What's Happening?
Quantum Advisory, a consultancy based in Cardiff, has released its latest Fiduciary Management Dashboard, revealing trends in the pensions fiduciary market as of June 2025. The report notes a continued increase in assets under management, with larger pension schemes adopting Fiduciary Management (FM) or Outsourced Chief Investment Officer (OCIO) models. Notable new mandates include the Aga Rangemaster Group Pension Scheme and the Plumbing and Mechanical Services UK Industry Pension Scheme. The total assets for UK defined benefit pension schemes have reached £114 billion, with significant contributions expected from the Shell Pension Fund and BT Pension Fund in future reports.
Why It's Important?
The shift towards fiduciary management models reflects a broader trend in the pension industry towards risk reduction and strategic asset allocation. As larger schemes adopt these models, the market is experiencing structural evolution, which could lead to more efficient management of pension assets. This trend is crucial for stakeholders as it may influence the stability and sustainability of pension funds, impacting retirees and beneficiaries. The regulatory landscape, including new guidance from The Pensions Regulator, is also shaping these developments, highlighting the need for schemes to adapt to changing market complexities.
What's Next?
As the market continues to evolve, smaller pension schemes may increasingly consider fiduciary management to navigate the complexities of the current economic environment. The ongoing interest in fiduciary models suggests that demand will remain strong, despite the challenges posed by schemes moving towards buyouts. Quantum Advisory's insights indicate that the market must continue to innovate and adapt to maintain its growth trajectory. Future reports will likely focus on how these structural changes impact the overall performance and sustainability of pension schemes.
