For immediate release: Tuesday 20 June 2006

FUND MANAGERS GEARED UP TO DELIVER LOW COST NPSS

Speaking at yesterday's oral evidence session at the Work and Pensions Select Committee Inquiry into Pensions Reform, Richard Saunders, Chief Executive of the Investment Management Association (IMA), said:

"The functionality you would require of a National Pensions Savings Scheme is pretty close to that of a large savings scheme.  What we are talking about is no more nor less than an investment scheme.  And it is important to realise that there is no need to set up an entirely new public sector system; systems which can make this work already exist in the private sector."

Mr Saunders also stressed the importance of good governance operating in the interests of the individuals in the scheme and effective competition through a separation of the administration from the investment management.  He then went on to say:

"The investment management is probably the most straightforward part of this. There are many fund managers geared up to provide investment management services and competition in the institutional market already ensures that they can be delivered at low cost."

-Ends-

For further information, please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898

Out of hours contact:
Mona Patel, Head of Communications, IMA, 07834 089332