The 2007 Finance and Investment Survey experienced an increase in responses from 21 in 2006 to 24 in 2007. It is anticipated the 2008 Finance and Investment Committee will continue to find solutions to improving participation.
Eleven questions were asked and data was collected pertaining to portfolio
allocation and performance. Asset allocation was similar to the data collected last year. The allocation to Equities declined from 21% to 16% and the Bond allocation increased from 69% in 2005 to 76.1% in 2006. This could be a function of the increase in the funds reporting.
Canadian funds continue to average over 50% allocation to stocks and with strong stock market performance in 2006, the Canadian funds averaged an 11.5% return. US member returns ranged from 2.8% to 7.4%. In 2006 slightly more members managed investments in-house: 45% versus 38% in 2005.
The question on nontraditional investment classes found a decline from 25% to 14% in 2006 for funds using nontraditional asset classes. Funds contemplating the use of nontraditional classes also declined from 15% to 10% in 2006.
Securities lending, a topic presented at our June Finance and Investment Conference is used by 68% of those reporting to generate additional income.
Sarbanes Oxley legislation requirements have not been adopted by a majority of the companies (76%) but have been partially adopted by 21% of the companies reporting.
A full copy of the 2007 survey and prior years’ surveys can be found on the AASCIF website in the Library Section labeled AASCIF Surveys.
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