Exchange traded funds have emerged as important instruments for investors and advisors. That’s not surprising, but the way they’re being used might be: once touted as the ultimate buy-and-hold vehicle—buy the stock market for the equity risk premium and forget about individual stock volatility or manager underperformance—ETFs have become another tool in the kit of […]
-33%, +35%, -5%. These are the annualized returns of the S&P/TSX Composite Index in 2008, 2009 and (so far) 2010, respectively. With this degree of market volatility, pension plan sponsors are seriously looking at ways to manage risk. Recent news of the market impact on insurance companies due to their guaranteed products only confirms that […]
Coverage of the 2010 Risk Management Conference.
A benefits program is an investment and as with all investments there are inherent risks. Risk that the expected return will not materialize. Risk that what you thought you “bought” will turn out to be different than what you go. Risk that the cost of managing the investment significantly reduces the return. But, like any investment, […]
A large loss is not evidence of a risk management failure...
As a result of the two market crises of the past decade, it has become evident that a more holistic way of looking at risk is critical, as is having a more robust and dynamic decision making framework. In addition to incorporating multiple risk measures, it’s important to pay attention to macro factors that can […]
The past two years in capital markets have been hard on many pension plans, both defined benefit and defined contribution. No asset class escaped a rapid and drastic markdown in value—except for U.S. Treasuries. And then, almost as quickly as it started, the panic was over and many asset markets witnessed a massive bounce back. […]
New CIR Online Debate asks whether emerging economies can overcome the past.
The losses underscore the extra risk in the longest-maturity bonds if the economy recovers faster than investors expect...
Coverage from the 2010 Risk Management Conference.