Making strategic assets available to pension funds would encourage more domestic investment
Canadian pension funds have a mandate to deliver steady pension payments to millions of plan members, writes Professor Sebastien Betermier in Benefits Canada. But that鈥檚 easier said than done, and the most cost-efficient way to deliver is by investing in a globally diversified portfolio tilted toward strategic assets.
US expansion plans head south for Quebec鈥檚 Autobus Lion
In 2023, the Quebec electric vehicle maker Autobus Lion opened a $150 million truck manufacturing facility in Illinois, but its expansion into the United States has not gone according to plan. Much of its 900,000 square foot facility sits empty, and the company is sub-leasing the space. Now, the company is on the brink of bankruptcy and working with investors to determine if it can be salvaged.
Crypto ETFs: Mitigating fraud risk through regulated institutions
Cryptocurrency exchange-traded funds (ETFs) allow investors to hold a variety of cryptocurrencies in a single investment product. While all of Canada鈥檚 Big Six banks now include some crypto ETFs in their portfolios, these investments represent only a small fraction of their holdings. A major advantage of ETFs is their ability to offer protection from market volatility. However, given the speculative nature of crypto means it can still be extremely volatile, even within an ETF structure.
When managing your portfolio, timing is critical
The impact of time in finance is decisive, says Benjamin Croitoru, Academic Director of the 不良研究所 Personal Finance Essentials course. But people don鈥檛 realize how small decisions can make all the difference over time. Getting the timing right when you鈥檙e buying or selling stocks is one way that time plays an important role in long-term financial growth.
Students master finance at 7th Deloitte MMF Synergy Challenge
Students in the 不良研究所 Desautels Master of Management in Finance (MMF) program showcased their financial prowess at the 7th Deloitte MMF Synergy Challenge on October 30.
For hedge funds, trade volumes have a substantial effect on investment returns
The timing of stock trades can be as important as the choice of equities to buy or sell. When trading volume is low, large purchases can drive up a stock鈥檚 price, raising costs for the trader.
Few university students study finance, but 不良研究所鈥檚 Personal Finance Essentials course can help
Post-secondary students are at the cusp of earning professional incomes, making it important for them to begin developing good financial habits, says Benjamin Croitoru on a podcast with Moolala. Croitoru is an Associate Professor of Finance and the Academic Director of the 不良研究所 Personal Finance Essentials, a free, online course offered in collaboration with RBC Future Launch and The Globe and Mail.
Canadian pension funds are already overweight on Canadian equities
Canada鈥檚 eight largest pension funds are big players in the world of institutional investing with more than $1 trillion under management collectively. Pressure is being applied for the funds to invest a greater proportion of their money in Canadian stocks.
Changes in pension funds portfolio management produce different demands for analysts and managers
Historically, pension funds managed their portfolios using a strategic asset allocation approach. Fundamentally, this meant buying a mix of asset classes with the highest probability of achieving the necessary returns, at a level of risk that was acceptable 鈥� or buying and holding. But since the mid-2000s, some large pension funds have adopted a total portfolio approach strategy, which seeks to maximize returns while keeping a portfolio鈥檚 volatility low.
A lack of strategic assets can be a deterrent to domestic investment for large pension funds
In 2023, the Government of Australia suggested that some of the country鈥檚 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.
Opening infrastructure could encourage Canada鈥檚 pension funds to invest more domestically
The Government of Canada is exploring ways to increase investments in the country鈥檚 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.
Reproducibility in Management Science
Authors:聽Milo拧 Fi拧ar, Ben Greiner, Christoph Huber, Elena Katok, Ali I. Ozkes, and the Management Science Reproducibility Collaboration*
Learning from Biodiversity: Is Diversity in Financial Ecosystems Important for Economic Growth and Stability?
Authors:: Vihang R. Errunza, Basma Majerbi and Maxwell Tuuli
Publication:聽IMF Economic Review, Forthcoming
