As interest rates rise, so, too, do investors’ concerns about the performance of fixed income. “An allocation to fixed income is considered a safe way to preserve capital and provide diversification against equity investments,” says Vjosana Klosi, director of portfolio construction at CIBC Asset Management Inc. and author of a December 2017 research paper on […]
Inflation and rising interest rates will shake things up this year.
Canada’s economic boom in 2017 surprised economists and supported strong labour numbers. Yet, inflation also remained dormant, “which created this Goldilocks environment and, therefore, very strong financial market returns for the year,” says Luc de la Durantaye, the head of asset allocation and currency management at CIBC Asset Management Inc. That won’t be the case […]
Bond yields are likely to remain low in light of the Bank of Canada’s wait-and-see-approach in its October interest rate decision, says CIBC Asset Management Inc.’s Patrick O’Toole. After two consecutive rate hikes, the Bank of Canada maintained the overnight rate at one per cent on Oct. 25, citing uncertainty around North American Free Trade Agreement renegotiations […]
For those who use the standard four per cent withdrawal rate for retirement savings, it’s time to reconsider the approach. “The four per cent withdrawal rate has long been presumed the industry standard for investors entering retirement, but this rate is no longer optimal,” says Vjosana Klosi, director of portfolio construction at CIBC Asset Management Inc. and […]
Infrastructure investments don’t always offer the diversification benefits investors expect, especially when they’re publicly traded. “For listed infrastructure to have a chance at fulfilling the goal of providing a unique experience within a broader portfolio, a tight definition of infrastructure is needed,” says David Wong, managing director of investment management research at CIBC Asset Management Inc. […]
Canada’s largest institutional investors are calling for a boost in the representation of women on board and executive management teams of S&P/TSX composite index companies to 30 per cent by 2022. Within the 215 largest issuers on the index, women occupied only 18 per cent of board seats as of September 2016, according to a review by the […]
Investors may be tired of hearing about central banks and monetary policy moves. But these days, the outlook for many countries hinges on whether monetary policy is supportive, and that’s a major factor driving investment decisions. When looking for potential opportunities, it’s a good idea to look for “relative value” and at how monetary policy […]
Five years ago, Patrick O’Toole said he was maintaining overweights in corporate bonds. “We think that strategy is going to pay off over the next few years,” he said at the time. It did. Over the past five years, O’Toole, vice-president of global fixed income at CIBC Asset Management, saw returns around 4.5 per cent; over […]
The outcome of the upcoming U.S. election, which will be decided this time next week, will likely affect institutional investors by determining the extent of changes to the capital market and global currencies, according to several investment professionals. “If Democrat Hillary Clinton wins the election, the most likely result is that it’s going to be […]