Current economic factors like low bond yields, which make it quite difficult for pension plans to meet their long-term return requirements, are driving institutional investors to allocate more to alternatives, according to Jason Campbell, a principal at Eckler Ltd. “Growth in alternatives has been steady and quite significant,” he said during a Canadian Investment Review webinar on May 2. […]
When it comes to defined contribution pension plans, some “big rock” decisions for plan sponsors have the most impact on member outcomes, while other decisions are just not as significant, says Jafer Naqvi, vice-president and director of fixed income and multi-asset at TD Greystone Asset Management. The four big rocks for DC plans are contribution […]
Following an asset-liability matching study in early 2018, the Toronto Transit Commission Pension Fund Society is expanding its allocation to less liquid investments. The jointly sponsored pension plan, which has about $6.5 billion in assets under management, is comprised of 37 per cent fixed income, 44 per cent equities and 19 per cent real assets, […]
Real estate remains a popular asset class for institutional investors seeking to diversify their sources of real returns. As the economic cycle reaches its late stages, where can investors find the best real estate opportunities? Has core real estate in the U.S. run its course? At least half of a sample of 144 institutional investors […]
One of the difficult parts of operating as an institutional investor is choosing a roster of external managers. It’s particularly hard if your institution hasn’t clearly established the purpose of using a given investment strategy in the first place. Let’s consider hedge funds. One prominent U.S. hedge fund in particular achieved net returns of 3.7 […]
Private capital allocations to emerging markets hit unprecedented levels in 2018, totalling US$90 billion raised in private capital vehicles during the year and $US70 billion in disclosed capital invested according to the Emerging Markets Private Equity Association’s latest data. The capital raised represents a 39 per cent increase and the disclosed invested capital represents a […]
Although factor investing and smart beta have gained in popularity, the emergence of alternative risk premia points to a critical focus for plan sponsors today: risk diversification. This is happening at a time when plans are shifting increasingly away from bonds and equities and into alternative investments. “Alternative risk premia provide a different route to […]
When pension funds share key players, like asset managers, actuaries and trustees, do they flock to the same asset allocation regardless of differences in liabilities? In a new working paper Pension funds interconnections and herd behaviour, Rob Bauer, Matteo Bonetti and Dirk Broeders from Maastricht University set out to see how much influence sharing key […]
As market conditions and investment preferences shift, investors are looking to private equity and other asset classes, while hedge funds face headwinds raising capital, according to EY’s 2018 Global Alternative Fund Survey, At the Tipping Point: Disruption and the pace of change in the alternative asset management industry. The survey results found that 20 per cent […]
Joint venture will see PSP grow its London portfolio