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Asset Allocation Summit
February 4, 5 & 6, 2009 Toronto |
Conference Agenda
Session 1:
9:00-9:40 - Developing a Liability-Driven Investment Strategy
Stephen Orlich, Vice-President, Strategic Asset Allocation, MFC Global Investment Management
Defined benefit sponsors are living in an increasingly complex world where corporate finance concerns are dominating decisions about offering pension benefits as well as decisions about how to fund them. Low yields from large equity investments, flat markets, miscalculations of longevity and overly optimistic investment returns have left many institutional funds struggling. This presentation will explore strategies for developing a liability-driven investment strategy.
? Creating a more transparent DB solution
? Recognizing key corporate issues in pension finance
? How to evaluate the merits of different investment solutions
? Measuring success and incorporating change
9:40-10:50 - Extended Panel Discussion: Perspectives on Asset Allocation Strategies for 2009 and Beyond
? Panel Chair: Robin Pond, Partner, Morneau Sobeco ? Karen Bailey, Director, Investments and Pension Fund, Canada Mortgage and Housing Corporation (CMHC) ? Anthony Lennie, Director, Finance, Victoria University (in the University of Toronto) ? Gerald (Gerry) T. Boychuk, Chief Investment Officer, City of Hamilton ? Bob Smith, Associate Director General Personnel and Family Support Services, Canadian Forces Personnel Support Agency ? Dominic Blais, Portfolio Manager, Public Assets, Canadian Medical Protective Association (CMPA) ? Bruce Curwood, Director, Institutional Solutions, Russell Investments Canada Limited ? Andrew Tan, Director, Central Advisory Services, RBC Dexia Investor Services
This panel discussion will bring together institutional investors and investment experts to share their experiences and opinions on asset allocation strategies and on the latest developments for both defined benefit and defined contribution funds. Hear about the strategies they employ to meet the current challenges and turmoil in the financial markets and their plans.
? What do we manage: returns or risks?
? Is the traditional asset allocation framework still useful?
? Market turmoil: the biggest issue impacting asset allocation today?
? How do you determine which asset classes and investment strategies to incorporate in your asset allocation?
? Are alternative investments appropriate for defined contribution plans?
? Is passive investing preferable for some asset classes?
? What time horizon is the focus: long-term, mid-term, short-term and how do you define it?
? How have you incorporated risk budgeting?
? What are your views on portable alpha and alpha transport?
10:50-11:10 NETWORKING BREAK
11:10-11:50 - Infrastructure Investing
? Joseph Pennachetti, Deputy City Manager & Chief Financial Officer, City of Toronto ? Marcus Turner, Senior Consultant, Asset Consulting Services, Towers Perrin
Pension funds have been shifting dollars from volatile stock markets into infrastructure investments that provide more stable returns. Seeing that infrastructure investment is normally a long-term commitment, it matches well with the long-term liabilities of pension funds. Canadian municipalities have significant infrastructure repair and replacement backlogs for roads, bridges, transit, social housing, municipal facilities and water and wastewater infrastructure. Are pension funds a potential source of financing for municipal infrastructure renewal? This presentation will offer insights into the infrastructure investment strategies that municipalities and pension plans may want to consider.
? The extent of the City of Toronto's infrastructure financing gap
? Advantages of infrastructure investing as an investment for pension funds and a source of financing for municipalities: risk and reward characteristics
? Characteristics of municipal infrastructure that may be suitable for investment by pensions
? Examples of third-party municipal infrastructure investments made in the City of Toronto
11:50-12:30 - The Latest trends in asset allocation policy
Robin Pond, Partner, Morneau Sobeco
Pension fund managers and fiduciaries have a problem. In a low interest rate environment, pension funds are unlikely to achieve their investment objectives with their current asset allocation policies. This presentation will discuss current trends in reaction to this basic problem and the issues associated with different possible solutions. Topics covered will include:
? Definition of the problem
? Fund objectives
? Current trends in asset allocation policy
? Potential impact of deleveraging, central banks supplying additional liquidity and market bailouts
? Manager-based versus market-based solutions
12:30-1:30 Lunch