Background
Our client had appointed a fiduciary manager in 2011. The Trustees were happy with their decision, but sought some independent advice as the portfolio seemed very complex with many managers and high fees.
Our approach
We analysed the composition of the portfolio, the performance of the investments, and benchmarked the fees against alternatives. In addition, we informed the Trustees of the many developments in the fiduciary marketplace since the initial selection in 2011.
Outcome
Performance was shown to be generally good but fees were high in the context of the current market. We supported the Trustees in obtaining a substantial discount to the fee arrangement (reducing the base fee by 20%). We also helped the Trustees to define longer term objectives, which led to a reduction in risk through the implementation of a pensioner buy-in, and re-design of the fiduciary mandate for the residual assets.
