© Copyright 2006 Rogers Publishing Ltd. The following article first appeared in the March 2005 edition of BENEFITS CANADA magazine.
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Pension assets make up a significant portion of the money managed by Canadian asset managers. Data taken from the Canadian Pension Fund(CPF)Manager Survey were compiled in the Canadian Pension Fund Business Activity Report to reflect just where institutional assets are being held.The reporting period was January 1 to June 30, 2004. Here is a snapshot of the responses of 115 managers.

The top five money managers were awarded 6.6% of assets under management(AUM)in new mandates. Also, the top five firms lost 3.9% of AUM in the same period.

Pension plan mandates are the two main areas of asset management. Defined benefit(DB)and defined contribution(DC)plans make up 69.7% of mandates.

The top five firms in DB plans obtained close to 70% of new assets from smaller clients(companies with pension assets of less than $500 million)and the top five managers in DC plans obtained close to 93% of new assets from smaller clients.

The top five money managers obtained 92.5% of new assets from large DB plans(companies with assets of more than $500 million ) and all new assets from DC plans.

In active management, Canadian equity, U.S. equity and Canadian bonds represented 58.1% of total assets in new investment mandates.

In passive management, Canadian bonds and cash represented 77.3% of total assets under new investment mandates.

Domestic and global mandates represent 10.3% of total actively-managed new mandates.

Alternative investments, which include hedge funds, real estate, managed futures, mortgages, corporate/ high yield bonds and real return bonds, represent 5.1% of total actively-managed new mandate assets.

About 63.5% of mandates originate directly from the client. 33.5% of mandates originate from consultants and three per cent are awarded by other means.

Source: Canadian Pension Fund(CPF)Business Activity Report. The CPF is a sister publication of BENEFITS CANADA.

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