How to stop opt out increasing as rates move higher
- 04 mins 17 secs
As rates move to 8% in April 2019, how can we stop opt out increasing and how best to engage people more? Asset TV caught up with Alison Hatcher, HSBC Global Asset Management, to find out.
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Well first up allison. How do we stop opt out increasing in april ? Twenty nineteen is rates moved to eight percent. First, we should ask our members actually engaged enough to opt out up to now, the surveys have shown not at all on what we need to do is not only increase the engagement that we have with members in order to stop the opt out rate, but also potentially use it to increase the contributions and also general engagement with their pensions. The people have been very useful in syria. They have said that we need to create a long term personal connection ownership around pensions. But really we need to start looking at how we do that, and we know from the investment world from the pen of the trustee world. We communicate via financial risk elements, but the members have started to be very clear through these new surveys that actually what they care about is the impact of their savings. We've heard the wonderful term. Just the peerless say last week about everyday activism getting involved in social elements through the media through your friendship groups. And now what we need to create is this ownership through impact and insight. And how can we engage more fantastic completely prepared with some quotes for you today because we see old jim and also a big society capital ? Have just released some wonderful research and they're seeing this combined in some of the papers that share action is also bringing through. I think it really does create a very powerful insight for us. So since statements from members, i support sustainable investment over fifty percent of respondents agreed with that statement. I want money to be used for good in the world over sixty eight percent agreed with that statement. I want my pension to encourage responsible business practices over eighty, four percent agreed with that statement. So what we need to do is we clearly need to connect personal desire for how you're using the money, the impact of those money and connect that with more of the emotional connection on bring through why it's also good for financial risk. Good governance onda also the future performance of investment fund and we're already seeing this in other sectors. The energy world is very good. At doing this, we get statements say you built this around energy farms and wind farms and renewable energy. Just generally, so if it's working for them. Is this something that we're missing in the pensions world, where it could also work for us and the barriers to success ? What would you say they are s o sadly not limited asshole ? Actually, there are quite a few barriers. I think in reality this is a very complex area sg. Generally, there's a lot of new regulation, but there's also complexity. The structures for investment aren't always compatible. So if you look at infrastructure in d. C, it is tricky. We have confusion around exactly whose responsibility is it to put some of this into places that the trustee is actually more the asset managers. And then it's intelligible a lot of the time you can't touch. You can't feel it, so i think actually what it is brings together. There's good governance, okay financial risk and also just managing investments. And the trustees need to know exactly what is the best interest for the members on financial and non financial terms. And i think that if we tilt the communications and we support trustees from the asset management world, we can provide the insight that could start to change some of the communication and then over time we'll see is we'll see that more of the structural elements could be finalized on weaken seymour change, but ultimately together if we're investing in things like carbon, we're looking at how we can impact the world in a good way through stewardship. I think there's so much that we can really bring out together. We can absolutely make some you know. Start to move in the right direction in this area. Allison, thank you thanks very much