Fiduciary Management – Finding the right talent

September 19, 2011  |   Posted by : Uzair Bawany  |   Asset Management / Private Wealth,News   |   Comments Off on Fiduciary Management – Finding the right talent»

The asset management industy is continuously facing challenges and undergoing developments. As a result doors are being opened for candidates at the senior end of the market with highly specialised skill sets.

 With increased market volatility and sensitivity to risk, evolving regulation and an ever widening range of investment options, we are seeing a growing demand within fiduciary management.

 Fiduciary management involves the outsourcing of the design, implementation and daily management of assets to a third party i.e. fiduciary manager. The trustee board maintains control but their time is freed to focus on long term strategic objectives and risk for their investments. The concept began in the US and has grown rapidly in the Netherlands over the past decade. In the UK, where it is applied mostly in pension funds, it is believed to be worth between £8 to 12 million a year with further growth expected. Only ten percent of AUM in the UK are currently allocated to fiduciary managers whereas in the Netherlands it is ninety. We may never see such large scale utilisation in the UK as regulatory measures, pension structures and cultural attitudes towards investment differ.

 In addition to risk budgeting and reviewing the strategic asset allocation and liability model, fiduciary managers are expected to apply thorough due diligence when choosing external investment managers and constructing portfolios. Further, re-balancing the strategic asset allocation mix to benchmark position, monitoring risk through rigorous analysis, reporting to the trustee board and constructing holistic integrated operations when dealing with the trustee board, investment managers and independent advisers is essential. At Fairway Search Partners we see a growing appetite for candidates with experience in liability driven investment structures: investment strategies in which the main goal is to gain sufficient assets to meet all liabilities, both current and future. In effect, this allows investment managers to manage risk and protect assets. Many of their clients are looking to de-risk and generally do so either when times are good or bad. 

 Despite the challenging economic environment candidates are being sought as de-risking strategies remain at the forefront of boardroom discussions. The search industry will have difficulty in finding such quality candidates at the quantity required. Candidates who with the skills will come at a premium.

 Related Post: http://www.fairwaysp.com/2011/05/asset-management-in-the-mena-region-2011/


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