Less than a fifth (18 per cent) of institutional investors view ‘help in making portfolios more sustainable’ as a key benefit of fiduciary management (FM), analysis from CoreData has found.

This falls to just 13 per cent of investors in North America.

The research found that ‘access to the best ideas and asset managers’ was seen as the top benefit of partnering with a fiduciary manager, with 64 per cent of respondents citing this as a key benefit.

This was followed by ‘access to a range of asset classes, including alternatives’, which was specified by 55 per cent of investors, and ‘expertise and specialism’, which was cited by 52 per cent.

Almost a third (30 per cent) saw lower investment costs as a key advantage of hiring fiduciary managers, while 21 per cent said a bespoke solution was one of the most important benefits.

“These findings show institutional investors hire fiduciary managers for a variety of reasons, chief among which are access to the best ideas, the best asset managers and a diverse set of investment solutions,” CoreData founder and principal, Andrew Inwood.

“However, help with sustainable investing is far lower down the pecking order of perceived benefits.

“This may reflect a shift in investor priorities as institutions look to navigate the uncertain macroeconomic and geopolitical climate that has characterised 2022.”

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