TORONTO The average Canadian pension plan was 98% funded at the end of the first quarter, the highest funded status since March 31, 2002, when funding was well over 100%, according to a study by Watson Wyatt Worldwide. Funds that invested aggressively in equities a 70% allocation fared better than more conservative allocations. According to the study, the average equity allocation was 60%.
Buyouts of U.K. pension liabilities to grow
LONDON U.K. pension liability buyout deals are set to accelerate over the next five months, with up to £2.5 billion ($5 billion) in assets from five transactions expected to be completed by Sept. 30, said Mark Wood, CEO of liability buyout specialist Paternoster U.K.
By March 31, Paternoster had acquired liabilities worth £411.7 million and assets of £260 million from 19 pension plans, according to a statement issued today. Two-thirds of the firms plan sponsor clients are solvent with strong cash flows.
Many plan sponsors had decided earlier this year that with deficits falling, the time was right to completely remove the pension liability from their balance sheets, he said.
Putnam World Trust II funds to be offered in Taiwan
TAIPEI Putnam Investments signed an agreement with Cathay Securities Investment Consulting under which Cathay SICE will offer the Dublin-based Putnam World Trust II mutual funds to investors in Taiwan, said Jeffrey F. Peters, senior managing director, head of international business for Putnam.
Initially Cathay SICE will focus on distributing Putnam products to retail investors, but the relationship should expand to institutional business as well over time, he said.