Canadian pension funds divestment of private equity holdings rebalances portfolios
Canadian pension funds are strategically divesting from their private equity holdings to realign their portfolios. Recognizing the inherent lag in private equity valuations compared to publicly traded assets, the move aims to address potential overvaluations, particularly in the context of rising interest rates.
Public pension plans in Canada and Australia achieve efficiencies through professional asset management at scale
Canada and Australia are both examples of successful pension fund management, said Prof. Sebastien Betermier in a keynote presentation to the Government Employees Pension Fund (GEPF) Thought Leadership Conference in Cape Town, South Africa. While there are differences, both capture similar efficiencies: getting people to save money early, so they benefit from compounding.
Alberta’s withdrawal from Canada Pension Plan means leaving one of the world’s best-managed funds
The Canada Pension Plan (CPP) launched in 1966 and pays retirees a monthly amount based on contributions deducted from their paycheques throughout their working lives. "You contribute with the understanding that when it comes your time to retire, you can expect your own steady stream of income where the risks are being managed directly by the plan," says Prof.
Delve: How the Era of Energy Transition Is Changing Business Leadership
The global transition to net-zero requires significant changes in the way businesses operate and grow. How can business leaders successfully manage this energy transition? What are its opportunities and risks for businesses? And what role do corporate boards and investors play in overseeing and encouraging the transition?
Celebrating excellence in teaching at Desautels
Across programs and subject areas, the Desautels Faculty of Management recognizes the vital role that teaching plays in enriching the student experience and in inspiring the next generation of leaders.
The future of commercial real estate belongs to those who can meet the evolving needs of the office
Lockdowns and remote work presented unique challenges for the commercial real estate sector. Vast amounts of office space were suddenly empty as people worked from home. But the sector is rebounding. There are projects underway in cities around the world are a testament to investors’ confidence in its outlook, says Sebastien Betermier, an Associate Professor of Finance at Desautels.
Delve: How Banks and Institutional Investment Funds Are Driving the Road to Net-Zero
One of the biggest challenges today for financial institutions is how to meet net-zero climate targets while achieving high returns on investment and satisfying the needs of various stakeholders. What does the road to net-zero look like in the realm of long-term investment, who are the players, and how should the inevitable roadblocks be overcome?
Crypto’s impressive returns led institutional investors to consider unconventional investments
Cryptocurrencies have always been volatile, but they have also generated some very impressive returns. Even large pension funds got in on the action, and some of them have been burned. By investing in the crypto exchange FTX, the Ontario Teachers’ Pension Plan (OTPP) hoped to avoid the risk of investing in individual cryptocurrencies. But that backfired spectacularly when FTX collapsed, and OTPP recently wrote down its entire $95 million (USD) investment.
A place to call home trumps portfolio diversification for some investors
Many households are heavily, or even exclusively, invested in real estate. That’s a lot of money to have tied up in a single type of investment, but people don’t think of houses like other investments, according to research from Associate Professor Sebastien Betermier.
MIPC wraps up with MDIIM Symposium and Grand Finale
The Marcel Desautels Institute for Integrated Management Symposium on The Road to Net Zero took place on November 2, marking the opening ceremony of the sixth edition of the McGill International Portfolio Challenge (MIPC). Thank you to our panelists, Fanny Doucet, CFA, Managing Director & Head, S
Real estate investment helps Canadian pension plans outperform peers
Canada’s pension plans consistently outperformed their peers between 2004 and 2018, largely thanks to their diversified their assets, which include investments in real estate and infrastructure assets. “Here, the funds are doing it themselves,” says Professor Sebastien Betermier in an interview with Benefits Canada. “They are on the ground, building projects themselves in Toronto, in Montreal and abroad.”
Why the CAQ’s proposed economic incentives may not be all they cracked up to be
“Many of the drivers of the inflation we are seeing today are coming from the supply and production side of the economy,” says Associate Professor of Finance Sebastien Betermier in an interview with CTV News. The war in Ukraine, post-pandemic recovery and supply side frictions are all factors outside our control contributing to inflation.
When a recession is coming, investors need to keep a level head
How should investors react to a looming market downturn? Don’t panic, says Prof. Sebastien Betermier, an Associate Professor of Finance at Desautels. This sounds simple enough, but it’s easier said than done.
Inflation is a major challenge for seniors on fixed incomes
When food prices rise, seniors on fixed incomes pay a heavy price. Seniors living on federal pensions have lost $1,600 in purchasing power, according to Pierre Lynch, the president of the Association québécoise de défense des droits des personnes retraitées et préretraitées. And it’s difficult to predict when those costs could come down, says Associate Professor of Finance Sebastien Betermier.
Countries with high debt and a reliance on imports could face tough times
Sri Lanka is facing down a liquidity crisis. It has $50 billion in debt to foreign creditors, but no foreign currency reserves. The country foreign currency was depleted when pandemic-related travel restrictions undermined its thriving tourism industry. It also imports many goods, and costs soared as energy prices rose.
