View more on these topics

Vanguard aims for DC market

Vanguard is looking to break into the UK defined-contribution pension market within the next three years following interest from scheme providers about including the firm’s index trackers in their investment line-up.

Head of retail Peter Robertson says six of the top 10 DC providers – insurance companies mainly – have approached the firm to ask how the funds might work on their platforms.

Robertson says plans to break into the DC sector in the UK were accelerated, in part by a potential new competitor in Black Rock following its purchase of Barclays Global Investors earlier this year.

He says: “DC is something that we envisage doing over the next two to three years. BGI was not a competitor in the past because it did not do the admin. Now Black Rock can do the admin, the active and the passive, maybe an alternative passive provider is a good thing.”

Vanguard expects to add a range of active funds later in 2010 as well as exchange traded fund versions of its mutual funds.

Its 11 passively managed funds are available in the UK through a number of fee-based adviser platforms as well as consumer platform Alliance Trust Savings but they are still not on some of the bigger fund supermarkets such as Skandia, Fidelity FundsNetwork and Cofunds due to their rebate and commission-based structure.

Robertson says: “The reason we are not on them is because they have got a lot of work to do to change their model for the retail distribution review. Once they are ready for it, adding them is natural but at the moment the rebate discussion is pointless. If it takes a while to get on platforms, it takes longer still to get on the DC side.”


We need a transparency charter for with-profits

In the course of conducting a comprehensive review of the with-profits market, which included detailed consumer interviews, it has become clear that with-profits planholders are being let down by providers through their use of inadequate and, in some cases, misleading and obfuscating product literature.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm