Who Will Provide Asset Management Leadership on Credible Long Term Savings Products?  Is The Industry Even Capable Of Creating Such Fundamental Change From Within?

With public sector pension strikes about pensions and long term savings failures throughout Europe, the crisis in long-term savings is gradually coming to a head – it’s amazing the anger is greater!  A recent FT article points the blame at providers consistently underestimating longevity and overestimating outcomes that fall below expectations.

Many providers are still using outdated longevity statistics from the 1980s and we have broken DB systems and a DC concept in flux, how are we as the industry going to respond to the biggest crisis – and biggest opportunity – in the fund management industry’s history?  With many industry editorials still focusing on inward-looking “inflows” and “outflows” , when can the industry step up to be useful after all and focus on client outcomes?

What should leaders do?  How should they innovate in long-term savings?  Are they capable of innovating?  A recent Fast Company article on innovation would indicate most companies can’t innovate because everyone is paid to maintain the status quo.  New asset management companies are emerging to address the challenge taking traditional asset managers head on.

Here are some of the critical questions FundForum will be asking our leaders in June:

• Given there also has to be a change in end client saving behaviour,  what can providers do to effect a surer outcome for end investors who are now largely responsible for their own long term savings? The UK has recently called this “defined aspiration”

• How can issues in using UCITs structure to create Europe wide long-term savings be overcome?– can a model used for mutual distribution work for the more complex task of pension provision?

• Are we reaching a critical mass in European DC for it to be attractive to asset managers?

• What have the lessons been in the US in providing long term investment outcomes that deliver?.

• What changes are required in the business in order to protect the outcome for end investors – eg – de-risking the balance sheet; pursuing performance; risk based solvency, protecting investors

• If incumbent asset managers are structurally unable to make the changes, what are the new breed of emergent asset managers in long terms savings planning?

• How can we create accumulation and decumulation processes to achieve desired outcomes in long –term savings products?

At FundForum International hear this debate on creating credible long–term saving products between CEOs from major asset managers from Europe and North America – such as T Rowe Price, Allianz Global Investors, Nordea Asset Management and PIMCO. Get the latest detailed academic research from the leading expert on Long Term Savings Solutions, Professor David Blake, Cass Business School and hear the contrasting perspectives from two of the most ambitious emergents in the field such as the UK’s  NEST and Danish ATP Pension’s spin off,  NOW Pensions.

If you would like to contribute to this debate or have any comments please contact me, Jenny Adams, Programme Director, FundForum International 2012 - jadams@icbi.co.uk

For more information on FundForum International, click here to visit the event website.