Low interest rates causing pension funds to embrace alternatives

The past decade of low interest rates in North America has caused Canada’s biggest defined benefit pension plans to increase their allocations to alternatives that behave like bonds, such as real estate and infrastructure, The Toronto Star writes.

The story notes that over the past decade, giants such as the Canada Pension Plan Investment Board have been expanding their global footprint, buying assets such as student dorms, toll roads and airports all over the world.