The defined contribution (DC) market in Canada has some growing up to do when compared with markets in the U.S. and the U.K. In fact, according to Statistics Canada, only 37% of the country’s pension plans are DC. As more employers close their defined benefit (DB) plans and offer up DC alternatives, a growth spurt […]
After a difficult year of deal inactivity and portfolio writedowns, the global private equity market may be stirring once again. Global stock market gains in the second quarter of 2009 have encouraged profits, lifted investment value and spurred a few notable initial public offerings (IPOs), signalling distribution gains to investors. Private equity’s limited partner investors—including […]
While the active versus passive asset management debate typically revolves around equity funds, the latest Standard & Poor’s Index Versus Active (SPIVA) report out of the U.S. suggests there is no question that indexing outperforms on the fixed income side of the portfolio. Over one-, three- and five-year time horizons, a huge majority of actively […]
Two years ago, Canada’s socially responsible investing (SRI) community was in a cheerful, even celebratory mood. Many of the country’s major pension funds, particularly in the public sector, had reversed their position on sustainable investing, embracing the concept that environmental, social and governance (ESG) issues do have an impact on a company’s bottom line and […]
Are target date funds a healthy choice for plan sponsors concerned about member engagement? Many plan members remain in a state of investment and retirement planning inertia when it comes to their capital accumulation plans (CAPs). For some plan sponsors, the target date fund (TDF) may seem like a quick and easy solution to satisfy […]
Asset bubbles: how do they form and what happens when they burst? Asset bubbles have been a part of the investment landscape for centuries. A review of several famous historical asset bubbles helps us build and describe a framework to understand the anatomy of these phenomena. Within this framework, a description of several recent asset […]
This credit cycle is much like any other—a protracted period of low credit spreads lulling investors into a false sense of security, a sharp spike in credit spreads as investors made a mad dash for the exit doors, followed with a marked increase in default rates. What is a little different this time is the […]
The TFSA is finally here! How can employers and employees make the most of it? With the long wait finally over, Canadians from all income, demographic and occupational groups can now benefit from the new tax-free savings account (TFSA). The TFSA is the result of a comprehensive tax policy analysis and review by the federal […]
An old adage claims that there are three kinds of people: those who make things happen, those who watch things happen and those who say, “What happened?” After surviving 2008, many pension fund sponsors must feel like they belong in the third group. Regardless of asset mix or strategy, just about every pension fund has […]
It is currently an interesting time to invest and although it might feel as if the most difficult period is behind us, it wouldn’t be surprising if the global equity indexes continue to be volatile. As each day brings another shock to the financial system, investors may rightly question whether there’s an end in sight […]