Offshore is becoming attractive for funds willing to look outside the traditional staples of the asset class as long as they have the right team picking the right assets, a panel of consultants has discussed.
A universal pension scheme could result in “taking some off the top” by essentially removing or tapering tax concessions for higher income earners and redistributing these savings to middle income earners, Mercer's David Knox highlighted.
Members might end up being stranded in funds that become undesirable to potential suitors because they have a chance of underperforming over multiple years or hold poor preforming assets relative to a listed benchmark, new research shows.
Finding better retirement solutions will require more than just ‘age and balance’ metrics, but the industry will need to keep things simple to retain members’ faith and their confidence to spend, according to Challenger’s Aaron Minney.
Investors need to collaborate for systemic change, a discussion involving asset owners and sustainability experts has highlighted. Investors need to work with government, enshrine beliefs and educate beneficiaries on the importance of sustainability.