Tender or Pretender

Tender or "Pretender"? - CMA Scrutiny and Pension Fund Procurement

One of the key recommendations in the CMA’s Provisional Decision report is a new mandatory requirement. UK pension funds should, they say, conduct a “competitive tender” when appointing a fiduciary manager.

Tender or Pretender


What is a competitive tender? The CMA says that only 34% of investors conducted a formal tender for their fiduciary managers, but key providers often claim that the majority of their clients have chosen them through a “tender.” Find out the key features that we believe a good competitive tender should offer.

What are the pros and cons of competitive tendering? Popular myths and practical experiences at a glance.

What makes a good fiduciary manager? View a simplified scoring framework as well as potential questions and issues that should be addressed.

Taxable Municipal Bonds: Sector in Brief


With the CMA likely to recommend mandatory tenders for fiduciary mangement services as part of its market investigation on Investment Consultants, now is the time for pension fund managers and trustees to consider the implications for their manager selection activity and governance.

This note primarily considers fiduciary manager selection, but also addresses key considerations around tendering for non-fiduciary manager selection, where similar “conflict of interest” considerations are increasingly evident.

Important Notices

This commentary is for institutional investors classified as Professional Clients as per FCA handbook rules COBS 3.5R. It does not constitute investment research, a financial promotion or a recommendation of any instrument, strategy or provider. The accuracy of information obtained from third parties has not been independently verified. Opinions not guarantees: the findings and opinions expressed herein are the intellectual property of bfinance and are subject to change; they are not intended to convey any guarantees as to the future performance of the investment products, asset classes, or capital markets discussed. The value of investments can go down as well as up.