Anti-market sentiment in the U.S. is gaining momentum with both Democrats and Republicans, according to David Frum, a writer at The Atlantic, during the keynote session at the Canadian Investment Review’s 2024 Risk Management Conference. The latest election cycle is showing voters are interested in how an economic idea is presented and by the type […]
Liquidity status is helping some of Canada’s biggest pension funds meet the challenges of a volatile investment market thanks to exceptional liquidity status, according to a new report by Fitch Ratings Inc. The report, which compared the credit ratings and portfolios of seven of the largest Canadian pension funds with approximately $2.1 trillion in net […]
While fixed income has long had the reputation of being the conservative and stable supporting partner in the traditional balanced portfolio, unbundling fixed income into its sub-components presents opportunities for enhanced risk-adjusted returns, said Aaron Young, vice-president and client portfolio manager at CIBC Asset Management. When investors buy the FTSE universe bond index or even […]
A typical Canadian defined benefit pension plan’s funded position improved on a solvency basis and decreased on an accounting basis in April as a result of the strong performance of domestic equities and decreases in bond yields, according to a new report by Telus Health. During the month, the solvency of the typical Canadian DB […]
While real estate has long been a part of defined benefit pension plans’ asset allocations, its inclusion in investment portfolios has steadily climbed in recent years. But defined contribution plan sponsors and members also stand to benefit from the asset class’ inflation-hedging properties, as well as its ability to boost income and improve portfolio diversification. Pension […]
The Bank of England’s decision to intervene in the long-dated government bond market protected defined benefit pension plans with liability-driven investment strategies, according to a central bank official. “In practice, the move in [long-term bond] yields last week threatened to exceed the size of the cushion for many LDI funds, requiring them to either sell […]
A Danish defined benefit pension fund is ceasing its investments in Russian assets following recent developments in the ongoing crisis between the world’s largest nation and Ukraine. On Monday, Russian President Vladimir Putin announced his government would recognize the independence of two territories in eastern Ukraine: Donetsk and Luhansk. In response, the AkademikerPension, a US$23 […]
The end of Canada’s quantitative easing strategy and higher than expected interest rates will be beneficial to Canadian defined benefit pension plans, according to Sebastien Betermier, an associate professor of finance at McGill University’s Desautels Faculty of Management. On Wednesday, Tiff Macklem, governor of the Bank of Canada, announced plans to end its quantitative easing policy and […]
“Plans are, for the first time in a long time, in a position to off-load risk,” says Murray Wright, one of the contributors to LifeWorks Inc.’s monthly report on Canadian pensions. According to Wright, the principal of retirement and financial solutions at LifeWorks, pension chief financial officers are paying particular attention to one number found […]
With bond returns tied to interest rates, it’s no surprise Canadian pension funds are increasingly seeking other ways to boost fixed income yields. Canadian interest rates have been trending downward for the last 30 years, from a high of 10.3 per cent in 1990 to around 1.75 per cent in early 2020, according to the […]