Carey Workplace Pension Trust is the second master trust to adopt FTSE UK DC Benchmarks as demand increases for clearer ways to evaluate their default investment strategy.
While the primary benchmark is whether the scheme delivers on its objectives in the best interests
of its members, the investment governance approach will also:
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Evaluate whether the default strategy over the long run delivers on its absolute return targets relative to inflation
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Evaluate how the default strategy compares to the FTSE UK DC 100% Benchmark on riskadjusted basis net of fees for discrete cohorts of savers.
The formal evaluation framework requires a reference benchmark to assess whether the strategy has provided value for money.
The Carey Workplace Pensions Trust offers a range of default investment options for different types of employers, so having a reference benchmark creates a common standard in this evaluation process in line with evolving legislation.
Christine Hallett, CEO, Carey Pensions
“We consider our adoption of the benchmark to be a proactive response to the evolving legislation and guidance around DC investment governance in a quality scheme that puts members’ interests at the core. From draft legislation on investment governance, it is clear that there is a welcome focus on Value For Money. By using these benchmarks alongside other evaluation criteria, we can get a common reference point for the performance of the defaults offered by different managers.”
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