Global macro headwinds have been causing interest rates to remain low, leaving the world in a “lower for longer” rate environment. But there are strategies to help institutional investors improve their investment outcomes.
One of the items that received little attention in the federal government’s most recent Economic Action Plan (also known as the 2013 Budget) was a commitment to expand its issuance of long-term debt. This interesting tidbit was buried in the debt management strategy for 2013-14.
Results from Mercer’s 2013 Fearless Forecast, an annual survey of Canadian and global institutional investment managers, show that those polled predict modest growth for the Canadian and global economies, lower equity and bond returns in all markets, and continued strength for the loonie against the U.S. dollar.
Coverage of the 2012 Investment Innovation Conference.
Despite market turbulence and growing inflation, a survey of Portfolio Management Association of Canada (PMAC) members finds that professional investors have “bedrock confidence” in the financial future of equities.
While fixed income strategies have long been recognized as good sources of cash flow generation, alternative investments (real estate and infrastructure) and equity strategies are other useful options to help meet the needs of pension plans focused on yield-oriented strategies.
Canadian pension plans made significant gains in the third quarter as increased monetary support from central banks reassured global markets and increased investors’ appetite for taking on risk, according to the latest survey from RBC Investor Services. Within the $410 billion RBC Investor Services All Plan universe, Canadian DB pension plans gained 3.2% in the quarter ending […]
Non-Canadian investors help to fuel growth.
In recent months, bond yields have touched generational lows and yet interest in securities that provide a cash yield, continues unabated. This article aims to explain, from a demographic perspective, why this seemingly irrational pursuit for yield will continue for the next several years.
Pension plan sponsors require higher income to pay pension promises and higher returns to close the gap between their assets and liabilities. It’s not surprise that investors are increasingly focusing on investments that provide a higher yield (or current income return) due to the historically low interest rates on government bonds.