The fiduciary management market in the UK is growing at a double-digit pace, says a survey by KPMG, with the full delegation market recording growth rates of 40% year-on-year.
KPMG splits fiduciary management, in which an asset owner appoints a third party to handle advisory and investment services, between full delegation and partial delegation in its Fiduciary Management UK Market Survey.
In addition to the £23 billion (€28 billion) managed on a fully delegated basis, KPMG says there is another £30 billion managed on a partly delegated basis across 120 mandates.
The full delegation market has grown quickly over recent periods, the survey finds, accounting for 2.4% of the total UK pension scheme assets. This is shared between 174 pension scheme mandates.
Within this market, around 88% of all UK mandates are below £250 million and only three full delegation mandates are greater than £1 billion.
“It is good to see the fiduciary market growing as it provides more choice for pension schemes,” says Patrick McCoy, partner and head of investment advisory.
“This market growth has been dominated by the consultants converting their existing consulting client base; from speaking to a lot of pension funds, I know they are keen to see evidence that the fiduciary model is working before considering it further and in particular which of the providers have been successful.”
©2012 funds europe
