9I�� News - Sebastien Betermier

Large number of Canadians are missing out on pensions

webfull — Thu, 13 Feb 2025 20:18:20 +0000

According to a report by the National Insitute on Ageing, there are around 200,000 people in Canada with registered pension plans who are eligible to claim them, but haven’t. Often, the unclaimed funds stem from contributions made early in a person’s career that were simply forgotten about. “Who thinks about retirement at the age of twenty?” said 9I�� Desautels Professor of Finance Sebastien Betermier in an interview with CBC Radio’s Cost of Living program.

Published: 13 February 2025

Political pressure impacts Canada's top pension funds

webfull — Fri, 07 Feb 2025 01:54:06 +0000

Canada’s Maple 8 pension funds are globally respected for strong returns and independence from government influence. However, recent political moves threaten this model. The federal government has encouraged more domestic investment, while Alberta’s government fired AIMCo’s board, raising fears of political interference. “When you start investing based on political objectives, you risk compromising returns,” warns Associate Professor of Finance Sebastien Betermier.

Published: 6 February 2025

Financial institutions shift climate strategies amid GFANZ changes

webfull — Fri, 07 Feb 2025 01:14:08 +0000

Despite BlackRock’s exit from the Glasgow Financial Alliance for Net Zero (GFANZ), climate action remains a key priority for financial institutions, says Sebastien Betermier, Associate Professor of Finance. He notes that asset managers are shifting their strategies to focus on helping firms transition to net zero rather than maintaining strictly net-zero portfolios. While GFANZ is adapting to these needs, Betermier warns that moving away from alliances could weaken collective action.

Published: 6 February 2025

Alberta-commissioned report on CPP withdrawal used flawed methodologies

webfull — Wed, 29 Jan 2025 20:01:47 +0000

When Alberta commissioned a report on withdrawing from the Canada Pension Plan, the resulting document claimed the province was entitled to $334 billion more than half of the plan’s total assets. However, the method used to calculate that share is deeply flawed. If applied to other provinces, the combined total of their share would exceed the plan’s actual assets.

Published: 29 January 2025

Challenges of adapting Canada’s pension model for the UK

webfull — Wed, 29 Jan 2025 20:00:03 +0000

In a Financial Times piece on the UK’s interest in replicating Canada’s pension system, Associate Professor Sebastien Betermier highlights concerns about the growing politicization of Canada’s pension funds. He notes that the success of the Maple 8 model relies on maintaining independence from government interference. Recent political actions such as Alberta’s abrupt overhaul of its pension board raise doubts about whether the model can sustain its advantages.

Published: 29 January 2025

Making strategic assets available to pension funds would encourage more domestic investment

webfull — Wed, 18 Dec 2024 19:02:27 +0000

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’s easier said than done, and the most cost-efficient way to deliver is by investing in a globally diversified portfolio tilted toward strategic assets. This type of asset, however, isn’t available in Canada, so pension funds look for them elsewhere.

Published: 18 December 2024

Instability at Alberta’s public pension fund could undermine its effectiveness

webfull — Thu, 21 Nov 2024 20:50:00 +0000

While 2020 was tough on just about everyone, the Alberta Investment Management Corporation (AIMCo) really took it on the chin. Alberta’s public pension fund manager lost billions of dollars in a volatility-based trading strategy during a topsy-turvy year in markets. The losses undermined public confidence in AIMCo, and the province’s Finance Minister Nate Horner recently dismissed AIMCo’s entire board, appointing a veteran public servant to serve as the organization’s interim CEO.

Published: 21 November 2024

Canadian pension funds are already overweight on Canadian equities

webfull — Tue, 15 Oct 2024 20:09:38 +0000

Canada’s 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. Yet, 18 per cent of their portfolio is already invested in domestic markets, explains Associate Professor Sebastien Betermier in an interview with Les Affaires.

Published: 15 October 2024

Changes in pension funds portfolio management produce different demands for analysts and managers

webfull — Tue, 15 Oct 2024 19:55:06 +0000

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 – 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’s volatility low.

Published: 15 October 2024

A lack of strategic assets can be a deterrent to domestic investment for large pension funds

webfull — Tue, 27 Aug 2024 22:20:23 +0000

In 2023, the Government of Australia suggested that some of the country’s 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. Maddock quoted research published by 9I�� Desautels’ Associate Professor of Finance Sebastien Betermier.

Published: 27 August 2024

9I��������� News - Sebastien Betermier

Large number of Canadians are missing out on pensions

Political pressure impacts Canada's top pension funds

Financial institutions shift climate strategies amid GFANZ changes

Alberta-commissioned report on CPP withdrawal used flawed methodologies

Challenges of adapting Canada’s pension model for the UK

Making strategic assets available to pension funds would encourage more domestic investment

Instability at Alberta’s public pension fund could undermine its effectiveness

Canadian pension funds are already overweight on Canadian equities

Changes in pension funds portfolio management produce different demands for analysts and managers

A lack of strategic assets can be a deterrent to domestic investment for large pension funds

9I�� News - Sebastien Betermier