Canadian pension funds boost allocation to alternatives Monday, March 08, 2021
Laxman Pai, Opalesque Asia:
As an effective way to derisk, Canadian defined benefit plans are gravitating toward greater allocations to alternative investments, said a survey.
A survey from RBC Investor & Treasury Services revealed: Canadian defined benefit pension plans are continuing to explore various types of alternative investments to provide higher risk-adjusted returns over the longer term and enhance the sustainability of their plans.
The annual survey, which includes the aggregate responses of 122 pension plans across Canada, cites the use of alternative investments - in particular, real estate and infrastructure - as an effective de-risking strategy, second only to liability-driven investments (LDIs).