A new survey shows 53% of defined benefit(DB)plan sponsors will make significant changes to their Canadian equity allocations over the next couple years.
The most significant planned increases were with international equities, according to the MFC Global Investment Management survey. One-third of plans intend to hike their international(excluding U.S.)equity allocation over the next two years.
“The elimination of the 30% foreign content limit has created an unprecedented investment opportunity for Canadian pension plans to generate enhanced returns and greater diversification potential by making larger allocations to global capital markets,” says Keith Walter, the firm’s senior vice-president for sales and marketing.
Eighteen percent of plans intend to raise their U.S. equity allocation while 13% plan to decrease the allocation. And 15% of plans intend to hike their allocation to global equities, which includes both international and U.S. equities.
Senior representatives from 148 DB plan sponsors with assets ranging from $75 million to $10 billion were interviewed.
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