Speaker(s): Brnic Van Wyk (QSuper)
In 2013 QSuper launched the QSuper Lifetime product with a unique lifecycle strategy that uses age and account balance (wealth, or savings in the fund) to cohort default defined contribution (DC) members.Traditional asset/liability management (ALM) methodologies with stochastic projections are used to set investment strategies for each cohort.A common pool of growth (or risky, return seeking) assets is combined with a cohort-specific duration based risk hedge asset pool in various proportions.There are no pre-determined glidepaths and strategies are dynamically reviewed.Traditional asset-only performance measurement is complimented with defined benefit (DB) concepts of monitoring and attribution of changes to projected outcomes.
Work is underway to move away from eight cohorts and personalise the allocation of investment pools to create mass customisation of investment strategies.This means that each of the circa 460,000 default DC members will be assessed on an individual basis to determine the growth and hedge proportion allocation. Investment strategies for individuals will change over time as their demographic characteristics change.
With the ALM team operating in the fund's internal investment function, this presentation will focus and seek feedback on: