UK - Henderson Global Investors is considering plans to enter the defined contribution market.
As part of the possible move Henderson has recruited Nick Adams from rival Threadneedle Investments, where he was an institutional client manager.
Adams joined Threadneedle when the firm launched its DC business and played a “significant” role in its development and growth over the following three years.
At Henderson, Adams will be associate director of institutional business and will report to director of global consultants Andrew Fraser.
The pair are now assessing opportunities for Henderson in the DC market and preparing a business plan.
Henderson institutional business director Arno Kitts said the firm’s DC business plan was no longer a “blank sheet of paper”.
He said the firm was reviewing market developments and it was likely to make further appointments within the DC area.
However, Kitts said that one concern for Henderson was that it wanted to avoid the fate of rival fund management firms which had lost money on their DC operations. He said that these firms had been left with a series of empty boxes – despite spending considerable amounts of time and money on their DC platforms.
Kitts added: “I have no doubt that if we proceed with this, Henderson will be a big, big player in DC.”
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.