Quantum Advisory, the leading pensions and employee benefits consultancy for small and medium sized schemes and employers, today published the latest results from its quarterly Fiduciary Management (FM) Dashboard as part of its ongoing ‘State of Play’ series.
The analysis shows that total assets under management in the fiduciary management market have grown by 58% over the past three years. Around 90% of that growth has come from schemes with assets of £1bn or more.
The latest Dashboard also highlights broader trends shaping the fiduciary management landscape:
- Steady market growth: New fiduciary mandates continue to enter the market, broadly offsetting schemes progressing toward buyout.
- Lower return targets: More than 55% of mandates now target returns of less than 1.5% above liabilities, reflecting a continued focus on risk reduction and protecting funding positions.
Anne-Marie Gillon, Principal Investment Consultant at Quantum Advisory, said: “While growth figures reflect the scale of large mandates entering the market, the headline numbers should not discourage smaller and medium-sized schemes from considering fiduciary management. Growth in assets under management is naturally being driven by larger schemes simply because of their size. 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.”
Gillon added: “When it comes to lower returns, fiduciary managers are increasingly adapting their investment approaches to a range of market environments. In a lower-return world, the emphasis is shifting away from simply taking investment risk in growth portfolios. Instead, there is greater focus on managing cashflows effectively and implementing more precise liability hedging.
“The market has also seen significant corporate activity in recent years. 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.”
Gillon concluded: “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.”
