Towers Watson launches UK DC master trust

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Towers Watson, the consultancy and solutions provider, has added a UK DC master trust to its programme of master trusts serving markets such as South Africa, Germany and the Netherlands.

Fiona Matthews, as managing director of the company’s Master Trust programme, will lead the new trust, while Donald Brydon will chair the independent trustee board, which governs the trust.

Paul Morris, EMEA head of Towers Watson, said: “We have a very long and successful history of working in partnership with our clients in the UK and they have told us what they want for their DC plans and which types of long-term savings vehicles would work well for them in the future.”

“While cost-effectiveness and governance are clear priorities, what they want is to provide a quality member experience with design and functionality that extends beyond today’s DC pensions needs and into tomorrow’s liberalised savings environment. We will address these priorities through a scalable, multi-employer master trust by combining our deep expertise in pensions administration, governance, communications and investment. We believe this approach, under Fiona’s leadership, makes for a different and compelling offering which is unavailable anywhere else. We are delighted that Donald will chair the trustee board and look forward to benefiting from his considerable experience.”

Towers Watson said the new trust is aimed at clients looking for trust based schemes with costs similar to contract based pensions

“It allows for larger-scale pooling of assets than traditional single-employer trusts, resulting in economies of scale and increased purchasing power that benefits both employers and members,” the consultant said.

It estimates that UK DC assets will grow about 11% annually, and triple in size over the coming decade. Drivers include automatic enrolment in company pension schemes as well as increases in minimum contributions mandated by regulations.

Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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