The Defined Contribution Investment Forum highlights the case for a relaxation of daily dealing requirements for DC pension funds.
The Defined Contribution Investment Forum (DCIF), launched yesterday at a seminar for leading industry professionals, a White Paper examining the barriers that exist to good portfolio construction in DC, in particular the ability to access illiquid investments.
The report, "Mind the Gap - the case for a relaxation of daily dealing requirements for DC pension funds", by Spence Johnson, commissioned by The Defined Contribution Investment Forum, highlights that unless DC schemes are encouraged to change the way they invest, many members will achieve outcomes which are inferior to what they could have otherwise achieved. This result can be avoided if action is taken now.
Andy Dickson, Chairman of the DCIF and Investment Director, Standard Life Investments, comments:
"We believe that at present there are many DC schemes which do not give members adequate access to excellent investment services. Part of this problem is the lack of effective diversification through new asset classes. The opportunity for greater diversification is a potential enhancement to current best ideas and has the potential to both improve member outcomes and also to improve the member journey."
The members of DCIF are Axa Investment Managers, Baring Asset Management, Invesco Perpetual, J.P. Morgan Asset Management, Schroders Investment Management, Standard Life Investments and Threadneedle Investments. New members are very welcome and should contact DCIF, at info@DCIF.co.uk.
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