ƽ��岻�� Desautels Faculty of Management - Sebastien Betermier's Recent Media Coverage

Making strategic assets available to pension funds would encourage more domestic investment

ƽ��岻�� — Wed, 18 Dec 2024 19:02:26 +0000

Canadian pension funds have a mandate to deliver steady pension payments to millions of plan members, writes Professor Sebastien Betermier in Benefits Canada. But that’s easier said than done, and the most cost-efficient way to deliver is by investing in a globally diversified portfolio tilted toward strategic assets. This type of asset, however, isn’t available in Canada, so pension funds look for them elsewhere.

Instability at Alberta’s public pension fund could undermine its effectiveness

ƽ��岻�� — Thu, 21 Nov 2024 20:50:00 +0000

While 2020 was tough on just about everyone, the Alberta Investment Management Corporation (AIMCo) really took it on the chin. Alberta’s public pension fund manager lost billions of dollars in a volatility-based trading strategy during a topsy-turvy year in markets. The losses undermined public confidence in AIMCo, and the province’s Finance Minister Nate Horner recently dismissed AIMCo’s entire board, appointing a veteran public servant to serve as the organization’s interim CEO.

Canadian pension funds are already overweight on Canadian equities

ƽ��岻�� — Tue, 15 Oct 2024 20:09:37 +0000

Canada’s eight largest pension funds are big players in the world of institutional investing with more than $1 trillion under management collectively. Pressure is being applied for the funds to invest a greater proportion of their money in Canadian stocks. Yet, 18 per cent of their portfolio is already invested in domestic markets, explains Associate Professor Sebastien Betermier in an interview with Les Affaires.

Changes in pension funds portfolio management produce different demands for analysts and managers

ƽ��岻�� — Tue, 15 Oct 2024 19:55:06 +0000

Historically, pension funds managed their portfolios using a strategic asset allocation approach. Fundamentally, this meant buying a mix of asset classes with the highest probability of achieving the necessary returns, at a level of risk that was acceptable – or buying and holding. But since the mid-2000s, some large pension funds have adopted a total portfolio approach strategy, which seeks to maximize returns while keeping a portfolio’s volatility low.

A lack of strategic assets can be a deterrent to domestic investment for large pension funds

ƽ��岻�� — Tue, 27 Aug 2024 22:20:22 +0000

In 2023, the Government of Australia suggested that some of the country’s pension assets might be used to fund social housing or renewable energy. The idea received mixed reception, and to understand why, Lachlan Maddock of Investor Strategy News looked to Canada, where a group of business leaders called for pension funds to increase their holdings of Canadian equities. Maddock quoted research published by ƽ��岻�� Desautels’ Associate Professor of Finance Sebastien Betermier.

Opening infrastructure could encourage Canada’s pension funds to invest more domestically

ƽ��岻�� — Mon, 15 Jul 2024 18:08:14 +0000

The Government of Canada is exploring ways to increase investments in the country’s pension fund equities, but doing so sacrifices returns, according to The Economist. Over the past decade, Canadian mid and small-cap stocks have returned just 3-4% each year, while U.S. stocks have seen a 13% return annually. Opening infrastructure to investment is another way to encourage pension funds to invest more of their capital domestically.

Domestic investment: Should Canadian pension funds focus on local companies?

ƽ��岻�� — Thu, 11 Jul 2024 19:10:44 +0000

Canada’s biggest pension funds are some of the world’s largest investors and their diversified portfolios span the globe. But, should they be investing more in Canadian companies? Some CEOs think so. In March, 90 CEOs signed an open letter to Finance Minister Chrystia Freeland urging her to find ways to get pension funds to invest more in Canadian companies. But forcing pension funds to do so would be a mistake, says CD Howe Institute Senior Fellow Miville Tremblay in an op-ed in LaPresse.

Negative real estate returns have some pension funds considering a change in approach

ƽ��岻�� — Tue, 09 Jul 2024 18:31:33 +0000

Over the past few decades, Canada’s big pension funds have piled into direct real estate investments. But, as higher borrowing costs hit property markets, returns have gone negative. Some funds are considering whether they should take a step back and make this type of investment through third-party managers. “You have a few pension funds asking themselves, should I continue to go as direct?” says Associate Professor of Finance Sebastien Betermier in an interview with BNN Bloomberg.

Sustainable investing doesn’t only mean companies that are already green—large investors can push polluters to become greener

ƽ��岻�� — Thu, 13 Jun 2024 18:26:13 +0000

Many pension funds are pledging to invest in green assets with net-zero emissions, but these investments tend to yield lower returns than the broader market index. Beyond that, a hard shift toward green investments could remove the incentive for heavy emitters to clear up their act. Investors need to rethink the assumption that sustainable investing means investing primarily in green assets, writes Professor Sebastien Betermier in Benefits Canada.

New York City Public Pension Fund pushes RBC for energy transparency

ƽ��岻�� — Wed, 17 Apr 2024 18:01:53 +0000

The New York City Public Pension Fund has pushed Canada’s largest bank to deliver greater transparency about its investments in green energy and fossil fuels. The Royal Bank of Canada (RBC) will begin publishing the ratio between the two types of energy investments in its portfolio.

After a slow 2023, exchange-traded fund listings are revitalizing

ƽ��岻�� — Wed, 17 Apr 2024 17:57:31 +0000

In 2023, more than 120 exchange-traded funds (ETFs) were delisted in Canada—more than four times as many as in an average year. Even so, there was still a net gain in the overall number of ETFs, with 164 new ones launching for the year. With numbers in for the first quarter of 2024, the high number of delistings appears to have been an anomaly.

ƽ��岻�� Desautels faculty members and researchers celebrated at Bravo Gala

ƽ��岻�� — Thu, 21 Mar 2024 17:55:09 +0000

ƽ��岻�� hosted its annual Bravo Gala on Thursday, March 21, which honours its faculty members and researchers who have won special awards, memberships and prizes over the past year. ƽ��岻�� Desautels is proud to announce 14 of its faculty amongst the distinguished honourees this year. Congratulations to our deserving laureates! Full list below.
#Bravo2024

· Geneviève Bassellier, Best AMCIS Emergent Research Forum Paper, Americas Conference on Information Systems

Advanced life deferred annuities can give retirees peace of mind

ƽ��岻�� — Thu, 14 Mar 2024 16:49:21 +0000

For people with defined contribution pension plans, longevity risk is a significant concern. You don’t want to outlive your money. The issue is compounded because today’s retirees have longer life expectancies than ever before, writes Sebastien Betermier in Benefits Canada. Most retirees decumulate their capital on their own, but because they’re afraid to outlast their savings, this leads to a pattern of living poor and dying rich. An advanced life deferred annuity (ALDA) can help address this problem.

MIPC asks students to devise decumulation strategies for an inflationary environment

ƽ��岻�� — Fri, 19 Jan 2024 18:18:35 +0000

For its 7th edition, the 2023 ƽ��岻�� International Portfolio Challenge (MIPC), as part of ƽ��岻��’s Sustainable Growth Initiative (SGI), gathered over 80 teams from 27 countries to address retirement challenges amidst inflation. Participants tackled the task of developing decumulation strategies for the fictional Maple Leaf Pension Plan, simulating real-world data.

Pension funds can drive greater returns by participating more directly in value creation

ƽ��岻�� — Wed, 10 Jan 2024 20:51:57 +0000

Pension funds manage enormous amounts of capital, but they don’t create as much value as other players in the financial sector. Entrepreneurs, venture capitalists and private equity funds all play a more direct role in launching projects and creating value. But some Canadian pension funds have taken control of the value-creation process with investments in real estate, natural resources, infrastructure, and private credit, writes Associate Professor Sebastien Betermier in Wealth Professional.

Long-term investments help Canadian pension plans outperform international counterparts

ƽ��岻�� — Tue, 12 Dec 2023 16:45:01 +0000

Canadian pension funds have outperformed their counterparts elsewhere, and a recent study co-authored by Associate Professor of Finance Sebastien Betermier examines how they’ve accomplished this. The study analyzes four deals – in the agricultural, railway transportation, real estate development, and financial services– that diversified their holdings and enabled their success.

More Canadians are renewing their mortgages at higher rates, as economy heads toward forecasted recession

ƽ��岻�� — Tue, 12 Dec 2023 16:40:21 +0000

More than 3 million Canadians will be facing mortgage renewal in the next 18 months – and with interest rates still at their highest level in years, many will face payments that are 30-40% higher. “Inflation has been off the charts for the past couple years, and when the Bank of Canada raises interest rates, it is to bring inflation down,” explains Sebastien Betermier, Associate Professor of Finance.

Canadian pension funds divestment of private equity holdings rebalances portfolios

ƽ��岻�� — Tue, 21 Nov 2023 20:24:33 +0000

Canadian pension funds are strategically divesting from their private equity holdings to realign their portfolios. Recognizing the inherent lag in private equity valuations compared to publicly traded assets, the move aims to address potential overvaluations, particularly in the context of rising interest rates.

Public pension plans in Canada and Australia achieve efficiencies through professional asset management at scale

ƽ��岻�� — Mon, 20 Nov 2023 17:01:09 +0000

Canada and Australia are both examples of successful pension fund management, said Prof. Sebastien Betermier in a keynote presentation to the Government Employees Pension Fund (GEPF) Thought Leadership Conference in Cape Town, South Africa. While there are differences, both capture similar efficiencies: getting people to save money early, so they benefit from compounding. The assets in these funds are professionally managed, which provides multiple advantages.

Alberta’s withdrawal from Canada Pension Plan means leaving one of the world’s best-managed funds

ƽ��岻�� — Fri, 10 Nov 2023 18:17:49 +0000

The Canada Pension Plan (CPP) launched in 1966 and pays retirees a monthly amount based on contributions deducted from their paycheques throughout their working lives. "You contribute with the understanding that when it comes your time to retire, you can expect your own steady stream of income where the risks are being managed directly by the plan," says Prof.

Delve: How the Era of Energy Transition Is Changing Business Leadership

ƽ��岻�� — Thu, 08 Jun 2023 20:18:15 +0000

The global transition to net-zero requires significant changes in the way businesses operate and grow. How can business leaders successfully manage this energy transition? What are its opportunities and risks for businesses? And what role do corporate boards and investors play in overseeing and encouraging the transition?

Celebrating excellence in teaching at Desautels

ƽ��岻�� — Wed, 31 May 2023 19:52:07 +0000

Across programs and subject areas, the Desautels Faculty of Management recognizes the vital role that teaching plays in enriching the student experience and in inspiring the next generation of leaders.

The Distinguished Teaching Award recipients Anna Kim and Warut Khern-am-nuai were honoured at ƽ��岻��’s 2023 Management Convocation ceremony on May 31, for their excellence in teaching.

The future of commercial real estate belongs to those who can meet the evolving needs of the office

ƽ��岻�� — Thu, 23 Mar 2023 20:19:15 +0000

Lockdowns and remote work presented unique challenges for the commercial real estate sector. Vast amounts of office space were suddenly empty as people worked from home. But the sector is rebounding. There are projects underway in cities around the world are a testament to investors’ confidence in its outlook, says Sebastien Betermier, an Associate Professor of Finance at Desautels.

Delve: How Banks and Institutional Investment Funds Are Driving the Road to Net-Zero

ƽ��岻�� — Thu, 05 Jan 2023 21:58:16 +0000

One of the biggest challenges today for financial institutions is how to meet net-zero climate targets while achieving high returns on investment and satisfying the needs of various stakeholders. What does the road to net-zero look like in the realm of long-term investment, who are the players, and how should the inevitable roadblocks be overcome?

Crypto’s impressive returns led institutional investors to consider unconventional investments

ƽ��岻�� — Fri, 02 Dec 2022 15:17:18 +0000

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

ƽ��岻�� — Mon, 14 Nov 2022 21:34:57 +0000

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. Whether they appreciate or not, they can still give you shelter, and some investors consider this more valuable than portfolio diversification.

MIPC wraps up with MDIIM Symposium and Grand Finale

ƽ��岻�� — Mon, 14 Nov 2022 15:47:57 +0000

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 ƽ��岻�� International Portfolio Challenge (MIPC). Thank you to our panelists, Fanny Doucet, CFA, Managing Director & Head, Sustainable Finance at Scotiabank and Lori Kerr, CEO of FinDev Canada for participating in what was an ins

Real estate investment helps Canadian pension plans outperform peers

ƽ��岻�� — Mon, 31 Oct 2022 19:59:41 +0000

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

ƽ��岻�� — Wed, 28 Sep 2022 14:34:13 +0000

“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. The CAQ promises tax cuts and one-time payments to deal with inflation, to the tune of $600 if you earn less than $50,000 a year.

When a recession is coming, investors need to keep a level head

ƽ��岻�� — Wed, 28 Sep 2022 14:21:26 +0000

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. When a recession is coming, investors tend to think of all of the things that could go wrong, Betermier told Beyond the Headlines, a podcast produced by the University of Toronto’s Munk School of Global Affairs and Public Policy.

Inflation is a major challenge for seniors on fixed incomes

ƽ��岻�� — Wed, 07 Sep 2022 16:05:40 +0000

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. Geopolitical issues like the war in Ukraine are exacerbating the factors causing inflation.

Countries with high debt and a reliance on imports could face tough times

ƽ��岻�� — Thu, 25 Aug 2022 19:03:16 +0000

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

ƽ��岻�� — Tue, 02 Aug 2022 19:03:38 +0000

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. “An increase in the cost of credit, and a decrease in the use of credit.” Labour shortages are an added complication in guiding Canada’s economy through this rough patch.

Persistent inflation could contribute to a recession, but there are steps that can take to ease the pain

ƽ��岻�� — Wed, 06 Jul 2022 18:22:52 +0000

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

ƽ��岻�� — Wed, 22 Jun 2022 14:18:56 +0000

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

ƽ��岻�� — Wed, 08 Jun 2022 19:49:38 +0000

Sebastien Betermier, Associate Professor of Finance and Finance Area Coordinator at the Desautels Faculty of Management at ƽ��岻�� has been appointed as the new Executive Director of The International Centre for Pension Management (ICPM).

Investing experience can help navigate market downturns

ƽ��岻�� — Thu, 02 Jun 2022 20:29:58 +0000

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. Analysis has shown that novice investors sold their holdings in greater numbers following the recession of 2008, and saw their portfolios perform more poorly than experienced investors, who were more likely to have bought in while prices were low and to stay the course.

Canada’s largest pension plans are driving green development through real estate investments

ƽ��岻�� — Wed, 11 May 2022 15:59:05 +0000

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. This approach has generated high returns for the funds over the past two decades, but it has also allowed the pension funds to be leaders in the implementation of Leadership in Energy and Environmental Design (LEED) standards. Prof.

Supply chain disruptions caused inflation, and the war in Ukraine is making it worse

ƽ��岻�� — Wed, 04 May 2022 15:13:58 +0000

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.

Prof. Sebastien Betermier talks investment strategies with Rational Reminder podcast

ƽ��岻�� — Fri, 22 Apr 2022 14:59:52 +0000

Stocks with high expected return appeal to many new investors, but can be exposed to high risks. Investors must consider how these risks can impact their overall financial situation, Prof. Sebastien Betermier tells the Rational Reminder podcast. Dual-income families might be able to accept a higher degree of risk, while single-income earners with a mortgage could experience cascading impacts when a high-risk security goes south.

The Russian economy has cratered – but most Canadian investors are unlikely to have much exposure to it

ƽ��岻�� — Wed, 23 Mar 2022 20:23:19 +0000

Russia produces about 10 per cent of the world’s oil, but the rest of its economy is more of a lightweight. Before it attacked Ukraine, and had its financial system crippled by severe sanctions, Russia accounted for about three per cent of global GDP. Because Russian stock markets were closed after the invasion, investors have been unable to sell their holdings.

The potential long-term impact of unprecedented economic sanctions on Russia

ƽ��岻�� — Thu, 17 Mar 2022 20:25:51 +0000

While the use of economic sanctions for political means is no new strategy, the magnitude of the sanctions imposed on Russia in the wake of Putin’s invasion of neighbouring Ukraine is unprecedented, says Professor Sebastien Betermier in an interview with CTV Montreal. Perhaps most impactful is the freeze on Russian Central Bank assets and SWIFT, a financial messaging platform used by banks to make international transactions.

The truth behind divestment at public and private firms

ƽ��岻�� — Thu, 17 Mar 2022 20:09:19 +0000

The transition to a clean energy economy is only beginning, but its reverberations are already being felt in global markets. Institutional investors like the Caisse de dépot et placement du Quebec are divesting from fossil fuel companies, and divestment strategies are one factor in the drop in the share prices of fossil fuel companies, according to Sebastien Betermier, Associate Professor of Finance at Desautels.

Three tips for going green

ƽ��岻�� — Thu, 24 Feb 2022 18:48:15 +0000

On a recent segment of CTV News Montreal, Professor Sebastien Betermier shared three key takeaways from the 5th annual ƽ��岻�� International Portfolio Competition, an event designed to help guide corporate and political leaders toward a greener economy. First, managers should create clear milestones, he says. Second, they must integrate change across industries. Finally, they should develop proactive stakeholder policies.

Putting ESG front and center

ƽ��岻�� — Fri, 21 Jan 2022 22:10:35 +0000

Meeting environmental, social, and governance (ESG) standards continues to weigh heavily on the agenda for Canadian companies across industries. As Desautels strives to prepare students to meet evolving demands, Professor Sebastien Betermier highlights the importance of integrating ESG considerations into coursework--but not at the expense of fundamental concepts.

Bridging generational gaps through pension reform

ƽ��岻�� — Tue, 11 Jan 2022 19:27:13 +0000

In light of ongoing Dutch pension reforms, Professor Sebastien Betermier underscores the need for successful pension funds to balance individual and collective responsibility for risk-taking. From his perspective, a hybrid plan is crucial to meet stakeholder needs across generational lines.

MIPC winners prepare to present ideas to Dutch pension funds

ƽ��岻�� — Sun, 19 Dec 2021 22:53:42 +0000

Students from the Copenhagen Business School took home the $25,000 first prize of the fifth annual ƽ��岻�� International Portfolio Challenge (MIPC) this November. According to Professor Sebastien Betermier, who founded the student-organized competition and serves as MIPC’s faculty adviser, the Copenhagen team will have the unique opportunity to present their ideas on retirement reform to Dutch pension funds in 2022.

ƽ��岻�� students spearhead hybrid MIPC

ƽ��岻�� — Tue, 30 Nov 2021 16:51:42 +0000

A dedicated group of ƽ��岻�� students successfully planned the first hybrid iteration of the annual ƽ��岻�� International Portfolio Challenge.

This year, ƽ��岻�� invited 114 teams from 26 countries to tackle the challenge of designing sustainable retirement system plans in light of Dutch pension reforms.

Delve: Why Ultra-Low Yields Don’t Mean the End of Sustainable Pension Funds

ƽ��岻�� — Fri, 26 Nov 2021 14:30:10 +0000

Retirement systems around the world, from public pension plans to private funds, are weathering a storm of ultra-low bond yields that threaten not only adequate returns for pensioners but the sustainability of the systems themselves. Designing retirement systems that are resilient to low yields requires balancing risk with resilience and innovative approaches.

Putting QE in the rearview mirror

ƽ��岻�� — Fri, 19 Nov 2021 15:44:20 +0000

With the winding down of Canadian quantitative easing policies, announced recently by the Bank of Canada’s Governor Tiff Macklem, Professor Sebastien Betermier comments on the effects of rising bond yields on pension plans. Yields across the Canadian economy currently remain at historically low levels due to inflation and supply shortages amid the COVID-19 pandemic.

Risk and return at the fifth annual MIPC

ƽ��岻�� — Mon, 15 Nov 2021 21:35:19 +0000

To kick off the fifth edition of the ƽ��岻�� International Portfolio Challenge, Professor Sebastien Betermier moderated a Delve Integrated Management symposium powered by Global Risk Institute in Financial Services (GRI) entitled “Designing Sustainable Retirement Systems in the Current Environment of Ultra-Low Yields.” The event invited University Pension Plan Ontario’s Barbara Zvan and PSP Investment’s Eduard van Gelderen, leading experts in pension management, to share their perspective on designing

Going green in the concrete jungle

ƽ��岻�� — Mon, 30 Aug 2021 15:19:05 +0000

Professor Sebastien Betermier and his co-researchers published a paper on financial and environmental solutions for sustainable urban development. Canadian pension funds are doing something right, and they outline strategies for other funds and investors to follow suit.

Learn more

Taking a deep dive into pension plans

ƽ��岻�� — Thu, 05 Aug 2021 20:47:27 +0000

In a Q&A for the Montreal Gazette, Professor Sebastien Betermier takes a closer look at the terms and metrics related to the funding status of a pension plan. The growth rates and termination costs of a fund, he emphasizes in the piece, largely depend on the type and risk level of assets owned.

Learn more

Canada emerges as a leader in green bonds

ƽ��岻�� — Thu, 22 Jul 2021 18:05:41 +0000

Canadian retirement pensions are shaping up to be global leaders in issuing green bonds, or funds designated for environmental initiatives. Professor Sebastien Betermier views Canada’s commitment to sustainability as an advantage over other countries in growing both pensions and sustainability projects in the long term. Despite issuing debt, pensions will see increased returns as Canada moves to decrease emissions and create other green solutions to technology, transportation, and real estate.

Desautels professor lends expertise to Exchange Traded Funds (ETF) study

ƽ��岻�� — Fri, 05 Feb 2021 16:19:37 +0000

One of Wall Street’s least-known trading companies, Jane Street has quietly become a global market-maker. With a niche in the world of exchange traded funds (ETFs), the company was well-positioned to weather the COVID-19 crisis. Professor Sebastien Betermier recently entered the conversation with a new report that connects fixed-income ETFs to market liquidity during the pandemic.

Investors anticipate low-carbon economy

ƽ��岻�� — Wed, 20 Jan 2021 03:24:32 +0000

As the renewable energy sector grows in leaps and bounds; pension funds, banks, investment companies, and insurance companies are waking up to the risk of devaluation in fossil fuel investments.

Two international teams claim victory in ƽ��岻�� portfolio-building competition

ƽ��岻�� — Mon, 07 Dec 2020 21:00:12 +0000

The first virtual ƽ��岻�� International Portfolio Competition (MIPC) drew 93 university teams from 18 countries to design portfolio strategies that address the rise of social inequalities and protectionism in the U.K.

93 student teams tackle social inequality and protectionism at MIPC 2020

ƽ��岻�� — Thu, 12 Nov 2020 21:38:38 +0000

The fourth annual ƽ��岻�� International Portfolio Challenge invited 93 student teams from 18 countries to compete to solve a complex portfolio construction problem. This year’s case study challenged participants to invest a fictitious sovereign wealth fund in a way that addressed social inequalities and protectionism in the wake of Brexit.

Learn more

Delve: Canada’s Pension Plan Is the Envy of the World, and Now We Know Why

ƽ��岻�� — Mon, 09 Nov 2020 20:23:47 +0000

A new study by Prof Sebastien Betermier is the first to use real data to do a quantitative analysis of asset allocation strategies and cost structures for hundreds of pension, endowment, and sovereign wealth funds across 11 countries. The results hold valuable lessons not only for financial planners, but also working Canadians dreaming of retirement.

The case for a long-term divestment strategy

ƽ��岻�� — Thu, 05 Nov 2020 21:39:00 +0000

Pressure is on the Canada Pension Plan Investment Board (CPPIB) to divest from fossil fuel companies in support of Canada’s transition to a low-carbon economy. Professor Sebastien Betermier comments.

Advocacy for a second Caisse de dépôt

ƽ��岻�� — Thu, 24 Sep 2020 19:27:00 +0000

An article in La Presse features Sebastien Betermier’s research that reveals the superiority of Canadian pension funds. Using the Canadian pension funds as a model for success, the article proposes a second institution be introduced in Quebec for employees of cities and universities.

Canada is a global leader in pension funds

ƽ��岻�� — Fri, 21 Aug 2020 20:50:27 +0000

Canada’s pension funds are outperforming global peers in investment performance and are stronger at hedging against liability risks, according to research co-authored by Professor Sebastien Betermier.

The politics behind the stock market

ƽ��岻�� — Wed, 29 Jul 2020 14:52:53 +0000

Professor Sebastien Betermier weighs in on the link between politics and stock returns, noting that while there is indeed a correlation, buying shares as a political statement isn’t a “sound investment strategy”.

Desautels professors celebrated for their teaching excellence

ƽ��岻�� — Thu, 02 Jul 2020 16:54:51 +0000

Congratulations to Sebastien Betermier, Professor of Finance, and Wei Qi, Professor of Operations Management, who were honoured at ƽ��岻��’s Management Convocation ceremony for their excellence in teaching.

Professor Sebastian Betermier on sustainable investing

ƽ��岻�� — Fri, 28 Feb 2020 20:19:29 +0000

Professor Sebastien Betermier sits down with the ƽ��岻�� Reporter to talk about sustainable investment strategies. According to Professor Betermier, progressive divestment strategies offer the best of both worlds for investors: they create positive environmental change while respecting the needs of all stakeholders.

However, for progressive strategies to be effective, Professor Betermier says that companies need to clearly communicate the strategy and set tangible milestones.

The complex nature of investment strategies

ƽ��岻�� — Tue, 18 Feb 2020 21:24:22 +0000

Professor Sebastien Betermier uses winning student proposals from the 2019 ƽ��岻�� International Portfolio Challenge as the model for sustainable investment strategies of university endowment funds, suggesting that divestment strategies should go beyond a simple yes or no response.

A shift to cash in fixed-income exchange-traded funds

ƽ��岻�� — Tue, 18 Feb 2020 19:59:14 +0000

Financial Times has published an article featuring Professor Sebastien Betermier’s research on the increasingly common practice of creating fixed-income exchange-traded fund (FI-ETF) shares in cash.

Should you borrow money to invest in your future?

ƽ��岻�� — Fri, 07 Feb 2020 14:59:27 +0000

In an article in La Presse, Professor Sebastien Betermier cautions readers against the risk of borrowing money to invest.

The cash trend in fixed-income exchange-traded funds

ƽ��岻�� — Fri, 17 Jan 2020 16:47:41 +0000

Bloomberg has published an opinion piece featuring Professor Sebastien Betermier’s research on the shift from bonds to cash in fixed-income exchange-traded funds (FI-ETF).

Can university pension plans help tackle climate change?

ƽ��岻�� — Mon, 06 Jan 2020 19:50:35 +0000

In November 2019, teams in the ƽ��岻�� International Portfolio Challenge were asked to provide a solution for a fictional pension fund reassessing its investments in the interest of climate action.

In a piece for The Globe and Mail, Professor Sebastien Betermier considers the winning solution in the context of university pension plans.

Students forging the path to sustainability

ƽ��岻�� — Fri, 13 Dec 2019 15:28:43 +0000

At the recent ƽ��岻�� International Portfolio Challenge, students once again demonstrated that they are leading the march to sustainability. Asked to consider the options of a pension fund under pressure to divest from the fossil fuel industry, the winning team from HEC Montréal presented a solution that is both responsible and realistic.

Learn more

Professor Betermier on the management of exchange-traded funds

ƽ��岻�� — Fri, 29 Nov 2019 14:23:23 +0000

Following the rise of personalized exchange-traded funds (ETFs), Professor Sebastien Betermier comments on the choice between active and passive management.

MIPC brings students together to tackle sustainable investing

ƽ��岻�� — Mon, 25 Nov 2019 18:49:01 +0000

With a focus on the sustainable investment of public pension funds, this year’s ƽ��岻�� International Portfolio Challenge (MIPC) demonstrated students’ ability to realistically solve a key issue facing investors today. The winning team’s strategy proposed a progressive, partial divestment while pursuing investment in diverse green initiatives, according to Professor Sebastien Betermier.

Delve: Pension Plans for an Evolving World

ƽ��岻�� — Mon, 18 Nov 2019 20:03:41 +0000

Prof Sebastien Betermier explores the ways we can evolve from the old system of defined benefits pensions that will no longer meet the needs of tomorrow’s retirees.

This article is brought to you by Delve, the official thought leadership publication of ƽ��岻��'s Desautels Faculty of Management.

Rethinking pensions for today

ƽ��岻�� — Fri, 03 May 2019 15:12:59 +0000

Professor Sebastien Betermier pens a piece for American Business Magazine in which he explores why the switch over to a Defined-Contribution pension might not be the best way to go and proposes other models that can better ensure a comfortable retirement for contributors.

Desautels students take home top prize at PRMIA

ƽ��岻�� — Tue, 16 Apr 2019 18:18:34 +0000

Congratulations to the Desautels Capital Management Team comprised of BCom students Ludovic Van den Bergen, Emilie Granger, Ian Jiang, and Roy Chen Zhang who won first place and $10,000 in prize money at the 2019 PRMIA Risk Management competition.

Reflecting on MIPC 2018

ƽ��岻�� — Fri, 07 Dec 2018 17:50:02 +0000

Avantages reports on the 2018 ƽ��岻�� International Portfolio Challenge (MIPC), which saw 90 teams from around the world compete for a $25,000 grand prize.

Organized by Desautels BCom students under the guidance of Prof. Sebastien Betermier, this year’s MIPC addressed the severe underfunding of U.S. state pensions – a grand challenge that presents no simple solution.

Students to the rescue of a U.S. pension system in peril

ƽ��岻�� — Fri, 30 Nov 2018 15:19:34 +0000

The U.S. pension plan shortfall has the makings of a perfect storm – so who is heeding the call to help remedy a seemingly insurmountable problem?

Enter Professor Sebastien Betermier, a group of Desautels BCom students and the ƽ��岻�� International Portfolio Challenge (MIPC).

Retirement planning is easier than you think

ƽ��岻�� — Tue, 27 Nov 2018 17:55:06 +0000

Planning for retirement is a daunting undertaking for many – but it does not have to be.

Professor Sebastien Betermier sits down with La Presse to share ten practical tips that individuals can adopt to ensure a comfortable lifestyle well into their old age.

Among the advice shared, Professor Betermier underscores the importance of starting to invest early, diversifying your portfolio, and finding a savvy financial advisor.

Students respond with answers to looming U.S. pension crisis

ƽ��岻�� — Tue, 13 Nov 2018 17:27:47 +0000

Professor Sebastien Betermier sits down with La Presse to discuss the second annual ƽ��岻�� International Portfolio Challenge (MIPC), which brought forward the fresh perspectives of 25 international student teams as they attempted to solve the severe underfunding of U.S. state pensions.

Along the way, Prof. Betermier shares insights into why the looming pension crisis in the U.S. is so complex and difficult to solve, as well as some of the novel ideas proposed at the MIPC.

Prof. Betermier awarded funding from National Pension Hub

ƽ��岻�� — Tue, 09 Oct 2018 18:20:56 +0000

Professor Sebastien Betermier has been awarded $70,000 over two years by the National Pension Hub (NPH), a consortium of Canada’s leading pension funds that is seeking to promote academic research in this field.

The NPH will support Professor Betermier’s research proposal entitled, “Drivers of Successful Pension Investing: Lessons from the Canadian Model.”

CPPIB goes green

ƽ��岻�� — Fri, 21 Sep 2018 15:05:11 +0000

With news that the Canada Pension Plan Investment Board (CPPIB) became the first pension fund in the world to issue a green bond, thereby facilitating investment in cleaner technologies, Professor Sebastien Betermier comments on the implications, as well as the success of defined benefit (DB) pensions in Canada.

MIPC looks to shape the future of pension investing

ƽ��岻�� — Wed, 16 May 2018 15:37:23 +0000

For a second consecutive year and under the guidance of Professor Sebastien Betermier, the ƽ��岻�� International Portfolio Challenge (MIPC) is offering the opportunity for students to tackle one of the grand challenges of our time – devising a robust pension system.

The first round of the competition will take place online between September 7, 2018 to early October.

Registration is now open.

Professor Betermier on the value of MIPC

ƽ��岻�� — Wed, 24 Jan 2018 15:21:41 +0000

Following the inaugural ƽ��岻�� International Portfolio Challenge (MIPC), Professor Betermier reflects on how the event provided an important opportunity of self-reflexivity for Canadian pension organizations, while also contributing fresh perspectives on how to address a growing crisis.

His hope is that events like the MIPC might also inspire Finance students to delve deeper into pension management during their studies and to eventually follow this career path.

Who will solve the pension crisis

ƽ��岻�� — Fri, 19 Jan 2018 20:18:44 +0000

Students participating in the ƽ��岻�� International Portfolio Challenge presented hypothetical portfolios believed to achieve solvency to address the crisis that has been affecting Canadian pension funds.

Are intelligent machines the new and improved investment managers?

ƽ��岻�� — Thu, 23 Nov 2017 21:57:36 +0000

An article for The Globe and Mail examines the emerging trend among investment firms to integrate artificial intelligence (AI) in their daily operations.

These new systems can identify various patterns and then make increasingly accurate predictions based on this information.

As this shift suggests uncertainty in the job market, Professor Sebastien Betermier comments on further implications of the rise of AI in the financial domain.

ƽ��岻�� launches first-ever competition on pension asset allocation

ƽ��岻�� — Fri, 10 Nov 2017 18:39:08 +0000

ƽ��岻�� hosted the world’s first business-school competition focused on the asset allocation of pension funds on November 3–4.

The inaugural ƽ��岻�� International Portfolio Challenge (MIPC) welcomed 25 finalist student teams from leading institutions around the world, with some traveling from as far away as Australia, Hong Kong and Switzerland to pitch their proposals to a panel of judges from several of Canada’s largest asset managers.

Desautels inaugurates world’s first pension portfolio challenge

ƽ��岻�� — Fri, 03 Nov 2017 14:57:26 +0000

This weekend, twenty-five student teams from Berkeley, Chicago, Sydney, Hong Kong, and Geneva, amongst others will participate in the final round of the ƽ��岻�� International Portfolio Challenge.

Organized by Desautels BCom students under the guidance of Professor Sebastien Betermier, this is the world’s first pension asset allocation competition.

Movies that MBAs can learn from: professors have their say

ƽ��岻�� — Tue, 25 Apr 2017 15:42:05 +0000

Poets and Quants recently asked business educators to name their top picks for films from which MBAs could learn a lesson or two. The range of movies mentioned was wide, and included some films that do not, at first, seem to be obvious choices. So, while films like The Wolf of Wall Street, 1986’s Gung-Ho, and Margin Call show up on the list, some professors give the nod to movies like Zootopia and The Godfather.

Desautels achieves second consecutive win at PRMIA

ƽ��岻�� — Wed, 12 Apr 2017 15:44:30 +0000

Congratulations to Desautels undergraduate students: Evan Coulter, Valentyn Litvin, Meagan Prins, and Marina Simonian who won the top prize at the prestigious PRMIA International Risk Management Challenge- marking a second consecutive victory for the Faculty at this competition.

Desautels Assistant Professor named to prestigious list

ƽ��岻�� — Mon, 03 Apr 2017 15:39:02 +0000

The 2017 edition of Poets and Quants’ Best 40 Under 40 Professors list is out, and on it are four teachers at Canadian institutions — including Desautels Assistant Professor Sebastien Betermier. Professor Betermier teaches investment management and has been nominated for the Desautels Distinguished Teaching Award four times.

Among Best 40 Professors Under 40

ƽ��岻�� — Mon, 27 Mar 2017 16:45:50 +0000

For his engaging teaching and excellence in research, Professor Sebastien Betermier has been named by Poets & Quants as one of this year’s Best 40 Under 40 Professors.

Desautels undergraduates secure a win at PRMIA Risk Management Challenge

ƽ��岻�� — Fri, 03 Mar 2017 16:47:36 +0000

Congratulations to Desautels BCom students Evan Coulter, Valentyn Litvin, Meagan Prins, and Marina Simonian for winning the PRMIA Risk Management Challenge, marking a third consecutive victory for the Faculty. The team will advance to the International Risk Management Challenge in London, UK on April 7th, 2017 for a chance to win the grand prize of $10,000 USD.

MBA Students awarded second place in the Business for a Better World case competition

ƽ��岻�� — Fri, 20 Jan 2017 17:56:21 +0000

Congratulations to MBA students, Aman Arora, Timothy Lane, Santiago Monroy, and Jose Nunez Gutierrez, who were awarded second place in the Business for a Better World case competition. The team has been working since October on designing a global equity portfolio that advances the UN’s sustainable development goals, which culminated with a presentation in Davos, Switzerland on January 19th to a panel of high-profile judges.

Student investors leap into trading world

ƽ��岻�� — Thu, 28 Jul 2016 15:22:37 +0000

Recognizing the need to give students real-world experience as well as the ability to apply what they’ve learned in class about asset management, York University this year created a student investment fund.

Using $60,000 donated by alumni and others, a team of 15 to 20 student analysts take a value investment approach to the portfolio, seeking to achieve a positive return while minimizing risk.

...Sebastien Betermier, a finance professor at the Desautels Faculty of Management at ƽ��岻�� in Montreal, calls the competitions “varsity academics.”

Desautels BCom Students Win 2016 PRMIA Risk Management Challenge

ƽ��岻�� — Fri, 18 Mar 2016 17:44:06 +0000

A Desautels BCom student team defeated 116 undergraduate and graduate teams from 45 schools around the world to place 1st at the 2016 PRMIA Risk Management Challenge.

BCom Students win Montreal CFA Valuation Challenge

ƽ��岻�� — Fri, 26 Feb 2016 19:06:12 +0000

BCom students Drew Allen, Peter Huo, Philippe Rich, Henri St-Pierre, and Kit-yuen Christie Wei won the Regional CFA Valuation Challenge in Montreal on Friday, February 19. They will compete in Chicago for the International Championships in April. They are being coached by Professor Sebastien Betermier coached along with alumnus Cliff Isings, MBA'95, now Manager – International Equities at CN.

BCom Student Case Competition Team Advance to International PRMIA Risk Management Challenge

ƽ��岻�� — Fri, 05 Feb 2016 20:34:41 +0000

A BCom student case competition team won the Montreal PRMIA Risk Management challenge for the second consecutive year. The roster of the ƽ��岻��-Desautels team includes Simon Altman, Evan Coulter, Liam Maclure, and Valentyn Litvin. They are coached by Professor Sebastien Betermier.

The team will compete in Chicago for the International Championship early March, against 7 other finalist teams. PRMIA is the Professional Risk Managers’ International Association.

Êtes-vous valeur ou croissance?

ƽ��岻�� — Thu, 13 Nov 2014 17:28:55 +0000

Préférez-vous les valeurs sous-évaluées, voire délaissées, ou les titres qui croissent plus rapidement que le marché? Valeur ou croissance? Vos choix d'investissement trahissent probablement votre âge et votre sexe.

ƽ���岻�� Desautels Faculty of Management - Sebastien Betermier's Recent Media Coverage

Making strategic assets available to pension funds would encourage more domestic investment

Instability at Alberta’s public pension fund could undermine its effectiveness

Canadian pension funds are already overweight on Canadian equities

Changes in pension funds portfolio management produce different demands for analysts and managers

A lack of strategic assets can be a deterrent to domestic investment for large pension funds

Opening infrastructure could encourage Canada’s pension funds to invest more domestically

Domestic investment: Should Canadian pension funds focus on local companies?

Negative real estate returns have some pension funds considering a change in approach

Sustainable investing doesn’t only mean companies that are already green—large investors can push polluters to become greener

New York City Public Pension Fund pushes RBC for energy transparency

After a slow 2023, exchange-traded fund listings are revitalizing

ƽ���岻�� Desautels faculty members and researchers celebrated at Bravo Gala

Advanced life deferred annuities can give retirees peace of mind

MIPC asks students to devise decumulation strategies for an inflationary environment

Pension funds can drive greater returns by participating more directly in value creation

Long-term investments help Canadian pension plans outperform international counterparts

More Canadians are renewing their mortgages at higher rates, as economy heads toward forecasted recession

Canadian pension funds divestment of private equity holdings rebalances portfolios

Public pension plans in Canada and Australia achieve efficiencies through professional asset management at scale

Alberta’s withdrawal from Canada Pension Plan means leaving one of the world’s best-managed funds

Delve: How the Era of Energy Transition Is Changing Business Leadership

Celebrating excellence in teaching at Desautels

The future of commercial real estate belongs to those who can meet the evolving needs of the office

Delve: How Banks and Institutional Investment Funds Are Driving the Road to Net-Zero

Crypto’s impressive returns led institutional investors to consider unconventional investments

A place to call home trumps portfolio diversification for some investors

MIPC wraps up with MDIIM Symposium and Grand Finale

Real estate investment helps Canadian pension plans outperform peers

Why the CAQ’s proposed economic incentives may not be all they cracked up to be

When a recession is coming, investors need to keep a level head

Inflation is a major challenge for seniors on fixed incomes

Countries with high debt and a reliance on imports could face tough times

Higher interest rates are already packing a punch

Persistent inflation could contribute to a recession, but there are steps that can take to ease the pain

More efficient capital management could help pension funds strained by longer life expectancy

Prof. Betermier lands new role as Director of ICPM

Investing experience can help navigate market downturns

Canada’s largest pension plans are driving green development through real estate investments

Supply chain disruptions caused inflation, and the war in Ukraine is making it worse

Prof. Sebastien Betermier talks investment strategies with Rational Reminder podcast

The Russian economy has cratered – but most Canadian investors are unlikely to have much exposure to it

The potential long-term impact of unprecedented economic sanctions on Russia

The truth behind divestment at public and private firms

Three tips for going green

Putting ESG front and center

Bridging generational gaps through pension reform

MIPC winners prepare to present ideas to Dutch pension funds

ƽ���岻�� students spearhead hybrid MIPC

Delve: Why Ultra-Low Yields Don’t Mean the End of Sustainable Pension Funds

Putting QE in the rearview mirror

Risk and return at the fifth annual MIPC

Going green in the concrete jungle

Taking a deep dive into pension plans

Canada emerges as a leader in green bonds

Desautels professor lends expertise to Exchange Traded Funds (ETF) study

Investors anticipate low-carbon economy

Two international teams claim victory in ƽ���岻�� portfolio-building competition

93 student teams tackle social inequality and protectionism at MIPC 2020

Delve: Canada’s Pension Plan Is the Envy of the World, and Now We Know Why

The case for a long-term divestment strategy

Advocacy for a second Caisse de dépôt

Canada is a global leader in pension funds

The politics behind the stock market

Desautels professors celebrated for their teaching excellence

Professor Sebastian Betermier on sustainable investing

The complex nature of investment strategies

A shift to cash in fixed-income exchange-traded funds

Should you borrow money to invest in your future?

The cash trend in fixed-income exchange-traded funds

Can university pension plans help tackle climate change?

Students forging the path to sustainability

Professor Betermier on the management of exchange-traded funds

MIPC brings students together to tackle sustainable investing

Delve: Pension Plans for an Evolving World

Rethinking pensions for today

Desautels students take home top prize at PRMIA

Reflecting on MIPC 2018

Students to the rescue of a U.S. pension system in peril

Retirement planning is easier than you think

ƽ��岻�� Desautels Faculty of Management - Sebastien Betermier's Recent Media Coverage

ƽ��岻�� Desautels faculty members and researchers celebrated at Bravo Gala

ƽ��岻�� students spearhead hybrid MIPC

Two international teams claim victory in ƽ��岻�� portfolio-building competition

ƽ��岻�� launches first-ever competition on pension asset allocation