CANADA - The high value of the Canadian dollar has again caused problems for pension funds and other institutional investors, according to a report by RBC Dexia Investment Services (RBC DIS).
Canadian pensions were down 0.7% in value at the end of the third quarter, marking only 1.8% growth on the year to date. This was exacerbated by a 17% rise in the value of the Canadian dollar against the US.
In the second quarter of 2007 RBC DIS quoted the Canadian dollar as appreciating almost 8% against a basket of world currencies, including 13.2% against the Japanese yen.
Canadian pension funds have typically invested around half their assets in foreign equities, which has made exposure to foreign exchange a key concern for pension trustees and plan sponsors.
However, Canadian pension funds are up 11.3% on the year so far, marginally outperforming the RBC DIS benchmark.
This week's edition of Professional Pensions is out now
Collective defined contribution (CDC) schemes will need clear and transparent governance frameworks, as well as effective communication strategies, to be a success, the Work and Pensions Committee (WPC) has been told.
The aviation sector's constant evaluation of mistakes to improve safety should be applied to defined benefit schemes, as too many are making the same mistakes again and again, latest research shows.
A month of strikes are due to hit 64 universities from tomorrow over major reforms to the Universities Superannuation Scheme (USS).