Industrial Alliance Launches an Automatic Investment Rebalancing Service in the Scope of its Group Retirement Plans
The Industrial Alliance Insurance and Financial Services Inc. Group Pensions Division has just launched a method for the automatic rebalancing of investments, which is being promoted using the acronym MARI. In addition to allowing group retirement plan members to rebalance the allocation of their assets, MARI offers group retirement plan sponsors the possibility of creating tailored investment solutions that are specifically designed to meet the needs of their group.
The Advantages of Rebalancing
"The purpose of an investment rebalancing service is to counter the effects of deviations that eventually occur in investment portfolios," explained Lucie Lachance, Director, Actuarial Services and Marketing, Group Pensions, Industrial Alliance. Since market fluctuations can cause returns to vary over time from one vehicle to the next, investors who initially allocate their assets based on specific proportions using different funds may, in time, find themselves with an allocation that diverges from their original target. These investors can therefore wind up with an asset allocation that no longer reflects their risk tolerance level even though their investor profile remains unchanged.
Tailored Solutions with Unique Options
Another advantage of MARI is that it offers personalized solutions. "Using our range of investment options, plan sponsors, working in conjunction with their advisor, can create customized investment portfolios, comparable to Asset Allocation Funds, that reflect the needs of their employees or their preference for specific investment managers," continued Ms. Lachance. "Plan members can therefore invest in total peace of mind knowing that the underlying funds and asset allocation are selected and established by specialists. Plan sponsors can also choose to have their personalized portfolio rebalanced in one of two ways: either automatically at the end of each month according to established criteria or by the Industrial Alliance investment management team, in order to take advantage of our dynamic asset management service. These two options give MARI a facet that’s unique on the market."
These recent developments are a clear indication of Industrial Alliance’s constant commitment to offering accessible, flexible and innovative services to plan sponsors. They also attest to the Company’s ongoing quest to provide clients with personalized solutions, regardless of their size, location, or objectives.
About Industrial Alliance Insurance and Financial Services Inc.
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services. The fifth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group - the Industrial Alliance Group - which has operations across Canada as well as in the Northwestern United States. Industrial Alliance insures over 1.7 million Canadians, employs more than 2,600 people and manages and administers $30.9 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. Industrial Alliance is among the 100 largest public companies in Canada.
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Vice-President, Investor Relations
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