Canadian defined benefit pension plans are increasingly focused on implementing long-term goals and mitigating asset risk amid a year of market volatility and shifting regulatory landscape, according to a new survey by Aon. Its biennial Canadian pension risk survey found 96 per cent of plan sponsors said they have a long-term strategy to reach their objectives, up […]
On Aug. 13, after Argentina’s primary elections took a different direction than markets expected, the country’s stocks suffered one of the most dramatic crashes in global history. “It was a super unusual reaction,” says Jim Barrineau, head of emerging market debt at Schroders Investment Management Ltd. He notes the market crash was especially bizarre because […]
While some pension fund managers swear by hedge funds, others would never sink in a single cent. After the 2008 financial crisis turned some investors sour, is it time to give hedge funds a second chance? Colin Spinney, treasurer at Dalhousie University: The Dalhousie pension plan once had a stand-alone allocation to hedge funds, or […]
Global market volatility drove Canadian defined benefit pension plans’ median returns lower in the second quarter of 2019, according to BNY Mellon Asset Management Canada Ltd. and RBC Investor and Treasury Services. Among the 84 Canadian corporate, public and university pension plans in BNY Mellon’s tracking service, the quarterly return was just 2.34 per cent, compared to […]
The Nova Scotia Public Service Superannuation Plan posted a 5.33 per cent return for the 2018/19 fiscal year, with $335 million in total investment income, according to its annual report. Net of investment management fees, the plan’s rate of return was 5.13 per cent. Measured both ways, the returns slightly underperformed the plan’s benchmark rate of […]
Institutional portfolios have been tilted towards growth assets as they’ve reached for higher returns during the bull market of the last decade. But as the business cycle continues to stretch, it’s a prudent time to consider downside protection measures. Wylie Tollette, executive vice-president and head of client investment solutions for Franklin Templeton’s multi-asset solutions business, […]
Global protectionism appears to be here for the long game. While investors may not want to start playing defence just yet, it might be time to start practicing again. In it’s mid-year outlook, the BlackRock Investment Institute noted risk reduction, including elevating the levels of cash in a portfolio, would be a prudent measure given the […]
Canadian defined benefit pension plans maintained their solvency levels through the second quarter of 2019, according to Mercer’s latest pension health index. The index, which represents the solvency ratio of a hypothetical plan, reached 106 per cent as of June 30, 2019, an increase from 102 per cent at the year’s outset. The current solvency […]
With renewed volatility prompting money managers back on their toes, equity markets have been leading investment industry discussions over the past few quarters. Against this backdrop, how is fixed income, the other fundamental building block of defined benefit pension portfolios, faring? For David Lafferty, senior vice-president and chief market strategist at Natixis Investment Managers, the […]
In the face of a challenging capital market and its subsequent volatility, defined contribution plan sponsors must consider the affect on plan member behaviour, said Colin Sinclare, managing director of institutional sales for Western Canada at MFS Investment Management. “Volatility affects the compounding of returns in DC plan members savings plans. As well, it has behavioural […]