Cheviot has unveiled a revamped operational and investment model for its multi-employer master trusts, in a move designed to tackle regulatory pressure, reduce cost, and achieve scale.
The new model has been launched in partnership with Spence & Partners and Van Lanschot Kempen. It offers direct access to real-time data and funding updates, improved information flow and reporting, and a reduced management burden for trustees and sponsors.
Cheviot runs two master trusts, one for defined contribution (DC) and one for defined benefit (DB) pension arrangements.
The company, a non-profit operator, said its new model was designed to offer streamlined pathways to buy-in, buyout, or continued scheme management, as well as providing enhanced governance options.
It also allows pension schemes joining a Cheviot trust to retain existing advisers or trustees where needed, while also enhancing governance.
Spence & Partners has been appointed as pension administration provider. Fiduciary manager Van Lanschot Kempen continues to provide integrated investment, administration and governance services for the master trusts.
“Our new model gives schemes access to an efficient and specialist pensions arrangement that provides an end-to-end solution for all aspects of pension delivery,” said Elspeth McKinnon, Cheviot’s chief executive officer. “We achieve this by leveraging scale, high-quality governance and appointing award-winning partners for investment and administration.”
Alan Collins, managing director at Spence & Partners, added: “Cheviot has ambitious growth plans in the operational consolidation market that we are excited to be supporting.”
Arif Saad, executive director at Van Lanschot Kempen, concluded: “This collaboration with an authorised DB and DC master trust has the ambition to offer members, trustees and sponsoring employers market-leading services.”
The changes come following the final report from the government’s Pension Investment Review, which set out plans to ensure DC master trusts reach at least £25bn by 2035 at the latest. According to Cheviot’s most recent accounts, as of 31 December 2023, it had £224m in DC assets and £384m across all schemes.
