26/11/2009
By Francesca Fabrizi
More and more pension funds are likely to opt for a bespoke, unbundled version of fiduciary management in the future, according to a recent study among leading specialists in the area.
Demand for a more flexible approach to fiduciary management, which some are calling 'Fiduciary version 3.0', is on the rise, whereby pension funds are able to retain in-house the tasks it feels comfortable performing on its own, while outsourcing others.
This follows Fiduciary Management version 1.0, the original model that evolved in the Netherlands, which offered a bespoke holistic solution, but at some expense; and Fiduciary Management version 2.0, pioneered by Dutch industry-wide pension schemes, which leverage existing architecture at low cost.
Participants of the study, entitled The Evolution of Fiduciary Management, also predict that future versions of the fiduciary model will be more focused on niche areas, such as balance sheet or solvency management; while it may also involve the in-sourcing of expertise into pension boards to better equip them.
Other key findings from the report, said Nigel Birch of Spence Johnson, the marketing intelligence provider responsible for the report, were that the fiduciary management model is likely to be exported into new regions in Europe and further afield, as well as new investment classes such as insurance companies and even types of DC pensions.
For more information, please visit www.spencejohnson.com/FiveFutures
