After the economic turmoil that defined 2008 and decimated assets in many pension plans, few expected the turnaround in markets that occurred in 2009. In last year’s Top 100 Pension Funds Report, 66 of the funds on the list posted double-digit increases in assets for 2009. Only eight ended the year with decreases. While many […]
Other plans might be increasing member contribution rates but the Healthcare of Ontario Pension Plan (HOOPP) board of trustees says HOOPP won’t be one of them. Member and employer contribution rates will remain stable in 2013. “Stability is an important objective for HOOPP,” says the plan’s president and CEO John Crocker. “HOOPP’s fully funded status […]
A new survey from Aon Hewitt found that pension plan sponsors are moving their asset allocation away from domestic equities in favour of liability matching investments in hopes to reduce plan volatility. Aon Hewitt’s survey of 227 large U.S. employers, representing $389 billion in total assets in 2010, revealed that 38% of sponsors surveyed reduced […]
The considerable traction gained by liability driven investing (LDI) both in Canada and abroad is well documented. Ongoing challenges to pension plan funded status stemming from weak equity markets and declining interest rates during the past decade have surprised some and, almost certainly, disappointed most. The growth and maturity of pension plan liabilities and the […]
The global financial crisis has acted as a catalyst for many things—perhaps most importantly for pension funds, a renewed focus on risk. No longer does a lack of obvious correlation between assets presume protection, and the startlingly simple mantra “don’t buy what you don’t understand” has taken renewed prescience. However, the decision to increase efforts […]
Pension plan sponsors and other investors with long time horizons often rely on high allocations to equities to help them achieve their long-term return objectives. However, they may find it difficult to reconcile the volatility of equity markets with the desire to improve their liability matching. One option to address this problem is to consider […]
Asset mix has been an important determinant in many defined benefit pension plans’ underfunded status. Many in the pension industry have adhered to a 60/40 equities/fixed income rule. Personal finance experts advise individuals to increase allocation to fixed income as they age, so why do pension plans not receive similar advice? It is assumed that […]