top of page
BPM Lastest Issue

BPM Lastest Issue

1/1

Daily News Alerts

Consider signing up for our Daily News Alert Email to receive relevant industry news, headlines and articles delivered directly to your inbox.

Wednesday, January 4, 2023

Relapse Into Protectionism Increasing

While the long era of globalization boosted economic growth, generated jobs, and produced other economic benefits for both industrialized countries and emerging markets, current trends point to a slow unraveling in that trend – with profound implications for investors. Regina Chi, vice-president and portfolio manager at AGF Investments, says major governments are increasingly relapsing into protectionism. China, the most important link in the current hyper-globalization network, has grown more forceful and less accommodating to Western goals. With its invasion of Ukraine, Russia has snubbed the so-called ‘new world order,’ further upsetting the already fragile global supply systems revealed by the pandemic. While it might be tempting to assume those are short-term trends, she says there is another possibility: that these are markers of a slow deglobalization that will mean higher inflation and a far less productive world for years to come. The fallout of deglobalization will be higher inflation. While multinational companies were previously able to raise productivity and profits by arbitraging tax rates, low tariffs, and low labour costs to EMs – including China – deglobalization threatens to undo those and other dynamics.

Wednesday, January 4, 2023

Plan Solvency Improves

Despite the significant volatility and market declines experienced in 2022, the Mercer ‘Pension Health Pulse’ shows the median solvency ratio of the defined benefit pension plans in its database, finished the year at 113 per cent, up from 108 per cent at September 30, 2022, and up from 103 per cent at the beginning of 2022. The improved position was primarily due to the significant increases in interest rates during 2022. The higher interest rates led to lower DB pension liabilities, which more than offset the decline in pension plan assets experienced during the year. Of the plans in its database, 79 per cent are estimated to be in a surplus position on a solvency basis at the end of 2022, versus 61 per cent at the end of 2021.

Wednesday, January 4, 2023

CEO Earns Average Wage Already

By 9:43 a.m. January 3, Canada's highest-paid CEOs had already earned the average worker's entire annual salary. The Canadian Centre for Policy Alternatives (CCPA) says the 100 best-paid chief executive officers in Canada now make 243 times what the typical worker earns. The best-paid executives in Canada earned an average of $14.3 million in 2021. Meanwhile, the average private-sector worker made just under $58,800 in 2021.

Wednesday, January 4, 2023

ESG Ratings Need Regulatory Framework

The European Commission is being urged to develop an EU regulatory framework for ESG (environmental, social, and governance) ratings. The European Fund and Asset Management Association (EFAMA) recommendation follows its research into the ESG ratings of more than 15,000 Article 8 and 9 funds. These ratings are predominantly used to evaluate the ESG credentials of financial products offered by specialized providers. It predicts the use of these ratings is about to ‘grow rapidly’ due to ‘investor demand’ for insights into funds introduced by the Sustainable Finance Disclosure Regulation (SFDR). The EFAMA says the increase in demand has been triggered by a new requirement since August 2022 for financial advisors and fund distributors to consider clients’ sustainability preferences and propose products that meet their needs. It wants to see a requirement to disclose methodologies and data sources used to provide ESG ratings; the provision of a level playing field by ensuring all major firms assigning ratings to funds domiciled in the EU are within scope, including non-EU providers generating a certain percentage of EU revenues; and the preservation of market integrity by setting specific requirements for internal controls and governance processes to avoid conflicts of interest.

Wednesday, January 4, 2023

U.S. Investors Drive Canadian VCs

Driven primarily by U.S. and international investors, Canadian venture capital (VC) investments in the fourth quarter of 2022 may easily surpass $2.2 billion mark, says CPE Analytics/Canadian Financings' preliminary ‘2022 Canadian Venture Capital Report.’ As of 2022 year-end, $2.18 billion has been tallied for the quarter and $8.19 billion for the year 2022. This means 2022 is becoming the second-best Canadian VC year behind the record year 2021. U.S. and international investors played dominant roles in propelling fourth quarter investments, accounting for 49 per cent and 18 per cent of total disbursements respectively. Overall U.S. and international investors accounted for 47 per cent and 19 per cent of 2022 total disbursements.

Wednesday, January 4, 2023

Capital Markets Assumptions Offered

‘Future Forward: Invesco’s Latest Capital Markets Assumptions’ will feature the Invesco investment solutions team as they share their 2023 outlook at a Benefits and Pensions Monitor Meetings & Events session. Paisley Nardini, strategist, and Drew Thornton, head of thought leadership, Invesco Investment Solutions, will provide return insights and implementation ideas on topics such as revisiting asset allocations given the rise in yields, the opportunity cost across public and private assets, and increasing the chance of success when investing in private markets. It takes place January 19. Information is at https://www.bpmmagazine.com/webinars

Tuesday, January 3, 2023

Pharmacists Can Now Prescribe

Ontario pharmacists can now assess and prescribe medication for minor conditions such as pink eye, eczema, and urinary tract infections, says the Ontario Pharmacists Association (OPA). It says Ontario is taking an important step to improve access to healthcare for Ontarians. Until now, patients have had to visit their primary care provider, walk-in clinic, or a local hospital to treat minor ailments. Patients can now simply call their local pharmacy to make an appointment or go to their nearest pharmacy during regular hours and speak to their pharmacist. Patients must present a valid Ontario health card to access this publicly funded service. Patients are not required to pay a fee. Pharmacists already have the clinical training and expertise needed to treat minor ailments such as pink eye, eczema, or urinary tract infections, among many others. The OPA also has accredited training and refresher educational programs in place to ensure all pharmacists are comfortable, capable, and confident in their performance of assessments and treatment of patients with minor ailments.

Tuesday, January 3, 2023

Canadians Willing To Wear Masks, If Necessary

This year’s holiday season looks a lot different than the previous two, with public health restrictions now largely left to the Ghost of Christmas Past, says the Angus Reid Institute. However, research from the organization shows a large group of unmasked Canadians would appreciate a push from government to force them to take a more cautionary approach. In fact, more than half of Canadians are supportive of re-implementing mask mandates if cases of COVID-19 rise this winter. At the same time, just three-in-10 (31 per cent) say they are wearing a mask more than half of the time in public spaces currently on their own volition. As immune-evasive Omicron variants spread, and influenza and respiratory illnesses cause problems for healthcare providers across the country, some speculate that mask mandates may be needed to curb infection. One-quarter (23 per cent) of those who ‘never’ wear a mask say they would support a mask mandate while two-thirds (65 per cent) of those who rarely but sometimes wear one also say they would accommodate a return to mandatory masking. As many look to their government for action on masking, few have the same appetite for a reintroduction of vaccine passports. One-in-five (21 per cent) would support this action, while two-in-five Canadians (42 per cent) say neither masking mandates nor vaccine passports should be in Canada’s future.

Tuesday, January 3, 2023

Deployment To Alternatives Can Be Accelerated

Private markets have a ‘unique opportunity’ to accelerate capital deployment from traditional markets to alternative assets as global economic conditions worsen, says Ocorian, a global diversified financial services group. It predicts growth in the year ahead will focus on pure private market investments and a shift towards multi alternative asset strategies. It also forecasts an increased focus on distressed asset funds which will be longer term and closed ended. Alternative assets are growing in popularity as they offer the potential for attractive yields and low correlation to economic conditions such as interest rates and inflation, unlike bonds and equities. However, the sector needs to speed up on standardization and tokenization to match traditional markets. It estimates the sector has up to 18 months to achieve what traditional markets have done in 12 years in this area.

Tuesday, January 3, 2023

Crypto ETF Inflows Lower

Crypto ETFs and ETPs listed globally saw net inflows of US$37 million during November, bringing year-to-date net inflows to US$741 million, much lower than the US$9.02 billion gathered at this point last year. ETFGI says total assets invested in crypto ETFs and ETPs decreased by 17 per cent from US$7.49 billion at the end of October 2022 to US$6.22 billion.

Tuesday, January 3, 2023

Ontario Teachers’ Sells Camelot

Allwyn AG, a European lottery operator, will acquire the Camelot Lottery Solutions group of companies from the Ontario Teachers’ Pension Plan Board. Camelot operates the Illinois Lottery under a private management agreement. It also includes a technology arm that provides products and services to lotteries and their players throughout Europe and North America.

Tuesday, January 3, 2023

Aiken Joins Wawanesa

Mike Aiken is vice-president, group insurance, at Wawanesa Insurance. Previously, he was assistant vice-president, operations. At Sun Life.

Tuesday, January 3, 2023

Economic Outlook Provided

CPBI Ontario’s ‘2023 Economic Outlook’ will review the impact of the current and prospective market landscape on individuals and investments. Michael A. Mullaney, director of global markets research at Boston Partners; Aaron Bennett, chief investment officer at the University Pension Plan Ontario (UPP); and John Bai, senior vice-president and chief investment officer at NEI; will share insights on key economic themes impacting world markets and portfolio construction. It takes place January 25 in Toronto, ON. Information is at https://www.cpbi-icra.ca/Events/Details/Ontario/2023/01-25-CPBI-Ontario-Economic-Outlook-2023-Breakfast

Friday, December 23, 2022

Ontario Plans Biosimilar Switching

Ontario is introducing a policy requiring the mandatory use of biosimilars drug instead of more expensive biologic drugs, says Helen Stevenson, founder and CEO of the Reformulary Group Inc, citing a report in the Globe and Mail. The policy will save money and better ensure the long-term sustainability of the province’s drug plan. Mandatory switching policies have already been adopted in several other provinces, including British Columbia and Alberta. Biologic drugs are used to treat a variety of conditions, including rheumatoid arthritis, inflammatory bowel disease, and some forms of cancer. However, they are expensive and make up a significant portion of drug spending in Canada. Sales of biologic medicines in Canada rose to $10 billion in 2020 from $3.3 billion in 2011. Biosimilars are nearly identical versions of biologic drugs that are typically offered at a much lower cost.

Friday, December 23, 2022

Global REITS Trade At Discounts

After an exceptionally harsh year, global real estate investment trusts (REITs) are currently trading at significant discounts, with tailwinds that could materialize in 2023 to offer significant positive mean reversion, says Hazelview Investments. Its ‘2023 Global Public Real Estate Outlook Report’ shows 2022 is on pace to be the second worst performance year ever, since the start of the global REIT era over 30 years ago. Only the global financial crisis in 2008 was worse and only four times (1990, 1992, 1994, and 2008) have global REITs declined by more than 10 per cent. REIT valuations currently sit at significant discounts to private real estate benchmarks (-26 per cent) and below their pre-COVID trading levels (-14 per cent) which is a stark comparison to global equities that trade nine per cent above their February 2020 high. Relative performance by company property type has been even more unusual. The top performers (companies with strong balance sheets, best in class real estate portfolios, superior earnings potential, and high-quality cycle tested management teams) and property types that are structured to benefit from rising inflation (apartments, single famil