Why is Leon Frazer entering the pension market?
After an illustrious history of serving private wealth clients why is Leon Frazer entering the pension fund arena? And will the Leon Frazer process meet the needs of Canadian pension funds?
“The firm is evolving,” says Mark Arthur, Leon Frazer’s Chief Executive Officer.
“We have transitioned the management team. The focus of the new management team is on growing the company by expanding business activities of the company. This is a logical step given our expertise, the aging of the population and what has gone on in the markets.
“We believe our approach meets the needs of the institutional investment market.”
“What are plan sponsors looking for? One, do you do what you say you are going to do. And, two, can you make that process repeatable? Leon Frazer has a long history, a great track record and a focused repeatable process.”
Dona Eull-Schultz, President of Leon Frazer, says the true owners of the pension plan are ordinary Canadians. Pension plan members have the peace of mind that that assets are being invested in the plan that will help support their lifestyle through retirement.
“For 70 years Leon Frazer has invested our clients’ assets to ensure that when they stop working they can enjoy the lifestyle they have worked towards,” says Eull-Schultz. “Our investment philosophy and approach are aligned with the true owners of a pension plan.”
It is not only the proven track record, says Arthur.
“What are plan sponsors looking for?’’ says Arthur. “One, do you do what you say you are going to do? And, two, can you make that process repeatable? In the case of Leon Frazer there is a long history, a great track record and a focused repeatable process.”
In 2013, many blue-chip Canadian companies are paying dividends of four to five percent.
“If you can construct a portfolio of dividend-paying companies with a yield of 4.5%, you are probably halfway to meeting a typical pension fund’s return assumptions,” says Doug Kee, the firm’s Chief Investment Officer. “And with low volatility. If interest rates go up a conservative dividend growth portfolio will outperform fixed income or a balanced fund.”