The importance of risk management isn’t new for the majority of defined benefit pension plan sponsors and administrators. The impact of long-term interest rates, market volatility, changing demographics and increasing longevity, inflation concerns, geopolitical events and other large economic, environmental and social factors are all contributing to the need to manage the financial risks associated […]
Apple Inc. is upping its compensation package and giving its U.S. retail employees a pay increase of 10 per cent or more in a bid to help them combat inflation and stave off a push to unionize across many of its stores. Retail staff will see their wages rise to at least US$22 per hour, up […]
King Midas’ gold-heavy investment portfolio wasn’t built for long-term growth, rather as an effective hedge against long-term inflation. “The 150-year real return of gold has been plus 0.2 per cent, so it’s not a very attractive asset from a long-term perspective,” said Inigo Fraser-Jenkins, co-head of institutional solutions at AllianceBernstein, during a session at the […]
With increased market volatility due to Russia’s invasion of Ukraine, central banks in the West looking to tighten monetary policies as the world begins emerging from the coronavirus pandemic and higher, more persistent inflation than anticipated, bond investors are in for a wild ride, said Samantha Klein, lead of institutional business for T. Rowe Price […]
Canada’s Maple 8 — the country’s largest eight public pension plans that manage a total of about $2 trillion in assets — use similar governance structures to consistently deliver strong returns. Pension systems around the world are difficult to manage, said Sebastien Betermier, an associate professor of finance at the Desautels Faculty of Management at […]
Canadian institutional investors should have a strategic allocation to emerging market debt, Ward Brown, fixed income portfolio manager at MFS Investment Management, explained during his session. EM debt has two of the key characteristics needed for a strategic allocation. First, it is a good diversifier because it has low correlations with other assets commonly found […]
More than half of Canadian employers have considered adjusting employee rewards and benefits (57 per cent) and salary/wages (55 per cent) to contend with rising inflation and an ongoing labour shortage, according to a survey by Ento Canada. The survey, which polled more than 400 human resources leaders, found four in 10 (42 per cent) employers […]
Canada Pension Plan Investment Board generated returns of 6.8 per cent during its fiscal year, which ended on March 31, 2022. The institutional investor’s assets grew by $42 billion, rising from $497 billion to $539 billion. The $42 billion increase in net assets consisted of $34 billion in net income and $8 billion in net […]
Canada’s pension plans are well positioned to succeed in a high inflation environment though stagflation remains a significant threat, according to a new report from Fitch Ratings. “The maturing nature of participant bases increases pension funds’ reliance on investment returns, as contributions and income from active members may be outpaced by benefits paid to a […]
Cisco Systems Inc. is exploring shifting a percentage of its Canadian employees’ bonuses into their base pay to help staff contend with the impacts of inflation. The company’s decision comes as workers across the world are finding their paycheques aren’t going as far as they used to amid higher costs of living as a result […]