The city of Halifax, Nova Scotia, and three adjacent municipalities are expected to merge next year and consolidate their pension funds.
The new fund would total a combined C$414 million (U.S.$298 million) and make it one of the biggest local government pension funds outside of Montreal and Toronto.
The provincial Legislature is expected to enact this spring the legislation merging Halifax, Dartmouth, the town of Bedford and the Municipality of the County of Halifax, effective April 1, 1996, under the tentative name of Halifax.
The municipalities, except for Bedford, which has no pension fund, have separate pension funds now run by a total of 10 outside money managers, none shared in common.
"The funds will eventually become one," under a master trust, said Bruce Smith, director-corporate services, city of Dartmouth. "It's up for discussion now," he said, referring to how the funds will be merged, although he said no action will take place until after the merger becomes effective.
The C$270 million Halifax fund uses as a consultant SEI Corp., Toronto, and as managers Goodman & Co., Toronto; Seamark Asset Management Ltd., Halifax; Gryphon Investment Counsel Inc., Montreal; Altamira Management Ltd., Toronto; Jones Heward Investment Counsel, Toronto; and RT Capital Management, Toronto.
The C$100 million Dartmouth fund uses as a consultant William M. Mercer Ltd., Toronto, and as managers Barclays McConnell, Toronto; and Jarislowsky Fraser & Co., Montreal.
The C$44 million Municipality of the County of Halifax uses as a consultant Mercer and as managers T.A.L. Investment Counsel Ltd., Montreal, and Confed Investment Counselling Ltd., Toronto.
