Independent Governance Group (IGG) has launched IGGnite, a platform that will provide operationally streamlined and cost-effective professional trusteeship and scheme management services to UK defined benefit pension funds.
IGGnite will enable pension schemes below £150m (€178m) access to scheme management and investment solutions at a cost typically reserved for larger schemes.
IGG pointed out that for many small schemes, the costs and management time required to run a pension scheme is diproportionately high. IGGnite seeks to address this by creating critical mass achieved through bringing schemes together under a common trustee. This, IGG said, delivers economies of scale without the complexity and cost of a traditional consolidation model where schemes are bundled.
Schemes that are part of IGGnite will benefit from operational efficiencies while maintaining structural separation and independence. According to IGG, this reduces the administrative and regulatory burden for sponsors, while simultaneously allowing them to retain control – together with the trustee – over the future of their scheme.
Members and sponsors will also benefit from streamlined decision-making with IGG as professional corporate sole trustee (PCST), adhering to the highest professional standards, with the potential to capitalise on and leverage wider market opportunities, whether schemes are pursuing buyout or choosing to run on.
IGGnite is powered by IGGiQ, IGG’s recently launched data aggregation platform, which gives pension trustees access to data from multiple sources in real time – from portfolio costs and performance to sustainability and ESG impact – and underpins more informed decision-making for trustees of schemes of all sizes.
Andrew Bradshaw, IGG’s chief executive officer, said: “IGG has a long-standing track record of driving up standards and cementing good governance practices across the professional trustee arena. We believe all pension schemes should benefit from high quality governance, market-leading technology and access to the full range of expertise, tools and services our industry has to offer.”
He said the launch of IGGnite is a “key development” in realising this aim and enabling all schemes, regardless of size, to access the benefits of professional trustee support.
“IGGnite will widen access to best-in-class governance, promoting high standards across the full pensions scheme landscape and supporting The Pensions Regulator’s drive for continued improvement,” he added.
Bradshaw told IPE back in March that IGG was planning to launch a product to support smaller schemes, after TPR had asked the industry to come up with ways that could help out the smaller schemes market.
At the time, he said the firm was aiming to become “an aggregator in that smaller scheme bit of the market”.
Annabelle Hardiman, head of PCST at IGG, added that the firm has seen a growing demand for PCST appointments as trustees and sponsors grapple with the increasingly complex scheme management and regulatory compliance requirements of managing a pension scheme.
She said the trend is also driven by the spotlight on value for money and the recognition that the PCST model can often lead to quicker and more efficient decision making.
She added: “With over 150 PCST appointments, IGG is ideally positioned to channel our experience and knowledge for the benefit of small schemes, without compromising on quality.
“More than just a PCST model, IGGnite provides schemes with greater access to independent, high-quality advisers and service providers, at a more affordable cost. The full-service model enables sponsors to focus on running their businesses whilst we, as trustee, look after those at the heart of what we do, our scheme members.”
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