Fiduciary Management

Fiduciary Management with steady improvement in funding ratios with greatly reduced risk

Since Cardano began offering fiduciary management in 2007, we have helped our clients regularly outperform their liabilities. This has been achieved despite running about one third of the risk of the average UK pension fund. We’ll manage your pension fund by focusing on improving your funding ratio in a steady and controlled way that minimises risk and gives you confidence that you can achieve your goals. 

What fiduciary management is about

From the outset we have structured our business to deliver a fiduciary management service. One that combines leading investment professionals and in-house experts within a seamlessly integrated pension fund management service. Despite initially enduring some of the worst investment conditions since the Great Depression, our service has consistently delivered steady growth in funding ratios for our clients. Our track record shows this. 

How fiduciary management works

At the start of a new client relationship it’s important to set out clear goals. So we’ll work with you to agree them, along with your investment objectives and risk tolerances. This will provide a clear framework within which we will manage your assets against your liabilities. The results can then easily be assessed and you’ll know whether or not your expectations have been met. 

  • We will build you a balanced portfolio, featuring a mix of different types of investments along with well-established liability hedging instruments. These will focus on delivering planned and controlled performance whatever happens in markets. 
  • We find we can help most clients significantly de-risk without reducing the expected return target (net of fees). Often we can even increase the target. This is because many of the risks that are often run are not expected to lead to a reward. We focus on helping you achieve robust results and become more resilient to market shocks. 
  • We offer flexibility over levels of delegation and you can choose what you are comfortable with, and portfolios are built accordingly. 

Our track record in fiduciary management

Our approach to fiduciary management is designed to meet one over-riding objective: to improve the funding ratio in a steady, stable way so that pension schemes become and remain fully-funded while reducing the degree of risk involved. It has worked well for our clients, as demonstrated in our track record. We believe in transparency and are one of the few fiduciary managers who are prepared to publish our track record.

Cardano performance to 31 July 2017   

We began working with our first fiduciary management client in 2008 and the live track record started shortly after. It should be noted that the Cardano performance is net of the underlying manager fees and also ours. The track record therefore illustrates the true level of added value compared to the liabilities.