More can be done to ensure that defined contribution (DC) pension fund members in the UK receive the best services, believe a coalition of six leading investment companies.
Backing their view, the companies announced the formation of the Defined Contribution Investment Forum (DCIF) at the National Association of Pension Funds annual conference held in October.
“The members of DCIF are particularly concerned that the widest variety of investment techniques and approaches for DC schemes are not being considered,” commented Stephen Bowles, the DCIF’s chairman and head of DC pensions at asset management company Schroder Investment Management.
Bowles continued: “We believe that at present there are many DC schemes which do not give this variety to their members and that, unless DC schemes are encouraged to change the way they invest, many scheme members may fail to achieve their retirement goals.
“The DCIF believes DC schemes should take action now, to reduce this likelihood.”
In its first initiative, the DCIF is to produce a white paper that will focus on the lessons the UK can learn from the more developed DC market in the US.
In addition to Schroder Investment, the founding members of the DCIF are Baring Asset Management, Henderson Global Investors, JP Morgan Asset Management, Standard Life Investments and Threadneedle Investments.
