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May 29, 2020


FSRA Wants Valuations Sooner

FSRA has strong-armed its position, forcing actuaries and plan sponsors to consider updating their valuation reports with additional disclosures sooner rather than later, says Dean Newell, a vice-president of Actuarial Solutions Inc. A FSRA guidance calls for valuation reports prepared as at December 31, 2019, (and thereafter) to include sensitivity disclosures that go above and beyond the minimum reporting requirements that are currently outlined in actuarial standards of practice now, instead of attempting to influence the profession during the standards review process. While FSRA’s guidance will need to be considered by plan sponsors and actuaries as they prepare valuation reports this year, the actuarial profession at large, and the Actuarial Standards Board in particular, will need to consider if actuarial standards need to be updated yet again to provide additional, and arguably more meaningful, risk analysis in the funding valuation report. One of the issues they will need to consider is the purpose of this report. Is the purpose of a valuation report simply to illustrate how the minimum and maximum contribution requirements were derived or is the purpose of the valuation report to also provide readers with a deeper understanding of the risks inherent in the plan, it says. In recent years, the actuarial profession in Canada has been moving from the former to the latter and increasing the amount of sensitivity analysis that is required to be disclosed in a valuation report. One of the biggest threats to a pension plan’s financial condition is the ability of the plan sponsor to continue making contributions. This is contemplated in FSRA’s recent guidance, as it notes it may be appropriate to consider “plausible adverse scenarios” to financial stresses to the plan sponsor that may affect its ability to make required contributions when due. Unfortunately, measuring this risk is not something an actuary can easily assess and, as such, requiring any additional disclosure on the ability of the plan sponsor to continue making contributions should not be an additional disclosure in a valuation report. Actuaries and plan sponsors preparing valuations in 2020 and beyond will need to consider if they will include the additional sensitivity information requested by FSRA in its valuation reports and if they decide against it, it appears that FSRA may come looking for it after the fact, he says.

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Insurer COVID Practice Restricts Access

Canadian life insurance companies’ refusal to accept test results puts Canadians at risk of being underinsured, says Cove Continuity Advisors. In a letter, it calls on the British Columbia ministries of health and finance to force insurance companies to accept test results that British Columbians give. It claims insurers refuse to accept test results for blood and urine specimens collected after March 24. This has severely restricted the ability of British Columbians, and all Canadians, to secure life, disability, and critical illness insurance to protect themselves, their businesses, and their families. While they are individually and collectively stating that they do not want to put people in a situation where they might be exposed to COVID-19 due to specimen collection for the purpose of applying for insurance, Cove rejects this as it says it has been assured that all necessary medical precautions have been taken to ensure the safety of both the service provider and the customer.

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Traditional Asset Classes Shunned

The UK’s largest investment managers are shunning traditional asset classes in favour of alternatives, multi-asset, and ESG (environment, social, and environmental) when prioritizing new product launches for 2020, says research from Alpha FMC. It found that 60 per cent of asset managers surveyed cited alternatives as one of the top three priorities for product launches in 2020, followed by multi-asset (53 per cent) and responsible investment products (40 per cent). Multi asset demand remains high, but institutional demand for alternatives is increasing. Meanwhile, a growing popularity of multi-asset funds identified in its 2018 report has continued. Multi-asset funds accounted for 37 per cent of net retail sales in the UK in the 12 months to February 2020 and 53 per cent of net retail sales in February and this trend is expected to continue as investors seek diversification to help mitigate market volatility.

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Bond Funds Back In Favour

Most managers believe bond funds, as well as deposit-like investment products such as money-market funds (MMFs) and capital-protected funds, will be back in favour this year for many fund houses in Southeast Asia. While last year was a challenging year as the industry saw higher inflows to lower-margin, lower-risk assets such as fixed income and MMFs, bond funds, in particular, saw strong inflows in Malaysia and Vietnam, while deposit-like MMFs led inflows in Indonesia and the Philippines. The trend, if it continues this year, could hit inflows into higher-margin products such as equity funds and affect the profitability of asset managers, especially those that focus mainly on equities. Although most distributors initially expected a rebound in global equities this year, the conviction has wavered following the market turmoil and economic fallout caused by the coronavirus pandemic in the first quarter of this year.

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Sun Life Offers Navigator

To help clients navigate their mental health issues, Sun Life is offering Mental Health Navigator from Teladoc Health. This complements the resources available through its Lumino Health. Mental Health Navigator is a confidential and personalized service that draws on a team of clinicians including psychologists and psychiatrists. The service aims to efficiently help determine the right diagnosis and treatment for individuals, while allowing people to receive care on their terms and manage their mental health as they need. Depending on a client’s needs, they can connect virtually to conduct a thorough review of an existing mental health diagnosis, discuss symptoms, or receive advice and treatment options.

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Vallis Joins Equitable

Meghan Vallis is group sales vice-president for Western Canada at Equitable Life. She will lead the western sales team and develop and implement distribution strategies to achieve the growth, retention, and profitability goals for the region. Most recently, she was senior vice-president of consulting at Apri Insurance Services Inc.

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FORUM Goes Virtual

CPBI FORUM 2020 has gone virtual. Offered in both official languages, it will take place June 15 to 18. In addition to live sessions, they will also be available on demand. Keynote speakers include Pablo Holman, a futurist, inventor, and notorious hacker, and Louis Vachon, president and chief executive officer at National Bank. Sessions will be held on communication in the pension system, who should pay for pharmacogenomic testing, and protecting pension funds from cyber threats. For information, visit FORUM 2020

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May 28, 2020


PRT Communications Evolve

As the appetite for annuity purchases has grown, an evolution in the approach to communicating risk transfer has also taken place, says Eckler’s ‘Canadian Pension Risk Transfer (PRT) Report.’ While annuity purchases have been used as a risk transfer strategy in the United States and United Kingdom for some time, Canadian plans have only begun to embrace them over the last 10 years. And, unlike plans over the border and across the pond, news of such purchases rarely made the headlines until very recently. Today, however, Canadian headlines abound with news of ‘large and jumbo’ annuity purchases. In 2008, the annual amount annuitized in Canada sat at approximately $1 billion. In 2019, total annuity purchases hit $5.2 billion. Given the increased media attention, plan sponsors have begun to actively manage messaging surrounding their de-risking efforts. While these types of conversations may once have been kept within the confines of the boardroom and then communicated only to affected plan members, plan sponsors are now embracing the opportunity to craft a positive narrative – that buying annuities enables them to secure their pension obligations for plan members, freeing up capital to strengthen core business operations for shareholders.

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Alberta ACPM Seeks Short-Term Measures

Any short-term measures for the pension system in Alberta require an Alberta framework, says the Association of Canadian Pension Management ‒ ACPM Alberta Regional Council. In a submission to the province’s treasury board and ministry of finance, it says these measures must be provided in a framework that recognizes the financial impact on Alberta’s economy and businesses resulting from the COVID-19 pandemic and the extreme economic downturn following the unprecedented collapse of oil prices. These ‘made-in-Alberta’ measures must focus on Alberta pension plan sponsors, administrators, and their members and their unique circumstances in contrast to other pension jurisdictions in Canada. It is calling for changes in contributions and funding; commuted values; plan administration; defined contribution pension plans; and CAPSA. It says ongoing contributions, encompassing current service and going-concern special payments, should continue to be made into pension plans to promote liquidity and benefit security. However, special payments on a solvency basis may be deferred, at the option of the plan sponsor. As well, given the difficulty in determining a reliable up-to-date transfer ratio, the government could implement a temporary full freeze on portability transfers and annuity buy-out purchases relating to defined benefit provisions of pension plans. It suggests a 90-day freeze period based on current financial market conditions that have negatively affected the funded status of DB pension plans and the resulting extremely low interest rates that have also had a major impact on commuted value calculations. For DC plans, it wants to permit complete suspension of employer and employee required contributions for non-negotiated plans and amended regulations to shorten/eliminate the advance notice period required for amendments reducing contribution rates.

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PSAC Concerned About LTC Deaths

COVID-19 related deaths and illnesses amongst residents and employees of long-term care (LTC) facilities are raising a number of troubling concerns for members of the Public Service Alliance of Canada (PSAC), says the Public Service Alliance of Canada (PSAC) in a letter to Neil Cunningham, president and chief executive officer of PSP Investments. Its 140,000 members contribute to federal Public Service Pension Fund and Revera Inc., a wholly owned subsidiary of PSP Investments, operates the second largest network of for-profit LTCs in Canada. The PSAC has previously had to intervene with PSP Investments regarding the operations and conduct of Revera. It also says it is now aware, through media reports, that a class action lawsuit has been initiated in Ontario by family members of deceased former residents of Revera facilities citing the lack of proper sanitation protocols and testing procedures in the face of the COVID-19 pandemic. It says it has long warned PSP Investments that the continuation of business practices without addressing its concerns would not only be detrimental to the residents and employees of Revera, but could also pose long-term consequences for the contributors and beneficiaries of the federal Public Service Pension Plan. It is requesting that PSP Investments initiate immediate and formal comprehensive consultations with federal and provincial governments for the transition of the management and control of Revera operations to the corresponding provincial health authorities in jurisdictions where it operates.

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Alternative Investors Maintain Allocations

Slightly more than half of alternatives investors do not expect to make any changes to their private market allocations for the remainder of 2020, says a survey by Eaton Partners. It found 51 per cent plan no changes while 18 per cent of respondents expect to cut allocations modestly and 17 per cent expect to increase allocations modestly. Only eight per cent of respondents expect to cut allocation significantly, while six per cent expect to increase their allocations significantly. A majority of respondents also seem to feel the biggest fears about private capital markets are overblown. Fifty-five per cent of respondents are not concerned at this time regarding the ‘denominator effect,’ in which the lag between public and private market valuations impact investor ability to make allocation decisions. Thirty-one per cent are somewhat concerned, while only 14 per cent are very concerned. Private equity is the most appealing for 2020 among survey respondents, with 45 per cent saying it is the most appealing, followed by 27 per cent saying private credit, 17 per cent saying hedge funds, and 11 per cent saying real assets.

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Wall Street Unbalanced

Wall Street is unbalanced and investors are in danger of becoming complacent, says Nigel Green, CEO of the deVere Group. His warning comes as U.S. stock futures indicate another strong open Tuesday for Wall Street following a long holiday weekend. Wall Street and other stock indices around the world have been, in general terms, rallying in recent weeks as investors jump on fresh Covid-19 vaccine optimism and signals that global economies are beginning to be revived. “There’s an over-riding and far-reaching bullish sentiment in stock markets. However, there are bonafide concerns that investors are in danger of becoming complacent,” he says. This global economic downturn is different to others as there are clear winners and losers, whereas in previous ones it has been far less clear-cut and more a question of how much all firms were impacted. While the booming sectors such as tech, home entertainment, and online retailers might “indicate what the future, post-pandemic economy looks like”, it doesn’t reflect underlying economic conditions – and this “could catch investors out.”

 

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League Powers Infrastructure Technology

League Inc. will leverage its health platform to power the technology infrastructure of pharmacy chains, retailers, health systems, and financial partners looking to accelerate their digital health presence and better reach their customers. ‘Powered by League’ will combine its user engagement model with the assets of a given partner, including, but not limited to, brick and mortar locations, health clinics, loyalty programs, payment cards, and healthcare providers. For many pharmacy chains, retailers, health systems, and financial institutions, the route to market for a new digital health offering is a complex web of information, scalability concerns, unproven technologies, and product development resources. This program looks to address these challenges by leveraging its platform to deliver a data-driven and turnkey digital health infrastructure.

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May 27, 2020


CPP Investments Sees Growth In Assets

The Canada Pension Plan Investment Board (CPP Investments) ended its fiscal year on March 31 with net assets of $409.6 billion, compared to $392 billion at the end of fiscal 2019. The $17.6 billion increase in net assets consisted of $12.1 billion in net income after all CPP Investments costs and $5.5 billion in net Canada Pension Plan (CPP) contributions. The fund, which includes the combination of the base CPP and additional CPP accounts, achieved 10-year and five-year annualized net nominal returns of 9.9 per cent and 7.7 per cent, respectively. For the fiscal year, the fund returned 3.1 per cent net of all costs. Steady gains from global active investment programs over the first three-quarters of the fiscal year pushed fund performance forward. Fixed income investments performed well in the fourth quarter, reflecting investors’ search for safer investments and the expectation for lower interest rates across major markets. However, the steep decline in global equity markets in March 2020 had a significant effect on results as the financial impacts of the COVID-19 pandemic tore through virtually every economy. “The COVID-19 pandemic poses a massive challenge for health, societies, and economies globally. Amid the significant number of concerns many Canadians have today, the sustainability of the fund is one thing they shouldn’t worry about,” says Mark Machin, its president and chief executive officer. “The fund’s long-term returns continue to help ensure the security of Canadians’ retirement benefits.”

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Pandemic Boosts Virtual Care

Virtual care in Canada is 10 years ahead of where it would have been had the COVID-19 pandemic not happened, says Dr. Alexandra Greenhill, founder, CEO, and CMO at Careteam Technologies Inc. In a panel discussion with Dr. Sacha Bhatia, chief medical innovation officer at Women’s College Hospital, and Dan Pawliw, general manager of Akira Health at TELUS Health, during the ‘Is virtual care here to stay?’ session at the ‘TELUS Health Annual Conference,’ she said the in-personal encounter will continue to be one option, but it will no longer be the first option. Right now, there is a huge price for delays in the healthcare system. The ability of virtual care to speed up treatment of conditions that otherwise might become chronic or complicated and give people the right access to the right person at the right moment will reduce the burden on them as patients. Virtual healthcare is here to stay and some of the initial issues will get sorted out in the next 18 months, she said. Bhatia estimated that 50 per cent of care now will probably be virtualized. He can see entire clinical areas redesigned. “So you can imagine, for example, a surgical journey where the pre-operative and post-operative follow up will be completely virtualized. The patient will come in for surgery and leave,” he said. As well, certain specialties ‒ like mental health ‒ could become completely virtualized. The real question will be what needs to stay in person and how to create a care pathway that integrates various parts of virtual care with in person care. Pawliw said the penetration of primary virtual care is in 20 per cent range right now, but it will get well above 60 to 70 per cent. “People will have finally their first virtual care experience and they’ll love it,” he said. They will use their phones for first access to virtual care, he said.

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GSC Invests In Pharmacogenomics

With the concept of personalized medicine gathering momentum across the healthcare environment, Green Shield Canada (GSC) has invested in GenXys, a Canadian pharmacogenomics firm, to leverage the value of tailoring drug treatment to a person’s total health profile including their genetic makeup. The two companies will be collaborating on new pharmacogenomics products – set to launch later this year – with a focus on driving more informed prescribing, fewer adverse drug reactions, and better health outcomes for patients. The investment comes on the heels of a study by GSC and HBM+ (its health benefit management solutions division) on the impact of pharmacogenomics on more than 200 outpatients who had been diagnosed with major mental health conditions, including depression and anxiety. The study shows those patients receiving pharmacogenomics-guided treatment reported significantly greater improvements over a six-month period across a range of clinical outcome measures, including severity of depression and anxiety as well as level of disability.

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Worst May Be Over Soon

Economic forecasts for 2020 continue to deteriorate, but there are signs that the worst may be over soon, says Fitch Ratings. It has cut its forecast for global GDP in 2020, citing continued deterioration in the data flow for a number of major economies. World GDP is now forecast to fall by 4.6 per cent in 2020 compared to a decline of 3.9 per cent it predicted in late April. This reflects downward revisions to the eurozone and the UK and, most significantly, to emerging markets excluding China. Its forecasts for 2020 GDP growth for China, the U.S., and Japan are unchanged and there are now signs that the collapse in global economic activity may be close to bottoming out. Initial monthly indicators for May point to improvements as lockdowns started to be eased and global macroeconomic policy stimulus has increased over the past month. It now expects Canada’s GDP to drop by 7.1 per cent this year, before rebounding by 3.9 per cent in 2021.

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Employees Thanked

Manulife and John Hancock will be giving their more than 35,000 employees a ‘Thank You Day’ off on Friday, June 19, this year in appreciation of the work they’ve done serving customers and helping people make decisions easier and lives better. In addition, the company will be providing five additional personal days next year to each employee to support wellbeing by encouraging regular time off and provide the opportunity for employees to take vacations that are meaningful to them which they may not have been able to do in the current environment. Along with this additional time off, they have taken a range of actions to support the well-being of our employees and their families in response to the challenges they face due to the pandemic. The company is offering flexible work arrangements, supplemental paid time-off, and additional virtual mental health resources.

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Freyman Heads RI

Monika Freyman is Mercer’s head of responsible investment (RI) for Canada She will lead its responsible investment (RI) business to deliver sustainable investment advisory and solutions capabilities to a wide range of clients including businesses, pension funds, endowment and foundations, insurers, asset managers, and other institutional investors. She brings 20 years of investment and sustainability experience to the role. Previously, she spent 10 years with Boston, MA-based advocacy group Ceres, where she supported pension funds and fund management firms in creating and implementing responsible investment strategies.

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May 26, 2020


Recommitment Needed To Fiscal, Monetary Anchors

Ottawa and the provinces need to recommit to fiscal and monetary anchors in light of the unprecedented stimulus response provided by all levels of government and the Bank of Canada throughout the COVID-19 crisis, says the C. D. Howe Institute. While fiscal anchors, such as debt-to-GDP ratios, were necessarily set aside to finance support programs to cope with the economic shutdown, measures to stabilize finances and restore fiscal sustainability in the medium to long-run are critical. Canada is emerging from the first wave of the pandemic with very high public and private debt loads and is increasingly dependent on domestic and foreign investors to finance them. With the loss of Canada’s fiscal anchor, maintaining investor confidence so that public and private debt can be carried at a reasonable cost is essential. Moreover, the importance of reaffirming Canada’s remaining monetary anchor, Canada’s low and stable two per cent inflation target, cannot be overstated. Its monetary and financial measures working group further recommends that governments should make clear to Canadians how they will re-calibrate and eventually remove the temporary fiscal programs currently in place, as part of a transparent plan to stabilize public finances over the medium term. To ensure fiscal sustainability, governments will likely need revenue sources beyond tax rate hikes. One avenue is through the digital taxation of economic rents realized by the few dominant players in these sectors and through taxation of individuals who have benefited from large capital gains. 

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Short-Term Mortality Proportional

COVID-19 seems to increase each cohort’s short-term mortality risk by a common multiplicative factor, says research from the Pensions Institute in the UK. In other words, says ‘The Impact of COVID-19 on Future Higher-Age Mortality,’ if mortality rates rise temporarily at 10 per cent in relative terms at one age, they will also rise by about 10 per cent at other ages. The paper focuses on England and Wales and assesses the implications of the pandemic for pension funds, insurance companies, and academics who model and measure longevity risk. They found that once they controlled for regional differences in mortality rates, COVID-19 deaths in both the most and least deprived groups are proportional to the all-cause mortality of these groups. However, the groups in between have lower COVID-19 deaths – by around 10-15 per cent – compared with their all-cause mortality. Current behavioural responses to the pandemic were also examined. They observed that some surviving patients who needed intensive care could acquire a new impairment such as kidney damage, which will reduce their life expectancy. Furthermore, many people in lockdown have not sought timely medical assessments for potential new illnesses such as cancer, with the consequence that mortality rates unrelated to COVID-19 could increase in future. Other indirect consequences include increased alcohol consumption and poorer health and even suicides as a result of long-term unemployment. However, some people may retain healthier lifestyles adopted during lockdown, which could increase their life expectancy.

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Portfolios Sustained During Turmoil

Sustainable investing will sustain investment portfolios during times of market turmoil, says BlackRock. Its research has found a correlation between sustainability and traditional factors such as quality and low volatility, which it says indicates resilience. As a result, it expects sustainable companies to be more resilient during downturns. It argues that traditional financial accounting standards do not provide investors with a complete picture of all the risks and opportunities companies face. “Armed with more information, investors are better positioned to evaluate risks,” the report says, “an advantage that is especially relevant in market stress periods when uncertainty about future outcomes is larger.”

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Banks Monetizing Government Deficits

Very few central bankers would be willing to admit that they are monetizing government deficits. But that’s exactly what they are doing and, more importantly, it’s precisely what they should be doing in current circumstances, says Darren Williams, director ‒ global economic research at AllianceBernstein. Just as during wartime, central banks currently have little option but to step into the nexus that blurs the distinction between monetary and fiscal policy, with the two effectively joined at the hip. In time, governments and voters will have to decide how best to deal with very high levels of public sector debt. Default, austerity, and higher inflation are among the possible options. Alternatively, they could choose to downplay the significance of government debt, as some advocates of modern monetary theory would recommend. What’s important is that interest rates and bond yields remain low. In recent weeks, central banks have clearly shown that they have both the ability and the willingness to keep a lid on bond yields. The current view is that interest rates and bond yields will continue to be pinned close to, and in some cases below, zero. And that’s likely to be the case long after the coronavirus crisis has passed.

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May 25, 2020


Guidance Issued On Commuted Value Transfers

The Financial Services Regulatory Authority of Ontario (FSRA) has issued new guidance on transferring commuted values and purchasing annuities when a pension plan’s transfer ratio has declined since the most recently filed valuation report by 10 per cent and is now below 0.9. This new guidance outlines the application and review process and protects the stability of pension plans by minimizing unnecessary disruption of commuted value transfers and annuity purchases. It has also updated the information on plausible adverse scenarios in actuarial valuation reports. Understanding the risks to a plan enables plan fiduciaries to properly manage those risks and make prudent decisions to deliver on pension promises made to plan beneficiaries. This is key to prudential supervision and improving outcomes for beneficiaries.

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Workplaces Adjusting

U.S. companies are making a series of workplace adjustments as they prepare to operate in a post-COVID-19 environment, says a survey of employers by Willis Towers Watson. Moreover, employers expect that the percentage of their workforce who are full-time employees working remotely after the pandemic will be three times as many compared with last year. The survey found nearly three in four respondents (74 per cent) made adjustments to work to reflect the new post-pandemic protocol. Some examples include installing touchless payment systems, offering services via video rather than in person, creating more space on assembly lines or in distribution centres, and changing work schedules to limit employee contact. Almost three in 10 respondents (29 per cent) moved work to different jobs while nearly a quarter (23 per cent) made changes to reflect work that was being done in-house versus by third parties. Some employers started outsourcing work or using gig talent for work that was typically done by full-time employees. “The pandemic is clearly creating new challenges for virtually every employer as to how work will get done when employees return to the workplace,” says Ravin Jesuthasan, managing director and global leader, Work and Rewards, Willis Towers Watson. “Physically, many workplaces will look different as companies seek to create safe working environments for their employees. And we expect to see some companies accelerate their use of automation and use it in different ways, such as a substitution for repetitive or dangerous tasks.” Indeed, among the 22 per cent of companies that have made adjustments to their use of automation, 18 per cent of work is currently being done through automation, up from 16 per cent last year. These same organizations expect that 23 per cent of their work will be done by automation after the pandemic.

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Fund Managers Bearish On Recovery

Most fund managers are bearish about the prospect of an economic recovery from COVID-19, with many believing that a V-shaped recovery is incumbent on a breakthrough for a coronavirus vaccine, says the Bank of America Merrill Lynch’s monthly fund manager survey. The May survey shows that more than half of surveyed money managers (68 per cent) expect a bear market rally, 75 per cent expect a U- or W-shaped recovery. By contrast, only 10 per cent expect a V-shaped economic recovery from the coronavirus, with a vaccine breakthrough the most likely catalyst for such a recovery. Meanwhile, 25 per cent foresee a new bull market. More than half of respondents (52 per cent) say that a second wave of COVID-19 is the biggest tail risk, followed by a systemic credit event (at eight per cent, down significantly from 30 per cent in the April survey). Sixty-eight per cent of fund managers said bringing supply chain manufacturing back to the U.S. would be the biggest structural shift in a post COVID-19 world, while 44 per cent said protectionism and 42 per cent said higher taxation.

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Last Year Exceptional For Equities

Not only was 2019 was an excellent year across global equity markets, Canadian equities were no exception, says the S&P Dow Jones ‘SPIVA Canada Scorecard for Yearend 2019.’ Following a selloff in the fourth quarter of 2018, the S&P/TSX Composite rebounded 22.9 per cent in 2019, posting positive returns in 10 of the 12 months. Smaller-cap names in the S&P/TSX Completion gained 26.1 per cent, outpacing the 21.9 per cent return of the S&P/TSX 60. The S&P/TSX Composite posted its highest annual return since 2009, capping a decade-long run that saw a total gain of 94.9 per cent. Amid this historic bull market, however, 92 per cent of Canadian equity funds underperformed their benchmark in 2019 and 86 per cent underperformed over the decade. This deficit was not an outlier, as a majority of funds underperformed across all categories for 2019. However, in 2019, 76 per cent of global equity and 79 per cent of U.S. equity funds failed to match the S&P Developed LargeMidCap and S&P 500, respectively. In addition, these categories had the poorest long-term relative performance, as a staggering 97 per cent of global equity and 98 per cent of U.S. equity funds underperformed over the past 10 years.

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IMCO Makes Apollo Commitment

The Investment Management Corporation of Ontario (IMCO) has committed US$250 million to Apollo Global Management, Inc.’s Accord Fund III Series B, a fund designed to enter the market during periods of dislocation and illiquidity. It will focus on credits that have traded down due to liquidity-driven selling and non-economic reasons. This is its first investment with an Apollo-managed fund, one of the world’s largest alternative investment managers.

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