Mellon Trust has been appointed by Nationwide Unit Trust Managers, the investment arm of the Nationwide Building Society, as third party administrator for its stakeholder pension product.
Mellon Trust, headquartered in Pittsburgh, will provide full service member record keeping and back office functions.
The deal marks Mellon’s first client win in the stakeholder pensions administration market in the UK, said Conor Hoey, Head of Pensions at Mellon Trust. It is our belief that the pensions market will move increasingly towards outsourcing its administration, as the 1% cap on stakeholder charges begins to bite.
“With the advent of Stakeholder in the UK from April 2001, the defined contribution market is set to grow further,” he added.
Mellon Trust also provides fund accounting and investor administration services to the building society’s unit trust and equity ISA product ranges.
By Scott Anderson
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