Interest Rates and the Economy

IMCO's Big Stake in Apollo's New Fund

Christine Idzelis of Institutional Investor reports that Apollo took just two months to raise a credit fund that seeks to profit from tumultuous markets — and it got a swift and significant contribution from Canadian pension manager IMCO:When Apollo Global Management approached the Investment Man ...

US Public Pensions Less Than 60% Funded?

Steffan Navedo-Perez of Chief Investment Officer reports that Goldman Sachs estimates public pensions are now less than 60% funded on average: Average funding ratios for public pension funds have declined to 60% and below, down from 74% before the crisis, according to Goldman Sachs Senior Pension ...

CPPIB Gains 3.1% in Fiscal 2020

Pete Evans of CBC News reports CPP adds $17 billion to assets now worth more than $409 billion despite the pandemic:The Canada Pension Plan earned a return of 3.1 per cent after expenses during the financial year ended March 31, the board that manages the fund's money reported Tuesday.Net assets fo ...

CAAT Pension Plan Gains 16% in 2019

Yaelle Gang of the Canadian Investment Review reports that CAAT pension plan returns 16% in 2019, well-positioned to weather coronavirus storm:The Colleges of Applied Arts and Technology pension plan saw a strong 2019, delivering a 16 per cent return, net of investment management fees, while growin ...

Can Money Printing Trump a Depression?

Fred Imbert of CNBC reports stocks extend losses ahead of Trump China news conference:The S&P 500 rose slightly on Friday, erasing losses earlier in the session, as traders breathed a sigh of relief after President Donald Trump signaled no changes to the trade deal with China despite rising ten ...

Private Equity's Moment of Truth?

David Wighton of Financial News reports after the Covid crisis, private equity faces a moment of truth:If private equity firms cannot clearly show outperformance of the stock market soon, surely even their stoutest defenders among investors will start questioning the hefty fees they pay.Private equ ...

Reverse Alberta's Public Pension Changes?

Janet French of CBC News reports that an opposition bill seeks to reverse public sector pension changes in Alberta:An Opposition MLA is attempting to reverse changes the Alberta government made last year to the control of several public sector pension plans.NDP MLA and labour and immigration critic ...

Defensive Strategies Help CNID and ATRF

Martha Porado of Benefits Canada reports on how defensive strategies played out for CN's pension and ATRF as markets crashed:When the coronavirus pushed equity markets off a cliff, Canadian defined benefit pension plans had to mobilize to address a number of concerns.The Canadian National Railway C ...

OMERS 2020 Webcast Annual Meeting

On April 8, OMERS hosted its 2020 Annual Meeting, held entirely through webcast. Over 600 members logged in to watch, which was by far the largest virtual audience we’ve ever had. The Chair of the OAC Board, George Cooke was the Master of Ceremonies and he welcomed the following presenters: Bla ...

The new reality: hoarding or avoiding using cash because of Covid- 19 and the relevance of Quantitative Easing

Keynes wrote at length about the increased attachment to cash which he called increased liquidity preference in a time of crisis which leads to a rise in the rate of interest as there are limits to the amount of cash in circulation. Keynes puts it as follows in his Quarterly Journal of Economics ar ...