IDEAL FUND

Five dimensions around long-term investment objectives

Product Design

E d u c a t i on

Fu n d C o st

Retirement Liability Management Wealth Accumulation

Go v e r n a n c e A d v i c e

The importance of the different dimensions may vary according to the long-term investor needs. For example, we would contend that all the dimensions are of equally high importance with regards to retirement, whereas, in the case of wealth accumulation, the correct investment advice has a higher importance than education. In addition to the varying importance of the dimensions regarding the respective long-term investor needs mentioned above, they will also have different implications when discussing possible solutions. As such retirement and liability management products for example, should be designed keeping investors’ time and risk objectives as well as the much lower ongoing liquidity requirements in mind. In contrast, for wealth accumulation, the focus should be more targeted on return on investment and access to liquidity. Figure 5 shows the different implications of the dimensions as to long-term investor needs.

Figure 4