At a seminar for leading industry professionals, the Defined Contribution Investment Forum (DCIF), a group of organisations formed to exchange ideas and develop initiatives to promote investment excellence in DC pensions, launched a new White Paper setting out the benefits of an active governance approach.

The report titled "Active Governance in Defined Contribution Pensions", which was written by consultancy firm Dean Wetton Advisory and commissioned by the DCIF, highlights five important actions trustees and other stakeholders or fiduciaries should undertake now to improve member outcomes. These include strategic goal setting, dynamic asset allocation, regular reviews of manager performance, suitable member communication and achieving value for money.

Stephen Bowles, chairman of the DCIF and head of DC at Schroders, comments: "Governance in defined contribution (DC) pensions is a natural topic for the attention of DCIF. DC governance must be active to be successful. We are "aiming high" because we know that active reviews means hard work for DC decision makers. 

"Trustees, scheme sponsors and pension providers must regularly review and adjust for changes in markets, regulation and members' circumstances.  The reward for this work will be better pension outcomes for DC scheme members."

The founder members of DCIF are Baring Asset Management, Henderson Global Investors, J.P. Morgan Asset Management, Schroder Investment Management, Standard Life Investments and Threadneedle Investments.

This is the second paper published by the DCIF, with the reports the forum aims to promote investment excellence in DC pension schemes.

The full report can be accessed by clicking here.

First published 21.05.2012

azeevalkink@wilmington.co.uk