The novel coronavirus has introduced unprecedented volatility to financial markets and is taking its toll on pension plans. We’ve seen sharp corrections in most equity markets. At its lowest point in the correction to date, the S&P 500 lost 34 per cent of its value, from its peak in February. The TSX, which has also […]
In the midst of an unusual or unsettling situation, such as the coronavirus pandemic, pension plan sponsors should remember that both defined benefit and capital accumulation plan arrangements are intended to be managed for the long term. The negative impact of the coronavirus on global economies and on businesses is a concern, particularly with respect to […]
The Ontario Teachers’ Pension Plan posted a net return of 10.4 per cent for 2019, bringing net assets to $207.4 billion. Its $20.2 billion in investment income represents an organizational best, said Jo Taylor, the pension fund’s president and chief executive officer, on a conference call Tuesday morning, outperforming the 2018 return of 2.5 per […]
It’s the only story around these days. COVID-19 — the coronavirus — has broken out all over the world, leading to strain on health-care resources, uncertainty in capital markets and strict social distancing and lockdown measures from governments. The pandemic is naturally causing fear, anxiety and uncertainty, both among employees and among managers. But here’s […]
With asset deterioration due to drops in equity markets and a decrease in long-term government bond yields causing an increase in solvency liabilities, pension funds are in a tough position. A Canadian defined benefit solvency funding calculation assumes some plan members will elect to take a commuted-value lump sum, while other members will elect to […]
The Healthcare of Ontario Pension Plan reported a strong 2019, posting a 17.14 per cent return for the year and hitting a funded status of 119 per cent on a smoothed basis. The fund outperformed its benchmark by 2.08 per cent — or just over $1.65 million — and far surpassed 2018’s return of 2.2 […]
Although the markets are changing quickly due to the impacts of coronavirus, the OPSEU Pension Trust is a long-term investor and its overall investment strategy hasn’t changed, says James Davis, the fund’s chief investment officer. The plan’s portfolio was constructed to be resilient and withstand events similar to what’s happening in today’s markets, he says, […]
In this time of global pandemic, the coronavirus is shaking up everything, with high market volatility and changing work arrangements. Everyone is worried — not only for their immediate futures, but also for the long term. “It’s pretty hard to watch the market go through the volatility that we’ve seen over the last couple of […]
Once again, we’re experiencing volatile markets. During these times, it’s common to hear the following statements: It isn’t time to panic. This has happened before. Make sure the pension plan’s asset mix is correct. While these messages may be good advice for individual investors, defined contribution plan sponsors should be considering how to help their employees. Here are […]
After a week that saw coronavirus worries wallop equity markets into correction territory, the U.S. Federal Reserve announced a 0.5 per cent rate cut on Tuesday morning. Following suit, the Bank of Canada cut its target for the overnight rate by 50 basis points on Wednesday, bringing it to 1.25 per cent. For the Fed, […]