Focus on Funds
Highlights from the 2014 Global Retirement Savings Conference
In the June 27, 2014, edition of Focus on Funds, ICI President and CEO Paul Schott Stevens outlines key takeaways for funds and their investors from ICI’s second global gathering of retirement savings experts.
Transcript
Stephanie Ortbals-Tibbs, ICI Director, Media Relations: Welcome to Focus on Funds, the Investment Company Institute’s weekly roundup of industry news, ICI activities, and research findings.
The Institute is expanding its long-noted leadership role in retirement savings in the United States beyond U.S. borders—most recently through its second global retirement savings conference in Geneva, Switzerland.
ICI President and CEO Paul Schott Stevens was there, and summarizes some of the key takeaways from the event.
Paul Schott Stevens, ICI President and CEO: This is not new news. Traditional pension plans are under pressure throughout the world and many countries are looking to either mandatory or voluntary defined contribution–type arrangements to supplement—or in some cases even to replace—traditional pay-as-you-go pension schemes. One thing that emerged from the conference is that, in these kinds of arrangements, whether mandatory or voluntary DC [defined contribution], investment funds can play a very significant role in retirement provision.
With respect to defined contribution–type arrangements, we heard a variety of themes that were quite consistent: the need to maximize participation rates, the need to increase contributions, and also the need to control costs. In that regard there were many comments about the value and advantages of simple designs for pension arrangements helping to accomplish all of those objectives.
Stephanie Ortbals-Tibbs: The conference program examined global trends in regulation, the ins and outs of default funds, how to increase investor engagement and education, and how to meet savers’ desire for certainty. More highlights can be found at iciglobal.org.
That’s this week in funds. See you next week.