Fiduciary Management Report 2024 Fiduciary Management Report 2024

Review highlights

VIEW FULL REPORT

JUMP TO SECTION

Fiduciary Management Investment Performance Review

4th edition | 2023 in review

This report focusses on the year ending December 2023, covering more than 95% of mandates subject to GIPS® reporting across 14 fiduciary managers (FMs). It explores how FMs have performed amidst the continued volatility and aftermath of the 2022 gilt crisis.

Click on each of the below to read more

Download full report

Performance Mixed results over 2023

Performance was better in 2023, but results were mixed across the market. Despite the positive market backdrop, the higher returning composites struggled, and had greater dispersion. The difference in median return across composites was small, highlighting that FMs were only slightly rewarded for taking higher risk.

We would like to thank the organisations which took part in this year's review:

Peter Daniels FIA

Partner and Head of FM Evaluation

Email Peter

Call Peter

Email Peter

Call Peter

Chris Powell FIA CFA

Associate and Head of FM Research

Email Chris

Call Chris

Email Chris

Call Chris

Kirsty Steven

Senior Investment Analyst

Email Kirsty

Call Kirsty

Email Kirsty

Call Kirsty

Key contacts

Highlights

Performance

Contacts

8% 6% 4% 2% 0% -2% -4% -6%

0.5% - 1.5%

1.5% - 2.5%

2.5% - 3.5%

Target return above liabilities

Target 1st quartile 2nd quartile Median 3rd quartile 4th quartile

Markets rallied over 2023

Despite a volatile year, most asset classes had positive returns in 2023. FM mandates with greater exposure to traditional asset classes particularly with passive equity exposure performed better. The favourable environment boosted median performance compared to 2022, but FMs still had mixed results across the board.

De-risking for pension schemes continued, with some being spurred on following the rise in yields. We question whether the Government's policies and run-on considerations could change the target return range where most schemes converge.

De-risking continues

While market exposure was a tailwind, FMs weren't able to capture as much of the upside as previous years. Schemes were rewarded for taking investment risk on the whole, but some active strategies detracted from overall performance.

Capturing the upside

Liquidity changes

Average liquidity was consistent with 2022 levels, although half of the surveyed FMs changed their liquidity positions in 2023. Interestingly, liquidity both increased and decreased in roughly equal numbers, with FMs being more deliberate and measured.

Key challenges for 2024

FMs identified market turbulence as the top challenge for trustees in 2024. Environmental, social and governance (ESG) and climate change fell to the bottom, indicating changing priorities or that it's no longer perceived as a challenge.

Be careful with data

In 2022, we asked FMs to verify their GIPS® data to increase credibility. This year, 60% of FMs restated some previous years’ performance numbers. Pleasingly three FMs verified their data by a third party in 2023, with none of these restating any previous data.

Download full report

Aon BlackRock Cardano Charles Stanley Columbia Threadneedle Goldman Sachs Asset Management Legal & General Investment Management Mercer Russell Investments Schroders Solutions SECOR SEI Van Lanschot Kempen Willis Towers Watson

Return to top

Manage preferences

Stay ahead with our latest comment, expert insight and event notifications

Accessibility Consumer duty Data management Legal notices Privacy Sitemap Slavery and human trafficking Sustainability