low interest rates – Benefits Canada.com

Is the single-employer DB pension plan dead or merely modernizing for the future?

Jennifer Paterson — Thu, 13 Jul 2023 13:00:01 +0000

Predictions of the demise of defined benefit pension plans are premature. The reality is DB is still alive and well in the public sector, with a growing number of multi-employer plans making the promise of financial certainty in retirement provided by DB pensions available to private sector employers of all sizes. What’s under threat is […]

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DC plan members nearing retirement need employers’ help to achieve financial security: report

Sadie Janes — Wed, 07 Dec 2022 14:00:14 +0000

Defined contribution pension plan members nearing retirement may need their employers’ help to achieve financial security during an era of low interest rates and increased inflation, according to a new report by the U.S.-based Defined Contribution Institutional Investment Association. It found target-date funds are the dominant investment strategy in most DC plans, used by 80 […]

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Top 2021 Money Managers Report: What questions should pension plan sponsors ask in 2022?

bwolfe — Fri, 19 Nov 2021 13:53:15 +0000

In the early days of 2020, no one could have foreseen the social and economic havoc the coronavirus pandemic would wreak on the world. Nearly two years later, as markets and economies continue to recover, Canadian pension plan sponsors are looking to their money managers to help light the way to a brighter financial future. […]

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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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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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What shape might the economic recovery take?

mschmit — Thu, 21 May 2020 04:31:21 +0000

With some jurisdictions gently reducing coronavirus-imposed restrictions, institutional investors are beginning to lay out possible scenarios for economic recovery. The terms V- and U-shaped recovery, along with arguments over which is more likely, have swirled throughout the past few months as economies around the world shut down huge swathes of their normal activities. Alessio de […]

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IMF: Low rates and reduced trade tension to aid world growth

mschmit — Mon, 20 Jan 2020 05:22:05 +0000

Low interest rates and reduced trade tensions will likely buoy the global economy over the next two years and help nurture steady if modest growth. That’s the view of the International Monetary Fund, which foresees world economic growth accelerating from 2.9 per cent last year to 3.3 per cent in 2020 and 3.4 per cent […]

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How Buffett’s Approach Can Help Endowment Funds

mschmit — Wed, 06 Jun 2018 04:13:27 +0000

Why value investing works for university foundations.

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Time for Inflation-Linked Corporates?

mschmit — Tue, 26 Jun 2012 12:02:18 +0000

Study of institutions and corporations suggests that inflation-linked corporate bonds are good substitute for sovereign debt

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