UK - Denmark's largest pension fund ATP has unveiled its UK pension offering, aiming to take advantage of auto-enrolment with its multi-employer trust NOW Pensions.
NOW, which is set to launch at the beginning of next year, confirmed that assets would be managed by ATP's Danish operation through a newly launched subsidiary called NOW Pensions Investments.
Morten Nilsson, current head of ATP international operations based in London, has been named chief executive-elect of the new scheme, with ATP Group's chief executive Lars Rohde sitting on its advisory board.
Additionally, Imelda Walsh, former group HR director of supermarket chain Sainsbury's, and Lord Monks, former general secretary of the European Trade Union Confederation as well as its British counterpart the TUC, will sit on the advisory board.
They will be joined by Chris Daykin - government actuary for almost two decades - and the previously announced appointment of Nigel Waterson, the Conservative party's former shadow minister for pensions.
Rohde said he was dedicated to offering a decent pension and excited about the vehicle's UK launch, first revealed earlier this year.
"There is a need for a member-centric solution designed for ease of use with low costs and cutting-edge investment strategy, which delivers long-term, stable returns," he said.
"Our in-house investment capabilities, combined with our novel and innovative approach, allow us to be agile and efficient."
Nilsson meanwhile stressed the importance of auto-enrolment for UK pensions, saying it was "vital" the reforms be successful, based on an offering that was cost-effective and allowed for stable long-term investments.
He also told IPE that members would benefit from ATP's Danish in-house asset management experience, while also reaping the advantages of its DKK469bn (€62.8bn) in assets under management - meaning NOW would be able to offer exposure to asset classes not usually accessible by smaller schemes.
Nilsson explained this ability to leverage the Danish scheme's membership and total assets brought down NOW's sensitivity "quite significantly" to how many members were needed for a launch, but he declined to provide details of any first-year targets.
"The proposition being launched will be based on the same risk classes we use in Denmark - so a highly diversified fund with commodities, credit, interest rates, equities and inflation," he said. "In our view, that's the way of gaining high returns and bringing down the risk while doing so."
He explained that while details of the fund options were not yet public, NOW would aim top offer a default fund that would allow members to "lean back and let the experts do the investments", while also adjusting investments according to market volatility.
"We're not restricted by benchmark - we have the ability to move as volatility moves," Nilsson said. "If you have a dynamic investment approach going forward and you do some life cycling in addition to that, that will work very well."
Nilsson also praised the advisory board's members, saying: "Each member of our advisory board is passionate about creating a better retirement income proposition in the UK, on a commercial and sustainable basis.
"The board's interesting dynamic, with expertise and experience representing all main aspects of delivering pension - member, employer, actuarial, investment and political - will provide a strong basis for a successful solution for the UK market."
ATP, which at the end of June reported DKK469bn (€62.8bn), initially bid for the National Employment Savings Trust's (NEST) administration contract, but pulled out in late 2009.
The contract to administer one of the cornerstones of the UK auto-enrolment reforms eventually went to Tata Consulting Services.