The Healthcare of Ontario Pension Plan is well-known for its liability-driven investing strategy, which helped it successfully weather the 2008 financial crisis. During the coronavirus fallout, in an era of historically low interest rates, the HOOPP is working on developing LDI 2.0. “We’re very focused on liabilities, but what you do when interest rates are […]
While rising government deficits and debt are concerning for many bond owners, they should actually be more concerned that deficits aren’t big enough, said David Bezic, an independent economic consultant, during a session at Benefits Canada and the Canadian Investment Review’s 2020 Plan Sponsor Week in mid-August. Many of the concerns around debt and deficits are founded on […]
Defined contribution plan members are contending with volatile equity markets, ultra-low interest rates and the threat of inflation as the country’s economy begins its tentative recovery. In the first half of 2020, equities took an almost round trip, dropping significantly in the first quarter and recovering to the point that most markets are in neutral […]
The recent market turmoil caused by the coronavirus crisis has increased the focus on rebalancing decisions for many Canadian pension plans. As certain asset classes outperform others, a portfolio’s asset mix will drift overtime from its long-term targets. To ensure no significant divergence from the target, rebalancing triggers the sale of the strong performing asset […]
The world’s natural resources that help sustain life on earth are making their debut as a distinct asset class with the introduction of a new joint venture asset management firm focused on natural capital. HSBC Global Asset Management Ltd. and climate change advisory and investment firm Pollination Group Holdings Ltd. are teaming up under the name HSBC Pollination […]
At the time of my last column in May, many pension plan sponsors were catching their breath after watching funding levels take a roller coaster ride. After a steep drop earlier in the year, funding levels were slowly recovering. However, market uncertainty remained and it wasn’t clear what was coming next. Thankfully the last few […]
Coming out of the fastest market crash in history, asset owners are cautiously optimistic heading into a vastly changed investment landscape, according to a new survey by bfinance. Indeed, 82 per cent of surveyed asset owners, including pension funds, endowments and sovereign wealth funds, said they’re satisfied with how their portfolios have performed so far […]
The Caisse de dépôt et placement du Québec had a challenging first half of 2020, posting a negative 2.3 per cent return. However, the pension fund remains in a strong financial position, according to president and chief executive officer Charles Emond, holding assets of more than $333 billion and with an 8.7 per cent annualized return over […]
U.S. public pension funds can expect to see hurdles from the coronavirus crisis similar to those experienced in past recessions, according to a new report by Cerulli Associates. In the past two recessions, public plans saw a decrease in their funded statuses. “According to survey data gathered form the National Association of State Retirement Administrators, […]
Cognitive bias exists in the very fabric of the business world and is a key element holding back its progress, according to Sudhir Roc-Sennett, head of thought leadership and environmental, social and governance for Vontobel Asset Management’s quality growth boutique. He says companies and the institutional investors analyzing their potential should be concerned with the myriad ways […]