government bonds – Benefits Canada.com

2023 DC Investment Forum: Why DC plan sponsors should consider a distinct credit exposure

Jennifer Paterson — Mon, 06 Nov 2023 12:56:52 +0000

While fixed income has long had the reputation of being the conservative and stable supporting partner in the traditional balanced portfolio, unbundling fixed income into its sub-components presents opportunities for enhanced risk-adjusted returns, said Aaron Young, vice-president and client portfolio manager at CIBC Asset Management. When investors buy the FTSE universe bond index or even […]

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Canadian DB pension plan assets rise 1.9% in April: report

Gideon Scanlon — Thu, 11 May 2023 16:00:11 +0000

A typical Canadian defined benefit pension plan’s funded position improved on a solvency basis and decreased on an accounting basis in April as a result of the strong performance of domestic equities and decreases in bond yields, according to a new report by Telus Health. During the month, the solvency of the typical Canadian DB […]

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2022 DCIF: How DC plan sponsors can use REITs to meet investment objectives

Jennifer Paterson — Mon, 17 Oct 2022 11:55:31 +0000

While real estate has long been a part of defined benefit pension plans’ asset allocations, its inclusion in investment portfolios has steadily climbed in recent years. But defined contribution plan sponsors and members also stand to benefit from the asset class’ inflation-hedging properties, as well as its ability to boost income and improve portfolio diversification. Pension […]

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Bank of England intervened in bond market to protect DB pension plans: letter

Gideon Scanlon — Tue, 11 Oct 2022 16:30:14 +0000

The Bank of England’s decision to intervene in the long-dated government bond market protected defined benefit pension plans with liability-driven investment strategies, according to a central bank official. “In practice, the move in [long-term bond] yields last week threatened to exceed the size of the cushion for many LDI funds, requiring them to either sell […]

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Danish pension announces sanctions against Russia

Gideon Scanlon — Tue, 22 Feb 2022 16:30:05 +0000

A Danish defined benefit pension fund is ceasing its investments in Russian assets following recent developments in the ongoing crisis between the world’s largest nation and Ukraine. On Monday, Russian President Vladimir Putin announced his government would recognize the independence of two territories in eastern Ukraine: Donetsk and Luhansk. In response, the AkademikerPension, a US$23 […]

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Quantitative easing windup, inflation likely to benefit pension plans: expert

Gideon Scanlon — Thu, 28 Oct 2021 17:45:45 +0000

The end of Canada’s quantitative easing strategy and higher than expected interest rates will be beneficial to Canadian defined benefit pension plans, according to Sebastien Betermier, an associate professor of finance at McGill University’s Desautels Faculty of Management. On Wednesday, Tiff Macklem, governor of the Bank of Canada, announced plans to end its quantitative easing policy and […]

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Pensions in position to off load risks: expert

Gideon Scanlon — Tue, 07 Sep 2021 17:00:02 +0000

“Plans are, for the first time in a long time, in a position to off-load risk,” says Murray Wright, one of the contributors to LifeWorks Inc.’s monthly report on Canadian pensions. According to Wright, the principal of retirement and financial solutions at LifeWorks, pension chief financial officers are paying particular attention to one number found […]

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How Canada’s pension funds are maximizing fixed income in a low interest rate environment

bwolfe — Wed, 30 Jun 2021 12:56:54 +0000

With bond returns tied to interest rates, it’s no surprise Canadian pension funds are increasingly seeking other ways to boost fixed income yields. Canadian interest rates have been trending downward for the last 30 years, from a high of 10.3 per cent in 1990 to around 1.75 per cent in early 2020, according to the […]

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Pension funds playing defence amid coronavirus crisis

mschmit — Wed, 02 Dec 2020 04:32:11 +0000

Despite several bumps in the decade since the 2008/09 financial crisis, the swift and brutal crash in global equity prices when the coronavirus was declared a pandemic sent pension investors reaching for their playbooks to implement defensive strategies to mitigate the damage. “People have worked very hard at just acting on the set strategies that […]

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FTSE Russell set to add Chinese government bonds to world government bond index

mschmit — Fri, 25 Sep 2020 07:54:32 +0000

Chinese government bonds are set to be included in the FTSE Russell world government bond index. The changes came off the back of the index provider’s latest country classification review, with the inclusion reflecting China’s ongoing progress toward market reforms and increased access for global investors, according to FTSE Russell. The inclusion is scheduled to […]

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