Strong growth predicted for European corporate DC market

Pension_nest_egg_410The European corporate defined contribution (DC) pensions market will grow by 11.5% per annum to 2014, predicts research firm Cerulli. While DC plans continue to become more sophisticated and target savers’ needs better, Cerulli believes that more work is needed on this product type and that European asset managers should seriously consider opportunities posed by these changes. Of particular interest is the default fund in DC schemes, which accounts for 80% of savers. A number of developments are taking place in this area, including lifestyling, dynamic asset allocation and absolute return strategies. Cerulli sees a move towards absolute return instead of relative return strategies due to dynamic asset allocation facilitating the incorporation of asset classes previously only seen in defined benefit (DB) plans, such as real estate and hedge funds. Barbara Wall, editor of Cerulli Edge: Europe Edition, said: “Although the move toward more complex and better planned DC schemes has largely been confined to more mature markets, such as the Netherlands and the United Kingdom, the future must surely lie in this direction.” The split between DC and DB schemes varies widely between the European markets, with the 2010 average standing at 30% DC and 70% DB. ©2011 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.