The nutcracker
How software firm Macadamian harnesses technology to improve the employee benefits experience
- June 1, 2014 September 13, 2019
- 07:00
How software firm Macadamian harnesses technology to improve the employee benefits experience
For the most part, Canada’s pension funds haven’t ventured into impact investing—where capital is allocated to projects that bring not only financial returns but also social and environmental benefits—because that space still presents few opportunities for them.
A relatively new asset class, infrastructure is growing and seeing more segmentation—a process that offers Canadian investors an increasing number of opportunities both at home and abroad.
Target benefit plans (TBPs)—pension arrangements where the risk is shared between the employer and employees—are attracting more and more attention. But despite this model’s appeal, a number of pension plan sponsors have concerns about the technical details associated with moving to a TBP structure.
A low-volatility portfolio can bring good returns without great risk, but building that kind of portfolio is not as simple as finding low-beta stocks. Investors need to be aware of risks and, when they consider investing aboard, they need to understand whether they should engage in currency hedging.
Real estate can deliver good, steady returns—yet, home bias and a limited budget can often present barriers for pension investors.
Fixed income is known for its portfolio-hedging properties and global sovereign debt presents opportunities for investors—yet pension funds are sometimes nervous when it comes to this asset class.
We go for coffee with Larry Ketchabaw, manager of pension and benefits with Unisource, Inc.
Consumption in emerging markets is growing, but investors exploring that arena need to understand the types of consumption, what drives it and the cyclical highs and lows these markets go through.
De-risking seems to be the topic du jour for Canadian DB pension plans. But not all pension funds need to take risk off the table—and for those that do, the options are several, no matter what size they are.