Aon launches the Aon MasterTrust to meet demand

Aon has launched ‘Aon MasterTrust’ for occupational trust-based pension schemes of more than £20 million, on the expectation of an increase in demand for master trusts. The scheme will have an oversight board of three independent experts.

In response to a foreseen increase in demand for master trusts in the coming five years, almost 10% of the UK’s defined contribution (DC) pension schemes are expected to convert, Aon has launched ‘Aon MasterTrust’. The offering is targeted at occupational trust-based pension schemes. It provides potential clients with expertise in dealing with increasing regulatory compliance requirements and members with a competitive drawdown solution that is managed professionally. Initially, schemes must have a minimum size of £20 million.

According to the consulting firm, the offering will complete its available services to the UK’s DC market. The Aon MasterTrust will provide schemes with a consolidated governance model to reduce costs and risk. Key features of the MasterTrust include investment options backed by global DC investment expertise; a wide range of improvements to members’ engagement with the scheme and customer services; the ability to consolidate legacy assets; and a fully automated auto-enrolment solution.

Independent board
As part of the firm’s commitment to providing independent oversight of the operation of the Aon MasterTrust in line with achieving the best outcomes for its participants, the firm has created a board of trustees independent from Aon. Oversight will be provided by a three person strong team of experts, including Chairman Roger Mattingly of Pan Trustees, Nicki Mortimer of Capital Cranfield and Kim Nash of PTL. “We wanted The Aon MasterTrust trustee board to be composed of high calibre independent professionals, so we are very pleased that Roger Mattingly, Nicki Mortimer and Kim Nash have agreed to take on the roles,” comments Sangita Chawla-Jopling, Head of DC Product at Aon. “I am confident that they will provide the knowledge and the independent approach that will challenge us to provide the best possible service.”

Sophia Singleton, Partner and Head of DC Consulting at Aon Hewitt, says about the launch of the new offering: “Running a pension scheme is not getting any easier – in fact, it’s getting increasingly onerous, complex and costly. With the launch of The Aon MasterTrust we have aimed to deliver a solution which offers employers the best of both worlds – a trust-based approach which is outsourced to experts. By launching Aon MasterTrust we are also completing Aon’s range of DC services – advisory, investment only, bundled services, contract-based and now a master trust.”