Inflation must be taken into account when designing both plan sponsor and government retirement programs because, over time, it will undermine purchasing power. In terms of recruiting and retaining employees, workplace retirement plans are important, but they also represent a significant cost for employers. Inflation-adjusted government pension programs can help lower these costs. But plan sponsors and […]
As factor and multi-factor investing become more commonly understood investment styles, different strategies can help mitigate specific risks in choppier markets. “Nobody wants to hear about risk until it’s too late,” said Carlos Phillips, vice-president and director at TD Asset Management Inc., at an event hosted by the firm in Toronto on Tuesday. A significant […]
It’s too early in the rise of populism to determine whether it will turn out to be a secular or a cyclical trend, according to John Denham, chief investment officer at the Workplace Safety and Insurance Board. As a result, populism has yet to have a firm affect on overall investment strategies, he noted during a panel at Benefits Canada‘s and […]
While no one can know for certain if inflation is coming bank, David Zanutto, senior investment consultant at Mercer, says that the risks of inflation moving higher have increased. He points particularly to low levels of unemployment, which could translate to wage growth and higher inflation. Other factors that could lead to higher inflation include […]
Uncertainty on how U.S. and Chinese policies will affect trade, Italy’s budget standoff with the European Commission, worry over Brexit and the U.S. Federal Reserve’s monetary policy all imply volatility for the coming year, according to Russell Investment Canada Ltd.’s 2019 market outlook. The firm is remaining neutral on equities and underweight U.S. stock, though it’s maintaining a more […]
Emerging market equities are expected to show the heftiest returns in 2019, underpinned by a stronger economic background, said William Yun, executive vice-president at Franklin Templeton Multi-Asset Solutions, at an event in Toronto on Tuesday. While the asset class is still muted compared to returns 20 years ago, the investment firm is working with the forward-looking outlook that emerging market […]
Investors eyeing gold as inflation concerns rise
As inflation is back on institutional investors’ minds, some are eyeing an allocation to gold, both directly and through companies with exposure to the metal, according to one investment manager. “We’re actively having a lot of conversations right now with institutions,” says John Ciampaglia, chief executive officer of Sprott Inc. “What we’re finding is a lot more reception […]
A 9.7 per cent net return for 2017 has helped the Ontario Teachers’ Pension Plan report a funded status of 105 per cent in its annual report. Among the highlights of the report was the plan’s intention to use its funding surplus as a contingency fund to support the long-term goal of maintaining steady contribution and benefit […]
Inflation and rising interest rates will shake things up this year.