New research from Buck Consultants at Xerox found that despite a competitive market there are still concerns about transparency at UK pension schemes.

The research of UK pension schemes with full fiduciary management arrangements in place found that transparency and receiving value for money topped participants' lists of concerns.

A quarter of respondents cited value for money as a concern.

However, as the market grows, pension funds' overall satisfaction with their fiduciary manager is high with more schemes confident that the level of strategic advice they are being offered will help them meet their long-term objective.

Schemes are also pleased with the level of service they receive from their fiduciary manager, the speed of decision making and improved expertise, the research found.

William Parry, investment consultant, Buck Consultants at Xerox, comments: "Fiduciary management continues to work for pension fund clients as they once again gave their fiduciary managers top marks.

"However, there is a need for ongoing independent advice to help them understand what they are buying and whether they are receiving value for money."

The market for fiduciary managers is becoming more competitive with two thirds of survey respondents saying they held an open tender process to choose one.

However, according to Buck Consultants, having an existing relationships is still considered to be helpful with nearly 40% citing this as the reason for their choice of fiduciary manager.

Parry said: "The increase of open tender selection processes is a positive step forward for the market as pension funds take advantage of the options available to them and choose the fiduciary manager best placed to meet their needs.

"A competitive tendering process also ensures that pension funds are able to reach a competitive commercial agreement."

He went on to emphasise the importance of independent advice when choosing a fiduciary manager.

"The complexity of these solutions is so great that there is a need for ongoing independent advice to help them understand what they are buying and whether they are receiving value for money," he said.

First published 08.10.2015

Lindsay.sharman@wilmingtonplc.com