TPT Retirement Solutions has launched a new investment company to provide fiduciary management and consultancy services to the UK pensions industry.
The launch of the TPT Investment Management (TPTIM) comes after TPT secured regulatory approval from the Financial Conduct Authority (FCA) to set up a commercial investment company to provide new services to defined benefit (DB) schemes.
These services will allow trustees to access TPT’s pensions and investment expertise while retaining the combined assets of their scheme, the firm announced.
The new entity will also be responsible for the management of £10.4bn in combined assets of TPT’s existing master trust.
According to TPT, the new company will build on the successful model of scheme consolidation, pooling assets to deliver value and impact, for the benefit of corporate pension schemes. Specifically, it said it is launching a series of collective investment vehicles as alternative investment funds.
The use of collectives, it added, will allow the aggregation of the assets overseen by TPT with those of external pension schemes, generating immediate scale benefits across a wide range of assets.
TPTIM’s fiduciary management service will be part of the new DB proposition set to launch in Q4 2023. It will provide pension schemes with the full suite of services enjoyed by those in a master trust, including trustee support, administration, actuarial, investment management and covenant.
TPT added that these services will still allow schemes to retain their existing trusteeship, while benefitting from reduced fees through economies of scale, improved governance and investment expertise.
Cliff Speed, TPT’s current chief investment officer, will become the new chief executive officer of TPTIM.
There has been somewhat of an increase in fiduciary management mandates recently, also known as outsourced chief investment officer (OCIO) services.
Earlier this week, the trustees of two pension schemes for employees of BAE Systems, the British multinational arms, security, and aerospace company, outsourced the management of their approximately £23bn UK DB pension scheme assets to Goldman Sachs Asset Management via an OCIO mandate.
New chapter for TPT
David Lane, CEO of TPT, said: “This marks the beginning of a new and exciting chapter for TPT. “We remain firm advocates of the master trust model and are the standard bearers of consolidation.
“However, we recognise that one size doesn’t fit all, and for some trustees joining a master trust is not a viable option.”
Lane added that through its new offering, TPT will give trustees the ability to retain legal responsibility for the overall delivery of member benefits, whilst generating efficiencies through scale and access to best-in-class pension scheme investment management capability.
He said: “This will provide better value to the schemes, incorporate the highest levels of stewardship and, ultimately, deliver better outcomes for members.”
He added that many lay trustees “struggle” to keep up with the growing regulatory responsibilities and administrative requirements placed upon them.
He continued: “TPT will be able to assist them with this as part of our new proposition. We look forward to launching our new DB proposition in due course, which has been enabled by the formation of TPTIM.”