Recent reports of significant investment losses on the part of the Alberta Investment Management Corp. are overblown, according to chief executive officer Kevin Uebelein. In recent weeks, many Canadian publications have pointed to problems with a volatility strategy that performed poorly amid the massive spike in volatility that equity markets have experienced due to the coronavirus […]
Canadian defined benefit plans saw a median return of negative 7.1 per cent in the first quarter of 2020, after enduring a historic period of market volatility and economic turmoil resulting from the global pandemic crisis, according to both the Northern Trust Canada universe and the RBC Investor and Treasury Services universe. Northern Trust Canada […]
The current market environment isn’t like a regular market correction, but more like a natural disaster, says Joseph Connolly, vice-president of asset and risk management at Morneau Shepell Ltd. In the current context, investors should be doing more monitoring and looking at more timely data because mid-month or mid-quarter results may be stale. “We’re definitely […]
It’s no surprise that Canadian pension funds had a rough first quarter of 2020 and the latest data from Morneau Shepell Ltd.’s universe of pension managers’ pooled funds confirms just that. During the quarter, diversified pooled fund managers saw a median return of negative 10 per cent before management fees, which was 0.9 per cent […]
Canada’s defined benefit plans have had a rough quarter. According to Aon’s median solvency ratio, DB plans fell to an average solvency of 89.1 per cent at the end of the first quarter, from 102.5 per cent at the end 2019. Mercer’s pension health index also dropped, from 112 per cent at the end of […]
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 […]
In the midst of an unusual or unsettling situation, such as the coronavirus pandemic, pension plan sponsors should remember that both defined benefit and capital accumulation plan arrangements are intended to be managed for the long term. The negative impact of the coronavirus on global economies and on businesses is a concern, particularly with respect to […]
The Ontario Teachers’ Pension Plan posted a net return of 10.4 per cent for 2019, bringing net assets to $207.4 billion. Its $20.2 billion in investment income represents an organizational best, said Jo Taylor, the pension fund’s president and chief executive officer, on a conference call Tuesday morning, outperforming the 2018 return of 2.5 per […]
It’s the only story around these days. COVID-19 — the coronavirus — has broken out all over the world, leading to strain on health-care resources, uncertainty in capital markets and strict social distancing and lockdown measures from governments. The pandemic is naturally causing fear, anxiety and uncertainty, both among employees and among managers. But here’s […]
With asset deterioration due to drops in equity markets and a decrease in long-term government bond yields causing an increase in solvency liabilities, pension funds are in a tough position. A Canadian defined benefit solvency funding calculation assumes some plan members will elect to take a commuted-value lump sum, while other members will elect to […]