March 2015
Five key things to consider when
evaluating a Fiduciary Manager/
Implemented Consultant
Introduction
Anyone contemplating a move to a Fiduciary Management or Implemented Consulting approach would be
wise to evaluate every available option before making a decision. Yet, with so many providers to choose from,
this can seem overwhelming. SEI has been competing for Fiduciary Management tenders in the UK for more
than eight years and thus our insight into the type of questions raised and methods used by pension schemes
during the selection process is unique. We have distilled these into five key areas for consideration which may
assist pension schemes in identifying the right provider to help meet their needs:
1. Does the provider have an established model and long term track record?
Consider whether this is a focus area for the provider. Look for a provider with an actual long-term
performance track record of delivering delegated services. Does the provider have a significant percentage of
its client base in delegated management, including a number of institutional clients of similar size/attributes to
your organisation? Recent entrants may lack the experience, economies of scale, and infrastructure to
execute the model effectively.
2. Do they offer customised delegation and implementation?
As every pension scheme has differing goals and changing needs, it is vital that delegation is customised to
the preferences and comfort levels of the trustees. Specialist Fiduciary Managers provide a delegation model
that is tailored to the preferences, skills and requirements of trustee boards. Furthermore, the relationship is
not static and the model can be developed over time as required.
3. Do they have the scale and resources?
Scale allows for cost-effective access to best-of-breed products/managers within all asset classes. Providers
with significant scale can also make important investments in research tools, risk management technology,
and most importantly, talented professionals.
4. Do they have a transparent fee structure?
Managing the costs associated with running a pension scheme is a key priority for pension trustees. Schemes
are therefore encouraged to look for providers who provide straightforward, all-inclusive and completely
transparent fees. When considering performance fees they should be funding level based, i.e. on the
scheme’s funding level reaching a particular target at a particular time. Under this arrangement fees are
correlated to the performance of the fund relative to the liabilities and trustees need not worry about being
charged for extra contact and services.
5. Should you consider using a third party adviser?
The selection process can be complicated and time-intensive, especially for newcomers to the concept. For
this reason using an independent third party adviser who is not conflicted by providing their own Fiduciary
Management solution to guide and facilitate selection and appointment can be beneficial.
Want to know more?
SEI provides a range of trustee training sessions focused around finding the right solution for your pension
scheme, whatever its objectives. For more information email [email protected], telephone
+44(0)20 7518 3641 or visit www.seic.com.
© 2015 SEI
For Professional Client Use Only – Not for Distribution to Retail Clients
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About SEI’s Institutional Group
SEI is a leading provider of investment services to Defined Benefit and Defined Contribution pension schemes
working with over 475 institutions in 7 different countries. Starting with the goals of each pension scheme, SEI
offers fully tailored solutions, from Investment Consulting to Fiduciary Management and Master Trust.
Through its scale, expertise and over 20 years heritage of providing investment services, SEI aspires to give
trustees greater control over the strategic development of their scheme whilst reducing volatility and improving
their funding level. For more information visit: http://www.seic.com/enUK/institutional-investors.htm
About SEI
SEI (NASDAQ:SEIC) is a leading global provider of investment processing, investment management, and
investment operations solutions that help corporations, financial institutions, financial advisors, and ultra-highnet-worth families create and manage wealth. As of December 31, 2014, through its subsidiaries and
partnerships in which the company has a significant interest, SEI manages or administers $625 billion in
mutual fund and pooled or separately managed assets, including $253 billion in assets under management
and $372 billion in client assets under administration. For more information, visit
http://www.seic.com/enUK/index.htm.
Important Information
This material is intended for distribution to professional clients only and is not directed to any persons where
(by reason of that person’s nationality, residence or otherwise) the publication or availability of this material is
prohibited. Persons in respect of whom such prohibitions apply must not rely on this information in any respect
whatsoever.
Material provided for general information purposes only and does not constitute investment advice. No offer of
any security is made hereby.
Whilst considerable care has been taken to ensure the information contained within is accurate and up-to-date,
no warranty is given as to the accuracy or completeness of any information and no liability is accepted for any
errors or omissions in such information or any action taken on the basis of this information.
Past performance is not a guarantee of future performance. The value of an investment and any income from
it can go down as well as up. Investors may not get back the original amount invested.
Issued by SEI Investments (Europe) Ltd (“SIEL”), 4th Floor, Time & Life Building, 1 Bruton Street, London
W1J 6TL United Kingdom +44 (0)20 7518 8950. SIEL is authorised and regulated by the Financial Conduct
Authority.
© 2015 SEI
For Professional Client Use Only – Not for Distribution to Retail Clients
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