Fiduciary Management

Fiduciary management is an investment governance solution, by which pension funds delegate their investment function to a specialized investment firm i.e. the fiduciary manager.

The fiduciary manager acts as an external, delegated Chief Investment Officer. He is a long-term partner to the fund, responsible for its entire investment function.

The BoD of the Fund sets the strategic objectives and assigns to the fiduciary manager the role of translating these objectives into specific risk-return targets, setting the appropriate investment mandates and executing all the investment decisions of the Investment Committee. In addition, the fiduciary manager is mandated to supervise and coordinate all the investment advisors and asset managers, acting solely for the long term benefit of the fund.

The fiduciary manager constitutes the closest advisor to the BoD, adopts a holistic investment approach and contributes to the good governance of the fund.  

His duties include:

• Contribution to asset/liability studies
• Strategic asset allocation
• Tactical asset allocation
• Selection, monitoring and evaluation of the asset managers
• Portfolios’ consolidation and monitoring of the total portfolio
• Performance analysis and risk management