Why AB for DC

As a pioneer and continued leading expert in defined contribution (DC) solutions you can be assured that we understand the issues DC scheme members, sponsors and trustees face. Our conviction to not only meet, but to exceed, the expectations of all involved shapes our philosophy and approach and leads to the creation of technically complex investment solutions that are practically effortless to implement.

A Trusted Partner

  • Strong global investment brand: In its 52nd year, AB is one of the largest asset managers.

  • Commitment to the UK DC market: A key strategic priority for the firm, both in the UK and globally.

  • Efficient portfolio diversification: A commitment, and strong track record, of researching and integrating the most diverse and durable sources of returns possible into multi-asset portfolios.

  • Proactive asset allocation: A robust approach with a strong track record of combining fundamental views and quantitative research to evolve the asset allocation within integrated multi-asset portfolios.

  • Effective risk management: Daily risk management process, proven through time, using quantitative and fundamental processes to protect against drawdowns without damaging returns.

  • A strong investment track record: AB’s Target Date Funds (TDFs) topped the Financial News Master Trust survey with a return 8.8% P.A. higher than the lowest ranked trust. The leader in the survey uses AB’s TDFs, and returned 11.6% p.a. over the three years to 30 June 20171.

  • Value for money: A low cost, high value solution

1Financial News Master Trust Survey September 2017

Committed to DC

Our commitment to innovation and our market-leading approach have enabled us to accumulate more than £61.1 billion2 in DC assets around the world, including £3.5 billion2 in the UK.

We are the default strategy provider to more than two million scheme members globally2.

2AB as of 31 December 2020.

 

Technically Complex; Practically Effortless

Our suite of DC pension solutions and single-fund strategies is the result of years of in-depth research, drawing on the resources and experience of our global DC team.

45+ Years of Asset Allocation Research: Over 10 Years of Target Date Fund Solutions
 

2005

was the launch of our flexible target date fund service in the US. In 2009 it was introduced in the UK and, for the first time, allowed pension providers to offer individual saver’s money a robustly designed and implemented default fund.

2011

we launched the low-cost Dynamic Diversified Beta which uses mostly passive and systematic exposures to create a high-quality product at very low cost. Our process blends active asset allocation with dynamic risk management to run a diversified mix of cost-effective strategies.

2013

saw another first when we launched our range of Ethical Target Date Funds. Combining the sophistication of target date funds with the rigorous approach to responsible investment.

2015

saw the introduction of our RetirementBridgeSM solution, making AB the first UK provider of a flexible, low-cost decumulation strategy designed to be used as a default solution. Retirement Bridge is a range of income funds that provide a sustainable, growing income in the early stages of decumulation.

2015

winner of:

Best DC Asset Manager: Engaged Investor Awards

Ultimate Default Fund: Corporate Adviser Awards

DC Multi-Asset Fund Manager of the year: Professional Pensions UK Pensions Awards

At-Retirement Innovation of the year: Professional Pensions UK Pensions Awards

DC Innovation of the Year: Professional Pensions UK Pensions Awards

2016

winner of:

Asset Management/Servicing Defined Contribution: Chief Investment Officer 2016 Innovation Awards

2017

was the debut for CyRIL (Cash, Rapid Income & Legacy), AB’s proprietary scheme analysis tool. This allows us to better understand our clients’ needs and match their requirements to deliver outcomes that more closely match their specific memberships’ needs.

2018

winner of:

DC Multi-Asset Fund Manager of the Year: Professional Pensions UK Pensions Awards

Our Approach

Our investment philosophy centres on client outcomes. The design of our approach means we can continually update our investment strategy as the needs of pension-scheme members are constantly evolving. Traditional lifestyle strategies struggle to do this in a time and cost-effective manner. The success of our approach is demonstrated by the sustained strength of our investment performance and our very high levels of client retention.

AB as at 31 Decmber 2020 unless otherwise stated.

Past performance does not guarantee future results. The value of investments and the income from them will vary. Your capital is at risk.

Related Resources

Flexible DC Solutions
Managing To Your Objectives
AB Target Date Funds Mission and Purpose
Making Target Date Funds Work For You