TPT to create a new investment company to provide fiduciary management and consultancy services

• Establishing the company will allow TPT to offer fiduciary management and consultancy services to trustees without requiring a scheme to join its master trust

• Trustees will be able to access the scale, investment opportunities and expertise of a large master trust pension scheme while retaining trusteeship

• The new company will also manage its parent company’s £10.4 billion master trust assets

• Fiduciary management services will form part of TPT’s new DB proposition for trustees

TPT Retirement Solutions (TPT), one of the leading workplace pension schemes in the UK, has secured regulatory approval from the Financial Conduct Authority (FCA) to set up a commercial investment company to provide new services to DB schemes.

TPT Investment Management (TPTIM) will offer fiduciary management services as part of a new DB offering that allows trustees to access TPT’s pensions and investment expertise while retaining the trusteeship of their scheme. TPTIM will also be responsible for the management of £10.4bn in combined assets of TPT’s existing master trust.

The new investment management company will build on TPT’s existing and well-established in-house investment management function. By transitioning the existing investment management capability into a separately regulated investment management entity, TPT can make its best-in-class capability available to the trustees of non-TPT pension schemes in addition to TPT’s current master trust. TPTIM’s proposition brings to market the benefits of asset pooling and will provide access to a range of investments that would not necessarily be available as a standalone scheme. This includes greater exposure to alternative investment assets, such as infrastructure and broader private market assets, as well as TPT’s leading Responsible Investment capabilities.

TPTIM will build on the successful model of scheme consolidation – pooling assets to deliver value and impact – for the benefit of corporate pension schemes. Specifically, it is launching a series of collective investment vehicles as Alternative Investment Funds (AIFs). The use of collectives will allow the aggregation of the assets overseen by TPT with those of external pension schemes, generating immediate scale benefits across a wide range of assets.

Cliff Speed, TPT’s current Chief Investment Officer will become the new CEO of TPTIM. Before joining TPT, Cliff was Managing Director for BlackRock Solutions, leading the firm’s UK fiduciary service for pension schemes.

New DB Proposition 

TPTIM’s fiduciary management service will be part of TPT’s new DB proposition set to launch in Q4 2023. The proposition will provide pension schemes with the full suite of services enjoyed by those in a master trust – including trustee support, administration, actuarial, investment management and covenant – while allowing schemes to retain their existing trusteeship. This proposition will allow schemes to benefit from reduced fees through economies of scale, improved governance and investment expertise​. This offering will sit alongside TPT’s existing master trust. 

Commenting on the FCA approval, David Lane, CEO of TPT Retirement Solutions, said: 

"We are thrilled to be launching our new investment company. This marks the beginning of a new and exciting chapter for TPT. We remain firm advocates of the master trust model and are the standard bearers of consolidation. However, we recognise that one size doesn’t fit all, and for some trustees joining a master trust ​may not be the preferred option. Through our new offering, we will offer trustees the ability to retain legal responsibility for the overall delivery of member benefits, whilst generating efficiencies through scale and access to best-in-class pension scheme investment management capability. This will provide better value to the schemes, incorporate the highest levels of stewardship and, ultimately, deliver better outcomes for members.

Many lay trustees struggle to keep up with the growing regulatory responsibilities and administrative requirements placed upon them. TPT will be able to assist them with this as part of our new proposition. We look forward to launching our new DB proposition in due course, which has been enabled by the formation of TPTIM."