Staff
During Benefits Canada’s annual DC Plan Summit, plan sponsors participated in interactive sessions. They split into small groups and were given questions to discuss. Based on these discussions, moderators later offered their insights and relayed key take-aways.
Patrick De Roy, institutional portfolio manager with Pyramis Global Advisors, shares the best ideas from the topic they discussed.
The Challenge:
There is a need to ensure proper diversification for DC plan members. That said, the packages offered to them should be kept as simple as possible, given that there is a general lack of understanding about investing.
Survival Tips for Employers:
- To ensure diversification, offer non-traditional investment strategies such as real estate, infrastructure and global fixed income, for example.
- That said, keep the communication of these investment strategies simple, including them in packaged solutions for members.
- As DC assets grow, sponsors could leverage benefits from strategies implemented for their DB plan—and, thus, benefit from lower fees
Additional videos from the DC Plan Summit can be found here.