Goldman Sachs AM plans ‘big push’ into UK fiduciary management

first_imgGoldman Sachs Asset Management has set its sights on capturing 10% of the flows into the UK fiduciary management market for its Global Portfolio Solutions division (GPS), which currently manages worldwide assets worth $22bn (€16.3bn).The firm, which manages £25bn (€29.7bn) across all UK institutional assets, sees fiduciary management – where an asset manager, consultant or other agent takes the reins of strategic advice, investment implementation and risk management alongside its institutional client – as a fast-growing part of the UK pensions market, albeit still in its early stages.David Curtis, GSAM head of UK institutional business, told IPE: “Although the trend has yet to be established, we think fiduciary management and delegated solutions will be a major part of the UK market going forward.“Over the course of next year, fiduciary management is going to be a major business initiative for us.” The firm claims to be one of the first asset managers to have established a fiduciary management capability, having worked with clients according to the model since 1995.The vast majority of the GPS assets come from US institutional investors, but the firm said it aims to increase its fiduciary management assets by capturing 10% of the flows into both the US and the UK markets.A September publication from human resources group Aon Hewitt, ‘Delegated Investment Survey 2013’, found that 36% of the 275 UK defined benefit (DB) scheme respondents, representing some £130bn of assets, had appointed a delegated investment provider, up from 18% in its 2011 survey.Aon Hewitt estimates that 5% of all UK DB schemes have moved to a fiduciary management approach and expects 25% to have employed a fiduciary manager within the next five years.While Curtis acknowledged activity among larger UK schemes seems modest, he noted that fiduciary managers have enjoyed considerable success winning mandates from schemes at the £50m mark and below.“That trend is moving up the food chain – my sense is that there are a lot of schemes in the £100m-150m range that are looking, and that’s where we want to start offering our services and where we are planning a big push,” he said.Recognising that the UK’s powerful investment consultants, offering their own fiduciary management or ‘implemented consulting’ solutions, could pose a significant barrier to entry, Curtis emphasised that scheme trustees should be aware of the challenges of implementation and not assume fiduciary management services are a natural extension of the traditional consulting role.However, GSAM has had its own problem as a fiduciary manager, in the key European market of the Netherlands.Its relationship with transport workers’ scheme Vervoer ended badly in 2012, with the fund suing for damages in an ongoing case in the English courts, alleging unreasonable delays to investment implementation and subprime crisis-related losses.The Dutch fund has since dropped some of its claims against GSAM.Curtis declined to comment on this relationship or the court case, but he did underline the importance of clients genuinely “wanting to engage” with the fiduciary management concept.“This is not about outsourcing, it’s about the client engaging with its service providers in a different way from how they previously engaged,” he said.“It’s an opportunity for the fiduciary manager to do the day-to-day work so the client can concentrate on the strategic work – and your client needs to be present at the table with you on that strategic work, or else the project fails.”last_img read more

Chelsea and Spurs blow with Luka Jovic set to stay at Real Madrid this month

first_imgLUKA JOVIC looks set to stay at Real Madrid this month despite speculation linking him with Chelsea and Tottenham.Jovic has struggled to find his best form at the Bernabeu since his £54million move from Eintracht Frankfurt last summer leading to Premier League clubs asking to see if he was available on loan this month.1 Luka Jovic left Eintracht Frankfurt last summer to join La Liga giants Real MadridCredit: Getty Images – GettyBut SunSport understands there is little chance of the 22-year-old moving on anywhere during the transfer window despite the interest from England.Tottenham have been searching for a new centre forward having lost Harry Kane through injury until April, leaving the club with no proven out and out player to lead their attack.A loan move for Jovic was seen as a viable option, although Spurs look like they will now make a permanenet addition to their attacking ranks with the £27m signing of PSV star Steven Bergwijn.SPURS NEWS LIVE: Follow all the latest news on TottenhamChelsea also showed an interest after manager Frank Lampard made it clear to his board that he is desperate for them to sign a centre-forward this month.But Real have resisted any approaches for the Serbia international, and are convinced he will prove to be a success in Spain. Frank Lampard warns under-fire Kepa his Chelsea future is under threat amid Pope transfer links MOST READ IN SPORT THROUGH ITRobbie Keane reveals Claudine’s father was ’50-50′ in coronavirus battle’I ACCEPT’McGregor accepts Silva fight at UFC catchweight of 176lbs in huge super-fightTOP SELLERGavin Whelan has gone from League of Ireland to David Beckham’s InstagramPicturedA CUT ABOVEMike Tyson shows two-inch cut ‘picked up in training’ ahead of boxing returnPicturedAN EYEFULMeet Playboy model and football agent Anamaria Prodan bidding to buy her own clubExclusiveRIYAD RAIDMan City’s Riyad Mahrez has three luxury watches stolen in £500,000 raidI SAW ROORodallega saw Rooney ‘drinking like madman’ & Gerrard ‘on bar dancing shirtless’NEXT STEPJonny Hayes set to move to English Championship having been let go by CelticIT’S…NOT TOMMY BOWETommy Bowe discovers someone has been impersonating him on TinderMAC DADDYTriple H wants McGregor v McMahon with winner getting rights to billionaire strutAnd the player himself is understood to be keen to knuckle down and show boss Zinedine Zidane he can be prolific in LaLiga having made the move from Germany in the summer.That leaves Chelsea scratching around looking for a forward this week, with Edinson Cavani on their radar.But with the Uruguayan expected to leave PSG for Atletico Madrid, they have also looked at Krzysztof Piatek of AC Milan – a player who Spurs had got close to signing earlier in the window.last_img read more