Berenberg - PMI Academy Learning manual: Protected Equities
Berenberg
Hear from our PMI Academy partner with their learning guide focusing on equities, defined contribution (DC), defined benefit (DB) and more.
The United Kingdom's Defined Contribution (DC) pension market is on the brink of a substantial transformation. Over the past decade, membership in DC schemes has experienced a meteoric rise, surging from approximately 1 million individuals in 2012 to an impressive tally of over 30 million as of now.
In this market the lifecycle model has always played a crucial role. This model dictates that the closer an investor gets to retirement, the more conservative the asset allocation becomes, typically shifting towards bonds and away from equities. This approach, while prudent, has often led to suboptimal asset allocations, particularly in the later stages of the lifecycle. Due to an initially low amount of assets in the later stages and the generally young member age, the investment focus has been on the early stages of this journey, often with little regards to the later stages. With investment pot sizes growing and members getting older, more assets are moving towards the later stages of the lifecycle which is causing fundamental changes within the DC market.
Our Protected Equities Strategy addresses this by being a solution to the DC market which was specifically designed to be the cornerstone of investment portfolios in the later stages that aims to deliver real value to portfolios and improving long term investment outcomes.