Keyword: interest rate

60 results found
The challenges of the outsourced chief investment officer model

Over the last 20 years, managing a pension plan has looked a little like riding a roller coaster — with the 2001 technology bubble, 2008/09 financial crisis and the recent coronavirus market volatility providing sudden, gut-wrenching drops that can draw a scream from even the heartiest of souls. “From an investment standpoint, we’ve been in […]

Defined contribution plan members are contending with volatile equity markets, ultra-low interest rates and the threat of inflation as the country’s economy begins its tentative recovery. In the first half of 2020, equities took an almost round trip, dropping significantly in the first quarter and recovering to the point that most markets are in neutral or positive […]

Plan Sponsor Week: HOOPP looking to LDI strategy 2.0 amid low interest rates

The Healthcare of Ontario Pension Plan is well-known for its liability-driven investing strategy, which helped it successfully weather the 2008 financial crisis. During the coronavirus fallout, in an era of historically low interest rates, the HOOPP is working on developing LDI 2.0. “We’re very focused on liabilities, but what you do when interest rates are […]

Plan Sponsor Week: DB benefits for DC members at Halifax Port ILA/HEA pension plan

The Halifax Port ILA/HEA found a way to provide its defined contribution pension plan members with a defined benefit upon retirement — and it’s been doing so successfully for 35 years. As a private sector multi-employer plan, the pension has about 450 active members, 300 retirees and about $210 million in assets. The DB plan […]


The Bank of Canada is turning to the public for input on its inflation-rate target that underlies any changes to the central bank’s trend-setting interest rate. The bank had already planned on a much broader consultation than what it did for previous reviews long before the coronavirus pandemic struck Canada and forced a sharp decline […]

PSAC calling for change to federal government’s public sector pension liabilities reporting

The Public Sector Alliance of Canada is asking the federal government to change the way it reports the unfunded liabilities of public sector pension plans, arguing the current practice makes the cost of the plans appear more volatile. The federal government implemented a new discount rate methodology in 2017/18 for pre-2000 pension liabilities. It moved from using a 20-year […]

Bank of Canada holds rate, forecasts decline in GDP of 7.8% this year

The Bank of Canada is holding its key interest rate at 0.25 per cent in response to what it calls the “extremely uncertain” economic outlook from the coronavirus pandemic, and plans to keep it there until the picture improves. In its updated outlook, the bank said Wednesday it expects the economy to contract by 7.8 […]

Investment implications of a shifting economic outlook

Canadian institutional investors are operating in a landscape that has changed dramatically since the initial market and policy reactions to the coronavirus pandemic. “A lot has changed over the last five to six months,” said Michael Sager, vice-president and client portfolio manager for multi-asset and currency management at CIBC Asset Management Inc., during a webinar hosted […]

Where can pension funds find returns in a low interest rate environment?

Investors were already feeling the pressures of historically low interest rates. Then came the coronavirus pandemic. The Bank of Canada cut its overnight interest rate at the end of March to an all-time low of 0.25 per cent and announced a plan to spend $5 billion per week on Government of Canada bonds. This came […]

How defensive strategies played out for CN Rail pension, ATRF as markets crashed

When the coronavirus pushed equity markets off a cliff, Canadian defined benefit pension plans had to mobilize to address a number of concerns. The Canadian National Railway Co. pension recently shifted towards a more defensive investment strategy, said Marlene Puffer, president and chief executive officer for the CN investment division of the company, at a webinar […]