22/06/2011
By Ilonka Oudenampsen
Custodians are increasingly selected as preferred partners in fiduciary manager appointments, according to a study by institutional investment research provider Spence Johnson.
The Fiduciary Management Market Intelligence research project collected information from 29 European fiduciary management providers, representing 517 institutional investors with an aggregate AuM of €761 billion.
In 80% of the fiduciary management appointments, the custodian was the preferred partner included in the mandate, rather than being selected after the appointment, said director at Spence Johnson Nigel Birch. The research showed that this has been particularly true since 2009.
He added: “There are clear benefits for a scheme in having this structure – by leveraging the existing infrastructure and partnership between fiduciary manager and custodian, schemes can benefit from a more effective and cost-efficient service. But perhaps most importantly, from a governance perspective, schemes are re-assured by an independent third party involved in the reporting process.”
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