Plans rely on outside help for better returns, talent, and technology.
Although Canadian pension funds are increasingly looking to move asset management in-house, they still rely heavily on external managers as they seek better returns, talent, and technology, according to a recent report from CIBC Mellon.
The CIBC report is based on a survey of 50 major Canadian pension managers with average assets under management (AUM) of C$31 billion (US$24.5 million). Approximately three-quarters of the plans surveyed were public, with the remainder being private.
According to the findings of the survey, the pension funds’ focus on cost savings has been motivating them to move more of their operations in-house. Of the pension funds that have taken asset management in-house, 66% said they seen savings as a result, with the vast majority of those (91%) seeing savings of more than 10%, and 35% saying the moves have saved them more than 20%.
Canadian Pension Plans Increasing In-House Capabilities and Expanding Strategic Outsourcing, According to New Research from CIBC Mellon newswire.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from newswire.ca Daily Mail and Mail on Sunday newspapers.