UK fiduciary management market grows by two-thirds in one year

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The size of the UK fiduciary management market has grown by 65% over the last year, for the first time exceeding £100bn (€141bn), according to KPMG.

The consultancy’s ‘2015 Fiduciary Management Market Survey’ found that the number of fiduciary mandates has risen by 112 to 620 over the course of the preceding 12 months.

The majority of the new mandates won were for full fiduciary mandates, which accounted for more than half of all business, increasing by 79 to 382.

Anthony Webb, head of fiduciary management research at KPMG, said the market had grown more than participants had expected.

“To put the £114bn figure into perspective,” he said, “UK fiduciary managers collectively now have enough money to buy every single bond issued by the Irish government.”

The type of pension fund availing itself of full fiduciary management services remained largely unchanged compared with the 2014 survey.

In 2014, 68% of funds opting for the service were under £100m, falling only slightly to 66% in 2015.

Funds with assets of £100m-250m remained the largest other group of clients, accounting for 22% of mandates.

The remaining 12% of mandates were awarded by schemes with more than £250m in assets.

Despite the number of partial fiduciary mandates only increasing by 33 over the course of period surveyed, total assets rose by £27bn, showing stronger growth than the £16bn increase in assets across the nearly 80 new full fiduciary mandates.

In line with all but one of the nine years charted by KPMG, the volume of assets from partially delegated mandates outstripped those from full delegation, despite the number of full fiduciary mandates being higher for the last five years.

The survey, based on data provided by 13 fiduciary managers, largely covered activities until June 2015, before Dutch provider MN sold its UK business to Kempen Capital Management.

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