Small and medium-size institutional investors are increasingly utilizing exchange-traded funds (ETFs) to efficiently implement investment strategies that used to be the exclusive domain of large institutional investment funds. Most discussions about the use of ETFs tend to focus on the benefits they offer to retail investors. Indeed, most passively managed index tracking ETFs are a […]
As a plan sponsor, you have likely lived through at least one request for proposal (RFP) process—for payroll, insurance services, actuarial or benefits consulting, recordkeeping or administration services. And from your experience, you have likely asked the following questions: Why do I need to do this? What do I need to include? and How do […]
Towers Watson released its 30th annual Canadian Survey of Economic Expectations and the results predict a low interest rate environment to continue—to the detriment of pension plan funding. But, there will be lots of action on other fronts in the pension industry. The survey is based on data gathered from mid-November to early December 2010 […]
Plan sponsors looking to convert from a defined benefit (DB) pension plan to a defined contribution (DC) plan should review the Alberta Court of Appeal case of Halliburton Group Canada v. Alberta (Minister of Finance). In Halliburton, the company was the sponsor and administrator of a DB plan that contained broad amendment powers. However, the […]
With rising costs and increased balance sheet risk, managing a defined benefit plan is a significant issue facing plan sponsors in today’s environment. To help address these concerns, Aon Hewitt has introduced its delegated investment consulting solution. A consultant and plan sponsor first define the plan’s endgame (whether that be long-term sustainability or termination) and […]
The past year was a good investment year with positive stock market returns and a slight rebound in long-term federal bond yields in the fourth quarter. However, for many pension plans, there’s been no significant gain in funding status—unless it came from large voluntary deposits by the employer. Mercer released the results from its Pension […]
The Ontario government has changed its mind and now intends to give ex-Nortel employees the choice to opt out of a windup plan for their pension and enlist private financial institutions to manage the pension fund. Finance Minister Dwight Duncan informed the group that the province plans to introduce legislative amendments that would give Nortel […]
In the recent Burke v. Hudson’s Bay Co. decision, the Supreme Court of Canada (SCC) held that plan members who were transferred to a successor pension plan as part of a sale of business were not entitled to a pro-rata share of the surplus that existed at the time of the transfer. The Hudson’s Bay […]
Lessons learned during the financial crisis are influencing views on investment risk and defined benefit (DB) pension plans going forward. That was the message at a recent luncheon event in Toronto where Pyramis Global Advisors revealed some key results from its 2010 Defined Benefit Research Study. The 2010 survey polled chief investment officers, treasurers and […]
Towers Watson recently held its annual U.K. client conference, bringing together clients, consultants and money managers to discuss topical issues. Delivered through a case-study environment, each team was asked to determine how rosy or grim the future might be and how it would structure its defined benefit pension fund investment portfolio as a result. For […]