Corporate Adviser: Scale – the wrong metric of success.
Though pension consolidation is accelerating, bigger does not necessarily mean better.
Corporate Adviser: Scale – the wrong metric of success
Steve Charlton, Managing Director of Defined Contribution for our Institutional business in EMEA and Asia, explains why evaluating schemes solely by size does not align with the key measure of success: improved retirement outcomes for members.
“Scale is not an outcome, it is an input, and elevating it to a primary test of viability is an error. Assets under management can provide advantages. Larger schemes may be able to negotiate lower fees, access certain asset classes, including private markets, and invest more in governance and operational infrastructure. These are useful tools, but they cannot guarantee what matters most to savers: stronger net investment outcomes over time.”