Portfolio construction – Benefits Canada.com

The pros and cons of opting for a 60/40 balanced portfolio strategy

ANNA CAMPION — Fri, 16 Apr 2021 12:53:08 +0000

While the typical balanced fund is becoming a rarity among pension plans, a segment of plan sponsors continue to utilize these funds — albeit with added diversification. Traditionally, such funds have invested 60 per cent in equities and 40 per cent in bonds. But with investment options for pension plans expanding over the last 20 […]

The post The pros and cons of opting for a 60/40 balanced portfolio strategy appeared first on Benefits Canada.com.

91% of institutional investors say pandemic will lead to a global recession: survey

mschmit — Tue, 22 Sep 2020 11:15:19 +0000

A majority (79 per cent) of institutional investors see a global economic slowdown as the top threat to their portfolios in the next 12 months, according to a new survey by Schroders. Prompted by coronavirus-related concerns, it’s a big jump from the 49 per cent of respondents that said the same in 2019. Those concerns are also […]

The post 91% of institutional investors say pandemic will lead to a global recession: survey appeared first on Benefits Canada.com.

UTAM looks under the hood at investment managers’ ESG approaches

mschmit — Fri, 18 Sep 2020 04:53:14 +0000

Environmental, social and governance issues are key for many Canadian pension plans, but taking meaningful action is easier said than done, especially at small and mid-sized organizations. With a team of about 30 people, the University of Toronto Asset Management Corp. managed more than $11 billion of the university’s endowment, pension plan and short-term working […]

The post UTAM looks under the hood at investment managers’ ESG approaches appeared first on Benefits Canada.com.

Is inflation back on institutional investors’ minds?

mschmit — Tue, 08 Sep 2020 05:15:19 +0000

While massive monetary policy response didn’t drive inflation following the 2008/09 financial crisis, institutional investors are mulling over whether things may be different this time. The global economy has rarely seen such a swift willingness to engage with economic calamity on both monetary and fiscal levels, says Erik Weisman, chief economist and fixed income portfolio manager at MFS […]

The post Is inflation back on institutional investors’ minds? appeared first on Benefits Canada.com.

Private equity activity slumps in Q1: report

mschmit — Mon, 25 May 2020 04:45:09 +0000

With volatility rattling public markets, fundraising for private equity deals took a tumble during the first quarter of 2020, according to a new report by the Callan Institute, which found fund closing dropped 39 per cent since the last quarter of 2019, while commitments were down 37 per cent. Many institutional investors suddenly find themselves over-allocated to […]

The post Private equity activity slumps in Q1: report appeared first on Benefits Canada.com.

IMCO reaches more than $70 billion AUM in 2019

mschmit — Thu, 30 Apr 2020 05:00:01 +0000

The Investment Management Corp. of Ontario reached $70.3 billion in assets under management at the end of 2019, up from $63.3 billion at the end of 2018. In its latest annual report, the organization, which manages assets for certain broader public sector institutions, shared its growth in assets under management, but didn’t report its 2019 investment returns. “It’s important […]

The post IMCO reaches more than $70 billion AUM in 2019 appeared first on Benefits Canada.com.

Institutional investors set to pull back on real estate investments in 2020: survey

mschmit — Tue, 28 Apr 2020 11:15:08 +0000

Global institutional investors say they intend to gently reduce their average new capital commitments to real estate in 2020. According to a new report by Institutional Real Estate Inc. and Kingsley Associates, survey respondents said they’re reducing their new spend by an average of 11 per cent this year. Notably, the survey was conducted between Nov. 12, […]

The post Institutional investors set to pull back on real estate investments in 2020: survey appeared first on Benefits Canada.com.

How pension plans can implement TCFD recommendations

mschmit — Wed, 19 Feb 2020 05:45:28 +0000

With the task force on climate-related financial disclosures becoming increasingly common in institutional investor circles, how can Canadian pension plans start to use its guidance effectively? During a webinar hosted by the Association of Canadian Pension Management on Tuesday, Maria Montero, climate change program head at the Canada Pension Plan Investment Board, said her organization […]

The post How pension plans can implement TCFD recommendations appeared first on Benefits Canada.com.

Will pensions survive another round of quantitative easing?

mschmit — Tue, 10 Dec 2019 05:00:54 +0000

When central banks took on the challenge of saving a drowning global economy during the 2008 financial crisis, pension plans appeared to have plenty to be thankful for. However, as the U.S. Federal Reserve and the European Central Bank embark on their latest round of monetary stimulus, these policy changes mean pension plans are now […]

The post Will pensions survive another round of quantitative easing? appeared first on Benefits Canada.com.

How past performance impacts pension plans’ return targets

mschmit — Fri, 22 Nov 2019 03:51:48 +0000

While the fact that past performance is not a guarantee of future results is a familiar refrain, it appears public pension funds’ return expectations do correlate with how they’ve performed in the past. A paper by Aleksandar Andonov, an associate professor of finance at the University of Amsterdam and Joshua Rauh, director of research and […]

The post How past performance impacts pension plans’ return targets appeared first on Benefits Canada.com.