The annual review of UK DC pensions saw BlackRock, Zurich and Standard Life all join Fidelity as ‘Greenwich Quality Leaders’, which it describes as providers polling considerably higher than their peers.
The report evaluated 16 DC pension providers across 22 key investment, administration and client servicing proposition criteria.
BlackRock came first for investment proposition, while Fidelity’s administration platform was ranked highest. But the report found of all the key administration factors measured, not a single provider stands out for excellence in providing prompt and accurate reporting to pension scheme members – suggesting industry-wide scope for improvement.
This is consistent with a majority of benefit consultants interviewed indicating that the provision of advice around bespoke blended funds has become a key part of their value proposition to their clients.
Fidelity, BlackRock, Friends Life, and Standard Life achieved a top quartile rank for the quality of their client service propositions, a category which focused on the value-adding elements of client service, including the clarity and relevance of written communications to members, online resources offered and member engagement strategies. But Fidelity led in this category by a statistically significant margin, due in large part to the perceived strength of its online proposition. A majority of consultants anticipate a shift towards more online communications, and note the need for providers to develop propositions that are supported by touch-screen devices and also to leverage social media developments.
Greenwich Associates consultant Marc Haynes says: “Consultants are ascribing increasing importance to the flexibility that pension providers are able – and willing – to offer supporting blended default fund solutions and bespoke fund ranges. This marks a change from the past when the quality and governance of a provider’s standard default fund and supporting fund range were all important.”
