View more on these topics

Fidelity International Urges Action on DC Default Funds

Fidelity International has called for companies with DC pension schemes to act now to review whether their default fund is up to the job of getting investors ready for retirement.

The firm says that concern about default funds and their need to improve is a well-acknowledged issue in DC pensions. Some change is evident but now that members of DC schemes outnumber members of DB pension schemes, only wholesale change on default funds can prevent an ever growing number of people disappointed about their financial future.

Fidelity International’s executive director of DC business development, Julian Webb, says: “What most members of DC schemes needed going in to this latest period of market volatility was pretty much the one thing they didn’t have: good diversification. It is likely that many of the people invested in default funds, which tend to be legacy funds, often selected for their low risk or fees, will be disappointed, angry or confused as they see their retirement pot battered by the credit crunch”.

Webb adds that diversification can help because a fund that spreads risk across a range of asset classes, which perform differently as the stock market rises and falls, is in with a better chance of providing a less volatile return over the longer term than one purely invested in just equities or a mix of equities and bonds.


US bailout agreement reaction

A tentative agreement has been reached in the US over the government’s proposed $700bn lifeline, which could force the financial services sector to cover any losses on the rescue plan.

State of affairs in loan market

I read with interest your comments at a conference fringe meeting, reported in Money Marketing, to the effect that state intervention is needed to prevent excessive lending and the practice of “selling people mortgages that they clearly could not afford”.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm