SEI Global Quick Poll: Canadian Implementation of Liability Driven Investing (LDI) Lags Behind Global Counterparts

    Only 21% Employing LDI Strategies Despite Expressed Need

    TORONTO, June 6 /CNW/ - An SEI (NASDAQ:   SEIC) Global Quick Poll released
today reveals that while Liability Driven Investing (LDI) has received a lot
of attention, only 20% of those pension plans polled are currently
implementing LDI strategies and 33% are not even considering implementing an
LDI approach. These strategies are used to align pension liabilities with plan
assets. The fact that organizations are slow to implement is a contradiction
of the stated global need for LDI as nearly three quarters (72%) of those
polled indicate they want the asset pool to provide some level of support to
their pension's liability.
    The poll, sponsored by SEI, confirms that global pension sponsors agree
they are not primarily focused on return based benchmarks and want the
benefits of an LDI approach, but they are struggling to implement. The
Netherlands appears to be ahead of other countries when it comes to employing
LDI strategies as nearly two-thirds (64%) are currently implementing or will
implement an LDI approach this year. A total of 21% of Canadian respondents
said they are currently employing an LDI approach and only an additional 7%
said they will be this year.
    "It's clear that plan sponsors want the benefits of an investment
strategy that is focused on supporting the pension's liabilities and the lack
of implementation raises the question as to whether or not they are receiving
adequate advice and direction," said Andrew Kitchen, Managing Director,
Strategies & Solutions. "In Canada, the level of investment expertise and
resources required for LDI implementation is daunting, particularly when
combined with a high level of plan design changes and the new funding and
accounting rules. In order to realize the desired benefits of LDI,
organizations will need to consider changes to overall plan management to
enable the execution of these strategies.
    Canadian plan sponsors are challenged when it comes to pension management
and LDI implementation appears to only increase complexities. In Canada, 65%
of those plans polled are open to new entrants and 84% are not planning any
plan design changes in the future. This longer term outlook and new funding
rules seem to support the need for LDI as Canadian responses were in line with
global percentages which saw 79% agree the goal of LDI is to control
volatility of the plan's funded status and 46% said it was to control
contribution and/or pension expense.
    The poll administered by SEI's Pension Management Research Panel,
surveyed 226 executives overseeing pensions with assets ranging from
US $30 million to over US $5 billion. The executives represented four
countries - Canada, Netherlands, United Kingdom and United States. A complete
summary of the poll is available by emailing

    About SEI's Institutional Group
    SEI's Institutional Group delivers integrated retirement, nonprofit and
healthcare solutions to over 330 U.S. institutional clients and 490 global
institutional clients in seven different countries. SEI enables clients to
meet financial objectives, reduce business risk, and fulfill their due
diligence requirements through implemented strategies for the management of
defined benefit plans, defined contribution plans, endowments, foundations and
other balance sheet assets. For more information, visit

    About SEI
    SEI (NASDAQ:  SEIC) is a leading global provider of outsourced asset
management, investment processing and investment operations solutions. The
company's innovative solutions help corporations, financial institutions,
financial advisors, and affluent families create and manage wealth. As of
March 31, 2007, through its subsidiaries and partnerships in which the company
has a significant interest, SEI administers CDN $441.2 billion in mutual fund
and pooled assets and manages CDN $219.2 billion in assets. SEI serves
clients, conducts or is registered to conduct business and/or operations, from
more than 20 offices in over a dozen countries. For more information, visit

For further information:

For further information: Caroline Bretsen, Fleishman-Hillard Canada,
(416) 645-3657,

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