1 Collective Investment Schemes: Statistics December 2009

2 Consumer Perspective Peter Dempsey Deputy Chief Executive - ASISA

Rapid growth in direct purchases Advised vs non advised consumers Investor behaviour –Hindsight –Follow the flows/funds –Respond to stimulus –Time horizons –Risk/reward Consumer Perspective

Picking sectors is very difficult Longer term returns often very different to short term Benefits of diversification Critical building block is equity exposure What the Past Tells Us

Reserve fund Adequate risk, disability, medical cover Medium term goals Long term wealth creation Practical budget reality Hypothetical Consumer

Reserve fund –Cash –Bank savings –Money market UT Medium term (1 – 5 years) –General equity UT –Endowment products –Asset Allocation UT Long term (5 – 30 years) –General equity UT –Asset Allocation UT –Endowment products –Sector specific UT –RA’s At retirement –Income fund UT –MM fund UT –General equity UT –Asset allocation UT –Living annuities –Guaranteed annuities Hypothetical Products

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