Market volatility and difficult economic circumstances have prompted multinational companies to take a global approach to managing retirement plan assets, according to a new survey.
The research, by Mercer Investment Consulting, has found that 84 per cent of multinationals now take a global view, compared with 50 per cent two years ago. There has also been an increase in the number of companies conducting asset-liability studies across their plans and in the number with common investment objectives for their plans worldwide.
Half of the companies in the survey took a "corporate finance perspective" when determining funding. This included looking at risk management from a global corporate perspective rather than considering each retirement programme separately. But the crucial factor in a successful plan implementation was the backing of senior management. Three-quarters of the respondents said support from the top was a critical factor in the success of their strategies.