Products July 12, 2011

Aberdeen Launches Asia Property Fund of Funds

July 12, 2011 (PLANSPONSOR.com) - Aberdeen Asset Management Asia Limited, the Asian arm of Aberdeen Asset Management, has announced the release of its third closed-ended property fund of funds.
Reported by

According to a recent press release, the new fund will target institutional investors, and seek to create a well-diversified portfolio of best-in-class property funds in the region, from mature markets in Japan, Australia and Singapore, to emerging ones in China and India.

The fund, which will invest across the risk spectrum from core to opportunistic strategies, will be managed by a Singapore-based team of five professionals led by Puay Ju Kang, Head of Property – Asia Pacific. They will identify the right manager, best strategy and structure for each market depending on its property cycle. The target gearing is 50-60% and the fund aims to deliver 13-17% in returns per annum.

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

“Given Asia’s growth potential, it’s essential we have a presence in the region, both to meet demand for dedicated products as well as for global ones, where a regional element will greatly improve the overall risk-return profile,” said Jon Lekander, Global Head of Indirect Property, in the press release. “With this latest product, we further affirm our belief in the investment opportunities in Asia and our ability to make the best of them.”

-Sara Kelly 

Administration July 12, 2011

Fiduciary Services not Top of Focus in Looking for Providers

July 12, 2011 (PLANSPONSOR.com) - Although regulatory changes to fiduciary responsibilities and disclosures loom on the horizon, plan sponsors of all sizes say that strong fiduciary support services falls low on the list of factors that influence their choice of plan providers.
Reported by

Retirement Planscape 2011, a new study by Cogent Research, based upon a representative survey of 1,600 DC plan sponsors across all plan sizes and industries, shows fiduciary support services is ranked 12th overall, being lowest among Micro plans (those who oversee plans with less than $5 million in assets) where only 9% say it matters.   

According to a press release, in terms of which companies have done a good job associating their brand with providing strong fiduciary support services among micro plan sponsors, firms like Ascensus (33%), Principal (30%), and The Standard (25%) match, or in some cases even outpace, dominant players like Vanguard, T. Rowe, and even Fidelity. However, it is worth noting that no one provider is seen as being strong in this area among a majority of micro plan sponsors, Cogent said.   

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

In the Mega market ($500 million or more), a different set of providers emerges as being strong on fiduciary support services, including industry leaders Vanguard (51%) and Fidelity Investments (47%) which far outpace all other providers. T. Rowe Price (31%), Hewitt (27%) and Charles Schwab (25%) – although somewhat far behind – make very good showings in the area as well. Beyond those five plan providers, no one provider garners more than a 20% share in the Mega market.   

“Plan providers have an opportunity to educate plan sponsors in the smaller end of the market about the scope of the regulatory changes, as well as to differentiate themselves by demonstrating their expertise in the area of fiduciary support,” said Linda York, Senior Product Director at Cogent Research, in the press release.

«