The Cayman Islands Chamber of Commerce pension plan has reported lower fees and broader diversification as a result of a move to passive management.
At the plan’s annual general meeting in December, members heard updates on the plan’s performance and activity from Chamber pension chairman Paul Schreiner, Mercer Investments LLC partner Amy Labanowski, and PricewaterhouseCoopers auditor Trevor Dunbar.
Data from Mercer, the plan’s international pension consultant, showed passive-management portfolios had outperformed active-management portfolios in six of the last seven quarters since the plan moved to a passively managed equity portfolio. In a press release, Mercer’s Labanowski said, “The Lifecycle Funds are diversified across fixed income and equity, across countries, sectors and individual securities to help whether market volatility.”
Last year, member returns also benefitted from the plan’s record-low all-in expense ratio of 0.82%, the Chamber Pension Plan said in the release.
Schreiner said the plan ensures maximum value for members through consistent reviews and evaluation of service providers.
The plan continues to advocate for members’ rights concerning employer delinquencies and breaches of relevant laws. “This year the Plan met with the Department of Commerce and Investment and the Department of Labour and Pensions regarding a large number of delinquent pension accounts and companies operating without being up-to-date with pension contributions,” said Schreiner. “This is a real issue in the community, and we look forward to continuing this dialogue in 2020.”