Lack of consistency across defined contribution (DC) pension default funds run by major providers may result in larger numbers of people opting out of auto-enrolment, a consultant has warned.
Punter Southall Aspire's DC Default Fund Survey - Growth Phase examined nine default funds and identified large variations in risk and volatility profiles, return benchmarks, asset allocation strategies and level of active management. It said these variations in fund approaches and aims put auto-enrolled savers at risk because significantly different outcomes could occur. The funds examined were those run by Aegon, Aviva Investors, Fidelity, Friends Life, Legal & General, Royal London, Scottish Widows, Standard Life and Zurich. "Following auto-enrolment, the industry has focused on...
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