Macquarie Investment Management (Macquarie) has announced its True Index capability is now available to clients in the UK.
The True Index is a strategy which has been available within defined contribution schemes in Australia for more than two decades.
The solution provides clients a unique approach to indexing with exact index returns for no management fee, flexibility to invest across a range of asset classes and geographies, and a robust, multi-layered risk management approach.
Macquarie and an independent investment platform, Mobius Life, are working in partnership with a UK pension scheme to provide a bespoke pooled global equity True Index solution.
Outside of the UK, the pension market has been dominated by large Defined Contribution (DC) schemes for many years. Macquarie believes the evolution of those markets could provide some insight into the potential future development of the UK market as DC schemes become the primary source of retirement income for most UK citizens. The Australian market has been dominated by DC schemes since the 1980s and is where consolidation of funds and a greater focus on reducing fees from both the regulator and the market resulted in growing demand for products like True Index.
Scot Thompson, co-head of Macquarie’s Systematic Equities team, believes that similar trends in the UK could result in growing demand for this kind of product. “Trustees are under pressure to deliver sophisticated solutions with low fees to their participants,” said Thompson. “We are delighted that we can now offer our time-tested solution to pension plans in the UK.”
Mobius Life, an independent provider of investment administration services to UK pension schemes, offers access to a diverse range of funds on its life company platform, enabling pension schemes and their advisers to easily access and tailor their investment strategies to deliver their investment objectives.