Investment Outlook. Year-end review and 2018 outlook
Published By: HSBC Global Asset Management | 02/01/2018
It’s been another good year for investors with strong returns across a broad range of asset classes. Heading into 2018, the question is whether the market-friendly economic environment can continue. This report explores the outlook for multi-asset, fixed income, equities, liquidity and alternatives and how they shape key investment conclusions.
It’s hard to read the business news these days without seeing references to private sector companies de-risking their defined benefit (DB) pension plans. This de-risking activity is occurring in the face of historically low interest rates.
Published By: HSBC Global Asset Management| 01/11/2017
In a world where there are now more indices than stocks on the US market, this paper explores some of the challenges involved in index and factor investing, as well as the fundamental questions a prudent investor should ask.
Avoiding the pension fund event horizon: how close is close enough?
Published By: ORTEC| 25/09/2017
This point of no return is an interesting concept that has been widely used in many other contexts. In this article I would like apply it to the balance sheets of pension funds. The health of pension funds is often described by the funded ratio, which is the ratio of assets compared to the value of the liabilities.
Factor Attribution: Exposure where exposure is due
Published By: HSBC Global Asset Management| 18/09/2017
Many factor investing strategies don’t provide pure exposure to their target factors, resulting in contamination from undesired sources of risk. Factor attribution helps investors get what they desire. It uncovers the true drivers of risk and return in candidate portfolios, allowing investors to identify the optimum investment for them.
LIVE TO FIGHT ANOTHER DAY. Capital Preservation Is Key in Fixed Income Today
Published By: MFS| 31/08/2017
These are no ordinary times. Uncertainties have arrived “not single spies, but in battalions.”1 They include global central banks retreating from providing quantitative easing (QE), secular economic stagnation, high debt levels, adverse demographic trends, political dysfunction, heightened geopolitical tensions and the dislocation accompanying the march of technology.
Hand in Hand: Sustainability and Performance - Part 1
Published By: BMO Global Asset Management| 29/08/2017
Environmental, Social and Governance (ESG) investing has been demanding ever more attention in Canada – and globally. Vicki Bakhshi, Director in the Governance and Sustainable Investment team at BMO Global Asset Management (EMEA), shares her insights on what’s behind the momentum, the range of ESG strategies available, and the biggest trends and challenges ahead as we move toward building a more sustainable financial system.
Published By: State Street Global Advisors| 24/08/2017
Fixed income ETFs have provided investors of many types, from large institutions to retail investors, an alternative tool to access the cash bond market. In this piece, we highlight several key aspects of the fixed income ETF trading dynamics to better assist investors in harnessing the utility of these instruments when implementing investment strategies.
LIVE TO FIGHT ANOTHER DAY Capital Preservation Is Key in Fixed Income Today
Published By: MFS| 21/08/2017
These are no ordinary times. Uncertainties have arrived “not single spies, but in battalions.” They include global central banks retreating from providing quantitative easing (QE), secular economic stagnation, high debt levels, adverse demographic trends, political dysfunction, heightened geopolitical tensions and the dislocation accompanying the march of technology.
2017 Eckler CAP Legal Forum: Improving disclosure and decumulation
Published By: Eckler| 16/08/2017
How can the government help modernize the Canadian capital accumulation plan (CAP) landscape? What regulatory changes are needed to help protect CAP sponsors from key risks relating to disclosure and decumulation? Eckler’s 2017 CAP Legal Forum brought together some of Canada’s leading pension lawyers and government representatives to discuss these issues.
Invesco Global Sovereign Asset Management Study 2017
Published By: Invesco| 03/08/2017
Over the past five years we’ve noted a number of factors influencing sovereigns such as low interest rates, the falling oil price and reduced funding. This year however we note geopolitical shocks in developed markets are shaping decision making. When coupled with uncertainty over the end of quantitative easing, the commencement of quantitative tightening and ongoing volatility in currencies and commodities it’s clear sovereign investors are faced with a challenging macroeconomic and therefore investment environment.
Published By: HSBC Global Asset Management| 27/07/2017
Common smart beta strategies are based on well-established risk premia factors: value, small cap, momentum, low volatility and quality. HSBC has uncovered that many of these indices exhibit unintended exposures to unrelated factors because of their simplistic construction methods.
In Factor Investing: Pure and Simple, HSBC investigates measuring the purity of smart beta strategies based on the portion of active risk driven by the targeted factor. The paper also explores practical applications and strategies to enhance investment performance through factor investing.
Liquid alternative strategies as an answer to the low interest rate environment
Published By: Allianz Global Investing| 13/07/2017
The following article provides an overview of the potential to add value by incorporating liquid alternative investments in a portfolio context, and of some of the available strategies and risk premiums.
RIA 2017 Investor Opinion Survey. In Focus: Gender Diversity
Published By: Ocean Rock Investments Inc.| 01/06/2017
This survey provides the investment industry with vital data on investor attitudes towards RI. The first part of this report examines investor perspectives on RI in general. The second part, In Focus, hones in on investor attitudes towards two important gender diversity issues–women on boards and gender pay equity. https://www.riacanada.ca/
In 2016, Express Scripts Canada’s analysis of private-plan spending trends once again reflected opposing cost forces. Factors driving an increase in drug spend have outweighed downward pressure on drug costs. At the same time, high-cost drugs and high-cost patients continued to create troubling trend acceleration.
We are now at a crossroads—the cost impact of patent expiries is slowing, while that of high-cost drugs and patients with multiple chronic conditions continues to accelerate.
Enhancing Your Investment Grade Allocation with Private Debt
Published By: TD Asset Management| 04/05/2017
It’s easy to become overwhelmed by the details, especially when they are being reported around the clock, 140 characters at a time. However, today’s headlines mostly revolve around things we can’t control and create market imbalances we can’t control, so while it’s important to be aware of the macro backdrop, the fixed income team at TD Asset Management
(we) believes investors will be better served by focusing on the things they can control.
CLIMATE CHANGE is one of the most significant challenges facing the world today and increasingly complex to navigate as a large, global investor. Bold steps and ingenuity will be required to reduce the effects of climate change in the coming decades. Equally, bold steps will be required to help investors understand and mitigate the risks that climate change presents to our portfolios.
ESG's place in investment portfolios. Today and tomorrow.
Published By: State Street Global| 24/04/2017
Growing interest in environmental, social and governance (ESG) credentials among institutional investors reflects a view that ESG insights and perspectives can address multiple objectives. In addition to targeting positive social or environmental impacts, ESG criteria are increasingly recognized as material to long-term financial outcomes. https://www.ssga.com/na/ca/permitted-client/en/home.html
Multi-factor investing and environmental, social and governance strategies
Published By: HSBC| 10/04/2017
Learn how selective exposure to well-established risk premia factors — value, size, momentum, low risk, quality and environmental, social and governance (ESG) approaches can minimize unintended exposures when executing multi-factor-ESG investment strategies.
Key global industries are being disrupted by technological innovation, changing consumer preferences, and political or regulatory initiatives. These changes may produce extreme performance gains for winners. David Eiswert, CFA, portfolio manager of T. Rowe Price’s Global Focused Growth Equity Strategy, shares his insights on how a portfolio structure that allows investors to compare opportunities across geographic regions can leverage fundamental stock-picking skill.
Economic conditions, longevity and other risks related to defined benefit (DB) pension arrangements have left many questioning the traditional DB model. Defined contribution (DC) arrangements have seen growth but they too have flaws. As a response, many jurisdictions in Canada are considering new pension structures. Discussed in part 1 – Motivation for change and, in part 2, Investing strategically.
Changing The Game for Employees Living With Obesity
Published By: Novo Nordisk| 01/11/2015
Progressive approaches to support chronic weight management
Imagine being able to reduce or prevent benefits costs associated with some common chronic conditions. How? By changing the ways private health plans think about and respond to obesity.
Novo Nordisk Canada gathered together key industry opinion leaders for insights on progressive ways to address obesity as a chronic disease, both in plan design and wellness programming. Read more about how the industry can open the door to healthier, more productive employees.
How to Manage Tracking Error with Greater Certainty
Published By: Hillsdale Investment Management Inc.| 22/10/2015
In the Canadian equity manager universe, there is no evidence that tracking error risk is proactively managed. This is especially surprising given that tracking error is an important measure of active investment management risk as it provides investors with a tool to estimate the expected variability of their manager’s value added. This paper examines two different techniques a Canadian equity manager can employ to manage tracking error risk.