Why choose the Chamber Pension Plan?
- The real costs to members of the various plans in the Cayman Islands are very poorly understood.
- The simplest example of this is in "layered fees"; the majority of our competitors, for example, have substantial investments in mutual funds or hedge funds. Some are even invested in Hedge Funds of Funds. What this means is that you, if you were a member of one of those plans, are paying for at least three levels of operating expenses (the Plan, the hedge fund of funds, and the sub-hedge funds that the fund of funds invests in, and you would be bearing the cost of management fees and performance fees at both of the two lower levels). The result of all of those layers of fees, if you were a member, is essentially less of a return to you.
- The Chamber Pension Plan does not invest in fund of funds or hedge funds, so our Plan has only ONE layer of operating costs. In addition, the Chamber Pension Plan charges no performance fees, management fees, or account-level charges.
- Lifecycle Funds simply provide a better product than our competitors.
- Automatically reduce the risk that you are taking as you get older, for example, you are much less likely to have a sudden drop in value of 40%+ (as happened Worldwide in 2008) just before you retire. This scenario could easily happen in a plan that provides only a single fund for all investors, but this could not happen in the Chamber Pension Plan, as you will have had your equity exposure reduced as you approach retirement age.
- Your investment will not be switched around amongst units of different classes, which can be confusing and difficult to know what exactly you are being invested in.
- Your statement will be clear and easy to read.
- You can get web access to your statement and account details at any time.
- In-person or telephone contact available on-island.
- Customer service team to assist you.
Competitive, Conservative risk-adjusted returns
- Returns have been competitive with a world-class asset management team maximizing the net return to members.
- Lifecycle Funds contain a portion of fixed income securities which, while dampening the up-side gain of the portfolio in an increasing equity market, will buffer losses in those months that equities drop (and stocks do drop from time to time, although the history of equities is that they have always gone on to achieve new highs). This is what we mean by conservative, and the risk-adjusting factor is in the Lifecyles.
- Our goals are your goals. We are a not-for-profit organisation that was created by its members.
- We function independently from a profit-motivated bank or insurance company.
- We do not work for commission, performance fees, management fees, or the like.
- If the membership of the Plan wants to hire a different asset manager or service provider we can do it.
- We aim to be the most transparent plan in the Islands.
- We are proud of our product and have nothing to hide, so we are all in favour of disclosure, particularly balanced and fair disclosure among all competitors in the market; we will continually seek ways to deliver better transparency to you, our members.