Sanlam Limited · JSE:SLM
Sanlam — Sanlam Institutional Insights (2015)
21 slides from Sanlam's conference presentation, 2015
Slide 1: Institutional Insights: Challenges and Opportunities
Z Challenges Opportunities Institutional
Slide 2: Towards a cohort of one
Towards a cohort of one Perspectives from Australia’s Superannuation Industry Wade Matterson, FIAA Practice Leader, Milliman Australia
Slide 3: Superannuation snapshot
Superannuation snapshot • $2 trillion as of Jun 2015 • Still short of maturity due to low initial contribution rates • Currently mandated contributions of 9.25% of salary pa • A three horse race across retail, industry & self managed sectors 3
Slide 4: Are we facing a perfect storm?
Are we facing a perfect storm? • The convergence of a number of trends with profound impact on the world of pensions, including; Macroeconomic Demographic Technology • Government scrutiny and intervention continuing to increase. 4
Slide 5: Result - there's a lot going on!
Result - there’s a lot going on! • Reviews, reviews, reviews Henry Cooper Productivity Commission Financial Services Inquiry Future of Financial Advice (FoFA) MySuper Superstream Etc. etc. 5
Slide 6: Industry response?
Industry response? • Historically, clear delineation of industries Retail Industry / Corporate Self Managed • These lines are now blurring, although philosophical & political differences remain • Those with large levels of disengagement prone to disruption 6
Slide 7: Years from now.
gy 7” 48 * e Years from now. ls _
Slide 8: Slide 8
Slide 9: The cohort of one
The cohort of one • Increasing focus on more segregated services and focus on individual outcomes for members, including; Engagement & Advice Investment Strategies & Approaches Products & Services • Has created opportunities for funds to differentiate themselves in a heretofore homogeneous market 9
Slide 10: Engagement & Advice
Engagement & Advice • Advice necessary, but difficult to scale Opt-out / soft compulsion models Financial planning partnerships Scaled advice models Shared services and internal development • Technology a key enabler Robo-advice Online tools & calculators • Education critical Member statements inclu
Slide 11: Engagement & Advice
Engagement & Advice • Advice necessary, but difficult to scale Opt-out / soft compulsion models Financial planning partnerships Scaled advice models Shared services and internal development • Technology a key enabler Robo-advice Online tools & calculators • Education critical Member statements inclu
Slide 12: Engagement & Advice
Engagement & Advice How you compare This is how your super compares with other Equip members around your age” Click here for our retirement calculator Female Male 100% 100% 200% Your balance vs. Ave. Female (balance for members near your age) % Your balance vs. Ave. Male (balance for members near yo
Slide 13: Investment Strategies & Approaches
Investment Strategies & Approaches • Industry divided over target date / lifecycle approaches 50/50 split for MySuper • Smart defaults Some adoption of more granular cohorts • Wider range of investment options Infrastructure & property Direct investment options • Risk aware & objectives based invest
Slide 14: Investment Strategies & Approaches
Investment Strategies & Approaches 14
Slide 15: Investment Strategies & Approaches
Investment Strategies & Approaches 15
Slide 16: Products & Services
Products & Services • Term deposits • Capital protection and risk management solutions • Annuities & longevity products • Wider array of ancilliary services 16
Slide 17: Products & Services
Products & Services *flexicarcom Travel discounts through Intrepid Travel Special offer: 10% off Intrepid land tours C Flexicar: making carsharing a public transport option Flexicar is offering VicSuper members an exclusive deal to join Flexicar. Available in Melbourne and Sydney. Flexicar's offer i
Slide 18: Implications for fund governance & operating model
Implications for fund governance & operating model • Required expertise and issues changing rapidly Traditional models being questioned • Partnerships an important part of the equation • Tendency to follow peers, not always a good idea (e.g. DIOs) Governance important • Challenges for large organisa
Slide 19: Some lessons
Some lessons “I always thought of myself as a humanities person as a kid, but I • Beware the hype liked electronics. Then I read something that one • Increased engagement is of my heroes, Edwin Land of Polaroid, said about inevitable the importance of people who could stand at the intersection of •
Slide 20: questions
questions®
Slide 21: thank you
thank you®