In a recent global research study, less than one in five institutional investors cite help with sustainable investing as a core benefit of fiduciary management.

In a CoreData Research study of nearly 300 global institutional investors, only 18% said help making portfolios more sustainable is one of the most important benefits of hiring a fiduciary manager or outsourced chief investment officer (OCIO).

This falls to just 13% of investors in North America. APAC investors (26%) are most likely to see sustainable investing as a core attribute of fiduciary management, the study disclosed.

Access to the best ideas and asset managers, cited by almost two-thirds (64%) of investors, is seen as the top benefit of partnering with a fiduciary manager. A higher proportion of investors in Europe and APAC (both 67%) point to this factor compared to those in North America (59%).

By organisation type, endowments and foundations (81%) attach most value to access to best ideas and managers, the research found.

Access to a range of asset classes including alternatives (55%) is the second-most valued benefit of fiduciary management. North American investors (58%) assign the most weight to this factor. By organisation, a broad menu of asset classes holds most appeal for endowments and foundations (62%) and insurance companies (60%).

Meanwhile, just over half (52%) of institutional investors cite the benefit of dedicated expertise and specialism – something which European (60%) respondents consider particularly important when hiring fiduciary managers.

Elsewhere, three in 10 (30%) global investors see lower investment costs as a key plus point of fiduciary management, while 28% point to the importance of freeing up time. And about one in five (21%) say a bespoke solution is one of the most important advantages of partnering with a fiduciary manager.

“These findings show institutional investors hire fiduciary managers for a variety of reasons, chief among which are access to the best ideas, the best asset managers and a diverse set of investment solutions,” said Andrew Inwood, founder and principal of CoreData.

“However, help with sustainable investing is far lower down the pecking order of perceived benefits. This may reflect a shift in investor priorities as institutions look to navigate the uncertain macroeconomic and geopolitical climate that has characterised 2022.”

The latest digital edition of IPE’s magazine is now available