Better results possible with Risk Management Portfolio
TORONTO, Jan. 26, 2012 /CNW/ - Morneau Shepell Ltd. says the typical
pension plan dropped in value by about 11% last year, but that a more
strategic approach could have prevented this negative impact.
"As of December 31, 2011, a typical pension plan with a traditional
portfolio saw its financial position deteriorate by about 11%, but our
Risk Management Portfolio kept pace with liabilities," says
Patrick De Roy, Partner and National Leader of the Risk Management
Practice for Morneau Shepell. "It actually shows growth of 12% last
Morneau Shepell's Risk Management Portfolio is designed to reduce
fluctuations in a plan's financial position. While a traditional
pension plan portfolio heavily invests in equities, the Risk Management
Portfolio is based on an investment policy with a more diversified
asset mix and a similar, expected long-term return. The objective is to
reduce risk by better matching liabilities, and by investing in
alternative strategies that are less correlated with equity markets.
"In 2011, corporate bond yields decreased, resulting in greater
liabilities," says Jean Bergeron, Partner and Practice Leader for
Morneau Shepell's Investment Consulting Practice. "A traditional
pension plan portfolio, which has a large mismatch between plan assets
and liabilities, did not grow enough to compensate for this increase."
Morneau Shepell is the largest Canadian-based firm offering
industry-leading benefits and pension consulting, outsourcing, as well
as health and productivity solutions. The company works with clients to
develop innovative solutions that integrate with their business
strategies to achieve results. Through Benefits and Health Solutions
Consulting, Pension Consulting, Health Management, Administration
Solutions and Shepell•fgi's Employee Assistance Program, Morneau
Shepell helps clients reduce costs, increase employee productivity, and
improve their competitive positions by supporting their employees'
financial security, health and well-being.
Established in 1962, Morneau Shepell has grown to serve over 8,000
clients, ranging from small businesses to some of the largest
corporations and associations in North America. With approximately
2,500 employees in offices across North America, we provide services to
organizations across Canada, in the United States and around the globe.
Morneau Shepell Inc. is a publicly traded company on the Toronto Stock
Exchange (TSX). For more information, visit www.morneaushepell.com.
Image with caption: "Morneau Shepell Risk Management Portfolio Performance Chart as of December 31, 2011 (CNW Group/Morneau Shepell Ltd.)". Image available at: http://photos.newswire.ca/images/download/20120126_C6970_PHOTO_EN_9248.jpg
SOURCE Morneau Shepell Ltd.
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