3. Some context Read more: http://www.professionalpensions.com/professional-pensions/news/1811130/financial-services-trusted-hand-car-salesmen#ixzz13SyWeDlm A lack of transparency and "difference between the advertised offer and the results of the service rendered". Investments, pensions and securities “trusted less than second-hand car salesmen”
6. SOURCE: ProfileME TM PensionDCisions’ free on line risk profiler N ote: High Risk, Medium Risk and Low Risk reflect the top 33%, middle 33% and bottom 33% of risk score, respectively, across those individuals that were profiled . What do consumers want? Low Risk Medium Risk High Risk
7. What do consumers get? SOURCE: PensionDCisions FT Provider Default Survey 2010 Average asset allocation consumed by schemes (FTSE PensionDCisions DC Growth Index)
8. Recommendation vs. Consumption SOURCE: PensionDCisions FT Provider Default Survey 2010 Note: The increased diversification is despite three asset managers recommending 100% equity index trackers Average asset allocation recommended by respondents (asset managers) and consumed by schemes (FTSE PensionDCisions DC Growth Index)
12. Who does what? Source: PensionDCisions. Note: Investment consultants are defined as primary driver if the plan sponsor cited them as influential, unless the underlying investment strategy provides the asset manager with independence to take asset allocation decisions. Respondents View of the Responsible Party for Asset Allocation Drivers of Asset Allocation Decisions
13. Is cheaper better? SOURCE: PensionDCisions FT Provider Default Survey 2010
14. It’s about value, not about price SOURCE: PensionDCisions FT Provider Default Survey 2010; Note: The Figure excludes those strategies with less than three years of performance data. Static includes balanced strategies.
16. . Transparency is needed SOURCE: PensionDCisions CuBIT platform Note: * The Growth Stage includes only those active and deferred customers with more than 15 years to retirement and more than 3 years in scheme EMPLOYER level: 3-Year Risk / Return as at March 2010 (Growth Stage)
17. Return Risk (Volatility) n=158 employers, size of bubble indicates relative AUM of employer Transparency is needed SOURCE: PensionDCisions CuBIT platform Note: Return as at March 2010 (Growth Stage) includes only customers with >15 years to retirement and > 3 years in scheme. Risk 3 Year Risk / Return as at March 2010 (Growth Stage) - 4% - 2% 0% 2% 4% 6% 10% 14% 18% 22% Employer Average Total Book Average FTSE PensionDCisions DC Growth Index FTSE 100 Index MSCI The World Index Free Employer A, B, C
18. Risk (Volatility) 3 Year Risk / Return as at March 2010 (Growth Stage) SOURCE: PensionDCisions CuBIT platform Note: Return as at March 2010 (Growth Stage) includes only customers with >15 years to retirement and > 3 years in scheme. Risk Transparency is needed Return - 4% - 2% 0% 2% 4% 6% 10% 14% 18% 22% Employer Average Total Book Average FTSE PensionDCisions DC Growth Index FTSE 100 Index MSCI The World Index Free Employer A, B, C