NAPF Investment Conference 2011: UK DC too heavily reliant on alpha

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UK defined contribution schemes should stop focusing on outperforming markets and start building "next generation" schemes designed around delivering retirement incomes, a Nobel prizewinning economist says.

Professor Robert C. Merton said the focus on outperforming portfolio values and targeted values was skewing the design of schemes away from focusing on member retirement needs. Professor Merton...

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