Canada’s new top central banker says the Bank of Canada has no intention to raise interest rates given the current economic circumstances created by the coronavirus pandemic. Governor Tiff Macklem says the central bank is focused on delivering low interest rates for the foreseeable future to support an economic recovery. That should also help lower […]
The last decade of persistently low interest rates, exacerbated by the coronavirus crisis, has created challenges for institutional investors looking to generate income on their bond investments. The challenge has been more acute for pension funds and foundations, who rely on bond investments to fund their ongoing benefit and program obligations. Moreover, indications from global […]
The volatility caused by the coronavirus pandemic made the first quarter of 2020 rough for many Canadian defined benefit pension plans. In early June, the Local Authorities Pension Plan Corp., which is mandated to invest with the Alberta Investment Management Corp., said it began the year with $50.6 billion in assets under management and ended […]
Confronted with an economy gripped by recession and high unemployment, the Federal Reserve made clear Wednesday that it will keep supplying all the help it can by buying bonds to maintain low borrowing rates and forecasting no rate hike through 2022. The Fed has cut its benchmark short-term rate to near zero. Keeping its rate […]
Despite drastic changes stemming from the coronavirus crisis, the majority (58 per cent) of pension fund directors said their fund’s transition to a remote boardroom has had no perceived impact on board effectiveness, according to a global pulse survey by Mosaic Governance Advisors. However, 19 per cent of respondents noted their board’s effectiveness was being […]
The British Columbia Investment Management Corp. is touting its 2019 environmental, social and governance successes in its annual ESG report. Some highlights from the year include that it finalized the introduction of a new corporate-wide ESG strategy including priorities and procedures for ESG reviews across all asset classes. As part of the strategy, the BCI’s […]
With the coronavirus-induced shutdown causing ripples in public and private markets alike, infrastructure assets took a hit in the first quarter of 2020 — and the worst may still be coming. According to data from the EDHEC Infrastructure Institute, infrastructure assets experienced a sharp drop in returns in the quarter. The decline was driven by […]
Statistics Canada is reporting a record high unemployment rate as the economy added 289,600 jobs in May, with businesses reopening amid easing public health restrictions. The unemployment rate rose to 13.7 per cent, topping the previous high of 13.1 per cent set in December 1982 in more than four decades of comparable data. The increase […]
The economy appears to have avoided a worst-case scenario due to the coronavirus pandemic, the Bank of Canada said Wednesday as it kept its key interest rate steady at its lower bound. The bank left its target for the overnight rate unchanged at 0.25 per cent, which it has said is as low as it […]
The Caisse de dépôt et placement du Québec has released its annual report, highlighting the results previously announced on Feb. 20, including a return of 10.4 per cent for 2019 and a growth in net assets of $30.6 billion for the year. “2019 was a good year for investors – markets experienced one of their […]