July 2024
03Jul

Canadian pension plans were volatile in Q2: Mercer

Defined-benefit (DB) pension plans in Canada experienced volatility throughout the second quarter of 2024 due to interest rate changes and market instability, according to Mercer Canada. The DB plans tracked in Mercer’s database had an average solvency ratio of 118% on March 29, 123% on April 30, 122% on May 31 and 118% on June 28. The solvency ratio is the ratio of plan assets to liabilities. “The overall financial health of DB pension plans in Canada remains strong,” said Jared Mickall,...

July 3, 2024
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May 2024
07May

Assuring the sustainability of the Canada Pension Plan: A new consensus is required

By: Keith Ambachtsheer, Malcolm Hamilton, Ed Waitzer   The creation of the Canada and Quebec pension plans in the 1960s and subsequent amendments to them in the 1990s is a compelling story of how governments worked together to create and sustain one of Canada’s greatest public-policy achievements. Today we are faced with the thorny issue of how to determine a fair basis on which Alberta might choose to exit the CPP. When the CPP was created, Ontario requested a provision to allow...

May 7, 2024
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03May

Canadian Pensions Returned 2.5% in the First Quarter

Canadian institutional defined benefit plans returned 2.5% in Q1 2024, according to the Northern Trust Canada Universe, a tracker which measures the performance of Canadian DB plans that are subscribed to Northern Trust’s performance measurement services.  Inflation and monetary policy were front and center during the first quarter. “The transition through interest rate cycles within the economic ecosystem quite often can be a challenging path,” said Katie Pries, president and CEO of Northern Trust Canada, in the firm’s news release. The biggest driver of Canadian...

May 3, 2024
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April 2024
26Apr

Canada. 73% of OPB plan members want ESG considerations included in investment decisions: survey

Roughly seven in 10 (73 per cent) Ontario Pension Board plan members believe environmental, social and governance factors should play a critical role in the plan’s investment considerations, according to a new survey included in the investment organization’s inaugural ESG report. The survey, which polled roughly 10,000 plan members, found nearly two-fifths (39 per cent) of respondents said environmental protection is one of their top investment considerations, as well as climate change (38 per cent), human rights (34 per cent) and...

April 26, 2024
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10Apr

Caisse races toward sustainability targets but says company data to measure emissions from investments is still lacking

The Caisse de dépôt et placement du Québec is reaching its targets to cut carbon emissions from its $434-billion investment portfolio years ahead of schedule, but much of the hardest work is still to come. The Montreal-based pension fund manager said in an annual sustainability report released Wednesday that it has cut the intensity of carbon emissions from its investment portfolio by 59 per cent since 2017. That puts it just shy of a 60-per-cent reduction it aims to achieve...

April 10, 2024
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February 2024
23Feb

Canada. CDPQ posts 7.2% return in 2023

Caisse de Depot et Placement du Quebec, Montreal, delivered a net return of 7.2% in calendar year 2023, slightly below the benchmark return of 7.3%. For the five-year period, CDPQ returned an annualized 6.4%, above the 5.9% of the benchmark, said a Feb. 22 release. Over the 10-year period, the annualized return was 7.4%, compared with 6.5% for the benchmark. As of Dec. 31, CDPQ's net assets totaled C$434 billion ($327.4 billion), up from C$402 billion at the end of 2022. In...

February 23, 2024
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16Feb

Canada. CPPIB commits $475 million to private equity

CPPIB commits $475 million to private equity Canada Pension Plan Investment Board, Toronto, disclosed $475 million in private equity commitments it made in the quarter ended Dec. 31, the third quarter of its fiscal year. CPPIB committed $240 million to TPG Partners IX, a buyout fund that focuses primarily on healthcare, software, and digital media and communications; as well as $60 million to TPG Healthcare Partners II, a buyout fund that focuses solely on healthcare. Both funds target upper-middle-market and large-growth...

February 16, 2024
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07Feb

Canada. Cost of Living Crunch Impacting Retirement Savings

A new poll commissioned by the Financial Services Regulatory Authority of Ontario (FSRA) found that 81 percent of people are now more concerned about paying for basic necessities like groceries, rent and their mortgage, than saving for retirement. The poll also found 44 percent said the high cost of living is hindering them from starting to save for retirement. Although individuals and families are living in a difficult economic environment, FSRA is urging consumers to prepare for the future and learn...

February 7, 2024
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01Feb

Canadian funds tapping into investment opportunities in Brazil

By PALASH GHOSH   Canadian pension funds have been investing in Brazil, a huge country that boasts a growing $2.1 trillion economy, the largest such economy in Latin America and an especially attractive target for infrastructure and energy investments, as evidenced by the recent agreement by Caisse de Depot et Placement du Québec to increase its stake in a natural gas transmission firm. Ironically, Brazil jumped two spots last year to surpass Canada itself as the globe's ninth biggest economy, the International Monetary...

February 1, 2024
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December 2023
13Dec

This is what Canada will look like in 20 years – are we ready for an aging population?

The rapid growth expected among Canada’s senior population in the coming years is one of the “most significant demographic trends” in the country’s history, says demographer Doug Norris. While this growth may present some challenges for younger generations, industry experts say it will also offer opportunities to pave the way for a better future. Residents aged 65 and older are part of the fastest-growing age group in Canada today, said Norris, who is chief demographer at Environics Analytics, a marketing...

December 13, 2023
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