Many employers re-evaluating pension investments

Looking to gain greater control of volatility

In a poll by SEI, provider of outsourced asset management, investment processing and investment operations solutions, 55 per cent of organizations say they are re-evaluating their investment management approach and 42 per cent say the main reason is to gain greater control of investment volatility.

Seventy per cent of managers who use the services of an outside consultant say managing these investments has become increasingly complex. But only one-half of those who handle investment decisions internally feel the same way.

Results from the August-September poll of 100 organizations managing $25-million to $1-billion in pension assets show 31 per cent of pension sponsors using the traditional consultant model say the pension is negatively impacting the company’s financials. And 67 per cent report the pension expense is unpredictable and therefore unmanageable while 95 per cent say closing the plan to new entrants or freezing accruals will not alleviate the problem.

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