Resource Centre

Investment Managers

Investment Managers

 

The Chamber Pension Plan investment portfolios are managed by top-rated international pension consultants Mercer, who provide proactive and independent oversight of all the plan's investment advisors. 

Our global equities manager is BlackRock and our fixed income and bond managers are EFG Bank and Income Research Management. 

 

 

 

Mercer Investment Consulting LLC
1166 Avenue of the Americas
New York, NY 10036
USA
Tel: + (212) 345-7000
Fax:+ (212) 345-7414
www.mercer.com

 

 

EFG Bank
Cayman Branch
9 Forum Lane, Camana Bay
P.O. Box 10360
Grand Cayman, KY1-1003
CAYMAN ISLANDS
Tel: + 1 (345) 943- 3350
Fax: + 1 (345) 943- 3351
www.efgbank.com

 

 

Income Research & Management (IR+M)
100 Federal Street, 30th Floor
Boston, Massachusetts 02110
USA
Tel: + (617) 330-9333
Fax:+ (617) 330-9222
www.incomeresearch.com

 

 

BlackRock Institutional Trust Company, N.A.
400 Howard Street
San Francisco, CA 94105
USA
Tel:+1 (415) 957-2639
www.blackrock.com

 

 

 

 

 



Key Service Providers

 

Prime Custodian Plan and NAV Administrator

Auditor

                                                                                 

                            

 

                      



Board of Trustees

The Board of Trustees at the Chamber Pension Plan are ultimately responsible for the management and administration of the Plan. They appoint a professional Pension Administrator firm to undertake that function, delegating the day-to-day running of the fund. Nevertheless, the voluntary Board of Trustees takes on an active, hands-on role in guiding the plan, ensuring that the plan always serves the best interests of all its members.


The Board members are voted in and serve a term of 3 years. All of the Trustees are active members in the business community covering different industry sectors.


The Trustees receive regular reports from the Administrator and other service providers with regard to the operations of the Fund and they decide what actions need to be taken and what policy should be followed.


The Trustees have the power to remove and replace the Administrator if need be. They also take responsibility for issues such as determining eligibility and interpreting rules and regulations.

Board Members

 

 

             Paul Schreiner: AL Thompson’s Building Supplies
Industry & Commerce
Chairperson
  Jon Brosnihan: Kensington Management Group
Financial & Professional
  Paul McGeough: Hospitality & Tourism
  Bradley Kruger: Hospitality & Tourism
  Grant Hiley:  Industry & Commerce
  Ivan Narandja: Financial & Professional
 

Charles Dickinson: Professor of Equine Medicine, St Matthew’s University
Voluntary & Self Employed

 

 
Giosino Colaiacovo: FLOW
Chamber of Commerce Representative to the Board
 

Mario Ebanks: Cayman Islands Airports Authority
Chamber of Commerce Representative to the Board

 

 

 

 

 

 

 

 

 



Our Pension Funds

What is a Lifecycle Fund?

At Chamber Pension Plan our pension funds are called Lifecycle funds, and are based on your age and your projected retirement date. The reason we have different funds for different age groups is that as you age, your investment risk tolerance, portfolio time horizon, and investment goals normally change. Lifecycle Funds reflect your changing needs throughout your working life by automatically adjusting the combination of assets they invest in based on your age to reflect your evolving investment needs and goals.

Chamber Lifecycle Funds

Each of the Chamber Pension Plan’s six Lifecycle Funds available under the plan contains a mix of investments linked to a specific target retirement decade, and each target retirement decade corresponds to a specific investment time horizon.

The Chamber Pension Plan’s six classes are called Lifecycle Funds, because they are designed to match where you are in your work life – the amount of working time left before you will need to start using your savings and the way your investment goals are expected to change over time.

The six Chamber Pension Plan Lifecycle Funds are:

  • Chamber 2060
  • Chamber 2050
  • Chamber 2040
  • Chamber 2030
  • Income Conservative
  • Income Growth

Objective of the Chamber Pension Plan Lifecycle Funds

The Lifecycle Funds use professionally determined investment mixes that are tailored to meet investment objectives based on various time horizons. The objective is to strike an optimal balance between the expected return and risk associated with each fund.

Investment Strategy

The Chamber Pension Plan Lifecycle Funds’ strategy is to invest in an appropriate mix of equity and fixed income securities for a particular time horizon, or target retirement date. The investment mix of each Chamber Pension Plan Lifecycle Fund becomes more conservative as its target date approaches.

The strategy assumes that:

  • Investments with higher expected returns (equities for example) also normally come with a higher risk of loss;  it is widely believed by investment experts however, that if you hold those investments for a long enough period, well-selected equities will deliver a higher total return.
  • The greater the number of years you have until retirement, the more willing and able you should be able to tolerate risk (fluctuations) in your pension account value to pursue higher rates of return.
  • For a given risk level and time horizon, there is an optimal mix of equity and fixed income securities that provide the highest expected risk-adjusted return.

Fund Composition

Each of the Chamber Pension Plan Lifecycle Funds has a target asset allocation. In other words, each is made up of the combination of equity and fixed income portfolios which maintain an optimal balance of investment risks and rewards for a particular time horizon.  Here is a graph representing the 2016 target allocations for the Chamber Pension Plan Lifecycle Funds:   

Lifecycle Funds Operation

When a Lifecycle Fund has reached its target date, its composition will be the same as the Income Growth Fund.

The Income Growth Fund:

  • Focuses on capital preservation while providing a small exposure to equity securities in order to reduce inflation’s effect on your purchasing power

  • Is designed to produce a higher level of income for participants who plan to start withdrawing from their pension account in the near future and for those who are already receiving annual payments from their account

  • Has a set asset allocation that does not change over time (65% fixed income securities; 35% equity securities)

  • The progression from a target date Chamber Lifecycle Fund to the Income Growth Fund is automatic – you don’t have to do anything

You may also make a one-time selection at any time to our most conservative fund, Income Conservative.  The investment mix of the Income Conservative Fund is maintained at 75% fixed income and 25% equity.

New Lifecycle funds will be added for distant target dates as they are needed. For instance, a Chamber 2070 Fund will be created in 2025 while at the same time the Chamber 2030 proportions will adjust to reflect the Income Growth Fund proportions.

 

Risks

When you invest in the Chamber Pension Plan Lifecycle Funds:

  • You are subject to the investment risks associated with equity and fixed income securities.
  • Your account is not guaranteed against loss, nor is it assured of any level of return. The Chamber Pension Plan Lifecycle Funds can have periods of gain and loss, just as the equity and fixed income markets.

Rewards

Pension Lifecycle Funds simplify fund selection. When you join the plan you are automatically allocated, based on your age, to the Lifecycle Fund representing your expected target retirement date.  To add some flexibility, at any time, you can move mandatory contributions to a more conservative Chamber Pension Plan Lifecycle Fund.

When you invest in the Chamber Pension Plan Lifecycle Funds:

  • You can be sure that your pension account is broadly diversified and professionally managed.
  • You don’t have to remember to adjust your investment mix or make any transfers as your target date approaches – it’s done for you.
  • You don’t have to monitor your account to be sure you are not straying from your investment strategy — the Chamber Pension Plan Lifecycle Funds keep you on course.

Why Use the Chamber Pension Plan Lifecycle Funds for my Retirement Account?

Use the Chamber Pension Plan Lifecycle Funds if you are looking for a simple, low maintenance way of investing money in your pension account. The Chamber Pension Plan Lifecycle Funds make the investing process easy for you because you do not have to figure out how to diversify your account or how and when to re-balance.

The Chamber Pension Plan Lifecycle Funds are designed so that 100% of your pension account can be invested in the single Chamber Pension Plan Lifecycle Fund that most closely matches your working time horizon.


SIX Funds ExplaineD

 

CHAMBER LIFECYCLE FUND

INVESTMENT OBJECTIVE

INVESTMENT MIX (THE BALANCE BETWEEN EQUITY AND FIXED)

Chamber 2060

If you were born in the 1990s

 

Maximise savings growth

Diversify to reduce risk without sacrificing return

The investment mix in these funds adjusts over time. For example, the 2045 fund started with an investment mix of 90% stocks and 10% fixed income investments in 2006 but has been rebalanced every year to slowly include more fixed income investments and fewer stocks (see Fund Composition above for current investment mix).



Chamber 2050

If you were born in the 1980s

 

Chamber 2040

If you were born in the 1970s

 

Seek strong growth

Reduce risk over Chamber 2015 time

Chamber 2030

If you were born in the 1960s

 

Income Growth

If you were born in 1959 or earlier

Avoid sharp market declines

Preserve real spending power

Minimise annuity purchase risk

 

 

While the Chamber Income Growth Fund has a higher allocation to lower risk investments, a relatively small portion of its assets will continue to be invested in global stocks. The investment mix of the Income Conservative Fund is maintained at 75% fixed income and 25% equity. 

 

 

Income Conservative

If you were born in 1959 or earlier

 

 

 

 



KPMG REPORT

The trustees of the Chamber Pension Plan would like to advise the membership that, in accordance with the ORDER of the Superintendent of Pensions February 2014, KPMG was engaged to perform a Fiduciary Performance and Operational Integrity Review of the Plan.

A copy of the Review is available to any member that requests it, via email at pensions@caymanchamber.ky or in person at the pension office at the Chamber of Commerce, Governors Square, West Bay Road, Grand Cayman.



Investment Managers

Key Service Providers

Board of Trustees

Trust Deed

Audited Financial Statements

Fact Sheets

Our Pension Funds

KPMG REPORT