Isio Fiduciary Management Survey 2023

Over 2023, the consequences of the gilts crisis has presented even greater challenges for fiduciary managers and the wider pensions industry. During September and October 2022, gilt yields increased at an extraordinary pace following the UK government’s mini-budget announcement.

This unprecedented event had a large-scale impact on the industry, arguably changing the industry forever. As all UK pension schemes faced investment challenges from this backdrop, how fiduciary management both helped and hindered has been a key theme of the year.

Key messages throughout the survey:

• Growth in the number of FM mandates has been muted and Assets under Management has decreased materially over 2023
• Lower return targets are now most common, with Liabilities +0.5% – 1.5% per annum the most popular, redirected focus on FM’s insurance and end game planning capabilities
• A material change in fee structure across the market, prompted by the pressure of deteriorating asset values and rising cost inflation
• Notable shift in target portfolios towards liquid assets and equities in particular, to drive return
• An increase in the use of third party evaluators to review fiduciary managers