Securing value for money, or value for members, particularly from a scheme's asset managers, is central to achieving good retirement outcomes. With this in mind, we consider what constitutes value for money and whether it is being achieved.
What constitutes value for money?
Value for money is one of those terms most people understand but find hard to definitively measure and benchmark. According to the Oxford English Dictionary, value for money is "something that is well worth the money spent on it." In other words, the focus shouldn't only be on cost but also what is received in return - that is, the net value added, or detracted.
Never is this truer than in the world of pensions, especially when it comes to a scheme's asset management. After all, low fund management fees and charges, in isolation, do not necessarily imply good value, as factors such as the manager's fund performance, the volatility of these returns, service levels and the quality of communications also impact member outcomes.
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The research and analysis included on this website has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed.