Global DC Peer Study Summary Report 2025 (old)


Slide 1: Global DC Peer Study 2025 Summary Report
1

Slide 2: Foreword
2

Slide 3: Study snapshot
3

Slide 4: Top three takeaways
4

Slide 5: Key takeaways
5

Slide 6: Study highlights
6

Slide 7
7

Slide 8: Beliefs shaping DC strategy DC members are best served through long-term focus, high-quality defaults and strong governance
8

Slide 9: Beliefs shaping DC strategy (continued) Regulation is believed to be a wash, but DC organisations can serve their members by engaging with public policy, and by pursuing net-zero and sustainability
9

Slide 10: Regulation might be neutral, but political influence on portfolio management decisions is expected to increase
10

Slide 11: It is hard to argue with the logic of sustainability, yet practice arguably lags Fiduciary duty likely to be a highly influential factor in asset owner policies going forward
11

Slide 12: When designing your overarching investment strategy to and through retirement, how important are the following factors?
12

Slide 13
13

Slide 14: Extremely strong Board and management dynamics in governance and culture
14

Slide 15: How DC funds are managing investments today and tomorrow In/outsourcing models remain mixed, but the average direction is towards insourcing more
15

Slide 16
16

Slide 17: Current asset allocation of main growth fund, and its likely shifts (as of 30 September 2024)
17

Slide 18: Private markets are seen as valuable components of the portfolio, but with challenges
18

Slide 19: Total Portfolio Approach The peer funds are evenly spread on this attribute
19

Slide 20
20

Slide 21: Post-retirement pathways: drawdown, annuities and lifetime income A fragmented landscape with few members being protected against longevity risk
21

Slide 22: Default pathways in decumulation are emerging, led by larger funds Soft default dominates, but member choice still play a key role
22

Slide 23: But there is still a very long way to go before we have solved this
23

Slide 24: Provide education… and a degree of compulsion
24

Slide 25
25

Slide 26: The proportion of peers’ total internal spending allocated to technology
26

Slide 27: AI’s emerging role in DC funds Steady AI-driven improvements, with a few areas poised for disruption
27

Slide 28: All-round impact of technology and AI adoption accelerating Peers increasingly focused on a stronger data platform and more joined-up technology system
28

Slide 29
29

Slide 30: A high commitment to decarbonisation The majority of peers are addressing decarbonisation, with two-thirds having made net zero pledges or commitments
30

Slide 31: Climate change, inequality and geopolitics at the head of 10-year systemic risk surge This area seems to represent an industry gap in best practices. These risks are unlikely to have been fully integrated into the investment process
31

Slide 32: Supporting materials
32

Slide 33: Peer study participants
33

Slide 34: Global peer group breakdown
34

Slide 35: Limitations of reliance and contact details
35

Made with FlippingBook interactive PDF creator