QIC offers 'dynamic lifecycle approach'
QIC will be offering superannuation funds what it calls a dynamic lifestyle approach, adjusting investment strategies throughout a member’s life to improve retirement outcomes.
The strategy will focus on investment returns required to meet a member’s real retirement objectives, according to QIC.
“The recent effects of the global financial crisis have illustrated the dangers of taking a static approach to asset allocation,” said QIC managing director for lifecycle strategies Michael Drew.
“Our research shows that dynamic lifecycle strategies that incorporate both account balance and age exhibit superior performance compared to typical current investment practices.”
These strategies need to be diversified and make use of the full range of investment tools including downside risk protection, he said.
The strategy is consistent with MySuper guidelines outlined in the Cooper Review that call for simpler, low-cost, diversified products, Drew said.
“We are already getting a lot of interest from super funds regarding this new approach to lifecycle strategies and we will be in a position to implement and manage solutions before the end of the year.”
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