hedge funds – Benefits Canada.com

Canadian DB pensions return 3.13% as markets rebound

mschmit — Thu, 05 Nov 2020 05:15:18 +0000

Canadian defined benefit pension plans posted a median 3.13 per cent return for the third quarter of 2020, following a strong market rebound, according to a new report by BNY Mellon Asset Management Canada Ltd. The organization’s master trust universe, which is comprised of 86 Canadian corporate, public and university pension plans, found U.S. equities was the […]

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How institutional investors can unsmooth illiquid returns

mschmit — Tue, 27 Oct 2020 08:32:09 +0000

As institutional investors increase allocations to alternative investments, it becomes increasingly challenging to understand risk. A new paper, co-authored by Spencer Couts, assistant professor of real estate at the University of Southern California; Andrei S. Goncalves, an assistant professor of finance at the University of North Carolina; and Andrea Rossi, an assistant professor of finance […]

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HOOPP looking to LDI strategy 2.0 amid low interest rates

mschmit — Fri, 04 Sep 2020 03:36:38 +0000

The Healthcare of Ontario Pension Plan is well-known for its liability-driven investing strategy, which helped it successfully weather the 2008 financial crisis. During the coronavirus fallout, in an era of historically low interest rates, the HOOPP is working on developing LDI 2.0. “We’re very focused on liabilities, but what you do when interest rates are […]

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Majority of asset owners satisfied with portfolio performance in 2020 so far: survey

mschmit — Wed, 26 Aug 2020 05:30:18 +0000

Coming out of the fastest market crash in history, asset owners are cautiously optimistic heading into a vastly changed investment landscape, according to a new survey by bfinance. Indeed, 82 per cent of surveyed asset owners, including pension funds, endowments and sovereign wealth funds, said they’re satisfied with how their portfolios have performed so far […]

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Where did institutional equity investors turn in coronavirus crash?

mschmit — Mon, 17 Aug 2020 04:40:21 +0000

During the coronavirus market crash, U.S. stocks with higher institutional ownership experienced worse performance, especially those held by active, short-term and domestic institutions, according to a recent paper. Institutional ownership of U.S. stocks has risen to massive levels, comprising 75 per cent of stock ownership overall, noted the paper by researchers at the University of […]

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Public equity performance boosts Canadian DB plans in second quarter: report

mschmit — Tue, 04 Aug 2020 11:00:59 +0000

Strong public market performance helped Canadian defined benefit pension plans reverse their first-quarter losses, according to a new report by BNY Mellon Asset Management Canada. The median second quarter return for the 84 Canadian corporate, public and university pension plans in BNY Mellon’s Canadian master trust universe was 9.23 per cent, up from the first quarter median […]

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Is the time right for pension funds to consider litigation finance?

mschmit — Fri, 19 Jun 2020 05:01:18 +0000

In the early days of litigation finance, most fund managers sold a concept and their own capabilities, but not much else. And risky strategies attracted risky investors. For instance, litigation finance attracted high net-worth individual and family office capital from those who are very comfortable assuming risks. It also attracted sophisticated hedge funds who get […]

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Where can pension funds find returns in a low interest rate environment?

mschmit — Fri, 19 Jun 2020 04:56:56 +0000

Investors were already feeling the pressures of historically low interest rates. Then came the coronavirus pandemic. The Bank of Canada cut its overnight interest rate at the end of March to an all-time low of 0.25 per cent and announced a plan to spend $5 billion per week on Government of Canada bonds. This came […]

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Charting a new course at the Air Canada pension plans

mschmit — Fri, 15 May 2020 04:54:28 +0000

In 2009, when Vincent Morin walked through the doors of Air Canada as the vice-president of asset allocation and strategy for its investment division, he faced a tough situation. The company’s eight defined benefit pension plans, which buy units of a single master trust fund, were facing a $2.6 billion deficit. In the following years, […]

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What opportunities does the oil glut offer Canadian pension portfolios?

mschmit — Thu, 23 Apr 2020 06:20:42 +0000

With crude oil futures contracts crashing through the floor into negative territory at the beginning of the week, what opportunities are opening up for institutional investors? Panic set in on commodity trading floors on Monday because physical storage options for oil were filling up fast, with much less demand for petrol from consumers due to […]

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