Data & Research May 13, 2008

Medical Firms Embrace Cash Balance Plan Design

Medical firms make up more than a quarter of employers offering cash balance plans, according to a new plan census by an Encino, a California-based cash balance consultant.
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A news release from Kravitz said that among the other biggest users of the cash balance plan design are manufacturing firms, 14%; dental firms, 9%; legal services firms, 9%; and scientific and technical industries, 7%. Kravitz classified 16% of the cash balance employers in the “other” category.

According to the Kravitz data, there were 1,755 new cash balance plans created in the past five years versus 571 for the prior five-year period.

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California had the most cash balance plan employers with 462 plans or 13% of the nation’s total, followed by New York at 405 (11%), Ohio at 293 (8%), Illinois at 253 (7%), and New Jersey at 237 (7%).

The Kravitz data show that 6% of the plans had more than 10,000 active participants, 14% had 9,999 to 1,000 participants, 12% had 999 to 100, and 16% had 99 to 25 participants.

More information is available at www.cashbalancedesign.com.

Products May 13, 2008

Invesco PowerShares Introduces Global Asset Allocation ETFs

Invesco PowerShares Capital Management LLC unveiled three exchange-traded fund (ETF) portfolios that are ETFs of ETFs.
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The company, a division of Invesco Ltd., said the portfolios are designed to give investors access to long-term, core asset allocation strategies through investment in other ETFs. The new portfolios, based on three defined risk profiles targeting a given percentage of investment in equity and fixed-income securities—balanced, balanced growth, and growth—are expected to begin trading Thursday on the American Stock Exchange.

PowerShares Autonomic Global Asset Portfolios are the first of a new family of PowerShares ETF portfolios that seek to provide global, risk-controlled asset allocation strategies through investment in other ETFs, the company said.

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The ETFs are:

  • PowerShares Autonomic Balanced NFA Global Asset Portfolio (ticker: PCA)—risk profile includes approximately 60% equities and 40% taxable fixed-income;
  • PowerShares Autonomic Balanced Growth NFA Global Asset Portfolio (ticker: PAO)—risk profile includes approximately 75% equities and 25% taxable fixed-income;
  • PowerShares Autonomic Growth NFA Global Asset Portfolio (ticker: PTO)—risk profile includes approximately 90% equities and 10% taxable fixed-income.

“The Autonomic NFA Global Asset Portfolios seek to deliver the benefits of risk-targeted asset allocation combined with the anticipated tax efficiency of ETFs,’ said Bruce Bond, President and CEO of Invesco PowerShares.

The New Frontier Global Dynamic Indexes underlying the PowerShares Autonomic NFA Global Asset Portfolios are constructed using the patented Resampled Efficiency (RE) optimization process from New Frontier Advisors.

“With Resampled Efficiency, the PowerShares Autonomic ETFs bring state-of-the-art institutional quality asset management tools that are designed to maximize core investment management and long-term objectives to advisers and investors, including demonstrably improved portfolio optimization and rebalancing,’ said Richard Michaud, President and CIO of New Frontier Advisors, LLC.

With assets under management of $12.75 billion, Invesco PowerShares has more than 100 domestic, international and actively managed exchange-traded funds.

For more information on the funds call 800.983.0903 or visit www.invescopowershares.com.

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