UK - Threadneedle is set to withdraw from the full service group personal pensions market in a bid to focus on its investment only offering.
The investment management firm said it had undertaken a strategic review of its bundled defined contribution business - concluding larger, more specialist providers would be better equipped to provide this service in the future.
It said it has nominated Legal & General Workplace Savings as the replacement product provider as a result of the decision to exit the maket.
Threadneedle said it is currently notifying trustees, scheme sponsors and benefit consultants of the new arrangement - and says those who accept Legal & General as their replacement provider will begin the transfer to WorkSave pensions during the third quarter of 2011. It said the whole process is expected to be complete by early 2012.
Head of global institutional business Madeline Forrester (pictured) said: "Developments in the market have meant that large specialists, such as Legal & General, are best equipped to provide clients with the highest level of member benefits and services."
In a statement, Threadneedle added: "We have decided to focus on our core capability of providing asset management services to this market, and after assessing a range of potential partners, announce today that Legal & General Workplace Savings will be our nominated replacement product provider for our bundled DC group pension portfolio and individual retail pension products.
"As the leader in the marketplace we believe L&G is best placed to provide our clients with the highest level of member benefits and services going forward. Threadneedle will continue to offer its investment only products to trustees and plan sponsors."
As part of the deal, Legal & General has chosen to add several of Threadneedle's funds to their platform.
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