The historical mainstay of pension planning, the defined benefit (DB) pension plan is disappearing across the developed economies, with now less than half of current pension assets. In Canada it is projected that there will be no new DB plan members after 2026.
In planning how to fund your retirement, you might think about dividing your savings in the same way as you would a pizza. If you believe your retirement will last 30 years, you could divide your savings into 30 slices, one for each year of retirement.
In 2018, Canadian passive funds increased their market share from 10.0% to 10.5% on the back of a positive flow of $9 billion. Meanwhile, Canadian active funds attracted $6 billion. We estimate that Canadian passive funds post a weighted average Management Expense Ratio of 0.30%, compared to a substantial 1.66% for active funds.
There is a better way to build an index fund portfolio than accepting the market cap weights of stocks.Simplicity is a beautiful thing when it comes to investing.
How to estimate future stock and bond returns when creating a financial plan
This paper reviews the risk of a capital gains distribution specific to Vanguard ETFs, more specifically from the perspective of Canadian taxable investors. We conclude that Vanguard’s multiple-share-class structure is very unlikely to trigger large capital gains distributions.
ESG and SRI investments are becoming more prevalent in the investment universe. This document covers the three main strategies of ESG investing: passive, integration, and active. We review the implementation of each strategy, the consequences for portfolio returns, and we recommend some options for investing according to ESG.
One of the most common questions that I am asked is “should I invest in real estate?” Even more common than this question is the matter of fact statement that real estate is a great investment.
This report describes the competitive landscape for passively and actively managed funds over the last twelve years in Canada and the United States.
Asset allocation requires investors to determine the appropriate allocation of each asset class – Canadian equities, US equities, International equities, fixed income – in their portfolio.