Financial consultancy services

Tender description

For this specific project the supplier is to carry out research into current defined contribution pensions investment practices in China and draw on the best practices on the use of Target Date Funds and Default Funds for defined contribution pensions from around the world, to establish the extent to which these practices could be replicated in China to support future automatic enrolment. The goal of the project is to develop a model default fund design in China based on the findings of the research, with input from relevant stakeholders. The pensions pillar work within the prosperity fund financial services (FS) programme (the Programme) in the People's Republic of China is intended to address the current issues associated with the transition from China’s current heavy dependence on pillar 1 pensions to a future multi-pillar pensions regime. This contract will be for the delivery of research and analysis on target date funds and default fund design, considering current and best practices in China, the UK and around the world. From this research, recommendations for a model default fund design for defined contribution pensions to support automatic enrolment should be developed, with input from key stakeholders. The supplier will be expected to deliver the following specific outputs: 1) a detailed China ‘as-is’ analysis paper which should, at minimum, include: (a) analysis of China’s current pensions investment practices, capabilities and infrastructure, and (b) analysis and write up on the extent to which Target Date funds are currently used in China; 2) UK target date funds and default funds analysis report. Consisting of an analysis into how target date fund strategies and default funds have been utilised in the UK to support automatic enrolment; 3) global best practices analysis report consisting of analysis into best practices on the use of target date funds and default funds from around the world; 4) a proposed model for default fund design for pillar II pensions in China. This output breaks down into: (a) the development of the proposed model, (b) the organising of workshops with relevant parties to test methodology and investment strategy with key stakeholders.