Crypto’s impressive returns led institutional investors to consider unconventional investments
Cryptocurrencies have always been volatile, but they have also generated some very impressive returns. Even large pension funds got in on the action, and some of them have been burned. By investing in the crypto exchange FTX, the Ontario Teachers’ Pension Plan (OTPP) hoped to avoid the risk of investing in individual cryptocurrencies. But that backfired spectacularly when FTX collapsed, and OTPP recently wrote down its entire $95 million (USD) investment.
A place to call home trumps portfolio diversification for some investors
Many households are heavily, or even exclusively, invested in real estate. That’s a lot of money to have tied up in a single type of investment, but people don’t think of houses like other investments, according to research from Associate Professor Sebastien Betermier.
MIPC wraps up with MDIIM Symposium and Grand Finale
The Marcel Desautels Institute for Integrated Management Symposium on The Road to Net Zero took place on November 2, marking the opening ceremony of the sixth edition of the McGill International Portfolio Challenge (MIPC). Thank you to our panelists, Fanny Doucet, CFA, Managing Director & Head, S
Real estate investment helps Canadian pension plans outperform peers
Canada’s pension plans consistently outperformed their peers between 2004 and 2018, largely thanks to their diversified their assets, which include investments in real estate and infrastructure assets. “Here, the funds are doing it themselves,” says Professor Sebastien Betermier in an interview with Benefits Canada. “They are on the ground, building projects themselves in Toronto, in Montreal and abroad.”
Why the CAQ’s proposed economic incentives may not be all they cracked up to be
“Many of the drivers of the inflation we are seeing today are coming from the supply and production side of the economy,” says Associate Professor of Finance Sebastien Betermier in an interview with CTV News. The war in Ukraine, post-pandemic recovery and supply side frictions are all factors outside our control contributing to inflation.
When a recession is coming, investors need to keep a level head
How should investors react to a looming market downturn? Don’t panic, says Prof. Sebastien Betermier, an Associate Professor of Finance at Desautels. This sounds simple enough, but it’s easier said than done.
Inflation is a major challenge for seniors on fixed incomes
When food prices rise, seniors on fixed incomes pay a heavy price. Seniors living on federal pensions have lost $1,600 in purchasing power, according to Pierre Lynch, the president of the Association québécoise de défense des droits des personnes retraitées et préretraitées. And it’s difficult to predict when those costs could come down, says Associate Professor of Finance Sebastien Betermier.
Countries with high debt and a reliance on imports could face tough times
Sri Lanka is facing down a liquidity crisis. It has $50 billion in debt to foreign creditors, but no foreign currency reserves. The country foreign currency was depleted when pandemic-related travel restrictions undermined its thriving tourism industry. It also imports many goods, and costs soared as energy prices rose.
Higher interest rates are already packing a punch
Payments on variable rate mortgages have gone up, and house prices have gone down. We are already seeing the impact of higher interest rates, and we are not done yet, according to Prof. Sebastien Betermier. “I expect to see a continuation of what we are already seeing,” Betermier told CTV News.
Persistent inflation could contribute to a recession, but there are steps that can take to ease the pain
The recovery from the pandemic created strong demand for products and services, but supply remained weak as a result of supply chain disruptions, labour shortages, and the rising cost of food and oil. Together, these factors have contributed to high inflation, which central banks are fighting by raising interest rates. But some of these factors are beyond the reach of central bank’s efforts, like rising energy prices caused by the war in Ukraine, said Prof.
More efficient capital management could help pension funds strained by longer life expectancy
Canadians are living longer than ever. Life expectancy at retirement has increased by about four years since 1980. This creates a cash crunch for pension funds. Increasing current plan members contributions is one way to address this, but more efficient capital management can help too. Pension funds have a distinct advantage over other investors, argues Prof. Sebastien Betermier in Policy Options.
Prof. Betermier lands new role as Director of ICPM
Sebastien Betermier, Associate Professor of Finance and Finance Area Coordinator at the Desautels Faculty of Management at McGill University has been appointed as the new Executive Director of The International Centre for Pension Management (ICPM).
Investing experience can help navigate market downturns
Many young investors have never lived through a major market downturn, and some novices could overreact as markets fall, according to Sebastien Betermier, an Associate Professor of Finance at Desautels.
Canada’s largest pension plans are driving green development through real estate investments
The skyscrapers of Toronto’s financial district house Canada’s largest banks, and some of its most successful companies. The buildings themselves are largely owned by Canada’s largest pension funds, which have directly developed real estate across major Canadian cities.
Supply chain disruptions caused inflation, and the war in Ukraine is making it worse
Inflation is up. Way up. In March 2022, Canada experienced its biggest increase in inflation in more than three decades. The oft-cited monthly inflation figure represents the rate of change in the consumer price index, and many consumers are already feeling the pinch in their pocketbooks.
But why is it happening? Inflation is typically caused by either increased consumer demand in a strong economy, or by supply shortages that drive prices higher.
