Break-out Role
Fixed income is ready to play a new part in Canadian pension portfolios

When it comes to fixed income, can Canadian plan sponsors have it all — extra yield, liability hedging and diversification? The answer to that question is a resounding “yes” for many plans, but it does depend how far down the road they are when it comes to embracing the changing bond universe. Indeed, fixed income is now playing a vastly different role in many pension portfolios than it has in the past. As that happens more and more, Canadian plan sponsors are beginning to realize that the fixed income status quo isn’t going to be enough to meet their goals, especially with rising rates on the horizon and equity market volatility to contend with.

Experts at the 2015 Alternative Fixed Income Roundtable explored the changing bond space and what it means for pension funds. What are the biggest challenges plan sponsors currently face, and what tools and strategies are emerging to help them manage their portfolios better for the long term? From private debt to global credit to absolute return fixed income, today’s fixed income portfolios are looking at lot different than they did just a few years ago.

In this report, we cover what those changes look like and some of the reasons why plan sponsors are retooling their approach to bonds.

The Alternative Fixed Income Roundtable is sponsored by:

ABCIBC Asset Management
Sun Life Investment ManagementWellington Management