Close Brothers launches auto-enrolment master trust

Close Brothers Asset Management has launched a multi-employer master trust, known as YourWorkplacePension, to support SMEs approaching their auto enrolment staging dates.

YourWorkplacePension links to CBAM’s CloseToMyPension automatic enrolment software platform, which is an online solution that already has several thousands of individual users. The AMC of the offering is 0.75 per cent and independent trustee services are offered by Pitmans Trustees Limited.

CBAM says its system deals with all parts of the AE process, including assessing employees and segmenting them into the relevant categories, handling all electronic communications, managing and recording opt-outs and opt-ins, processing ongoing record keeping as well as ensuring all regulatory requirements are met.

Close Brothers Asset Management head of corporate advice Charles Gillespie says: “Many smaller firms lack the scale required to negotiate cost-effective solutions in meeting their auto enrolment obligations. Our solution allows multiple employers to participate in a single arrangement that includes a professional and independent trustee. As the requirement for governance increases, trust-based pension schemes can offer an attractive solution for SMEs.

“This relieves employers of any trusteeship responsibilities, providing peace of mind that their workplace pension is overseen by experienced pension professionals. This also allows employees to benefit from a cost effective workplace pension with pension fund investments being monitored regularly on their behalf.”

Close Brothers Asset Management director of institutional investment Paul Chapple says: “The master trust uses five multi-asset funds where asset allocations are based on forward-looking analysis of economic and market conditions which aims to reduce investment volatility experienced by members while maximising value.

“The multi-asset funds use low-cost index trackers combined with dynamic asset allocation made on the members’ behalf and taking into consideration the term to retirement of the individual member and are designed as an alternative to the traditional all passive equity default funds.”

“We aim to offer members a smoother journey as they save and particularly in the approach towards retirement, where we seek to better manage the downside risks whilst maintaining the ability to grow assets”.