DB pension plans are increasingly turning to the use of fiduciary managers, according to a poll by SEI.
Of those surveyed who said they are not currently using a fiduciary manager, 29% said they would likely consider a change to this model within the next five years—potentially more than doubling the use of an outsourced fiduciary manager model by corporate pension plan sponsors by 2017.
“As pension plan management becomes more complex, we are seeing a growing demand in the marketplace for outsourced fiduciary management services,” said Kevin Matthews, vice-president and managing director with SEI’s institutional group.
“Working with a fiduciary manager allows plan sponsors to allocate various levels of discretion to an investment partner, whether it be manager research, selection and oversight, or the added layer of discretion over asset allocation decisions.”
Respondents’ top reasons for using a fiduciary manager were so they could have expert advice across all markets, faster execution on market changes and delegation of tactical decisions to increase focus on strategy.