Trialogue – DDO delivers manufacturers an (unexpected) data opportunity
Regulators are baring their newly-sharpened teeth empowered not only by the Royal Commission findings but also new legislation. Earlier this year, two additional regulatory reforms were introduced that promise to invite ASIC even more deeply inside the operations of product manufacturers, issuers and distributors: Product Intervention Powers, which allow ASIC to step in and […]
Read more...DC workplace pensions: rising flows and more switching will tempt entrants
The minimum contributions ramp-up is helping drive growth in DC workplace pension flows. In parallel, the switching “secondary market”, long predicted but slow to emerge, is also picking up steam. Against a slow growth UK wealth market, these dynamics make workplace pensions appear tempting for entrants. But with profitability elusive, is this actually a […]
Read more...The forgotten advice distribution opportunity
There is no doubt that there are significant shifts occurring in the advice industry: FASEA will see many advisers leave the industry (though mostly the non-productive ones), the shift in licensing model to ‘independent’ continues unabated and the overlap between accounting and financial advice continues to grow. Amongst all this change, many asset managers […]
Read more...Four realistic ideas for the reality of pensions disengagement
Member disengagement in workplace pensions is well documented; with similar issues evident in individual pensions, providers need to be smart but realistic in their communications strategy. Despite the recent focus on engagement issues within workplace DC pensions, it is worth remembering that individual pensions (personal pensions and SIPPs) still account for >50% of DC […]
Read more...Sizing the DB transfer market
The DB transfer market has been a key new source of retail flows in recent years but is under considerable regulatory pressure. Although run rates are well off their peak, underlying dynamics mean that DB transfers should continue to play an important role in new flows. What should insights and strategy teams assume for […]
Read more...UK wealth industry value chain is gradually contracting
Total fees paid by consumers have appeared stuck at ~200bps despite many changes in the industry in recent years. However NMG data shows that prices in all key components of the value chain are falling. The UK wealth industry value chain has been resilient over the past decade, despite many changes including rapid growth […]
Read more...The impending advice gap is dramatically overstated
There have been many ‘Chicken Little-esque’ predictions that the sky is falling in, that FASEA and the fall-out from the Royal Commission will decimate the number of advisers in the industry, creating a large advice gap and preventing many investors who could benefit from advice from being served. While there is no doubt that […]
Read more...Peak passive: 3 reasons why passive share may top out
The upwards march of passive market share seems unstoppable. But there are reasons to think why, in some institutional segments at least, market-cap passive share may peak soon. 2018 was a tough year for active asset managers. Market volatility hurt profitability while the spectre of customer migration from active management to passive had a […]
Read more...AustralianSuper builds $70m war chest
AustralianSuper builds $70m war chest The last few years have seen AustralianSuper dominate the pensions landscape in Australia, topping the charts in terms of net flows year after year. The fund has never been afraid of making some big decisions (think of the internalisation of investment that has occurred over the last few years) and […]
Read more...Beyond Rollovers
Topics in 401(k) Distribution: Fifth in a Series Rollover IRAs are by far the most important practice focus for most 401(k) advisors, apart from 401(k)s themselves. SEPs, SIMPLEs, single-person 401(k)s and other business services sold to decision makers at plans they advise aren’t far behind. What does this tell us about 401(k) advisors? It tells […]
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