Canadian Pension Funds - Articles & White Papers

The Global Pension Assets Study estimates global pension fund assets across 22 major pension markets (the P22). These geographies now stand at US$55.7 trillion in pension assets and account for 69% of the GDP of these economies. The study, conducted by WTW and the Thinking Ahead Institute since the 1990s, includes an…

In the initial analysis of U.S. and Canadian asset owners (endowments, foundations, SWFs, and pension funds), 13F filings were used to analyze ETF holdings and trends in these investments. In 2023, asset owner ETF AUM increased 22%, to USD 56 billion. Over the past 10 years, ETF usage has increased 4x, with most of that…

As the Canadian economy appears certain to transition to a lower interest-rate environment, our Multi-Asset Solutions Team examines how liability-driven investing can help defined benefit plans to preserve pension fund health.

The global top 300 pension funds is an annual study conducted by the Thinking Ahead Institute. AUM of the top 300 pension funds total US$20.6 trillion, having reduced by 12.9% in 2022, down from 8.9% growth the previous year. High inflation and higher interest rates disrupted equity and bond markets worldwide piling the…

Published in December 2023, 'Pensions at a Glance' highlights the pension reforms undertaken by OECD countries over the last two years. It includes a special chapter focusing on pension provisions for hazardous or arduous work. It describes existing rules, characterises recent policy trends and assesses the design and…

The Canadian model is generally regarded is one of the most successful investment models. Historical performance shows good risk adjusted returns, outperforming passive investment strategies and other investment models. This performance is attributed to four specific characteristics: its governance, large allocation to…

Global Pension Finance Watch, published quarterly, reviews how capital market performance affects defined benefit pension plan financing in major retirement markets worldwide, with a focus on linked asset/liability results. We cover defined benefit pension plans in Brazil, Canada, the Eurozone, Japan, Switzerland, the U.K.…

The Global Public Pensions 2023 report explores how public pension and sovereign funds are building optimal investment strategies to address the uncertain economic environment and factor sustainability into their portfolios. The report draws on surveys, discussions, and written contributions from 22 global public funds…

This edition of Pension Markets in Focus shows the developments in asset-backed pension systems in 2022. Elevated inflation and higher interest rates led to negative real returns in 2022. This resulted in a fall in assets earmarked for retirement in the OECD, despite higher contributions.

How can pension funds create and capture value in financial markets? We study four landmark transactions made by large Canadian pension funds: OTPP’s acquisition of Cadillac Fairview, PSP’s development of Mahi Pono, CDPQ’s development of Réseau Express Métropolitain, and CPP Investments’s acquisition of Antares Capital. The…

Through a financial contribution from the Canadian Institute of Actuaries and the Society of Actuaries, the Canadian mortality series in the Human Mortality Database (HMD, www.mortality.org) has been updated to include revised data for 2017-2019 and new data for 2020 and 2021.

On a quarterly basis, the Group Annuity Purchase Team at WTW provides updates on the Canadian group annuity market. We estimate that $3.3B of group annuities were placed during the fourth quarter of 2023, bringing the total 2023 sales volume to $7.7B. CPI-linked annuities represent approximately $1.0B of market volume. Four…

Several modern retirement arrangements, including lifetime pension pools, allow retirees to convert a single premium into income for life that varies with investment and mortality experience. It is anticipated that there will be an increase in the number of lifetime pension pools in the future. There are, nonetheless, some…

The CCPA founded the Monitor magazine in 1994 to share and promote its progressive research and ideas, as well as those of like minded Canadian and international voices. The Monitor is is published four times a year by the Canadian Centre for Policy Alternatives.

Several modern retirement arrangements, including lifetime pension pools, allow retirees to convert a single premium into income for life that varies with investment and mortality experience. It is anticipated that there will be an increase in the number of lifetime pension pools in the future. There are, nonetheless, some…

Canadian pension funds are going through an important transformation. Here is how they can accelerate their data-driven investments.

The 2023 Global Survey of Accounting Assumptions for Defined Benefit Plans is the 34th annual WTW survey of assumptions selected by major corporations for their defined benefit (DB) plans around the world. This is an executive summary.

The value of assets earmarked for retirement declined in most OECD countries in 2022 driven by negative nominal investment rates of return. Fixed income instruments, the largest asset class for pension providers, have seen large drops in valuations across the globe driven by high inflation and interest rates. Widespread…

WTW’s Pension Finance Watch tracks the asset/liability performance of a hypothetical Canadian benchmark pension plan, based on a 50/50 asset mix and a typical liability profile. The index is not intended to represent an average funded ratio. Rather, the intent is to provide plan sponsors with a consistent and relevant…

The 2023 Fall Economic Statement targets two central challenges: 1) supporting the middle class and introducing targeted measures to help stabilize prices and improve the cost of living; and 2) investing in critical housing infrastructure to create affordable housing.