Enplan, operated by Entrust and Isio, is introducing a new innovative investment service to its clients through Schroders to enhance its operational consolidation solution for defined benefit (DB) pension schemes.
The new approach will boost Enplan’s investment, monitoring and digital reporting capabilities, providing access to a market-leading investment proposition built bespoke for clients and normally only available to much larger schemes. Enplan schemes will benefit from Schroders’ advanced Liability-Driven Investment modelling and access to a range of proven asset managers through an open architecture that ensures best in class manager selection in each asset class.
Enplan was established by independent trustee company Entrust and pensions advisory firm Isio in 2017. It provides smaller DB pensions schemes with a one-stop-shop governance and operational solution that saves schemes time and money, while enabling them to retain their original independent legal structure and identity. Enplan has now onboarded more than 50 schemes and is responsible for close to £1.5bn of DB pension scheme assets.
Enplan was launched in response to a significant consolidation opportunity emerging in the DB marketplace. The Mansion House reforms have since placed an increased emphasis on consolidation for smaller DB schemes, including ‘superfund’ options, which aim to reduce reliance on their sponsoring employer.
Operational consolidators such as Enplan provide economies of scale through bundled services and governance, and have been operating successfully for some time. Now, with a demonstrable track record, they are well placed to capitalise on demand for sophisticated, cost-effective consolidation solutions that do not require an upfront premium to join.
Tom Neale, Enplan Trustee Director and COO at Entrust commented: “Enplan continues to go from strength to strength and it has an impressive track record, successfully managing more than 50 DB schemes. Introducing Schroders to Enplan is another great example of how we are continually improving our offering and bringing the big scheme experience to smaller schemes.”
Andrew Goddard, Isio’s head of Enplan said: “Recent pension reforms have shone a spotlight on the need for effective and efficient consolidation options for the DB marketplace, yet much of the current focus is on superfund options, also known as financial consolidators, which have high barriers to entry due to reduced reliance on sponsoring employers. At Isio, we have been at the forefront of innovation in providing consolidated solutions for DB schemes and believe that operational consolidators, which provide economies of scale in an easily accessible way, should be a larger part of this conversation.”
Ajeet Manjrekar, Head of UK Client Solutions, Schroders Solutions, part of the Schroders Group, said: “Today’s announcement further demonstrates Schroders’ commitment to meeting the changing investment needs of UK DB pension funds – bringing our market leading investment expertise to pension funds of all sizes to power Enplan’s rapidly growing consolidation platform.”