Assets under management (AUM) in the UK fiduciary management market have grown substantially over the past year, alongside an increase in average mandate size, according to the latest quarterly Fiduciary Management Dashboard from consultancy Quantum Advisory.
The report – compiled with input from various fiduciary managers – reveals that total AUM now stands at £272bn (€315bn), up from £255bn in the previous quarter. Meanwhile, the average mandate size has increased to £404m, reflecting both continued institutional uptake and a trend towards consolidation.
Quantum Advisory’s dashboard, launched in 2024, provides a data-led snapshot of the UK fiduciary management sector, analysing key developments across asset allocation, fee levels, investment strategies and market share.
The latest edition highlights a marked shift in asset positioning, with equity exposure falling and fixed income and alternatives gaining ground.
“This latest report from our FM Dashboard reveals some notable trends, most strikingly a broad reduction in overall risk exposure,” said Amanda Burdge, partner and head of investment at Quantum Advisory.
“We’re seeing a clear shift away from equities, with increasing allocations to fixed income and alternative assets. This move could be driven by a combination of factors – including risk management, the maturing nature of scheme liabilities, evolving market conditions, and regulatory pressures,” she added.
According to the dashboard, average equity allocations have fallen to 22%, compared to 27% at the same point last year. Fixed income now represents 52% of portfolios on average, up from 46%, while alternatives have increased modestly to 18%.
The report also highlights a decline in the number of mandates seeking high returns. More than 70% now target a return of no more than 1.5% above the liability benchmark – a clear signal that many schemes are prioritising stability over growth as funding positions improve.
“We’re also seeing the number of mandates targeting higher returns continuing to fall,” Burdge added. “The majority are now aiming for a return no more than 1.5% per annum above the liability benchmark.”
She continued: “For many schemes, the priority has shifted from achieving high returns to closely matching liabilities with minimal risk. This is likely linked to improved funding levels and a growing focus on securing positions – particularly among schemes approaching buyout.”
Paul Francis, principal investment consultant at Quantum Advisory, emphasised the dashboard’s relevance in a changing market environment.
“Fiduciary management has grown significantly in popularity over recent years. As the space becomes more competitive and complex, it’s essential that trustees and scheme sponsors have access to reliable, up-to-date data that helps them make confident, informed decisions – whether they’re appointing a fiduciary manager for the first time or reviewing existing arrangements,” he said.
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