Four major misconceptions about fixed income impact investing have taken root in the minds of many institutional investors, according to Matt Lawton, fixed income portfolio manager of global impact credit strategy at T. Rowe Price, during a session at the Canadian Investment Review‘s 2022 Investment Innovation Conference. The first, he noted, is that investors can’t […]
“What we’ve observed year to date is nothing short of historic in nature,” said Steve Guignard, senior director of client solutions at Sun Life Capital Management, referring to the poor performance of the FTSE Canada Universe Bond Index, which dipped 12 per cent in 2022. “The market’s erratic and unpredictable behaviour is very similar to […]
The average Canadian defined benefit pension plan lost ground on a solvency and accountancy basis in December, according to LifeWorks Inc.’s latest monthly report. At the end of 2022, the solvency index reached 103.8 per cent, down 3.1 per cent from the end of November. The balance sheet index also fell 2.4 per cent — […]
The uncertainty about the direction interest rates will move in 2023 means defined benefit pension plan sponsors should be reconsidering their asset allocation strategies, says Ben Ukonga, principal at Mercer. “I don’t think anybody knows when, or if, interest rates will come down. If [inflation] comes down, the Bank of Canada’s likely to stop increasing […]
The aggregate funded ratio for Canadian defined benefit pension plans increased from 96.9 per cent to 100.8 per cent during 2022, according to Aon’s latest pension risk tracker. The tracker, which calculates the aggregate funded position on an accounting basis for companies in the S&P/TSX composite index with DB plans, also found pension assets lost […]
In 2014, Colyn Lowenberger, then the director of pension and disability administration at the City of Regina, heard a knock at his office door — it was opportunity. After walking into the room, the chair of the Regina Civic Employees’ Superannuation and Benefit Plan asked Lowenberger to discuss a list of concerns about the defined […]
A bill intended to provide defined benefit pension plan members with super-priority should be a major concern for Canadian DB plan sponsors, according to LifeWorks Inc.’s latest monthly pension indices report. “While the goal of [Bill C-228] is to protect the pensions of members and retirees in the event of a company’s insolvency, it could […]
Despite concerns about global economic headwinds, the Bank of Canada’s successful efforts to curb inflation is capturing the attention of institutional investors, says Kathrin Forrest, a Toronto-based equity investment specialist at Capital Group Inc. “It’s surprised market participants,” says Forrest, referring to the central bank’s Oct. 26 decision to increase interest rates for the sixth […]
The Ontario Teachers’ Pension Plan is facing losses from an investment in a cryptocurrency exchange that filed for bankruptcy on Nov. 11. The pension fund invested a total of US$95 million in FTX International, a Bahamas-based exchange, which was valued at US$32 billion in 2021. In October 2021, the Ontario Teachers’ invested US$75 million in FTX, followed by […]
Canada’s defined benefit pension plans improved on both a solvency basis and an accounting basis in October, according to a new report by LifeWorks Inc. The monthly pension indices report found the average Canadian DB pension plan saw its solvency ratio rise to 103.2 per cent, up 3.1 per cent from the previous month. On […]