While Willis Towers Watson’s report does not name culprits of underperformance, it found that 50% of funds in the universe have returned below CPI +3% per annum since their respective inception dates.
Rejal added: “What is clear is that all DGFs are not created equal and there is now a wide dispersion, from those which have innovated and positioned themselves well for the more turbulent times ahead and those which have not.
“Asset owners have a wide-ranging choice and it is in their interests to re-visit the original DGF proposition with a view to comparing what is now available and taking into account factors such as skill, governance, diversification, risk control, liquidity and value for money in their multi-asset investing journey.”
