RETHINKING DISTRIBUTION

Brand and investor trust is key due to the long-term commitment of the investors to the product Assuming the high level of responsibility borne by the promoter of retirement vehicles when considering the substantial financial commitment required in the long term by investors, brand and investor trust will be a key factor of success when attracting clients to a pension plan. This may require significant investment on the part of pension product providers, particularly in the wake of the recent financial crisis, to acquire the trust of long term clients. More than any other sector being examined, the area of pensions is the most dependent on government reaction – due simply to the fact that, while state pensions offer a safety net, retail investors will be less inclined to save for retirement. However, while the timeline to transition from the current level of state benefits to the (presumably much lower) levels to be offered in the future is unclear, what is largely agreed is that the shift of responsibility away from the state and to the private sector will eventually occur. This should in turn generate the larger inflows which can cater for a more competitive market in terms of the provision of long-term investment solutions.

Rethinking Distribution

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