Most of the pension schemes sponsored by large British companies have turned to specialised asset management in the space of a few years, instead of relying on single providers for all their portfolios. Almost 80 percent of FTSE 100 defined contribution (DC) pension schemes, which pay out based on investment performance, now use platforms run by insurers which give access to "best-in-class" managers, consultancy Towers Watson (TW.N) said.
The figure has risen from virtually zero five years ago, when pension funds relied on a handful of chosen providers. The continued growth of the platform method will be a further catalyst to specialist asset managers as the industry caters for more alternative and liability-oriented management, said a spokesman for Towers Watson.
Reuters
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