How did fiduciary managers perform in 2024?

Barnett Waddingham’s fifth annual Fiduciary Management Investment Performance Review offers trustees and sponsors independent insight into how fiduciary managers (FMs) have performed – both in the context of a strong market year and over the longer term.

Drawing on Global Investment Performance Standards (GIPS®) data from over £60bn of assets under management, the review provides an in-depth, comparative view across return targets, investment strategies, and client experiences.

With many approaching the five-year anniversary of their manager’s appointment following CMA tendering activity, we expect many schemes to be formally reviewing their manager appointments

Therefore, whether you're a professional trustee, scheme sponsor, or pension manager, this report is designed to help you challenge your FM’s performance, ensure value for money, and assess strategy alignment ahead of key decision points.

Key findings at a glance

1. Mixed performance – and hidden dispersion

The majority of FMs outperformed their target return over 2024 as equity markets delivered a second consecutive year of 20%+ returns. Though long-term performance continues to lag, and performance dispersion remains high, even within the same manager.

2. Clustering of outcomes

2024 showed continued clustering in performance outcomes, with limited upside despite strong markets. Investment restrictions and a more defensive stance may have capped potential returns.

3. Composite concentration

Almost half of mandates now target returns of liabilities +0.5% to 1.5%, with wide variation in strategy. Comparisons within this group are increasingly challenging, making like-for-like analysis essential.

4. Strategy drives success

The review highlights that not all FMs delivered equal results – even within the same composite. Mandates with higher equity allocations and fewer restrictions tended to outperform, while ESG and equity protection strategies often detracted.

5. Long-term winners and losers emerge

Over a rolling three-year view, patterns of consistent outperformance (and underperformance) are starting to appear, underscoring the importance of robust FM selection and ongoing scrutiny.

6. Regulatory uncertainty plays on FMs' minds

From Mansion House reforms to surplus extraction rules, FMs are bracing for shifts in UK pensions policy. The review captures their perspectives on what lies ahead and what it means for scheme strategy.