PRESS RELEASE: Latest Quantum Advisory ‘State of play’ report reveals strategic shifts in fiduciary management

30 September 2025

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’ reporting series.

Results previously announced to 31 March 2025 showed several notable trends, most strikingly a broad reduction in overall risk exposure and a clear shift away from equities, with increasing allocations to fixed income and alternative assets. This has continued.

Key developments shaping the landscape to 30 June 2025 are showing:

• AUM across the fiduciary market continues to grow, driven by a trend of larger schemes moving to FM or Outsourced Chief Investment Officer (OCIO) models. Over the past 12 months, five new mandates exceeding £500 million in AUM have been awarded, including those for the Aga Rangemaster Group Pension Scheme and the Plumbing and Mechanical Services UK Industry Pension Scheme
• Total assets for UK DB pension schemes were at £114bn – this figure does not yet include the Shell Pension Fund, which announced its move to fiduciary management earlier this month (the UK portion of the Shell mandate is £11.5bn) and will therefore be included in the next report, neither does it include BT Pension Fund (Aum £36bn)**
• Net growth in FM mandates remains modest, with new appointments in the high single digits over the past year. The pace is being tempered by schemes progressing to buyout. However, the pipeline of schemes considering FM remains strong, indicating sustained interest in this governance model

Paul Francis, Principal Investment Consultant at Quantum Advisory, commented: “While risk reduction and reallocation dominated last quarter’s results, we’re now also seeing the FM market evolve structurally. Larger schemes are increasingly adopting FM or OCIO arrangements, but smaller schemes still make up the bulk of the market by number – two-thirds of fiduciary-managed schemes have assets under £100 million, and half are below £50 million.

“The growth in mandates is encouraging, but it’s clear the market must work hard just to hold its ground, given the move to buyouts. That said, interest in fiduciary models remains high, especially as market complexity increases.”

Francis continued: “It’s important to note that these trends are also unfolding against a backdrop of shifting regulatory expectations. The Pensions Regulator’s (TPR) new guidance, ‘New models and options in defined benefit pension schemes’ (published 3 June 2025), reflects the growing range of endgame strategies available to well-funded schemes and the increasing importance of choosing the right fiduciary partner for your scheme specific needs.”

Anne-Marie Gillon, Principal Investment Consultant at Quantum Advisory, added: “TPR’s guidance has reinforced what many trustees already suspected, there’s no longer a one-size-fits-all approach to the endgame. As fiduciary providers broaden their service offerings, schemes need to dig deeper into the specifics: how well a provider understands their objectives, how agile their strategy is, and how much genuine oversight is built in.

“It’s important trustees and employers cut through the noise, so they can stay aligned with both market opportunities and their long-term goals.”

Produced in collaboration with leading fiduciary managers, the Quantum Advisory FM Dashboard* offers a data-driven overview of the current state of the fiduciary market. The publication analyses key market trends, fee levels, strategic asset allocations, and investment positioning — all with asset owners in mind. The Quantum Advisory oversight service translates these market developments into clear, relevant insights for trustees and employers, based on individual circumstances helping ensure that schemes are well-positioned to adapt to market changes and capitalise on emerging opportunities.

For a full copy of the latest report please click here.

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