Series Title: Is your pension team fit for the DB endgame?
Part 3: Is the fiduciary manager/OCIO’s business model still viable?
In the UK, the fiduciary manager/OCIO model is under pressure. Too many players are chasing business at threadbare prices, asset values have fallen, and with buy-out in sight, business has suddenly halved in its expected term.
This surely brings huge pressure on profitability. Trustees considering, or already using fiduciary management (or OCIO) may need to re-think the outsourcing arrangements and the incentive structures with their manager.
Avida can help support schemes through this transition by advising on appropriate resourcing models, operational circuits and governance structures. Avida can also provide expert project and temporary headcount support.