/channels/taxonomy/term/12242/all en /channels/channels/news/lack-strategic-assets-can-be-deterrent-domestic-investment-large-pension-funds-358906 <p>In 2023, the Government of Australia suggested that some of the country’s pension assets might be used to fund social housing or renewable energy. The idea received mixed reception, and to understand why, Lachlan Maddock of Investor Strategy News looked to Canada, where a group of business leaders called for pension funds to increase their holdings of Canadian equities. Maddock quoted research published by ƻ����Ժ Desautels’ Associate Professor of Finance <a href="/desautels/sebastien-betermier"><strong>Sebastien Betermier</strong></a>.</p> Tue, 27 Aug 2024 22:20:23 +0000 webfull 201771 at /channels /channels/channels/news/opening-infrastructure-could-encourage-canadas-pension-funds-invest-more-domestically-357950 <p>The Government of Canada is exploring ways to increase investments in the country’s pension fund equities, but doing so sacrifices returns, according to The Economist. Over the past decade, Canadian mid and small-cap stocks have returned just 3-4% each year, while U.S. stocks have seen a 13% return annually. Opening infrastructure to investment is another way to encourage pension funds to invest more of their capital domestically.</p> Mon, 15 Jul 2024 18:08:15 +0000 webfull 200785 at /channels /channels/channels/news/domestic-investment-should-canadian-pension-funds-focus-local-companies-357933 <p>Canada’s biggest pension funds are some of the world’s largest investors and their diversified portfolios span the globe. But, should they be investing more in Canadian companies? Some CEOs think so. In March, 90 CEOs signed an open letter to<strong> Finance Minister Chrystia Freeland</strong> urging her to find ways to get pension funds to invest more in Canadian companies. But forcing pension funds to do so would be a mistake, says CD Howe Institute Senior Fellow Miville Tremblay in an op-ed in LaPresse.</p> Thu, 11 Jul 2024 19:10:44 +0000 webfull 200764 at /channels /channels/channels/news/negative-real-estate-returns-have-some-pension-funds-considering-change-approach-357921 <p>Over the past few decades, Canada’s big pension funds have piled into direct real estate investments. But, as higher borrowing costs hit property markets, returns have gone negative. Some funds are considering whether they should take a step back and make this type of investment through third-party managers. “You have a few pension funds asking themselves, should I continue to go as direct?” says Associate Professor of Finance <a href="/desautels/sebastien-betermier"><strong>Sebastien Betermier</strong></a> in an interview with BNN Bloomberg.</p> Tue, 09 Jul 2024 18:31:34 +0000 webfull 200746 at /channels /channels/channels/news/sustainable-investing-doesnt-only-mean-companies-are-already-green-large-investors-can-push-357716 <p>Many pension funds are pledging to invest in green assets with net-zero emissions, but these investments tend to yield lower returns than the broader market index. Beyond that, a hard shift toward green investments could remove the incentive for heavy emitters to clear up their act. Investors need to rethink the assumption that sustainable investing means investing primarily in green assets, writes Professor<a href="/desautels/sebastien-betermier" target="_blank"><strong> Sebastien Betermier</strong></a> in Benefits Canada.</p> Thu, 13 Jun 2024 18:26:13 +0000 webfull 200508 at /channels /channels/channels/news/new-york-city-public-pension-fund-pushes-rbc-energy-transparency-356859 <p>The New York City Public Pension Fund has pushed Canada’s largest bank to deliver greater transparency about its investments in green energy and fossil fuels. The Royal Bank of Canada (RBC) will begin publishing the ratio between the two types of energy investments in its portfolio.</p> Wed, 17 Apr 2024 18:01:53 +0000 webfull 199524 at /channels /channels/channels/news/after-slow-2023-exchange-traded-fund-listings-are-revitalizing-356858 <p>In 2023, more than 120 exchange-traded funds (ETFs) were delisted in Canada—more than four times as many as in an average year. Even so, there was still a net gain in the overall number of ETFs, with 164 new ones launching for the year. With numbers in for the first quarter of 2024, the high number of delistings appears to have been an anomaly.</p> Wed, 17 Apr 2024 17:57:31 +0000 webfull 199523 at /channels /channels/channels/news/any-changes-pension-fund-policies-should-carefully-consider-risks-and-rewards-domestic-investments-356274 <p>Dozens of business leaders recently signed an open letter to Finance Minister Chrystia Freeland arguing that pension funds should invest more in Canadian businesses. But their argument doesn’t line up with the facts, writes <a href="/desautels/sebastien-betermier"><strong>Prof. Sebastien Betermier</strong></a> in an op-ed in The Globe and Mail. Academic research has shown Canadian pension funds allocate a large portion of their portfolio to domestic assets.</p> Fri, 22 Mar 2024 16:40:52 +0000 webfull 198765 at /channels /channels/channels/news/mcgill-desautels-faculty-members-and-researchers-celebrated-bravo-gala-356258 <p> </p> <p>ƻ����Ժ hosted its annual Bravo Gala on Thursday, March 21, which honours its faculty members and researchers who have won special awards, memberships and prizes over the past year. ƻ����Ժ Desautels is proud to announce 14 of its faculty amongst the distinguished honourees this year. Congratulations to our deserving laureates! Full list below.<br /> #Bravo2024</p> <p>· <a href="/desautels/genevieve-bassellier"><strong>Geneviève Bassellier</strong></a>, Best AMCIS Emergent Research Forum Paper, Americas Conference on Information Systems</p> Thu, 21 Mar 2024 17:55:10 +0000 webfull 198749 at /channels /channels/channels/news/advanced-life-deferred-annuities-can-give-retirees-peace-mind-356136 <p>For people with defined contribution pension plans, longevity risk is a significant concern. You don’t want to outlive your money. The issue is compounded because today’s retirees have longer life expectancies than ever before, writes<a href="/desautels/sebastien-betermier"><strong> Sebastien Betermier</strong></a> in Benefits Canada. Most retirees decumulate their capital on their own, but because they’re afraid to outlast their savings, this leads to a pattern of living poor and dying rich. An advanced life deferred annuity (ALDA) can help address this problem.</p> Thu, 14 Mar 2024 16:49:21 +0000 webfull 198603 at /channels /channels/channels/news/sebastien-betermier-and-david-schumacher-winners-best-paper-using-eurofidai-daily-data-award-354562 <p><a href="/desautels/sebastien-betermier"><strong>Sebastien Betermier</strong></a> and <a href="/desautels/david-schumacher"><strong>David Schumacher</strong></a> (both Associate Professors in Finance) along with their co-author Ali Shahrad (Assistant Professor, University of Saskatchewan) have won the “Best Paper Using EUROFIDAI Daily Data Award” in 2023 for their research paper titled “Mutual Fund Proliferation and Entry Deterrence”, published in the journal <i>Review of Asset Pricing Studies</i>.</p> Mon, 22 Jan 2024 20:17:35 +0000 webfull 196779 at /channels /channels/channels/news/mipc-asks-students-devise-decumulation-strategies-inflationary-environment-354497 <p><big>For its 7th edition, the 2023 <strong>ƻ����Ժ International Portfolio Challenge (MIPC),</strong> as part of ƻ����Ժ’s <strong>Sustainable Growth Initiative (SGI)</strong>, gathered over 80 teams from 27 countries to address retirement challenges amidst inflation. Participants tackled the task of developing decumulation strategies for the fictional Maple Leaf Pension Plan, simulating real-world data.</big></p> Fri, 19 Jan 2024 18:18:36 +0000 webfull 196705 at /channels /channels/channels/news/pension-funds-can-drive-greater-returns-participating-more-directly-value-creation-354146 <p>Pension funds manage enormous amounts of capital, but they don’t create as much value as other players in the financial sector. Entrepreneurs, venture capitalists and private equity funds all play a more direct role in launching projects and creating value. But some Canadian pension funds have taken control of the value-creation process with investments in real estate, natural resources, infrastructure, and private credit, writes <a href="/desautels/sebastien-betermier"><strong>Associate Professor Sebastien Betermier</strong></a> in Wealth Professional.</p> Wed, 10 Jan 2024 20:51:58 +0000 webfull 196303 at /channels /channels/channels/news/long-term-investments-help-canadian-pension-plans-outperform-international-counterparts-353488 <p>Canadian pension funds have outperformed their counterparts elsewhere, and a recent study co-authored by Associate Professor of Finance <a href="/desautels/sebastien-betermier"><strong>Sebastien Betermier</strong></a> examines how they’ve accomplished this. The study analyzes four deals – in the agricultural, railway transportation, real estate development, and financial services– that diversified their holdings and enabled their success.</p> Tue, 12 Dec 2023 16:45:02 +0000 webfull 195613 at /channels /channels/channels/news/more-canadians-are-renewing-their-mortgages-higher-rates-economy-heads-toward-forecasted-recession-353487 <p>More than 3 million Canadians will be facing mortgage renewal in the next 18 months – and with interest rates still at their highest level in years, many will face payments that are 30-40% higher. “Inflation has been off the charts for the past couple years, and when the Bank of Canada raises interest rates, it is to bring inflation down,” explains <a href="/desautels/sebastien-betermier"><strong>Sebastien Betermier</strong></a>, Associate Professor of Finance.</p> Tue, 12 Dec 2023 16:40:21 +0000 webfull 195612 at /channels