Infrastructure banks can help get large infrastructure projects off the ground
In Canada, investment in infrastructure has lagged, but infrastructure banks are one way to provide financing for large-scale infrastructure projects that could take decades to pay off. “Canada needs new infrastructure – housing, energy, ports – it’s all critical to our future,” says Prof. Sebastien Betermier.
Tariff uncertainty interferes with business investment
Ever since Donald Trump’s ‘Liberation Day’ tariff announcement, stock markets have been volatile. The tariffs impact thousands of companies, and with the exact scale and scope of tariffs changing almost daily, the extent to which they will be affected is uncertain. “It makes it difficult for companies to investments,” Prof. Sebastien Betermier told TVA Nouvelles.
Canada’s big pension funds hold lessons for funds elsewhere
Canada’s big pension funds are the envy of fund managers in other countries. They’re something that the UK’s defined contribution plance could aspire to, writes Padraig Floyd in Pensions Expert. “They’re all public, but they’re run like private sector corporations,” said Prof. Sebastien Betermier.
Buy Canadian movement shouldn’t interfere with prudent pension fund management
The Trump administration’s tariffs have catalyzed a cross-country movement to buy Canadian products. But will that movement affect the how Canada’s big pension funds manage their portfolios? The eight largest pension plans in Canada hold more than $2 trillion in assets, but only about a quarter of those assets are Canadian.
The debate over domestic investment for Canadian pension funds
As calls to bolster Canada’s economy intensify, the debate over pension fund strategies has gained national attention. In a Financial Post article, Professor Betermier highlights concerns over political interference in pension management and the potential long-term impact on investment strategies.
Professor Betermier offers guidance for Quebec investors
With increasing market volatility, Professor Sebastien Betermier shares his advice on how Quebec investors can weather economic uncertainty. In an interview with the Motnreal Gazette, he emphasizes the importance of staying disciplined, avoiding panic and hasty decisions, and consulting a financial planner before making changes.
Large number of Canadians are missing out on pensions
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.
Political pressure impacts Canada's top pension funds
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.
Financial institutions shift climate strategies amid GFANZ changes
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.
Alberta-commissioned report on CPP withdrawal used flawed methodologies
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.
Challenges of adapting Canada’s pension model for the UK
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.
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’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.
Instability at Alberta’s public pension fund could undermine its effectiveness
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.
Canadian pension funds are already overweight on Canadian equities
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.
