Fiduciary Management integrates all of SECOR’s capabilities into a solution tailored to the unique requirements of each client
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.
Fiduciary Management enables clients to delegate responsibility for the day-to-day management of their investments, freeing up their time to focus on other matters
Clients can achieve more cost-effective solutions by taking advantage of a Fiduciary Manager’s economies of scale
Fiduciary Managers execute with precision and speed, making the most of investment opportunities as they arise
Fiduciary Managers provide their clients with greater transparency over their investments, performance and risks, enabling them to better deliver their fiduciary responsibilities
Fiduciary Managers challenge investment managers to provide greater accountability to their clients
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.
Our senior management team’s in-house experience managing pension scheme assets at General Motors Asset Management gives us a unique perspective on how a Fiduciary Management relationship should be run.
As an independent firm focused on solutions, our Fiduciary Management offering does not require clients to invest in SECOR managed fund-of-funds products.
We build customised Fiduciary Management solutions based on our clients’ chosen degree of delegation and their specific risk tolerances and constraints rather than one-size-fits all products.
We leverage our expertise and asset management relationships to provide our clients access to a breadth of sophisticated investment solutions. These include alternative asset classes, bespoke LDI and equity downside protection.
As an advisor with security-level asset management capabilities, we can apply more scrutiny when monitoring our clients’ portfolios. Performance matters! We have a strong track record of improving funding outcomes for our clients.
We seek to be an extension of our clients’ internal staff, meeting as frequently as desired and offering as much training as needed. With SECOR, clients can tailor client reporting to meet their unique governance structures and reporting needs, at whatever frequency they require.
