Fiduciary Investment Management

Fiduciary Management is becoming increasingly popular with UK pension schemes. In Spence’s fiduciary arrangement, the trustees make the high-level decisions around strategy and any potential de-risking trigger structures with our help and then delegate to us to implement the agreed strategy. They also delegate the role of monitoring and maintaining the strategy.

• In practice, this means that if we wish to remove and replace a manager, we can do so straightaway.
• Likewise, if we wish to re-balance or change the asset allocation for any other reason, we can do so within the parameters agreed, without necessarily waiting for trustees to make a formal decision.
• Also, if a trigger structure to de-risk (or re-risk) has been put in place, the structure can be monitored and maintained by us and implemented quickly if a trigger is hit.

Here at Spence we use an investment platform for fund administration. This allows for quick implementation of any changes.  Also, by using a platform, funds can be aggregated so achieving underlying manager savings due to many reasons including bulk purchasing power.  In practice this means that asset switches can happen in a matter of days rather than months. 

There can be a lot of flexibility in our offering with trustees retaining control of certain aspects if they require.  For example, rather than replacing a manager if downgraded, the views of trustees could be sought before possible replacement.  Likewise, if de-risking triggers are used, rather than automatically de-risking trustees could be advised when a trigger is hit, and they can decide whether or not to de-risk.

Spence & Partners Limited is authorised and regulated by the Financial Conduct Authority in the conduct of investment business.