The Caisse de dépôt et placement du Québec is planning to completely divest from oil production — roughly one per cent of its total portfolio or about $3.9 billion based on the size of its net assets as of June 30 — by the end of 2022, as part of its new climate change strategy. […]
With a rough 2020 year-to-date, value investing’s recent poor performance follows over a decade of underperformance, leaving many to ask if it’s still relevant, according to a new white paper by Mercer. Between 1927 and 2008, the average annual value premium was 5.5 per cent, but since then results have been lacklustre. In the 2010s, […]
Along with the rest of the globe, Canada isn’t likely to see the V-shaped recovery that institutional investors were hoping for as it stares down the recessionary road ahead. “Canadian activity was also on the softening path even at the end of last year,” says Irene Lauro, an economist at Schroders. “And this is because […]
While real assets have traditionally served institutional investors well during times of economic stress, the ramifications of the coronavirus pandemic are starting to take their toll in some places. In commercial real estate, investors will likely re-evaluate their capital spending for 2020 in pockets like Edmonton and Calgary with the areas hit hard by the […]
The world is awash in oil, there’s little demand for it and we’re running out of places to put it. That in a nutshell explains Monday’s strange and unprecedented action in the market for crude oil futures contracts, where traders essentially offered to pay someone else to deal with the oil they were due to […]
The governor of the Bank of Canada says the central bank would have likely slashed its key interest rate in response to plunging oil prices, if that alone had been the only shock to the domestic economy. The cut might even have been to the current 0.25 per cent level it reached as the COVID-19 […]
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 […]
The chief executive officer of the Canada Pension Plan Investment Board says Monday’s oil price crash and stock market selloff will hurt Canadian energy companies that have weak balance sheets and high debt. But Mark Machin says those with strong books will survive — and companies with money should be following his organization’s example and […]
Canada’s economy is famously reliant on its rich natural resources, with a heaping helping of financial service providers thrown in for good measure. But when oil companies, mining outfits or Canadian banks are deciding how to invest the capital in their pension funds, does it make sense to steer clear of exposures that directly correlate […]
Crude oil suffered a major sell-off in November, the steepest decline the commodity has seen in over a decade. As 2019 gets started, how should institutional investors handle their exposure to the commodity? Some pension plans may already be at capacity in terms of their asset mix for oil-exposed investments like corporate bonds and domestic […]