Canadian DB pension plan sponsors appear more committed to maintaining DB plans than sponsors in the U.S. and the U.K., according to the 2011 Global Pension Risk Survey from Aon Hewitt. Of the 630 plan sponsors that responded to the third annual survey, 106 were from Canada, and 68% of those were from the private […]
Large pension funds in Canada, in the U.S. and around the world have steadily increased their investment exposure to agriculture in recent years through farm infrastructure, soft commodities (anything that’s grown or bred) and agriculture-related stocks. While all of these represent viable opportunities to tap into a growing industry, pension funds will likely see the […]
In my previous column, Examining portfolio risk, we discussed ex-ante risk, ex-post risk and how both measures can provide greater understanding of portfolio risk. In this column I would like to discuss the options that are available to a pension fund manager that discovers excessive risk concentration in a fund through ex-ante risk reports. When […]
Pension funds around the world are increasing their investment exposure to emerging markets in an effort to chase the higher returns needed to cover pension commitments to aging populations, according to Reuters. The 13 biggest pension markets globally hold combined assets of around $26 trillion, very little of which is focused on emerging markets. But […]
Perhaps it’s premature to do a post-mortem on corporate DB plans, as there are still plans in existence. And, perhaps the DB plan will arise—like a phoenix—transformed into some more sustainable target benefit form. But it is useful to ask, ‘What went wrong?’ since the answer calls into question some fundamental assumptions that many plan […]
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 […]
More than 80 human rights applications were filed today against the Ontario Teachers’ Pension Plan Board for denying full survivor pensions to those who marry after they retire. Members of the Ontario Teachers’ Survivor Benefit Group (OTSB Group), a decade-old advocacy group, filed the applications, which indicated that the plan is discriminatory. Also named in […]
Merger and acquisition (M&A) activity is a cyclical business, and, after the meltdown and liquidity issues of 2008, it has been in a trough, to say the least. While we saw some transactions last year, 2011 should see an even higher level of activity—an increase that holds potential for institutional investors. The conditions for an […]
Pensions are inextricably tied to the economy, said Malcolm Hamilton, an actuary with Mercer (Canada) Ltd., speaking recently in Toronto at the Association of Canadian Pension Management’s spring session, Checking the Pulse of Pension Reform. “If the markets do well, any pension will work. If the economy is bad, any pension—no matter how good—will fail,” […]
With the credit and economic turmoil of 2008 and 2009 now well behind us and the flurry of merger and acquisition (M&A) activity at the tail end of 2010, pension and benefits plans continue to get a lot of attention in the press and corporate boardrooms. Why? Simple. There are big dollars and risks involved. […]