Colin Ripsman – Benefits Canada.com

Expert panel: History’s lessons for DB pension plans during turbulent times

Gideon Scanlon — Tue, 23 May 2023 16:30:22 +0000

At the best of times, selecting an optimal asset mix for a defined benefit pension plan is challenging. The times of today are downright turbulent. Last year, inflation reached 8.1 per cent in Canada as a result of a prolonged period of government stimulus spending to manage the fallout of the coronavirus pandemic. In response […]

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Expert panel: Tips for DB plan sponsors as interest rates continue to rise

Gideon Scanlon — Tue, 01 Nov 2022 16:00:11 +0000

From an economic perspective, the last year has been quite tumultuous. As central banks began raising rates to tame inflation, the loose monetary environment with policy rates held at historic lows evolved to a rapidly tightening one. In October 2021, the overnight rate was 0.25 per cent and the 10-year Canadian bond yield was 1.6 […]

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Expert panel: An investment roadmap for 2022

Gideon Scanlon — Tue, 04 Jan 2022 14:00:03 +0000

Last year was a tumultuous one, with economies ravaged by successive waves of coronavirus pandemic-related stresses and closures. Despite the negative impact these forces had on the economy, the stock market continued to rebound from the March 2020 correction and performed well. And in the face of higher volatility, U.S. stock exchanges were the highest […]

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Institutional investing in 2021: looking towards the future

mschmit — Mon, 04 Jan 2021 05:23:41 +0000

Last year offered up one of most tempestuous investment environments in recent memory, and this year looks to be equally dynamic. It will be increasingly important for pension investment committees to be proactive and flexible in the management and oversight of their portfolios. Those that can quickly assess and respond to fundamental economic shifts will […]

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A primer on commercial mortgage funds

mschmit — Wed, 17 Jun 2020 06:28:34 +0000

The last decade of persistently low interest rates, exacerbated by the coronavirus crisis, has created challenges for institutional investors looking to generate income on their bond investments. The challenge has been more acute for pension funds and foundations, who rely on bond investments to fund their ongoing benefit and program obligations. Moreover, indications from global […]

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A coronavirus game plan for defined benefit pension plans

mschmit — Thu, 02 Apr 2020 09:23:49 +0000

The novel coronavirus has introduced unprecedented volatility to financial markets and is taking its toll on pension plans. We’ve seen sharp corrections in most equity markets. At its lowest point in the correction to date, the S&P 500 lost 34 per cent of its value, from its peak in February. The TSX, which has also […]

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Managing defined contribution pension plan fees (Part 2)

mschmit — Thu, 19 Mar 2020 05:09:18 +0000

In a recent expert column, I broke down the different components of fees for defined contribution plans. And now, I will explore the key fee drivers and strategies to help plan sponsors manage fee levels in DC plans. Managing these costs are imperative, as excessive fees may result in the significant impairment of DC member […]

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Understanding defined contribution pension plan fees (Part 1)

mschmit — Mon, 16 Mar 2020 04:04:49 +0000

Defined contribution pension plan fees have long been an area of significant risk for pension fiduciaries. Typically, a DC plan sponsor will negotiate fees for the plan and members will pay the bulk of those fees through asset-based fees charged on the investment funds. If the fees for the DC plan are excessive, the resulting […]

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How to evaluate a defined benefit OCIO provider

mschmit — Wed, 18 Sep 2019 02:00:21 +0000

Outsourced chief investment officers, or OCIOs, are a service model where a pension plan sponsor or other institutional investor delegates certain decision-making responsibilities to a third party OCIO provider. Once the asset owner makes the original delegation, the OCIO implements, monitors and executes the investment and risk management strategies, within agreed upon parameters. Here are […]

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Five things to consider when hiring (or firing) a portfolio manager

mschmit — Thu, 18 Jul 2019 10:45:06 +0000

Historically pension funds and other investors have tended to select investment managers based on their recent investment performance. This can lead to a pension fund consistently firing yesterday’s losers and hiring yesterday’s winners. By chasing past performance these investors are effectively buying portfolios at high asset values and selling portfolios at low asset values, a […]

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