UK - Gartmore Investment Management is reviewing its defined contribution operations which could, sources say, lead to it pulling out of the business.
DC is seen as one of the few growth areas for fund managers, especially as the move away from defined benefit provision continues.
But while Gartmore confirmed it was looking to “redefine” its DC business, a source within the company said a steering committee had been set up to review the business.
Another source said Gartmore was conducting a “back to basics, back to core” exercise.
He said: “The decision Gartmore is facing is whether or not to be a provider of fund management on a standalone basis, or whether to be in the packaged business.
“Being in the packaged business involves a great deal more than simply distributing booklets. The admin section is very demanding – it’s not core business for fund management firms.”
Speculation about the future of Gartmore’s DC business comes as sources confirm that the firm is set to drop Marlborough Stirling as its DC administrator.
Marlborough Stirling provides admin to the firm’s group pensions product, the Gartmore Personal Pensions Trust.
Marlborough Stirling was not available for comment.
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