While year-end incentive payments have been on the rise over the past few years, 2019 could be different. Analysis from Johnson Associates, Inc., a compensation consulting firm, found Wall Street year-end incentive pay, including cash bonuses and equity awards, is expected to decline by five per cent for 2019, compared to last year. “All signs […]
As market uncertainty causes a slowdown in Europe’s economy, an accommodating central bank and negative interest rates are making its bond markets more attractive to institutional investors than those in the United States. “Europe is a very export-led economy and Germany, in particular, is driven by exports to the rest of the world,” said Rod […]
Canadian defined benefit pension plans posted a median 1.7 per cent return in the third quarter of 2019, down from 2.7 per cent in the previous quarter, according to the latest RBC Investor and Treasury Services’ universe. In comparison to the same quarter last year, the returns represent an improvement, with DB plans posted a meagre […]
A defined contribution plan sponsor’s strategic decisions around asset allocation are far more influential to the performance of the pension portfolio than security selection or timing investments. “The strategic decision is very important in terms of long-term results and the long-term experience of your plan members,” said Chhad Aul, vice-president of portfolio management at Sun […]
There are two fundamental reasons for including alternatives in a defined contribution pension portfolio, according to Ed Studd, solutions manager for U.S. portfolio solutions at Schroders, during a session at Benefits Canada’s 2019 Defined Contribution Investment Forum in Toronto on Sept. 27. First, alternatives can help the portfolio achieve better diversification by accessing different types […]
Depressed bond yields are stoking institutional investor concerns over global growth prospects for the coming year. “We’ve seen a similar pattern across the world,” said Alec Young, managing director of global markets research at FTSE Russell, in a webinar on Tuesday. Alongside struggling yields, other leading economic indicators, including U.S. manufacturing data, have markets increasingly worried. However, […]
Canada’s defined benefit pension plans posted a median return of 1.6 per cent in 2019’s third quarter, according to Northern Trust Canada’s pension universe. “Despite a backdrop of persistent volatility, fear and uncertainty, Canadian pension plans displayed resilience in the third quarter,” said Arti Sharma, president and chief executive officer of Northern Trust Canada, in a press […]
Diversified pooled fund managers posted a median 1.5 per cent return before fees for the third quarter of 2019, according to Morneau Shepell Ltd.’s latest pension universe. The 1.5 per cent return represented a 0.3 per cent underperformance of its benchmark portfolio, which uses a 55 per cent equities and 45 per cent fixed income split. The […]
Mario Draghi leaves as head of the European Central Bank credited with having rescued the eurozone from disaster with a well-timed phrase and bold action to back up his words. He expanded the bank’s arsenal of crisis-fighting tools with new and unconventional policies, measures that he and others say helped end a financial crisis in […]
The use of factor investing is on the rise among institutional investors, according to a new global survey by Invesco. “Factor investing has shifted from academic theory to an actionable strategy for global investors and the study allows us to understand what issues are key to their investment decisions,” said Mo Haghbin, chief operating officer of […]