Beliefs shaping DC strategy DC members are best served through long-term focus, high-quality defaults and strong governance
Conviction score, neutral =3
Strongest convictions: ▪ +1.2 : strong belief in the importance of a long-term time horizon ▪ – 1.1 : strong support for high-quality default in accumulation Next tier of conviction (±0.6 to ±0.5): ▪ support for a default in decumulation – drop in strength of support relative to accumulation possibly due to greater heterogeneity in income needs ▪ preference for stronger board influence ▪ belief in ability to earn alpha ▪ support for public policy engagement on pension adequacy (next page) ▪ preference for low operational costs ▪ some support for sustainability and net-zero (next page) Not strongly held : ▪ belief that lower-cost compounding is better for member ▪ that regulation has any impact on member outcomes (next page)
1
5 Long-term focus 4.2
Time horizon
The member is best served by us having:
Short-term focus
3.6
Alpha Our ability to earn alpha net of fees is:
Strong believer on active alpha attainment
Weak believer on active alpha attainment
3.6
Governance
Limited Board influence
We will be more successful with :
Significant Board influence
2.8
Investment costs
The member is best served by:
Low-cost compounding
Higher-cost higher returns
2.5
Operation costs
The member is best served by:
Low-cost standardisation
Higher-cost customisation
2.4
Choice in decumulation
The member is best served by:
A high-quality default
Wide range of choice
1.9
Choice in accumulation
The member is best served by:
Wide range of choice
A high-quality default
n=17
8
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