UK - Invesco Perpetual is pulling out of the market as a provider of defined contribution (DC) pension plans, after signing a deal to transfer its full service DC business to Threadneedle Investments.

A statement issued today reveals Threadneedle is acquiring total assets under management at Invesco of £470m (€626m) through the DC business - a move which will now see Threadneedle manage pension arrangements for over 100 clients.

The deal will provide additional services to new clients, in particular, as they will gain access to a wider range of funds, improved systems and web functionality.

Threadneedle launched its own DC pensions business in 2001, and has £1.3bn of the firm's £67.7bn in total assets under management held in this proposition.

In contrast, Invesco will now concentrate its efforts on investment management and "is committed to investment management for the retirement savings market," according to Ian Trevers, head of distribution at Invesco Perpetual.

On the back of this deal, Rita Butler-Jones is being promoted from DC relationship manager to head of DC at Threadneedle.

Both firms say they will work together "to ensure a smooth transition and continuity in the servicing of client accounts".

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