There is a growing trend towards the use of complementary investment approaches that encompass both absolute returns and liability-driven investment. Traditional asset-only pension measures abound. But it’s increasingly important to monitor how your pension plan is performing compared to its future obligations—now more than ever before.

RBC Dexia liability benchmark employs a robust cash flow approach that assists in aligning your plan’s projected cash flows and liabilities—which eliminates the need for complex discounting and present-value assumptions that are synonymous with the more common duration-matching process.

Our team of risk and investment analytics experts uses a library of investable Canadian bonds to build a customized liability proxy that reflects your unique risk preference and cash outflows. Comparison of these liability benchmarks with your fund’s policy targets provides vital information that helps position your plan to meet its pensioner commitments.

RBC Dexia’s quarterly reports, delivered electronically, provide you with a clear view of your pension fund’s ability to may payments to its members.

Learn more:
RBC Dexia’s white paper, Liability benchmarking for pension plans, written in conjunction with Dr. Auke Plantinga, Associate Professor of Finance at the University of Groningen in The Netherlands, is particularly insightful. The paper discusses a solution that enables plan sponsors to implement a customized liability benchmark using a cash flow matching approach.

We encourage you to download this free publication, available here. And for more information on RBC Dexia liability benchmark, please contact your local Director of Advisory Services:

Toronto/Halifax:
Andrew Tan
Tel: 416 955 7359
Email: andrew.tan@rbcdexia.com

Montreal/Ottawa:
Donald McDougall
Tel: 514 876 2495
Email: donald.mcdougall@rbcdexia.com

Vancouver/Calgary:
Gerhart Pahl
Tel: 604 665 8400
Email: gerhart.pahl@rbcdexia.com