Archive

Archive for the ‘Towers Watson’ Category

The world’s 300 largest pension funds – year end 2013

September 3, 2014 Comments off

The world’s 300 largest pension funds – year end 2013
Source: Towers Watson

Total assets of the world’s largest 300 pension funds grew by over 6% in 2013 (compared to around 10% in 2012) to reach a new high of almost US$15 trillion (up from US$14 trillion in 2012). The P&I / Towers Watson global 300 research is conducted in conjunction with Pensions & Investments, a leading US investment newspaper.

Latin American and African funds had the highest five-year combined compound growth rate of over 16% (albeit from a low base) compared to Europe (12%), North America (around 6%) and Asia-Pacific (around 5%).

Defined benefit (DB) funds account for 67% of total assets, down from 75% five years ago. During 2013, DB assets grew by around 3%, compared to reserve funds (15%), defined contribution (DC) plans (over 9%) and hybrids (over 8%).

Sovereign funds continue to feature strongly in the ranking with 27 of them accounting for 28% of assets and totalling around US$4.2 trillion. The 113 public sector funds in the research had assets of US$5.8 trillion in 2013 and account for 39% of the total. Private sector industry funds (61) and corporate funds (99) account for 14% and 19% respectively of assets in the research.

About these ads

2014 Global Talent Management and Rewards Study

August 26, 2014 Comments off

2014 Global Talent Management and Rewards Study
Source: Towers Watson

At a Glance

  • Attraction and retention drivers among employees have remained fairly steady, with base pay and career advancement continuing to be top priorities.
  • Less than one-third (32%) of employers report that their organization has a formally articulated employment deal.
  • Only 33% of employers say managers are effective at conducting career development discussions as part of the performance management process.

U.S. Employers Expect Health Care Costs to Rise 4% in 2015

August 21, 2014 Comments off

U.S. Employers Expect Health Care Costs to Rise 4% in 2015
Source: Towers Watson

U.S. employers expect a 4% increase in 2015 health care costs for active employees after plan design changes, according to global professional services company Towers Watson (NYSE, NASDAQ: TW). If no adjustments are made, employers project a 5.2% growth rate, putting absolute cost per person for health care benefits at an all-time high. Despite this cost trend, most (83%) employers consider health benefits an important element of their employee value proposition, and plan to continue subsidizing and managing them for both full-time and part-time active employees, according to the 2014 Towers Watson Health Care Changes Ahead Survey. They are, however, continuing to rethink company subsidies for spouses and dependents.

Of particular concern on the cost front is the Patient Protection and Affordable Care Act’s excise tax,* which goes into effect in 2018. Nearly three-quarters (73%) of employers said they are somewhat or very concerned they will trigger the tax based on their current plans and cost trajectory. More than four in 10 (43%) said avoiding the tax is the top priority for their health care strategies in 2015. As a result of the excise tax and other provisions of the health care reform law, CEOs and CFOs are more actively engaged in strategy discussions.

Enduring High-Performing Companies Pay Executives Differently From Other Companies in S&P 1500, Towers Watson Study Finds

August 6, 2014 Comments off

Enduring High-Performing Companies Pay Executives Differently From Other Companies in S&P 1500, Towers Watson Study Finds
Source: Towers Watson

High-performing companies design their executive compensation programs differently from many other organizations, according to a new study by Towers Watson (NYSE, NASDAQ: TW), a global professional services company. The study found that high-performing organizations, unlike other companies in the overall S&P 1500, place a greater emphasis on stock options, target compensation levels at market median rates and do not take a “one size fits all” approach to their executive pay program design.

“We conducted this study to see if companies with truly sustained high performance follow practices that differ from other companies,” said Todd Lippincott, North America executive compensation leader at Towers Watson. “The short answer is they do. In fact, we found that many high performers take approaches and differentiate their pay programs in ways that many observers, including proxy advisory firms, would view unfavorably.”

The study examined the executive compensation programs at 50 companies with the most sustained and consistent outperformance in total shareholder return versus the S&P 1500 over the past 15 years.

2014 Current and Emerging Global Benefit Themes — Employee Benefits: A Headquarter Perspective

June 26, 2014 Comments off

2014 Current and Emerging Global Benefit Themes — Employee Benefits: A Headquarter Perspective
Source: Towers Watson
From press release:

Seven out of ten global or regional benefit managers at multinational companies have limited or no access to timely financial information related to current employee benefit spending, according to Towers Watson’s 2014 Current and Emerging Global Benefit Themes research.

Mark O’Brien, senior consultant at Towers Watson said: “It is striking that global and regional benefit managers at many multinationals – which often spend hundreds of millions of dollars on employee benefits annually – do not have this vital piece of information. Nowhere else within their businesses would such a lack of management information or oversight be acceptable. The underlying information exists, but needs to be extracted in a structured manner from finance systems, which is often the difficult part. Notwithstanding, we see more advanced multinationals allocating the resources necessary to address this so they can use information on benefit spend to help identify risks and opportunities, make decisions and prioritise their activities to increase the return on investment from their benefit plans.

The Towers Watson research also shows that two-thirds of multinationals are at the early stages of developing their global benefits strategy and management approach. This means they are either just getting started or narrowly focusing on a single global benefit management area.

Companies Worldwide Spending More on HR Technology, Towers Watson Survey Finds

June 19, 2014 Comments off

Companies Worldwide Spending More on HR Technology, Towers Watson Survey Finds
Source: Towers Watson

Companies around the world are planning to increase and redirect their investments in HR technology as they embrace talent management solutions, HR portals, software-as-a-service (SaaS) systems and mobile applications, according to an annual survey by global professional services company Towers Watson (NYSE, NASDAQ: TW). The survey also revealed that about one in three companies plan to change their HR structure in an effort to improve both efficiency and quality.

The 2014 HR Service Delivery and Technology Survey, a global survey of 1,048 companies, found that one in three respondents (33%) plan to spend more on HR technology in the coming year compared with the previous year. This includes 23% that plan to increase spending by as much as 20% and 10% that plan to increase HR technology investment by more than 20%. Only 15% plan to spend less on HR technology in the coming year.

The big questions about Scottish independence; Towers Watson summarises what Scottish independence could mean for pension plans, their sponsors and financial institutions.

June 17, 2014 Comments off

The big questions about Scottish independence; Towers Watson summarises what Scottish independence could mean for pension plans, their sponsors and financial institutions.
Source: Towers Watson

As we enter the final three months of the countdown to the Scottish Independence referendum, Towers Watson has released a short paper, entitled The big questions, outlining how a yes vote to Scottish independence could affect UK-wide financial institutions and pensions plans. It poses questions in several fundamental areas such as currency, membership of the European Union and tax and fiscal policy.

In the paper Towers Watson summarises the main questions for pension plans, as well as some of those likely to affect the investment and insurance industries, in the event of a yes vote. It suggests that these will only be answered through the developing economic, social and regulatory policies of an independent Scotland and not ahead of time.

Follow

Get every new post delivered to your Inbox.

Join 925 other followers