Critics of leveraged exchange traded products probably don’t understand how to use them properly, according to leading independent investment fund analyst Dan Hallett. “I think the first lesson is to read the prospectus thoroughly,” Hallett says. “This I think is at the core of any of the criticisms that are out there. Had investors in […]
Employers that provide defined contribution (DC) pension plans to their staff are being urged to provide more guidance by one of the leading consultancies in the field. The challenge for many plan administrators is to engage the marginally interested plan member and provide appropriate default investments for those who simply refuse to take responsibility for […]
While the active versus passive asset management debate typically revolves around equity funds, the latest Standard & Poor’s Index Versus Active (SPIVA) report out of the U.S. suggests there is no question that indexing outperforms on the fixed income side of the portfolio. Over one-, three- and five-year time horizons, a huge majority of actively […]
Employers planning to shift staff from a defined benefit (DB) pension to a defined contribution (DC) plan need to keep a careful eye on the wording of their documentation. Fortunately, a recent legal decision opens the door for amending the paperwork for existing plans. On Aug. 7 the Supreme Court of Canada ruled in favour […]
The next 18 months look promising for those willing to sit tight and hold on to their equities allocations, says CIBC chief economist Avery Shenfeld. That being said, he expects the summer months will offer little growth, and that investors should simply sit tight and buy on the dips. “Only the most nimble market timers […]
In the process of revamping its portfolio, the Norwegian pension fund, Buskerud Fylkeskommunale Pensjonskasse, has dismissed a global equities manager and a fixed income manager. As part of the overhaul, the pension fund has completely sold off its global equity portfolio and established a new bonds-held-to-maturity portfolio. As a result, the NOK3.1 billion (US$488 million) […]
As the recession grinds on, employers are trying to contain costs while boosting productivity, both admirable and understandable goals. But these two goals can be at loggerheads when employee benefits are targeted, according to professionals at Morneau Sobeco’s Emerging Trends 2009 seminar. Employee health and wellness plans may appear to be an easy place to […]
Tough economic conditions tend to boost investor conservatism and capital accumulation plan (CAP) members are no different, assuming they bother to revisit their investment mix. But even “safe” defaults require ample due diligence by both plan sponsors and members. “Both DB and DC pension plans have been hit very hard by the recent market downturn. […]
Many companies are scaling back on the benefits offered to new hires, but current retirees are also feeling the pinch, according to research by Towers Perrin. Speaking at the spring conference of the Association of Canadian Pension Management’s Ontario Regional Council, senior consultant Ken Cooke told the audience many benefit plan sponsors never anticipated the […]
One of the world’s largest asset managers, Crédit Agricole, has announced it is expanding its presence in Canada, focusing on institutional clients in Quebec, Ontario, British Columbia and Alberta. The company’s Canadian division, CAAM Canada Inc., is currently based out of Montreal with an office in Toronto. “Expanding its presence in Canada underscores the group’s […]