/innovation/taxonomy/term/339/all en /innovation/channels/news/canadian-pension-funds-are-already-overweight-canadian-equities-360457 <p>Canada’s eight largest pension funds are big players in the world of institutional investing with more than $1 trillion under management collectively. Pressure is being applied for the funds to invest a greater proportion of their money in Canadian stocks. Yet, 18 per cent of their portfolio is already invested in domestic markets, explains Associate Professor <a href="/desautels/sebastien-betermier"><strong>Sebastien Betermier </strong></a>in an interview with Les Affaires.</p> Tue, 15 Oct 2024 20:09:38 +0000 admin 74552 at /innovation /innovation/channels/news/changes-pension-funds-portfolio-management-produce-different-demands-analysts-and-managers-360451 <p>Historically, pension funds managed their portfolios using a strategic asset allocation approach. Fundamentally, this meant buying a mix of asset classes with the highest probability of achieving the necessary returns, at a level of risk that was acceptable – or buying and holding. But since the mid-2000s, some large pension funds have adopted a total portfolio approach strategy, which seeks to maximize returns while keeping a portfolio’s volatility low.</p> Tue, 15 Oct 2024 19:55:06 +0000 admin 74551 at /innovation /innovation/channels/event/mipc-2024-grand-challenge-liquidity-retirement-savings-359415 <h4>As countries such as Peru, Chile, South Africa, and the UK advance with key liquidity initiatives, the question arises: How can we formulate innovative portfolio strategies that not only withstand the pressures of inflation but also cater to the </h4> Fri, 06 Sep 2024 17:56:24 +0000 admin 74509 at /innovation /innovation/channels/news/lack-strategic-assets-can-be-deterrent-domestic-investment-large-pension-funds-358906 <p>In 2023, the Government of Australia suggested that some of the country’s pension assets might be used to fund social housing or renewable energy. The idea received mixed reception, and to understand why, Lachlan Maddock of Investor Strategy News looked to Canada, where a group of business leaders called for pension funds to increase their holdings of Canadian equities. Maddock quoted research published by ���ϲ����� Desautels’ Associate Professor of Finance <a href="/desautels/sebastien-betermier"><strong>Sebastien Betermier</strong></a>.</p> Tue, 27 Aug 2024 22:20:23 +0000 admin 74426 at /innovation /innovation/channels/news/opening-infrastructure-could-encourage-canadas-pension-funds-invest-more-domestically-357950 <p>The Government of Canada is exploring ways to increase investments in the country’s pension fund equities, but doing so sacrifices returns, according to The Economist. Over the past decade, Canadian mid and small-cap stocks have returned just 3-4% each year, while U.S. stocks have seen a 13% return annually. Opening infrastructure to investment is another way to encourage pension funds to invest more of their capital domestically.</p> Mon, 15 Jul 2024 18:08:15 +0000 admin 74311 at /innovation /innovation/channels/news/domestic-investment-should-canadian-pension-funds-focus-local-companies-357933 <p>Canada’s biggest pension funds are some of the world’s largest investors and their diversified portfolios span the globe. But, should they be investing more in Canadian companies? Some CEOs think so. In March, 90 CEOs signed an open letter to<strong> Finance Minister Chrystia Freeland</strong> urging her to find ways to get pension funds to invest more in Canadian companies. But forcing pension funds to do so would be a mistake, says CD Howe Institute Senior Fellow Miville Tremblay in an op-ed in LaPresse.</p> Thu, 11 Jul 2024 19:10:44 +0000 admin 74307 at /innovation /innovation/channels/news/negative-real-estate-returns-have-some-pension-funds-considering-change-approach-357921 <p>Over the past few decades, Canada’s big pension funds have piled into direct real estate investments. But, as higher borrowing costs hit property markets, returns have gone negative. Some funds are considering whether they should take a step back and make this type of investment through third-party managers. “You have a few pension funds asking themselves, should I continue to go as direct?” says Associate Professor of Finance <a href="/desautels/sebastien-betermier"><strong>Sebastien Betermier</strong></a> in an interview with BNN Bloomberg.</p> Tue, 09 Jul 2024 18:31:34 +0000 admin 74302 at /innovation /innovation/channels/news/sustainable-investing-doesnt-only-mean-companies-are-already-green-large-investors-can-push-357716 <p>Many pension funds are pledging to invest in green assets with net-zero emissions, but these investments tend to yield lower returns than the broader market index. Beyond that, a hard shift toward green investments could remove the incentive for heavy emitters to clear up their act. Investors need to rethink the assumption that sustainable investing means investing primarily in green assets, writes Professor<a href="/desautels/sebastien-betermier" target="_blank"><strong> Sebastien Betermier</strong></a> in Benefits Canada.</p> Thu, 13 Jun 2024 18:26:13 +0000 admin 74270 at /innovation