Drawing on its resources as a research-driven global investment manager, AllianceBernstein launched the first customised target date defined contribution (DC) platform in the UK in October 2009. Their DC business now offers an array of investment services that can be used to construct open-architecture, bespoke and packaged DC default funds. It has also developed a retirement income product designed as an alternative to annuities in the early stages of retirement.
AllianceBernstein carries out extensive research into the issues facing DC schemes and how best to tackle them. Their research, insights and other useful resources are available below.
For further details on Target Date Funds click here or visit their FAQ page here. Alternatively, contact Tim Banks, Head of Client Relations Pensions Strategies Group, at Tim.Banks@alliancebernstein.com
Your DC members need you!
Despite investing billions into DC pensions every year, few people feel confident that they’ll be able to enjoy a comfortable retirement and, critically, most have no idea when they’re going to retire. Take a look at our video capturing the highlights of our survey surrounding the beliefs and behaviours of DC members to see why your members need you!
Don't let change be your enemy (March 2014)
We’re passionate about members getting a better deal from their pension schemes. So it was frustrating, though unsurprising, to find out from our research that many schemes had never changed their default strategy. Often there’s no one responsible on a day-to-day basis for ensuring the strategy is managed according to its objectives. Read on to discover what we believe is a better investment default approach.
AllianceBernstein Insight Investment Columns
Lifestyle vs. Target Date Funds (Dec 2013)
We believe flexible target date funds are a stronger default investment strategy than lifestyle approaches because they provide an enhanced governance framework, more robust risk management, greater investment sophistication and the potential for better performance. In addition, they are easier for members to understand and can be easily updated (without disrupting members) when things change. Tim Banks, Managing Director AB Pensions Strategies Group, outlines the key differences between the two.
Why target date funds are going mainstream (Sept 2013)
The Office of Fair Trading has forecast that over six million of us will be contributing around £11 billion to workplace pensions by 2018. We believe half of that could end up in target date funds. Read why we think their simplicity, flexibility and, ultimately, performance potential is giving them mainstream appeal.
Managing DC portfolios for the future, not the past (June 2013)
At a time of historically low interest rates, renewed inflation threats and unpredictable markets, it’s never been more important that DC savers’ investment strategies are managed to take account of likely future events rather than what’s happened in the recent past, says David Hutchins, our Head of DC Investments.
Members’ expectations are more important than ever (March 2013)
The onset of automatic enrolment means it is vital that defined contribution (DC) pension provision lives up to savers’ reasonable expectations. Unfortunately, says Tim Banks, our Head of DC Sales and Client Relations, we don’t think the standard DC default fund measures up to the challenge.
Customising your DC default (Dec 2012)
Flexible target date funds allow nearly all DC pension schemes to customise their investment strategy, helping to bring the best of defined benefits to the new world of DC, according to Tim Banks, our Head of DC Sales and Client Relations.
Accepting the limitations of engagement (Sept 2012)
Rather than encouraging members to be more engaged in the pension process, we think it’s better to make the DC pension default offering work in their best interests. Tim Banks, our Head of DC Sales and Client Relations, argues that flexible target date funds are ideally suited for this purpose.
Target Date Funds resources
Getting the Best of DB Investment Strategies in DC (NAPF News)
The issues facing DC pension schemes look a lot like those confronting their DB counterparts, says Tim Banks, our Head of DC Sales and Client Relations. Getting the best of DB investment strategies in DC means adopting flexible target date funds as the default approach, he argues.
Why target date funds work better for all (Corporate Advisor)
Meeting the reality of modern work means putting a professional fund manager in charge of the default DC pension strategy, while maintaining flexibility about retirement dates, argues Tim Banks, our Head of DC Sales and Client Relations.
The DC Debate (Pensions Week)
Our Head of DC Sales and Client Relations, Tim Banks, discusses some of the latest issues surrounding DC pensions with others involved in the industry.
AllianceBernstein PMI TV webcasts
Katie Weber, Director of DC Client Relations for UK and Ireland at AllianceBernstein talks about the launch of their ethical target date fund range for the UK DC market. To view the full webcast click here
Tim Banks, Director, UK & Ireland Sales and Client Relations at AllianceBernstein, talks about target date funds. To view the full webcast click here
AllianceBernstein presentation slides
Target Date Funds (TDFs) - the new DC default? (PMI Trustee Seminar November 2011)