In a world where economies are diverging, one way Canadian pension plans can balance their risk/reward ratios is to look at global bond opportunities as a source of alpha. Many parts of Europe, Japan and the developing world are experiencing low growth in contrast to stronger performances in places like the United States and Britain. […]
While pension plans in Canada have become better at managing their assets in conjunction with liabilities, many plan sponsors still struggle with assessing how the pension plan affects the company’s overall finances, its balance sheet, debt, cash flow and structure. “The pension plan is affecting the company in a very profound way,” said Andrew Kitchen, […]
Where Canada used to be the envy of the financial and economic world just a few years back, things have changed dramatically, Scotiabank chief economist Warren Jestin told Benefits Canada’s DB Investment Forum on Dec. 11. Low oil prices, a falling Canadian dollar, and a stronger U.S. economy along with higher interest rates south of […]
Given the need to balance risk management and return enhancement, pension plans would do well to consider overlays as one strategy, according to Christopher Jernstrom of Russell Implementation Services. Good investors will look at both of these issues equally, he told Benefits Canada’s DB Investment Forum in Toronto on Dec 11. “If managers focus on […]
With pension funds and other institutional investors constantly looking for capital appreciation and long-term growth opportunities, real estate is a recent hot trend that’s seeing a flood of capital. What’s driving the activity? “Real estate is a cyclical business,” said Derek Warren, assistant vice president at Lincluden, during Benefits Canada’s 2015 DB Investment Forum in […]
Smaller and mid-size pension plans are taking advantage of what used to be the exclusive domain of larger pension funds. At Benefits Canada’s DB Investment Forum in Toronto on Dec. 11, Terri Troy, CEO and Chief Investment Officer for the Halifax Regional Municipality Pension Plan (HRM) provided private investment examples for smaller and mid-size plans […]
Notwithstanding a possible Liberal majority in next week’s federal election, and the idea that it would “negate” the need for an Ontario Retirement Pension Plan (ORPP), according to Ontario Premier Kathleen Wynne, awareness of the plan remains scattered, at best. This and other findings were discussed as part of a larger Benefits Canada survey presented […]
Little has changed in modern portfolio views over the last few decades. Many institutional money managers and plan sponsors have been working with the simple strategy of splitting their investments and exposures between equities and fixed income. More often than not, this results in a 60/40 weighting of equities and bonds, respectively, with the idea that this amount of diversification will weather volatile markets and produce suitable returns.
In the benefits world, plan administrators and healthcare practitioners work to save lives and costs by ensuring that preventative measures are addressed before serious illnesses become a problem.
As DB plans become increasingly rare and the prevalence of DC plans increases, pension plan sponsors are continuously looking for ways to provide investment options that can achieve solid returns.