The DC trend towards daily pricing and trading
Towers Watson asks "Has it gone too far?"
| United Kingdom
In this paper, we debate the pros and cons of daily liquid funds in DC plans. There are clear benefits to daily pricing and trading facilities, but operational design has prevented truly illiquid asset classes from being included in DC investment strategies, almost without exception. We believe that greater access to illiquid asset classes will offer DC members greater investment efficiency and additional sources of investment returns. While there may be communication and operational challenges that will need to be managed, we call on the DC industry – fiduciaries, platform providers, administrators, investment managers and consultants – to work together to devise solutions to provide better outcomes for members.