Bank of Canada – Benefits Canada.com

2024 Endowment & Foundation Investment Forum: Central banks make soft landing after recession concerns

bmcgovern — Thu, 08 Aug 2024 11:59:33 +0000

Central banks are achieving a successful soft landing strategy after concerning periods of high inflation following the coronavirus pandemic, said Douglas Porter, chief economist and managing director at BMO Financial Group, during the keynote session at the Canadian Investment Review’s 2024 Endowment & Foundation Investment Forum in June. Inflation is receding from dangerous highs to […]

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Average Canadian DB pension plan returns 1.1% in Q2 2024: reports

bmcgovern — Wed, 07 Aug 2024 13:00:56 +0000

The average Canadian defined benefit pension plan posted a median return of 1.1 per cent in the second quarter of 2024, according to a new report by RBC Investor Services. The report, which tracks performance and asset allocation across Canadian DB plans, also found that the plans saw a return of 4.4 per cent for […]

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Interest rate cut boosts returns from short-term government bonds, credit: report

bmcgovern — Mon, 15 Jul 2024 19:00:42 +0000

Returns from short-term Government of Canada bonds and credit are rising due to the easing of interest rates by the Bank of Canada last month, according to a new report from FTSE Russell. It noted while Canadian government bonds across all maturities rallied, the gains didn’t erase overall losses in the second quarter, except for […]

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Canadian fixed income outperforms amid improving interest rate landscape: report

bmcgovern — Thu, 13 Jun 2024 15:00:14 +0000

Canadian-based fixed income assets rallied in the first quarter of 2024 as the likelihood of interest rate cuts from global central authorities increases, according to a new report by FTSE Russell. It noted improved inflation data helped boost the results from Canadian long, corporate and real return bonds in May. While Canadian high-yield credit gained […]

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Expert panel: How interest rates impact DB pension plans

bwolfe — Thu, 07 Dec 2023 14:00:47 +0000

Interest rate levels are critically important to the financial health of defined benefit pension plans. Many DB plans are in their best financial positions in decades, largely due to the dramatic rise in interest rates over the past few years, but decreases in interest rates could pose a major risk for many plans. Changes in […]

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Bank of Canada holds key interest rate at 5%, keeps door open to more rate hikes

Jennifer Paterson — Wed, 25 Oct 2023 19:00:09 +0000

The Bank of Canada held its key interest rate steady at five per cent, but hasn’t ruled out future rate hikes as price pressures remain high. “With clearer signs that monetary policy is moderating spending and relieving price pressures, governing council decided to hold the policy rate at five per cent,” said the Bank of […]

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2023 Risk Management Conference: New dynamics in interest rates markets creating opportunities, risks for institutional investors

bmcgovern — Wed, 18 Oct 2023 11:58:03 +0000

Institutional investors’ strategic approach to interest rates must evolve to properly reflect the risks and opportunities in today’s markets, according to Michael Cook, vice-president of client relations and liability-driven investment client portfolio manager at CIBC Asset Management, during a session at the Canadian Investment Review’s 2023 Risk Management Conference. The previous low in interest rates was […]

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Average DB pension plan’s funded position up in June: report

Jennifer Paterson — Thu, 20 Jul 2023 16:00:52 +0000

The funded position of a typical defined benefit pension plan increased on both a solvency and accounting basis during the month of June, according to the latest pension index from Telus Health. In June, the solvency of the average DB plan rose to 103.2 per cent, up from 101.4 per cent during the month of […]

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BoC raises key interest rate to 5%, expects slower return to inflation target

Jennifer Paterson — Thu, 13 Jul 2023 14:30:59 +0000

The Bank of Canada raised interest rates again on Wednesday and released new projections that suggest it will take longer to get inflation back to two per cent. The central bank hiked its key interest rate by a quarter of a percentage point, bringing it to five per cent. Forecasters were widely anticipating the central […]

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Median solvency ratio of Ontario DB pensions rose to 115% in Q1 2023: report

Sadie Janes — Mon, 15 May 2023 13:00:39 +0000

The median solvency ratio of Ontario defined benefit pension plans rose during the first quarter of 2023, from 112 per cent at the beginning of the year to 115 per cent at the end of March, according to the Financial Services Regulatory Authority of Ontario’s latest pension solvency report. During the quarter, pension fund investment returns averaged […]

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