growth – Benefits Canada.com

The value of stock selection in a low-return world

mschmit — Fri, 13 Nov 2020 04:08:40 +0000

Despite this year’s extreme volatility, the past ten years have been an extraordinary time to be an equity investor. This can be seen by looking at the so-called equity risk premium, which is simply the difference between returns on global stock markets and risk-free assets, such as U.S. dollar bank deposits. Over the very long […]

The post The value of stock selection in a low-return world appeared first on Benefits Canada.com.

What does an increase in long-term government debt issuance mean for pension plans?

mschmit — Wed, 05 Aug 2020 07:40:29 +0000

As part of the federal government’s debt management strategy, it’s increasing long-term debt issuance. In particular, the government will be increasing issuance of the 10-year and 30-year bonds for 2020-2021 to an unprecedented combined amount of $106 billion, according to the federal economic and fiscal snapshot from July 8. The issuance is roughly five times […]

The post What does an increase in long-term government debt issuance mean for pension plans? appeared first on Benefits Canada.com.

How can pension plan sponsors manage factor exposure in equity portfolios?

mschmit — Fri, 31 Jul 2020 03:56:43 +0000

While factor behaviour tends to be consistent in market crashes and corrections, individual factor performance varies over the medium term. As such, institutional investors should maintain diversified exposure across key equity factors including value, quality, momentum, size and low volatility, according to a new paper by Mercer. The paper explored the past three financial crises: […]

The post How can pension plan sponsors manage factor exposure in equity portfolios? appeared first on Benefits Canada.com.

Fed sees dim economic outlook as virus squeezes economy

mschmit — Thu, 30 Jul 2020 03:33:33 +0000

Federal Reserve Chair Jerome Powell warned Wednesday that the viral epidemic is endangering the modest economic recovery that followed a collapse in hiring and spending this spring. As a result, he said, the Fed plans to keep interest rates pinned near zero well into the future. That faltering economy, pressured by a resurgence of the […]

The post Fed sees dim economic outlook as virus squeezes economy appeared first on Benefits Canada.com.

Private equity exits slowed drastically in wake of coronavirus

mschmit — Wed, 17 Jun 2020 05:36:20 +0000

With the coronavirus pandemic continuing to rock the global economy, private equity exits have largely come to a halt since mid-March, according to a report from McKinsey & Co. “The results of the pandemic have been startling,” it noted. “With a couple of exceptions—such as structured transactions and deals signed before the crisis—traditional PE exits […]

The post Private equity exits slowed drastically in wake of coronavirus appeared first on Benefits Canada.com.

Value investing’s crisis of confidence

mschmit — Mon, 11 May 2020 04:25:02 +0000

A value approach to investing has yielded great benefits in the past. Though there are often semantics around what constitutes value investing, it can be described as buying securities that are cheap using some metric in hope of outperformance. Beyond value, investment managers may also choose to work in the small-cap space, buying companies below […]

The post Value investing’s crisis of confidence appeared first on Benefits Canada.com.

Coronavirus crisis sparks need for more investment analysis, monitoring

mschmit — Wed, 29 Apr 2020 03:58:51 +0000

The current market environment isn’t like a regular market correction, but more like a natural disaster, says Joseph Connolly, vice-president of asset and risk management at Morneau Shepell Ltd. In the current context, investors should be doing more monitoring and looking at more timely data because mid-month or mid-quarter results may be stale. “We’re definitely […]

The post Coronavirus crisis sparks need for more investment analysis, monitoring appeared first on Benefits Canada.com.

Is the Western world at risk of Japanification?

mschmit — Fri, 13 Dec 2019 03:45:11 +0000

Japanification is a term describing the spread of low growth and low inflation around the world. Speaking at the Canadian Investment Review’s 2019 Defined Benefit Investment Forum in Toronto on Dec. 6, Charles Lannon, head of equities at Cidel Asset Management Inc., discussed whether Europe and the United States are destined for a similar fate […]

The post Is the Western world at risk of Japanification? appeared first on Benefits Canada.com.

Is Indonesia too big for institutional investors to ignore?

mschmit — Wed, 28 Aug 2019 05:18:41 +0000

For intergenerational investors like foreign pension plans that have been ramping up exposure to alternative assets and leveraging their patient capital, it’s worth paying attention to Indonesia’s potential. “If you follow the logic that the country’s going to be the fourth or fifth largest economy in the world . . . then to me it’s […]

The post Is Indonesia too big for institutional investors to ignore? appeared first on Benefits Canada.com.

What could political change in South Africa mean for institutional investors?

mschmit — Wed, 28 Aug 2019 05:17:16 +0000

South Africa’s economy has been sluggish in recent years, but upcoming changes could provide hope for institutional investors considering opportunities in the country. Its economy has been in a low-to-modest growth mode, said Falilou Fall, senior economist at the Organisation for Economic Co-operation and Development, during the Canadian Investment Review’s podcast “Pension Passport.” He highlighted […]

The post What could political change in South Africa mean for institutional investors? appeared first on Benefits Canada.com.