The total assets under management (AUM) in the fiduciary management (FM) market have increased by 58 per cent over the past three years, analysis from Quantum Advisory has shown.

Its latest quarterly FM Dashboard, as part of its State of Play series, found that around 90 per cent of this growth came from pension schemes with assets of £1bn or more.

Market growth was continuing at a steady pace, with new fiduciary mandates entering the market broadly offsetting schemes progressing towards buyout.

The report also highlighted lower return targets. More than 55 per cent of mandates were now targeting returns of less than 1.5 per cent above liabilities.

Quantum Advisory said this reflected a continued focus on risk reduction and protecting funding positions.

Quantum Advisory principal investment consultant, Anne-Marie Gillon, stated that while growth figures showed the scale of large mandates entering the market, this should not discourage smaller and medium-sized schemes from considering fiduciary management.

“Growth in AUM is naturally being driven by larger schemes simply because of their size,” she said. “But that doesn’t mean fiduciary management is only relevant for the largest players in the market.

“For many smaller schemes, the governance benefits can be particularly valuable. Where internal investment resource is limited, a well-structured fiduciary management arrangement can help schemes access specialist expertise, improve decision-making efficiency and maintain focus on long-term funding objectives.

“At the same time, the market continues to evolve, with new fiduciary mandates broadly offsetting schemes progressing toward buyout, showing that opportunities remain available even as the largest schemes drive much of the AUM growth.”

Fiduciary managers were found to be increasingly adapting their investment approaches to a range of market environments when it came to lower returns.

In the lower-return world, Gillon noted that the emphasis was shifting away from simply taking investment risk in growth portfolios, and there was a greater focus on managing cashflows effectively and implementing more precise liability hedging.

“The market has also seen significant corporate activity in recent years,” she continued.

“The acquisition of Schroders Solutions by Nuveen, announced in February 2026, is the latest example of consolidation among fiduciary management providers.

“M&A activity can bring both opportunities and challenges. It’s important for schemes to understand how changes in ownership or operating models might affect the service they receive.

“As schemes evolve, and as fiduciary managers evolve, the relationship originally put in place may not always remain the right fit. Periodic independent review can help ensure arrangements continue to support a scheme’s objectives.

“Overall, the findings highlight a fiduciary management market that continues to evolve, with growth concentrated among the largest schemes, a steady flow of new mandates maintaining market balance, and governance and investment benefits that remain relevant for smaller schemes.”

This article was first published on our sister website, Pensions Age.

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