Since the financial crisis of 2008, pension plans have struggled for additional returns. Unable to meet their liabilities with the typical equities and fixed income portfolio, a lot of plans have been moving into alternative investments, specifically, hedge funds.
As 2012 comes to a close, what’s the outlook for fixed income and equities as 2013 approaches?
It’s a tight race to the White House, if media reports are anything to believe. But who actually sits in the Oval Office come January 2013 may have varying outcomes for the U.S. economy, the fiscal cliff (the expiry of the Bush tax cuts) and the debt ceiling (currently at $16 trillion).
Ever wonder what DB pension plans south of the 49th parallel are doing to stay solvent? Dan Tremblay, a liability-driven investment strategist with Pyramis Global Advisors speaking yesterday at the Pyramis Global Advisors Fall Forum in Toronto, noted two ongoing trends that pension plans have adopted to stay above water in this turbulent economy.
In an informal poll of investors in attendance at a recent CIBC Mellon event in Toronto, 38% of respondents indicated they were invested in hedge funds and 38% said they were undecided. When asked if they were invested in or plan to be invested in alternatives, hedge funds drew the most interest.
Millions of visitors flock to Niagara Falls each year to see one of the world’s greatest natural attractions, and to tempt Lady Luck at Casino Niagara and Fallsview Casino Resort. But Niagara Casinos’ executive team wanted to ensure that luck had nothing to do with securing a strong financial future for its employees. A review of the employees’ DC pension plan in August 2011 showed that significant changes were needed to achieve that goal.
The current economy is not the best of times, and it’s not the worst of times. With global growth of about 3%, it’s the mushy time in between, said Avery Shenfeld, chief economist and managing director with CIBC, presenting his outlook for investors last week at the National Club in Toronto.
On Sept. 10, 2001, I was enjoying a round of golf near Uxbridge, Ont., with prospective clients from Scandinavia. We had a wonderful day getting to know them before our big presentation.
Last week in Toronto, Mercer projected an average salary increase of 3.2% for 2013. This number was based on the firm’s 2012/13 Compensation Planning Survey, which came out earlier this year.
A little after 4 p.m. EDT on Aug. 14, 2003, downtown Toronto went dark. Rob Shier, senior vice-president and chief operations officer with CIBC Mellon, recalls that his immediate reaction was, “Oh, this floor has lost power.”