Larger Deals Shape UK’s OCIO Trends

In the U.K., outsourced CIO and fiduciary management assets continue to grow, driven by mandates from larger defined benefit pension schemes, according to investment consultant Quantum Advisory’s  “State of play” report.  

As of June 30, five OCIO mandates exceeding 500 million pounds ($671 million) had been awarded, not including the 11.5-billion-pound Shell Pensions mandate announced earlier this month. In total, Quantum Advisory estimated OCIO and fiduciary management deals worth 114 billion pounds have been agreed to over the last year.  

“While risk reduction and reallocation dominated last quarter’s results, we’re now also seeing the [fiduciary management] market evolve structurally,” said Paul Francis, a principal investment consultant at Quantum Advisory, in a statement. “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.” 

Quantum Advisory also noted the continuation of trends from a prior quarter report—defined benefit schemes are looking at a broad reduction in overall risk exposure, while reducing allocations to equities and increasing their allocations to fixed income and alternative investments.  

“It’s important to note that these trends are also unfolding against a backdrop of shifting regulatory expectations,” Francis said in a statement. “The Pensions Regulator’s 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.” 

Related Stories: 

Shell to Outsource $40B in European Pension Assets to Goldman Sachs 

2025 CIO Outsourced Investment Manager Survey 

Berenberg, Lurse Awarded First OCIO Mandate 

Tags: OCIO, Outsourced CIO