Global asset manager abrdn is intending to launch a defined benefit (DB) pensions master trust in anticipation of increased consolidation in the market over the next few years.

XPS Pensions Group is to provide actuarial and investment consulting, administration, and secretarial and covenant services.

In a statement today, abdrn said the new DB master trust, scheduled to launch in the second quarter of this year, is believed to be the first to be developed and launched through a strategic alliance between an independent pensions consultancy and a leading global asset manager.

“The abrdn pensions master trust has been designed with XPS Pensions Group to harness the relevant expertise of both firms and offer a solution that provides a professional governance model, high-quality pensions consultancy and administration services, material expense savings through economies of scale and access to a broad range of abrdn’s relevant investment strategies,” said Stephen Bird, chief executive officer of abrdn, the rebranded Standard Life Aberdeen.

The government and The Pensions Regulator (TPR) have been encouraging consolidation among the thousands of small to medium-sized schemes operating in the UK, with a particular focus on DB and defined contribution (DC) funds with less than £10m (€12m) in assets. Consolidation among DC schemes is more developed.

“This master trust gives smaller schemes access to the same opportunities that much larger schemes enjoy and gives peace of mind to corporate sponsors allowing them to dedicate more time to running their business,” said Paul Cuff, co-CEO of XPS Pensions Group.

A spokeswoman for abrdn said the asset manager was speaking with a number of potential seed investors and that the master trust is expected to complete self-certification under the DB self-certification regime hosted by the Pension and Lifetime Savings Association.

“We anticipate seed investment during 2022 and to grow over the course of the subsequent years,” she said.

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Susanna is deputy news editor at IPE. At IPE she covers responsible investment and EU regulation, but also enjoys reporting on developments in and around the UK pensions industry. Having been a financial journalist since 2008, Susanna started her career as a corporate governance/corporate social responsibility analyst at proxy advisory firm PIRC.View full Profile

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