Pension funds stick with private credit as banks pull back
Pension funds are sticking with private credit even as scrutiny intensifies around valuations, transparency and sector risk. Sebastien Betermier, Associate Professor of Finance at the at McGill Desautels, points to structural advantages that allow large institutions to withstand those pressures.
Canada Strong Fund departs from traditional sovereign wealth models
Prime Minister Mark Carney’s proposed Canada Strong Fund is not easily comparable to sovereign wealth models in Norway or Singapore, says Sebastien Betermier, an Associate Professor of Finance at McGill University’s Desautels Faculty of Management.
Canada Strong Fund plan raises governance and investor alignment questions
Prime Minister Mark Carney’s plan to launch a $25‑billion Canada Strong Fund raises key governance and design questions, according to Sebastien Betermier, an associate professor of finance at McGill University’s Desautels Faculty of Management.
Sky-high stock valuations present portfolio allocation challenge for major pension funds
Soaring stock prices boosted returns at major Canadian pension plans, even as a slowdown in private equity weighed on overall performance at funds like the Ontario Teachers' Pension Plan. But strong equity returns don't necessarily mean pension plans should allocate more capital to stocks, Sebastien Betermier told Bloomberg.
How open banking could empower survivors of financial control
Canada’s proposed open banking legislation, Bill C 15, could become a powerful tool for women experiencing economic abuse, according to researcher Sebastien Betermier. The framework would allow consumers to securely share their financial data with trusted third parties, helping survivors access crucial records without relying on abusive partners.
European public pensions struggle with the weight of demographics
Europe is aging, and some national pension funds are better prepared to manage its changing demographics than others. Many European countries use a ‘pay as you go’ model in which current workers fund the retirement of current pensioners.
Pension funds enter a new governance era amid geopolitical and ai disruption
As global trade wars, geopolitical tensions and AI advances reshape financial markets, pension funds face mounting pressure to adapt.
Real estate makes up a majority of household wealth
To rent or to buy—that’s the dilemma facing many today. Real estate prices are at historic highs, and elevated interest rates have pushed up the cost of homeownership. At the same time, stock markets have delivered strong returns in recent years. Beyond these financial pressures, the nature of homeownership itself adds another layer of complexity.
Infrastructure leasing or sale can encourage pension funds to invest domestically
Major pension funds have built trillions in assets by pursuing high-performing portfolios and maintaining independence in their investment decisions. Recently, however, discussions have emerged about imposing mandates that would require these funds to allocate more capital domestically—a trend not limited to Canada, as countries like Sweden have considered similar measures.
Cash-strapped governments should resist telling pension funds how to invest
Stock markets continue to hit record highs, yet many governments remain strapped for cash—and some are eyeing pension funds to cover fiscal shortfalls.
They should resist the temptation to mandate that pension funds invest more domestically, said Associate Professor of Finance Sebastien Betermier in an interview with CNBC.
Whether renting or buying, Canadians are exposed to risk
Buying a home can help you build household wealth, but renting has fewer overall costs, which allows you to save more of the money you earn. While the conventional wisdom has been that buying is the better financial decision for most people, sky-high real estate costs change the equation. Stock markets have also performed well in recent decades, and investing the surplus left over from renting can pad your personal finances in a big way—if you actually do it.
Caisse de depot’s stake in UK nuclear project is a model to emulate
The Caisse de dépot et placement du Québec is taking a 20% stake in the Sizewell C nuclear power station in Suffolk, England. It is the UK’s first new nuclear power plant since the 1990s, and Professor Sebastien Betermier credits the government there with creating the favourable circumstances for private investors like the Caisse to take part in infrastructure development.
Infrastructure bank model can encourage investment in infrastructure projects
Private market developers face an “investment catch-22” in getting infrastructure projects off the ground, Professor Sebastien Betermier wrote in a recent report for the C.D. Howe Institute. Private investors view new infrastructure markets as complex, unfamiliar, and high risk. But the infrastructure bank model can create value as a cost-efficient policy tool in the government ecosystem, Betermier concluded.
Nine directors at large Canadian pension funds also hold fossil fuel positions
Nine of the directors who oversee Canada’s largest pension funds also hold positions at fossil fuel companies, according to a report by Pensions and Investments.
Concrete policy steps could address issues with Canada’s pension system
A well-designed pension system brings enormous social and economic values to its members and to society as a whole. Unfortunately, Canada’s doesn’t stand out. A 2024 report from Mercer ranks it just 18 out of 48 countries. In thefutureeconomy.ca, Prof. Sebastien Betermier proposes three measures that could help improve it by:
