Mr. Patrick De Roy reports

MORNEAU SHEPELL LAUNCHES NEW ASSET & RISK MANAGEMENT SERVICES FOR PENSION PLANS

Today Morneau Shepell, through a wholly owned subsidiary, Morneau Shepell Asset & Risk Management Ltd., is introducing an extension of its suite of asset and risk management services, with the addition of four new investment funds designed to achieve targeted investment outcomes for its clients. For pension plan sponsors, this represents a new approach to investment strategy and asset allocation.

"Our clients are looking for answers to their pension problems," says Robert Boston, partner, Morneau Shepell. "They expect us to provide them with the best solutions available by achieving targeted outcomes, as opposed to chasing returns. This is very much a pro-active investment strategy which responds to the evolving needs of our clients."

Mr. Boston said the new investment funds will be of interest to pension plan sponsors who are seeking more sustainable long-term returns, and reduced risk by aligning investments with liabilities under their plans.

Four new funds will be offered -- three return-focused funds and one liability-focused fund. Designed to achieve specific objectives, the outcome-oriented funds are broadly diversified across a range of asset classes and strategies. They adjust asset allocation according to changing market conditions and financing circumstances. For pension plan sponsors, the funds offer:

• More downside protection;
• Improved risk management;
• A better match of assets and liabilities.

"The traditional investment approach for pension plans has been 60 per cent stocks and 40 per cent bonds," says Patrick De Roy, partner, Morneau Shepell, and leader of the risk management practice. "But with market conditions today, ours is a better approach that has an outcome-oriented solution focusing on risk management."