UK - Investment Gateway, the new Watson Wyatt investment strategy for defined contribution (DC) pension schemes, has broken the £1bn barrier, with the consultant claiming to have around 15 clients committed.
The scheme, which was unveiled in May of this year, was launched following concerns that DC plans were under-performing when it came to investment returns. It encourages a greater diversity of investments, including the use of alternatives such as credit derivates, infrastructure and commodities.
Crispin Lace, senior investment consultant at Watson Wyatt, told Global Pensions that the ability to set up white label funds or to use existing funds in the market place was proving to be one of the main attractions of the concept.
He also said the use of the more exotic investment strategies had been adopted in varying degrees. “In a small number of cases schemes are putting a number of such [alternative] vehicles on the platform,” he said.
The top stories this week were the High Court's decision to block the £12bn annuity transfer from Prudential to Rothesay Life, and a separate court ruling that 'raises the bar' for pension rectification exercises.
Guaranteed minimum pension (GMP) equalisation has soared to the top of pension schemes' to-do lists, with 58% stating it is a priority project, research from Equiniti has revealed.
Professional Pensions is holding its defined contribution (DC) conference on 4 September.