Fiduciary asset management

What is fiduciary asset management?

What is fiduciary asset management ? Literally this means: Asset management in good faith.

Pension funds, foundations, charitable institutions, municipalities, provinces and other professional investors often have their assets managed by fiduciary managers these days. They therefore hand over the management of their assets in good faith. It is not really reserved for retail investors, who use a ‘regular’ asset manager .

What does the fiduciary manager do? This does not limit itself to buying and selling funds and other investments, but has a broader task. It includes complete asset management. The manager makes strategic decisions and does everything else that comes with managing assets. The owner no longer has to worry about it and can focus on the actual tasks and objectives.

Initially, only pension funds used the services of fiduciary managers, but this practice has now been adopted by other parties.

Fiduciary management at pension funds

Fiduciary management is a logical choice for managers of very large assets, such as pension funds. The law sets very high requirements for management, transparency and accountability. The assets of pension funds are enormous. Direction is essential here. However, within the organization of a pension fund it is impossible to have an overview of all components of the investment process. In that case, specialists are linked to one or more components on the basis of a fiduciary management model. The external fiduciary management company where these specialists work ensures that all investments are managed well and transparently and move within the laws and regulations. This is done within the framework of the various risk profiles that have been agreed.