

 

  • Download PDF (505 KB)

Investment Advisory e-alert

KPMG Investment Advisory's 'e-Alert' is a regular digestible communication which provides an overview of the latest investment topics and relevant monthly market data.

 

Financial News Awards

KPMG named Specialist Investment Consultant of the Year 2012

Award logo