Summer/Fall 2010
Issue Features
- Global Perspectives on Inflation
- Insights Into DC Plan Expenses
- The Ins and Outs of Crossing
- Evaluating OTC Derivatives Exposure
Column: Voices
Departments
Department: Ahead of the Curve
Ahead of the Curve covers developments that may impact the behavior and portfolio positioning of institutional investors. Take a closer look at events in the ever-changing regulatory, legislative and investment markets to determine how they may impact you.
Venture Capital Industry Poised for Growth
Despite a decline in venture capital funding over the past few years, the future of the venture capital industry looks bright, according to a recent study by University of Chicago Booth School of Business professor Steven N. Kaplan and Josh Lerner of Harvard Business School.
The study found that based on the historic relationship between commitments to venture capital funds and subsequent performance, the historically low level of funds committed in 2009 and projected for 2010 suggest that the returns to investing in these funds will be relatively strong. Moreover, the declining importance of central corporate R&D facilities in favor of buying small firms to acquire the latest technologies is another reason to be optimistic about the future of the venture capital industry. For more on this study, go to chicagobooth.edu.
Pension Concerns Grow on Employer Agendas
Pensions are looming larger on the risk radar screens of U.K. employers, according to a new survey from Aon Consulting.
Final salary pensions have climbed to second place in the list of corporate risks, now ranking behind only the market environment as the biggest risk facing employers, the survey found. Just under half (48%) of businesses say they do not de-risk their pension schemes regularly.
Asked to select a risk weighting for 12 different business risks, respondents said pensions ranked above regulatory threats, reputational damage, failure to attract or retain staff, business interruption and other options. To read more highlights from this survey, visit aon.com.
DC Schemes Lack Communication Strategies
A new Mercer U.K. survey has found that more than 60% of firms either do not have a communications policy for their defined contribution (DC) schemes or do not document it.
According to the survey, 68% of survey participants rated “limited member understanding” as one of the greatest challenges currently faced by DC plans, and nearly 90% want to improve member education and understanding in the next 12 to 24 months.
The survey also found that 34% of sponsors have no formal communications objectives for their DC plan and 46% have no defined success measures. To read the full survey, visit uk.mercer.com.
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