The world was caught off guard when the U.K. voted to leave the European Union on June 23, 2016, since the majority of polls had predicted the opposite outcome. In the wake of the vote, the British pound fell in value relative to other currencies to levels not seen since 1985. It’s a real-time example […]
Based on the five options put forward in British Columbia’s consultation on reforming pension solvency rules, the option to replace the current requirements with enhanced going-concern funding requirements is the favoured course of action, according to the Association of Canadian Pension Management. In its letter to the B.C. government in response to the consultation, which […]
Looking ahead to the new year, 2019 is shaping up to be another challenging one for institutional investors looking for strategies to generate sufficient returns to meet their current and future obligations. Navigating the many variables — from rising interest rates and weakening global growth to threats of trade wars and the possible return of higher inflation — will […]
The drama in recent weeks surrounding the outcome of Brexit has proved Shakespearian, but on this side of the pond, should institutional investors be bracing themselves? “We’ve been thinking about this ever since the referendum and we keep updating our probabilities in different ways,” says Peter Westaway, chief European economist at the Vanguard Group. “I think we’ve boiled […]
Many institutional investors include value-oriented equity strategies in their portfolio to provide protection during declining equity markets. But not all value strategies are created equal, as many found out during the global financial crisis 10 years ago. As well, many investors expected their portfolios to perform better than the broader market, to preserve cash, but this […]
At the first Risk Management Conference, 20 years ago, there were many things plan sponsors probably weren’t thinking about. Currency, for example, says Marlene Puffer, president and CEO, CN Investment Division. Before the elimination of the Foreign Property Rule, plans were mostly invested in Canadian bonds and equities. Instead, the chief concern would have been […]
While many investors expect the U.S. bull market to end in 2019, some institutional investors are planning changes to their allocation strategy or return assumptions, according to a new survey by Natixis Investment Managers. The survey found about two-thirds of institutional investors expect the U.S. bull market to end in 2019, while 70 per cent […]
Volatility is the traditional measure of risk, but environmental, social, and governance principles can help identify risks that may not reveal themselves in the volatility numbers — and lead to a broader assessment of portfolio risk. With that, investors can ask, “Am I really happy to take on that risk, or do I need to […]
“Knowledge is knowing that tomatoes are fruit — wisdom is knowing that you shouldn’t put them in the fruit salad.” It’s a quote that is particularly apt in today’s, markets, according to Trevor Leydon, head of portfolio construction & risk, Aviva Investors. Indeed, in a market environment that has been shaped by central bank intervention […]
Even 10 years after the financial crisis, many Canadian investors still don’t feel secure, according to a new survey by Natixis Investment Managers. More than half (59 per cent) of Canadian investors said they blame market volatility for undermining their ability to reach their savings and retirement goals. This compared to 53 per cent of U.S. respondents and 62 per […]