With Fiduciary Management, a client delegates responsibility to make investment decisions on all or a portion of the client’s assets to an independent third-party. Fiduciary Management typically includes both investment advisory and investment implementation services.
Our Fiduciary Management offering combines all of SECOR’s services into a single solution tailored for our clients’ unique circumstances. Everything from the risk-return objective to the investment decisions delegated is tailored to our clients’ individual needs. The outcome is a Fiduciary Management service that fits around your needs rather than a “one size fits all” approach.
Clients can combine all or a subset of the following services to build a bespoke Fiduciary Management solution:
With SECOR, Fiduciary Management doesn’t have to be “all or nothing”.
The SECOR delegation dial represents the range of investment decisions that can be delegated. Delegation builds on our core Investment Advisory service which forms the foundation of our Fiduciary Management solution. Clients are able to “dial-up” or “dial-down” the degree of delegation, allowing them to delegate some investment decisions (for example, manager selection) and retain others (for example, the strategic asset allocation).
Delegating in this way enables them to maximise the overall cost efficiency of their governance budget.
The starting point of all our Fiduciary Solutions are our core Investment Advisory services, covering Strategic Asset Allocation and Manager Research advice and regular client reporting.
As a starting point, clients may look to delegate basic implementation management such as portfolio rebalancing, currency hedging, transition management and synthetic market replication.
Many clients may want to go a step further and ask us to leverage our manager research capabilities and be responsible for manager selection decisions.
Making SECOR responsible for LDI management and Equity Hedging can often enhance the overall solution, making SECOR accountable for risk management decisions relative to the Actuarial model of the liability.
As the funding status improves, investment risk can be reduced. SECOR can agree to a de-risking framework with our clients in advance and be responsible for same-day de-risking where de-risking triggers are breached.
The final delegation step is Strategic Asset Allocation. Clients will still need to be involved in setting long-term objectives and defining risk tolerances, however the choice and sizing of asset classes can be delegated to SECOR.
Many clients want to leverage all of SECOR’s investment decision making capabilities under a fully delegated solution. Regardless of the degree of delegation, our solution is ultimately tailored to the individual requirements of each client.