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WWW.BENEFITSANDPENSIONSMONITOR.COM ISSUE 33.07

THE

ANNUAL REPORT & DIRECTORY

SOCIALLY RESPONSIBLE INVESTING TEAM ETHOS

How legendary football coach inspires investment leader Pages 8-9

HOT LIST 2023

Check out the industry’s movers and shakers Pages 15-21

VIRTUAL CARE

Integrating benefits with the public health service Pages 38-39

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ISSUE 33.07

CONNECT WITH US

CONTENTS

Got a story or suggestion, or just want to find out some more information? @BPMCanada facebook.com/BPMMagazineCanada

UPFRONT 02 Editorial

Has the mental health pandemic arrived?

06 PEOPLE

26

PROFILE Kevin Lynch, of Linea Solutions, talks about being a creative link between clients and vendors

28 SRI Report

Strategy hard to justify ‘if it’s not creating alpha’

30 ESG/SRI Directory Listings

PEOPLE

PROFILE

Brian Ziedenberg of Capital Group Canada discusses what makes a successful investment management company

08

How recognition bolsters engagement and shields employees from burnout

04 Statistics

The cost of unmanaged menopause symptoms Asset managers on sustainable investing

40 Jim Helik column

Time to think about inflation

FEATURES 10 Opinion

SPECIAL REPORT AND DIRECTORY

26 SRI Report Canada stands out by embracing sustainable investing regulation

03 Benefits

$334 billion – the devil in the actuarial details

15

12 Real Estate

BPM HOT LIST 2023

36 Plan Sponsor Profile

SPECIAL REPORT

Canada’s best benefits, pensions, and institutional investment professionals

Franklin Templeton on private real estate: A real asset

PEOPLE Aaron Bennett of University Pension Plan of Ontario looks at how UPP maintained funded status during volatile times

22 ROUNDTABLE

WORKPLACE HEALTH

Going beyond conversation: Data shows employers need to take action

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1

ISSUE 33.07

CONNECT WITH US

CONTENTS

Got a story or suggestion, or just want to find out some more information? @BPMCanada facebook.com/BPMMagazineCanada

UPFRONT 02 Editorial

Has the mental health pandemic arrived?

06 PEOPLE

26

PROFILE Kevin Lynch, of Linea Solutions, talks about being a creative link between clients and vendors

Strategy hard to justify ‘if it’s not creating alpha’

30 ESG/SRI Directory listings

PEOPLE

PROFILE

Brian Ziedenberg of Capital Group Canada discusses what makes a successful investment management company

08

04 Statistics

The cost of unmanaged menopause symptoms Asset managers on sustainable investing

40 Jim Helik column

Time to think about inflation

10 Opinion

$334 billion – the devil in the actuarial details

26 SRI Report 28 SRI Report

How recognition bolsters engagement and shields employees from burnout

FEATURES

SPECIAL REPORT AND DIRECTORY Canada stands out by embracing sustainable investing regulation

03 Benefits

15

12 Real Estate

BPM HOT LIST 2023

36 Plan Sponsor Profile

SPECIAL REPORT

Canada’s best benefits, pensions, and institutional investment professionals

Franklin Templeton on private real estate: A real asset

PEOPLE Aaron Bennett of University Pension Plan of Ontario looks at how UPP maintained funded status during volatile times

22 ROUNDTABLE

WORKPLACE HEALTH

Going beyond conversation: Data shows employers need to take action

BENEFITSANDPENSIONSMONITOR.COM

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UPFRONT

BENEFITS

How recognition bolsters engagement and shields employees from burnout Research offers practical steps organizations can take to improve culture through the power of recognition

RECOGNITION IN the workplace is both a foundational element and a catalyst for organizational culture, and can lead to more engagement among employees, says a report from Workhuman and Gallup. Empowering Workplace Culture Through Recognition shows that employees who strongly agree that recognition is an important part of their organization’s culture are 3.7 times more likely to be engaged, 3.8 times more likely to feel connected to their culture, and half as likely to experience frequent burnout as those who do not.

The research shows that employees who strongly agree they are connected to their organization’s culture are over three times more likely to be engaged at work. They are also over five times more likely to strongly agree that they would recommend their organization as a great place to work and 55 percent less likely to be actively or passively seeking new job opportunities.

“This new research serves to illustrate the choice that lies ahead for company leaders: to either invest in culture and define it for themselves or risk it being defined for them,” says KeyAnna Schmiedl, chief human experience officer at Workhuman. “Our analysis found that when engaged employees describe their company’s culture, they are using words such as caring, innovative, and inclusive.

Meanwhile, actively disengaged employees are more likely to use words such as toxic, disorganized, and chaotic. It’s up to leaders

KeyAnna Schmiedl, chief human experience officer, Workhuman

to decide which of those cultures they want associated with their companies. They should keep in mind this isn’t just about their employee satisfaction scores or the tone of the office – it’s a choice that determines whether their business is futureproof or not.”

Recognition programs need alignment Only 34 percent of employees say their employer has a recognition program in place. And of those who have one, just 13 percent of employees rate it as excellent. The report suggests employers are missing out on a simple way to reinforce the other cultural

elements that an organization views as important. Employees who say their recognition program is aligned with the values of their organization are 4.9 times more likely to strongly agree that they know what is expected of them at work compared with employees who indicate their recognition program is not aligned with the values of their organization.

“Giving great recognition is an effective way for leaders to communicate the values and behaviours they most want to see from their employees,” says Ed O’Boyle, global practice leader at Gallup. “It also sets the example for establishing a culture of recognition, and inspires employees at all levels to receive and give recognition that is authentic and meaningful – and to do so often.”

Workhuman and Gallup have identified several steps for creating or improving a recognition program. The first step is to establish workplace culture goals and values in alignment with the business strategy. This includes defining the values, behaviours, rituals, and routines that will best support the business strategy so it is clear where to aim recognition.

The report suggests the strategic recognition of employees who exemplify these culture goals and values. This promotes employee understanding and connectedness.

It is important to evaluate and refine the recognition strategy frequently so it accurately promotes the workplace culture that was set out and any evolving changes. Recognition should be frequent, consistent, and genuine, and be embraced by employees across all levels of the organization for all accomplishments.

Engaged employees are invested in and enthusiastic about their work and workplace, and consistently outperform and stay longer than less-engaged employees. With the economic challenges people are facing and a growing decline in mental health, workplace productivity has been a major hurdle to profitability and growth for many organizations in 2023. The good news is that the research paints a clear path forward – reinvigorating company culture with a focus on employee recognition can have a positive impact on today’s disrupted workplaces.

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UPFRONT

STATISTICS THE COST OF UNMANAGED MENOPAUSE SYMPTOMS

ASSET MANAGERS ON SUSTAINABLE INVESTING What is the rationale or motivation for implementing or considering sustainable investment?

60%

540,000

52%

50%

lost days of work annually

51%

40%

37%

36%

Avoid reputational risk

Fiduciary duty

30%

$237 million

amount Canadian employers lose annually in productivity

20% 10% 0 Member or client demand

$3.3 billion

amount it costs low-income women due to reduction in hours or pay or leaving the workforce altogether

Mitigate long-term investment risk

DOES MORE FLEXIBILITY IMPROVE PRODUCTIVITY? When you have flexibility in where, when and how you work, do you feel…

More productive and engaged

32%

of working women say their menopause symptoms negatively affected their performance at work

No change

Less 75%

17%

2023 9%

60%

24%

of working women say they hid symptoms at work Source: Menopause Foundation of Canada.

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2017

34% 4%

0

10%

20%

30%

40%

50%

60%

70%

80%

Source: The now and next of work: A 2023 Flex Strategy Group research report

ONLINE SERVICES KEY TO BENEFIT OFFERINGS What features do employees desire most from an employer-provided benefits plan?

77% Access to doctors and specialists

36%

35%

34%

72%

30%

Online pharmacies

8% Societal good

Capture investment returns from sustainable investment opportunities

Regulatory requirement

Achieve better risk-adjusted performance

Other

Source: FTSE Russell Global Survey 2023

WHO HOLDS THE BALANCE OF POWER IN THE LABOUR MARKET? Percentage of all respondents saying employers or employees held/hold the balance of power:

Employers

65% Online prescription glasses

61%

Employees

Pre-Pandemic

54%

23%

2022

44%

36%

2023*

45%

31%

*As of March 15, 2023 Source: EY 2023 work reimagined survey 1. Power was defined as “influence or control over rewards, retention, ways of working, etc.” 2. “About equal” responses excluded; therefore, numbers do not sum to 100.

Online mental health and wellness programs

57% Services for wellness and management of chronic diseases Source: RBC Insurance study

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PEOPLE

PROFILE

GIVING COMPANIES A VISION OF WHERE THEY NEED TO BE Problem-solving is a passionate pursuit for this industry veteran, who discusses what he sees ahead for his field

KEVIN LYNCH knew he wanted to work in business in a management or leadership role when he attended McGill University as a young man. To prepare for this, he earned his Bachelor of Commerce degree with a joint major in finance and labour management relations.

“My first job out of university was as a business analyst, so that seemed to fit what I wanted to do in terms of my title right out of university,” he says.

Throughout his career, he worked at various pension administration providers, including Hewitt, Mercer, and Aon, and worked his way up within these organizations. “I’ve always worked on the vendor side, but on behalf of clients in the third-party administration role.”

Today Lynch is senior vice-president of client solutions with Linea Solutions, a management and technology consulting firm for organizations that deliver benefits to their members and customers across the US and Canada. He says his previous roles all led perfectly to his role at Linea. “Linea is the ideal fit for me because it sits between

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the clients and the vendors.”

Linea Solutions was launched in 1999 as a boutique consulting firm and has grown into a large service provider with 130 staff across North America.

The firm was established as a pension consultant in the US and expanded to Canada

and mid-sized public sector clients through a lifecycle of modernization. These are organizations that do the administration of their pensions and benefits themselves, so we work with them to figure out strategy for their technology, assessing their needs and resolving any gaps they may have.

“You don’t think of pensions and benefits as a creative domain, but it is. There is creativity in finding multi-level and multifaceted solutions” in 2015. Linea has firmly established its presence in Canada since then and works with some of Canada’s largest pension plans.

Helping clients with the lifecycle of modernization “We provide pension and benefits and workers’ compensation administration consulting services,” says Lynch. “We work with large

“We start with an assessment of where they are today and try to give them a vision of where they need to be in the future. Then we work through a lifecycle of requirements and procure a solution. This includes helping them write RFPs and work through the implementation. During the implementation phase, we provide services such as project management, oversight, business analysis, and

FAST FACTS Education McGill University Bachelor of Commerce, joint major in finance and labour management relations Years in industry 24 What inspires you?

“What inspires me is looking at problems and challenges that people can’t figure out and then using our wealth of knowledge to try to figure it out”

“There is so much potential for risk, especially in pensions and benefits, where there are substantial risks around financial data, personal data, and medical data” testing. We also work as a bridge between our clients and all the industry vendors.”

Lynch joined Linea in January 2022 and was recently appointed to his current role as senior VP of client solutions. In this position, he is in charge of sales and marketing, with a focus on business development.

“One thing we do on a regular basis is communicate what we hear from our clients and vendors as well as share important industry news to keep people informed and open the lines of communication.

“The most exciting part of my job, however, is working with our clients directly. This includes assessing them and providing advice and guidance as well as giving them insight

into the different vendors in the marketplace.

Hot topics: AI and cybersecurity As for important industry topics, Lynch says the top two hot topics at the moment are artificial intelligence (AI) and cybersecurity.

“With AI, I think everybody is still trying to figure out the benefits and the ramifications of it,” he says. “However, everybody wants it because it potentially has a lot of power and can definitely help improve some efficiencies.

“Data privacy around decision-making is another hot topic. We’re trying to stay at the forefront of that and determining where we see the benefits and where we see the potential risks with cybersecurity.

“People are concerned about data exposure with so much hacking going on in the world.

There is so much potential for risk, especially in pensions and benefits, where there are substantial risks around financial data, personal data, and medical data.”

Another topic Lynch sees in the industry is the desire of plans to modernize their solutions.

“I believe part of the reason for this is because of COVID, which has people wanting to make changes right away and stay safe. Clients have been on these legacy systems since the early 2000s and they are getting to be 15 to 20 years old. They want to have a secure environment, so they are looking to cybersecurity, and then they are looking to incorporate platforms like AI for straight-through processing.

“As we see a lot of these changes happening within organizations, change management becomes more important. As a result, everyone is making sure change management is embedded in the organization to help people accept all the new modifications.”

Lynch enjoys, with his team, finding a different solution for each organizational challenge.

“There is creativity in putting those solutions together to make it perfect and define it for each problem and each company. You don’t think of pensions and benefits as a creative domain, but it is. There is creativity in finding multi-level and multifaceted solutions.”

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7

FEATURE

INVESTMENT PROFILE

HOW LEGENDARY FOOTBALL COACH INSPIRES MANAGER’S LEADERSHIP STYLE Capital Group’s Brian Ziedenberg is on a mission to improve people’s lives through successful investing

“INDIVIDUAL COMMITMENT to a group effort – that is what makes a team work, a company work, a society work, a civilization work.”

These words by legendary US football coach Vince Lombardi are the driving force behind Brian Ziedenberg’s career. He followed this rule as an individual and as part of a team when he first started his career in investment management, and continues to apply its wisdom today, as manager of a team at Capital Group.

“As I ventured into more of a leadership manager role, I remember a very sage old senior leader in the industry telling me, ‘If your team succeeds, you will succeed,’” he says. “This always stays in my head. It’s about the team, and we all go forward together.”

Ziedenberg joined Capital Group in 2017 and his current position is senior vicepresident of institutional and national accounts for Capital Group Canada. He has 18 years of industry experience, previously working at TD Asset Management, where he led the strategic alliances and national accounts team and managed several large institutional relationships. Before that, he was director of strategic accounts at AGF Investments and worked in a sales and consulting role at Morningstar Canada.

During his 20-year tenure, he says

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he was fortunate enough to build his skills alongside some of the industry’s top leaders. This period served as a rich learning experience, providing a solid foundation for the opportunities and challenges that were ahead.

Learning from the best “I was able to work alongside some of the most talented individuals in the industry, both in

national accounts and an institutional team, manage the sales teams based in Toronto and Montreal, and we have some sales support individuals in Los Angeles, which I manage as well.

“I am responsible for the strategy and implementation of solutions for both national and institutional accounts and focus on ensuring the team has everything they need to succeed in terms of resources, marketing,

“We believe in differences and that it makes us a better firm to help support our clients and their diverse needs” investment management and in client-facing roles,” he says. “In 2017, I joined Capital Group, and this is a company that I’ve admired and respected for many years. They were looking to build out both their national accounts and institutional business. It was a great fit.”

Ziedenberg now has a team of six, and together they work with some of the largest institutional plans in Canada, including defined contribution (DC) platforms, consultants, pension plans, foundations, and endowments.

“In my current rule, I head up both the

operations, compliance, and product.

“We’re also starting to find traction and success by coordinating and collaborating with our global institutional team around the world.”

Ziedenberg says the best part of his work at Capital Group is helping people.

“We have a very defined mission, which is important, and that is to improve people’s lives through successful investing.

Everyone on the team is aware of this mission and works toward this goal.”

He also enjoys building relationships

FAST FACTS Education York University Bachelor of Arts, business administration and management, general 1992 - 1996 Odette School of Business – University of Windsor MBA, Finance/Strategy Experience: 20 years Best advice “Individual commitment to a group effort – that is what makes a team work, a company work, a society work, a civilization work” Vince Lombardi, legendary US football coach What inspires you?

“To improve people’s lives through successful investing”

with clients, which is another valuable part of his role.

“From an initial client meeting to implementation, institutional business has a very long sales cycle,” he says. “It could be three to four years, so I build that relationship from the beginning and watch it mature. I like to see how initial ideas grow and resonate with clients.

“It’s very rewarding to finally get that phone call from an institutional client or consultant to say that we’ve been awarded the mandate. I like watching the team’s reaction, the smiles and the gratification that all this hard work from those three to four years has paid off.”

Don’t be everything to everyone The institutional space is constantly evolving and there are a lot of new products and solutions coming to market. Ziedenberg says that for the past 90 years, Capital Group has been focused on bottom-up fundamental research and active management.

“We have managed successfully through

many different cycles and market conditions.

We’re not trying to be everything to everyone.

We are very focused, and institutional clients, consultants, and pension plans are starting to understand that we are very proficient and laser-focused on active management. That’s our sweet spot.

“And while that’s where we thrive, we can’t offer the asset classes that every institutional client wants.

“So, as allocation to other asset classes such as alternatives and private equity grows, we have to remain very good at global equity and active management because that remains as 30 percent of institutional investor portfolios.”

Ziedenberg says he is inspired by focusing on improving the lives of investors and being part of a successful team. “Working at Capital Group and applying the 20 years of experience that I’ve had with this brand gets me excited each and every day. Capital Group has a unique culture where bringing your true self and diverse perspective is

How do you want to be remembered?

“I hope to be remembered by how I approached my work and how I collaborated with colleagues and clients, with humility, honesty, hard work, and humour”

encouraged. We believe in differences and that it makes us a better firm to help support our clients and their diverse needs.”

Like Lombardi, Ziedenberg continues to make an individual commitment to a group effort. He hopes his professional legacy will show he was part of an organization focused on improving the lives of Canadians by helping them plan for retirement and put their kids through university.

“With all the client engagements we were involved with, if we enriched people’s lives by getting them access to a Capital Group strategy through a pension plan, that puts a smile on my face. I hope to be remembered for how I approached my work and how I collaborated with colleagues and clients, with humility, honesty, hard work, and humour.”

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9

FEATURE

OPINION

$334 billion – the devil in the actuarial details Alberta wants to withdraw from CPP and establish its own pension fund. So what would that look like?

THE ALBERTA government has released a consultant’s report that includes a $334 billion estimate of the asset transfer from the Canada Pension Plan (CPP) fund to a new fund to be established for a standalone Alberta pension plan.

There are three distinct issues with this number. First, the provisions in the CPP Act concerning the asset transfer are not particularly clear. Second, the number is calculated using data by province of residence, whereas CPP operates on the province of employment. Last, but not least, the transfer represents 53 percent of the CPP fund, and that seems too big when Alberta represents only 16 percent of CPP contributions.

The formula in the CPP Act The withdrawal provisions in the CPP Act were introduced in 1965 when all of Canada’s provinces except Quebec first agreed to join the Canada Pension Plan. Ontario, in particular, wasn’t fully convinced of the merits of going into a national plan, so the 1965 CPP Act included a money-back guarantee, allowing provinces to change their minds. That’s what the Alberta government is proposing.

After 60 years of contributing the same rate and getting the same benefits as everyone else, the Alberta government is asking Albertans to renege on the decision to join in the first place. What was akin to a 60-day money-back guarantee is being used as a 60-year money-back guarantee.

The formula in the CPP Act provides for

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a refund of contributions with investment earnings attributed to those contributions, minus the related benefits and administration fees. What this formula fails to mention is critical. It fails to deduct investment earnings on benefits and fees. The consultant’s report notes that a literal interpretation of this formula would lead to an asset transfer of $747 billion – more than the total CPP fund.

The consultants chose to deduct benefits and fees before allocating hypothetical investment earnings at the actual rate earned by the fund. This liberty brings the estimate down to $334 billion, excluding a small additional transfer for the benefit improvements added to CPP in 2019. Even with this

correction, the formula doesn’t add up. If all of the provinces with above-average growth in their working-age populations elected an asset transfer, the formula would produce a total asset transfer that would exceed the total assets of the CPP fund.

In his working paper on the Alberta pension plan, Trevor Tombe suggests that Alberta’s entitlement to investment earnings under the Act means attributing the total realized investment earnings in proportion to contributions. This interpretation of the Act has the desirable feature that the total of hypothetical asset transfers to all provinces would equal the total assets. Tombe concludes the asset transfer using this inter-

pretation of the legislation (and some other smaller differences) would be $150 billion.

Data problems When individuals apply for a pension, either Service Canada or the QPP administrator (depending on the province in which they live at that time) will determine benefits from both plans based on the entire history of pensionable earnings by province of employment, as reported on T4 slips. The administrator will make combined payments for the total pension and then the CPP and QPP will settle up their share of the pensions year by year.

In their report, the consultants used publicly available data by province of residence to calculate the $334 billion asset transfer. In the formal actuarial opinion, they say “the data on which the calculations are based are sufficient and reliable based on the terms of the engagement for this report.”

Reference to the terms of engagement is a polite way for an actuary to say that the data isn’t really sufficient, but they did what they could with the data and the budget they had, and their client told them not to waste any more time trying to make it better.

This is a situation in which an actuary is required by professional standards to report both the quantitative and qualitative aspects of the impediment to obtaining adequate data. The consultants analyzed interprovincial migration statistics to quantify the impact. They found the potential asset transfer could turn out to be as small as $262 billion or as large as $362 billion once the necessary data by province of employment becomes available. Using interprovincial migration data doesn’t address individuals who maintained a residence or family ties in their home province while working in Alberta – an example of this would be construction camps for oil sands plants in the Fort McMurray, AB area. Correct and complete data could thus lead to an asset transfer even smaller than $262 billion.

Fairness This brings us to the last issue. The moneyback guarantee approach to calculating the

asset transfer looks backwards to contributions and benefits that have already been paid. It rests on the premise that contributions are used to pay current benefits and Alberta contributions should only be used to pay Alberta pensions. Albertans have been contributing more than would have been required in a standalone provincial pension plan because workers have been moving to Alberta. The asset transfer contemplated in the CPP Act retroactively eliminates the responsibility of Alberta contributors for current beneficiaries in other provinces – even the parents and grandparents of those new Alberta workers!

pensions being transferred. This approach would produce a much larger asset transfer.

A third approach would be to determine the asset transfer in a way that avoids disruption for either Alberta or the remaining provinces by keeping the steady-state contribution rate or the target ratio of assets to liabilities the same in the new plans as it is in the existing plan. This last approach could produce an even smaller asset transfer – especially if it is assumed that Alberta’s working age population will continue to grow at the current pace.

So, to sum up, the right value for the asset transfer from the CPP fund to an Alberta

What was akin to a 60-day money-back guarantee is being used as a 60-year money-back guarantee.

If the result is unreasonable and the formula was never intended to be applied in this way, the solution is to amend the CPP Act to substitute a more equitable formula. The principle that a formula must be changed when it produces an unreasonable result appears to be what Premier Smith of Alberta meant when she said that Alberta wants a “better constructive relationship with the rest of the country and this begins the conversation” about equalization payments and other national programs.

One obvious alternative to the formula in the CPP Act would be to allocate the assets in proportion to the benefit liabilities being transferred to Alberta – the approach widely used for divestitures in private-sector pension plans. That is, an asset transfer would be calculated by looking forward at the pensions that will be paid based on the history of Alberta contributory earnings, rather than backward at the benefits and contributions that have already been paid.

This approach would produce an asset transfer around $100 billion.

A second approach used in private-sector pension plans is to transfer assets equal to the accounting or solvency liability for the

fund is somewhere in a range of $100 billion to $747 billion. There are many moving parts to this calculation, most of which have been ignored. Of course, there are other issues to consider aside from the size of the asset transfer but, until this one is addressed, it will be difficult to focus on them.

While the stated purpose of the consultant’s report was to “help answer key questions that Albertans are asking about the costs and benefits of such a move,” more work is required before Albertans will be in a position to make an informed choice in a referendum.

About The National Institute on Ageing The National Institute on Ageing (NIA), based at Toronto Metropolitan University (TMU, formerly Ryerson University), is Canada’s leading policy and research centre dedicated to enhancing successful and healthy ageing throughout people’s lives.

Through its collaborative approach, expert-driven analysis, and public-facing reports and tools, the NIA provides meaningful research, analysis, advice, and advocacy on the most pressing issues that are affecting the health and well-being of older Canadians.

Doug Chandler is a Calgary-based actuary and an associate fellow of the National Institute on Ageing, Toronto Metropolitan University.

Bonnie-Jeanne MacDonald is a Halifax-based actuary and the director of financial security research at the National Institute on Ageing, Toronto Metropolitan University.

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SPECIAL FEATURE

REAL ESTATE

Private real estate: A real asset Since Franklin Templeton’s acquisition of Clarion Partners, the firm has been working to expand access to Clarion’s flagship real asset strategies

DESPITE RECENT headlines, within the North American real estate sector, there are opportunities, according to Clarion Partners managing director, Richard Schaupp.

Schaupp is focused on some of the broader tactical advantages that private real estate can offer. “A real estate income strategy includes private real estate as an important strategic component to an investment portfolio, because – over a 25-year market cycle – private real estate performance has historically provided more stable returns than publicly traded REITS,1 stocks, and bonds,” says Schaupp. “If you’re looking to add diversification, we think there are sectors in real estate that continue to provide growth, which will diversify a portfolio successfully.”

Schaupp, a former architect, highlights, “It’s difficult to time strategic investments, particularly stocks and bonds, correctly.

However, adding private real estate has historically been materially accretive to a portfolio’s overall risk-adjusted returns.1 In fact, the larger institutional investors of the world currently allocate about 10 percent to real estate.2 Given the volatility we’ve been seeing, you realize that diverse investment strategies are more important than ever.”

Since the onset of the pandemic, real estate overall has done well,3 although many see a rate-driven correction at the moment.

While Schaupp acknowledges that there

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Sponsored by

are headwinds going forward, he notes that property types are not all created equal. He is choosing to focus on growth opportunities in high-demand real estate sectors such as warehouses and multi-family residential homes, which Clarion believes are experiencing tailwinds in today’s environment.

How a private real estate strategy differs from a publicly traded REIT Publicly traded REITs operate businesses that buy real estate. They have historically been highly correlated to small-cap stocks and relatively volatile compared to private markets.

A private real estate income strategy gives an investor the ability to directly invest in properties. The experience is more akin to what people conceptualize when buying a home. Often, an independent appraiser values the assets for private real estate using a thorough and diligent process.

Clarion sends their third-party appraiser a wide range of data and information to help promote accurate valuations, including budgets, rent rates, rent rolls, and other relevant data on the property. Appraisers also consider a wide range of sales of comparable properties in the region. As part of the analysis, the appraisers apply a discounted cash flow method, creating a highly detailed process.

The type of property dictates the value in commercial real estate As with any asset class, real estate is diverse, bringing opportunities across a wide range of sectors, sub-sectors and geographies.

When there are challenges in one market or sector, there may be opportunities in others.

Schaupp notes that fundamentals within necessity retail – such as larger grocery chains, open-air centers, and giant discount store franchises – have strengthened as supply is now below the long-term average.

Previously it had not been a favoured asset class due to the challenges faced by malls and the resulting headlines. Schaupp,

however, maintains that “if you look at the simple fundamentals, we feel that the sector is actually quite healthy, and we are exploring that more.”

While Schaupp is keen to point out the growth in demand for large spaces required by retailers, he acknowledges that the post-pandemic office revival remains lacklustre. The plateau in office space demand has left cities with a growing amount of unused commercial space. Workers have much more flexibility today and spend less time in the office than they did five to 10 years ago.

“Post-COVID, the work-from-home trend continues to affect the office sector.

Even though people are going back to the office more, what we expect from our office

force almost doubled from 2017 to 2022, as companies seek alternatives to sourcing from overseas suppliers in China and other markets after experiencing pandemic-induced supply chain bottlenecks. As a result, commercial real estate research firm CoStar reports that warehouses make up 20 billion square feet, up 20 percent from 10 years ago.

“Clarion has been active in the industrial sector for more than 30 years, and a large portion of our overall portfolio comprises this property type. We are very strategic about the types of properties we buy and develop and the markets in which we operate, but we remain very active in the industrial space.”

The firm also sees multi-family apartments as another area of opportunity.

“Even though people are going back to the office more, what we expect from our office space and how we operate in the workplace have completely changed.”

Richard Schaupp, Clarion Partners managing director space and how we operate in the workplace have completely changed. Therefore, companies are looking to understand how they’re going to better utilize space. We’ve seen office rental rates go down, with a corresponding effect on valuations in certain markets. So, understandably, many people are, from an investment perspective, cautious about office space.”

However, industrial and warehouse space is another matter.

The rise of e-commerce and re-shoring trends in manufacturing are creating a greater need for warehouses in the United States. According to the U.S. Bureau of Labour Statistics, the U.S. warehouse work-

The millennial and Gen Z generations are entering their prime years for family formation and job stability. Clarion sees these demographic trends as supporting the housing market. Further tailwinds include the obsolescence of older housing and significant levels of migration between states.

“We continue to see apartment rent growth in many markets. Our view is that the United States is fundamentally underhoused; if in the long term we are not building enough housing, we will have a shortage. This will drive the need for people to rent,” Schaupp says. “And all of these other factors, combined with the current interest rate environment — which

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SPECIAL FEATURE

REAL ESTATE Sponsored by

see. The real estate income strategy has a portfolio that is invested in sectors that have strong fundamentals (multi-family housing, industrial warehouse and life sciences). Additionally, our use of low leverage and ability to invest in private real estate debt allows us to pivot our strategy to take advantage of opportunities in the current market environment.”

PRIVATE REAL ESTATE VS. PUBLICLY TRADED REITS OVER THE LAST 25 YEARS Private Real Estate

Publicly Traded Real Estate

50% 40% 30%

1. Source: Clarion Partners Investment Research, NCREIF, Bloomberg, REIT. com, 2023Q2.

2. Preqin Investor Survey, August 2020.

3. Covid Pandemic period from March 2020 to December 2022. Source: Clarion Partners Investment Research, NCREIF, REIT.com, 2023Q2.

20% 10% 0%

Disclaimer: This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. This material may not be reproduced, distributed or published without prior written permission from Franklin Templeton.

-10% -20% -30% -40%

2001-2022 Tech Bubble

-50% 1998

2000

2003

2008-2009 Global Financial Crisis

2005

2008

2010

2013

COVID

2015

2018

2020

2023

Source: Clarion Partners Investment Research, NCREIF, REIT.com, 2023Q2 NPI-Private Real Estate, NAREIT - Public Real Estate

is further restricting home-buying — is driving our continued conviction in the multi-family sector.”

Schaupp remains cognizant of the risks, noting the paradigm shift in the lending environment. The rising interest rate environment has influenced real estate, especially when interest rates were previously so low. People and developers used a lot of debt to finance their properties, and when the debt was very cheap, they were able to pay more for their properties.

“We’ve seen values moderate and the yields that people expect on their investments to certainly go up. We’ve seen that in the sectors like multi-family.”

“Debt investing is something we’re doing in very strategic areas. As interest rates have gone up, those returns are more compelling. The Fed has not only been increasing interest rates but also encouraging banks to lend less. Subsequently, there’s been a bit of dearth of bank-led capital.”

Franklin Templeton’s acquisition of

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Clarion Partners has been a natural fit for both firms. Franklin Templeton has diversified its capabilities in the alternatives space, while bringing their alternative assets to $250 billion under management. Clarion has improved infrastructural support for their investment managers, accessing Franklin Templeton’s large-scale expertise in analytics, data, technology, service and risk management. They also get access to a broader investor base because of their parent company’s global reach.

Schaupp’s conviction in Clarion’s investment management remains strong, as he asserts, “Clarion Partners has about $80 billion of assets under management. Our network and expertise in this space has also provided us with great tenant relationships.

Our job is to see the trends and build and use data to make good investment decisions for our clients.

“Our strategy is well positioned today and is structured to invest in private real estate and take advantage of the opportunities that we

The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The underlying assumptions and these views are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. There is no assurance that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets will be realized. The value of investments and the income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is not necessarily indicative nor a guarantee of future performance.

All investments involve risks, including thae possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested.

The risks associated with a real estate strategy include, but are not limited to, various risks inherent in the ownership of real estate property, such as fluctuations in lease occupancy rates and operating expenses, variations in rental schedules, which in turn may be adversely affected by general and local economic conditions, the supply and demand for real estate properties, zoning laws, rent control laws, real property taxes, the availability and costs of financing, environmental laws and uninsured losses (generally from catastrophic events such as earthquakes, floods and wars). Diversification does not guarantee a profit or protect against a loss.

Investments in alternative investment strategies are complex and speculative investments, entail significant risk and should not be considered a complete investment program.

Depending on the product invested in, an investment in alternative investments may provide for only limited liquidity and is suitable only for persons who can afford to lose the entire amount of their investment.

Any companies and/or case studies referenced herein are used solely for illustrative purposes; any investment may or may not be currently held by any portfolio advised

by Franklin Templeton. The information provided is not a recommendation or individual investment advice for any particular security, strategy or investment product and is not an indication of the trading intent of any Franklin Templeton managed portfolio.

Any research and analysis contained in this material has been procured by Franklin Templeton for its own purposes and may be acted upon in that connection and, as such, is provided to you incidentally. Data from third- party sources may have been used in the preparation of this material and Franklin Templeton (“FT”) has not independently verified, validated or audited such data. Although information has been obtained from sources that Franklin Templeton believes to be reliable, no guarantee can be given as to its accuracy, and such information may be incomplete or condensed and may be subject to change at any time without notice. The mention of any individual securities should neither constitute nor be construed as a recommendation to purchase, hold or sell any securities, and the information provided regarding such individual securities (if any) is not a sufficient basis upon which to make an investment decision. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.

Products, services and information may not be available in all jurisdictions and are offered outside the U.S. by other FT affiliates and/or their distributors as local laws and regulation permits. Please consult your own financial professional or Franklin Templeton institutional contact for further information on availability of products and services in your jurisdiction.

SPECIAL REPORT

H T LIST 2023 Canada’s best benefits, pensions, and institutional investment professionals who’ve spent their careers driving change and are still breaking new ground

CONTENTS

PAGE

Feature article ................................................. 16

Methodology ................................................... 17

Hot List 2023 .................................................. 20

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SPECIAL REPORT

HOT LIST 2023

INVESTING IN THE FUTURE BENEFITS AND PENSIONS MONITOR’s inaugural Hot List of 2023 recognizes exceptional leaders who have shaped and continue to shape the the benefits, pensions, and institutional investment industry, from innovative trailblazers to game-changers sparking business growth.

This year’s Hot List highlights 43 of Canada’s best professionals in the benefits, pension, and institutional investment space whose vision, positive influence, and passion for the industry are charting new courses.

Their outstanding contributions are all the more praiseworthy in what, admittedly,

WINNERS BY JOB TITLE

C-Suite/President

VP/AVP/EVP/SVP/Director

Head/Partner/ Manager/Lead

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8

“I’ve always strived to maximize my performance in everything I do in my personal life, hobbies, and career” Gregory Hourigan, Mackenzie Investments

12

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has been a turbulent fiscal year of 2022– 2023. Across BPM’s award categories, the Hot List honorees shine brightly for: • Service providers: establishing a comprehensive compliance program focused on quality and accuracy and ensuring that core pension operations adhere to plan rules, legislation, regulation, and standards • Retirement plan specialists: spearheading the concept of the personal pension plan, marking the first innov-

ation in plan design for small- and medium-sized enterprises in Canada • Group benefit/insurance: driving transformation through a revolutionary digital health and benefits system that provides plan members with easy access to health services and a convenient benefits claims submission process • Consultants: pioneering a unique research-driven strategy firm that focuses on enhancing retirement outcomes for Canadians For two of the top institutional investment professionals on the premier Hot List, their high performance is backed by expertise, a forward-thinking vision, and a desire to define the future era of finance.

Gregory Hourigan: revving up Canadian institutional sales Unsurprisingly, people who know Hourigan refer to his strong sense of urgency as a driving factor behind his extraordinary accomplishments in the asset management

Within just six months of joining Mackenzie Investments, Hourigan was appointed head of Canadian institutional sales, underscoring his vision and commitment to expanding the firm’s Canadian institutional business.

“A colleague once told me that my unique ‘superpower’ was a relentless sense of urgency,” Hourigan says. “I’m always striving to outpace, outmaneuver, and overdeliver when it comes to the client experience or whatever the project or initiative is.”

Some of his recent and notable achievements include: • securing over $500 million in institutional and sub-advisory deals over the past year • earning the Chartered Investment Manager (CIM) designation, in addition to multiple other industry licenses and accreditations • holding various executive sales roles across the Canadian retail, national accounts, and institutional investment sectors

“It’s important to be hardworking, and perseverance and resilience are paramount for advancing in the financial industry” Dawn Jia, UBC Investment Management

space. Something similar could also be said about his achievements outside of the office.

After all, he’s managed multiple podium finishes as a competitive race car driver.

Drawing from over a decade of experience with a $2 trillion global asset manager, Hourigan hit the ground running at Mackenzie Investments, one of Canada’s

METHODOLOGY In July 2023, Benefits and Pensions Monitor invited industry professionals from across the country to nominate their most exceptional leaders for the inaugural Hot List. Nominees had to have been in the industry for at least 10 years.

After receiving hundreds of nominations, BPM narrowed the list down to 43 movers and shakers whose contributions have helped shape the benefits, pension, and institutional investment space over the past 12 months.

From innovators at the forefront of change to leaders who are transforming the way the industry does business, this year’s Hot List represents the best the industry has to offer.

largest investment firms.

While Mackenzie’s predominantly retail asset base sometimes poses challenges in showcasing its institutional prowess, Hourigan highlights the advantages of their nearly $200 billion AUM, emphasizing the robustness it grants in compliance, operations, risk management, talent retention, and overall firm resources.

“It offers important reassurances to clients that our alpha goes beyond just our investment strategies,” he says. “We’re fully equipped to go toe to toe with any institutional-only manager out there. I aim to reposition some of these perceived negatives as genuine competitive strengths and differentiators.”

Throughout his journey, Hourigan credits working under exceptional leaders as pivotal to his success.

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SPECIAL REPORT

HOT LIST 2023

Despite the challenging investment climate, she has successfully positioned the organization’s endowment fund and staff pension plan to withstand recent market fluctuations, achieving the following as of March 31, 2023:

WINNERS BY YEARS IN THE INDUSTRY

10–20 years

9

• 4.99 percent one-year value added to the main endowment pool • 6.38 percent one-year excess return on the pension plan

21–30 years

25 31–40 years

6 More than 41 years

3

“I took every opportunity to absorb their knowledge, ask for feedback, and be responsive to their coaching,” he says. “These people genuinely rooted my growth and got me to where I am today.”

Hourigan also champions continual growth and highlights the significance of both internal and external networking for those eager to shine in the investment world. Embodying the spirit of “paying it forward,” he dedicates time to mentoring

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those on a similar path.

“It’s amazing how keen industry leaders often are to engage with and guide you,” he says. “All you need to do is ask.”

Dawn Jia: leading the way in institutional investment UBC Investment Management’s CEO and president Jia understands how much performance matters when managing assets on behalf of a university and its pensioners.

Jia strives to do her best while also being mindful of her limits.

“I always strive to keep an open mind in business, listen to all perspectives, and know when to ask for help or advice,” she says.

Jia’s notable accomplishments include: • spearheading investments of over $200 million in climate-oriented funds managed by some of the world’s leading investment managers; by year-end, the endowment fund’s carbon footprint had been reduced by 50 percent, with its carbon intensity 46 percent lower than 2019 baseline levels • being recognized as the recipient of the 2023 Leadership Excellence Award by the Leader Circle, acknowledging her industry achievements and her dedicated efforts to promote diversity and inclusion, with a particular focus on visible minorities, women, and immigrants • achieving a total AUM of $5.8 billion in 2023 Her profound understanding of the institutional investment management field has enabled her to excel as a new Canadian and a female executive, where she serves as a role model in the industry while setting the highest standards for her team and organization.

At UBC Investment Management, Jia’s

transformative leadership is evident across three key priorities: • people • processes and systems • portfolio “We always keep a top-down view, and by focusing on these three areas, the performance and investment return part is a result of what we do on those pieces,” she says.

With a background in quantitative analysis,

Jia navigates not only what she considers the most significant industry challenge but also the greatest opportunity: investor herding behaviour. She and her team overcome this hurdle by building models that either avoid or exploit behavioral bias to achieve returns.

“We encourage an open-minded culture on our team. It doesn’t matter whether it’s right or wrong, as long as it’s genuine and original and there’s solid analysis; let’s put everything on the table,” she says.

Drawing inspiration from her father,

a university professor who learned a new language when he was 50 years old, Jia embraces lifelong learning to stay ahead.

While strong analytical skills and reacting quickly to trading opportunities are the cornerstones of success, Jia acquired insight into the importance of soft skills and the ability to connect with people, motivate a team, and work together to achieve big-picture goals.

“If you want to make a bigger impact in the industry, cultivate your people skills alongside your technical skills,” she says.

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SPECIAL REPORT

HOT LIST 2023

HOT LIST 2023 Gregory Hourigan Vice President and Head of Canadian Institutional Mackenzie Investments Phone: 647 382 4929 Email: greg.hourigan@mackenzieinvestments.com Website: mackenzieinvestments.com Dawn Jia Chief Executive Officer and President UBC Investment Management Phone: 604 761 5349 Email: dawn.jia@ubcim.ca Website: ubcim.ca Aaron Walker-Duncan Vice President, Board and Communication Services BC Pension Corporation Alistair Almeida Executive Director, Business Development and Segment Lead, Asset Owners CIBC Mellon

Cindy Marques Director, Financial Planning and Education Specialist Open Access Daniel Brosseau Director Letko Brosseau Darlene Claes-McKinnon Executive Director, Relationship Management CIBC Mellon Frederick Henes Associate Director – Health and Group Benefits WTW Jean Pierre Laporte Chief Executive Officer INTEGRIS Pension Management Jeff Alcock Vice President, Group Benefit Claim Equitable Life of Canada

Andrea Hansen President Sutton Benefits & Pension

Jeff Anderson Vice President, Commercial Risk and Health Solutions Aon

Andrew Kitchen Partner and Investment Solutions Leader, Canada Mercer

Jeff Kinch Vice President, TPA Business Development, Group Insurance, Ontario, West and Atlantic Beneva

Barbara Zvan Chief Executive Officer and President University Pension Plan Ontario

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Christopher DeSantis Senior Vice President, Institutional Investment Services Hillsdale Investment Management

Jeff Sommers Partner Blake, Cassels & Graydon

Benoit Durocher Executive Vice President and Chief Economic Strategist Addenda Capital

Joy Savage Founding Partner fuse

Brent Wilkins Senior Vice President and Head of Institutional Sales, Canada CC&L Financial Group

JP Girard Executive Vice President and Head, GreenShield Insurance GreenShield

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HOT LIST 2023 Julien Ranger Partner, Pensions and Benefits Osler, Hoskin & Harcourt Karen Adams Chief Executive Officer and President CloudMD Kevin Martino Vice President Capital Group Kevin O’Connor National Director, Private Insurance The Janssen Pharmaceutical Companies of Johnson & Johnson Laura Nashman Chief Executive Officer BC Pension Corporation Marie-France Amyot Senior Vice President Group Benefits and Retirement Savings Desjardins Maxime Menard Chief Executive Officer and President Jarislowsky Fraser Michael Perry Senior Vice President, Group Solutions Empire Life

Rick Holinshead National Vice President, Distribution, Service and Marketing, Group Benefits and Retirement Solutions iA Financial Group (Industrial Alliance) Shannan Corey Executive Director Saskatchewan Pension Plan Sue McNamara Senior Vice President, Fixed Income and Head of Responsible Investing Beutel, Goodman & Company Sylvain Boulé Chief Executive Officer and President Montrusco Bolton Investments Tracey Wong Vice President, Sales and Consultant Relations Fidelity Canada Tracy Zimak Director, Institutional Asset Management Cidel Asset Management

Patrick Sullivan, CFA Director, Product, Institutional and Retail Picton Mahoney Asset Management

Walter Viguiliouk Managing Director, Sustainable Investing and Private Markets Manulife Investment Management

Paula McDonald Chief Executive Officer Teachers’ Pension Plan of Newfoundland and Labrador

Warren Stoddart Chief Executive Officer and President Connor, Clark & Lunn Financial Group

Ramy Rayes Executive Vice President, Investment Strategy and Risk BCI

Wayne Murphy Chief Privacy Officer and Senior Manager, Corporate Services The PBAS Group

Richard Hughes Co-Founder and Chief Executive Officer CBPP

Zahid Salman Chief Executive Officer and President GreenShield

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21

SPECIAL PROMOTIONAL FEATURE

WORKPLACE HEALTH

Going beyond conversation: Data shows employers need to take action

Experts illustrate the state of employee mental health conditions – learn how to take action in your organization

HEALTH BENEFIT plan insurers have seen a significant swelling in the number of Canadians tapping into mental-health benefits. While mental health and well-being are certainly being touted by employers as a top priority, workers continue to struggle.

In conversation with Sun Life’s director, mental health solutions, Dr. Sam Mikail, PhD, and Beneva’s national senior advisor, best practices, special projects and health continuum support, Daniel Dufour, we learn how recognition is the path to amplifying well-being.

An uptick in disability claims owing to mental health stressors had begun prior to the COVID-19 pandemic. However, the ensuing turbulence has caused a significant increase in those figures.

As per Mental Health Research Canada, among Canadians, almost two-fifths (39 percent) of respondents to a survey felt the economic downturn was affecting their mental health. Those with lower incomes or who were in financial trouble were more likely to have high anxiety and depression.

Most employers and insurers are seeing a sharp increase in disability claims due to mental disorders. What factors are driving this trend?

Mikail: Certainly the pandemic had a significant impact on people’s mental health.

Biologically, there has been the impact of long-haul COVID on cognitive functioning,

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Dr. Sam Mikail, PhD director, mental health solutions Sun Life

energy level, sleep patterns, respiratory function, and mood. There were also significant disruptions to our healthcare system, including limited access to primary care, delays in treatment and diagnostic procedures, and so on – all of which had a marked impact on stress levels and overall health.

Psychologically, there were multiple factors, including the effects of social isolation, having to miss out on significant life events, increased caregiving demands, increases in substance use as a means of coping, the demands of adapting to working from home, and, for many people, the deaths

Daniel Dufour senior advisor, best practices, health continuum support, Beneva

of loved ones due to COVID infections, with the added sorrow of not being able to attend funerals. Economically and socially, there was the impact of mass layoffs, job insecurity, closure of schools, and other disruptions.

However, the increase in rates of disability due to mental disorders began prior to the pandemic, and has continued.

To make the point, in 2016, claims due to mental disorders accounted for 33 percent of all LTD claims. That number rose steadily to 38 percent in 2019, the year before the pandemic, and was at 42 percent in 2022.

Disability claims due to mental disor-

Sponsored by

ders are higher among younger employees than older employees. Data from Statistics Canada also tells us that rates of episodic disability are higher among women than men. So, really, there is no one factor acting alone that accounts for these trends.

Dufour: Progress in mental health has allowed professionals to better diagnose, intervene in, and treat mental health disorders. As an example, mental health diagnostic categories in the DSM – the Diagnostic and Statistical Manual of Mental Disorders – largely increased between its first edition in the ‘50s and the revised edition of the DSM-5-TR in 2022.

Technologies generate relatively little stress, but seem to intensify the work. Only one in five people perceives they are experiencing stress due to complex nature of technologies at work; however, one person out of three indicates that technologies require them to respond more quickly to requests.

The stress response is a normal reaction of our bodies – this is what we call the fight or flight response. It is why we survived prehistorically, even with the threat of mammoths! But these days, it is very rare for our lives to be in such danger.

When stress becomes chronic, health problems appear. Many scientists think that our bodies’ stress response was not designed to be constantly activated. When health problems are not addressed at the right time with the right treatment, there may be medical complications, increasing the likelihood of individuals taking disability leave.

The economic climate is not easy, especially since the pandemic. Recent statistics have reported that one out of four Canadians is unable to cover an unexpected expense of $500. One in three Canadians reported that it was difficult to meet their financial needs.

In terms of reported mental health disability claims, the pandemic has worsened the statistics.

Finally, less stigma around mental illness can explain a part of the increase over the past few years. In the ‘90s, there was in many insurance policies a limitation clause of two years specific to mental health. The limitation was applied to a person who suffered from “a nervous or neurotic illness,” unless this person was committed to a psychiatric institution. The ‘90s were not that long ago!

Although progress has been made and there is less stigma around mental health disorders, there is still a long way to go to break taboos. For example, who’s going to talk openly about taking antidepressants? If, however, you’re taking anti-inflammatories for a back problem, antihypertensives, or any other medication for a physical problem, it’s not a big deal.

For example, in the case of substance use disorders, over time an individual may develop a tolerance for a substance, which in turn creates a physiological dependence that results in a need for a higher dose of the substance in order to avoid the unpleasant effects of withdrawal.

Mood disorders, such as anxiety and major depressive disorder, are among the most prevalent mental disorders, and one of the leading causes of disability worldwide.

Findings from a number of clinical trials suggest that major depressive disorder is associated with increased inflammation that affects brain signaling patterns that can alter an individual’s mental processes. Naturally, the longer that inflammation persists, the more severe the symptoms become, and the

Mood disorders, such as anxiety and major depressive disorder, are ... one of the leading causes of disability worldwide Dr. Sam Mikail, PhD, Sun Life Suicide is another taboo topic. There isn’t enough conversation about it, but it’s the second-leading cause of death among young people, following accidents.

Financial burdens can be considered a greater taboo. We know that financial problems affect mental health. Do you know many individuals who will reveal to their colleagues or managers that they are in debt and that it is affecting them?

We hear a lot about the importance of early detection and intervention in managing mental health conditions.

What makes that so important?

Mikail: The simplest answer is that research has shown this to be the case in numerous clinical trials. There are biological reasons for this.

more effort is needed clinically to return the individual to a state of well-being.

We can easily find ourselves using a narrow set of coping strategies across many situations in which those strategies don’t apply, are ineffective, or make things worse.

Early intervention guards against those pitfalls by ensuring we are applying the right solution to the situation.

Dufour: Employers and plan sponsors have a key role to play, as there are many services that can be offered in support of employees.

It’s important to have an integrated approach to the overall health continuum model.

Briefly, this continuum can be summarized in three parts.

The first is “healthy and at work.” This person doesn’t have any health disorders,

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SPECIAL PROMOTIONAL FEATURE

WORKPLACE HEALTH so the objective at this point is to maintain the positive condition and promote good life habits to avoid disorders. If we draw a parallel with traffic lights, this first is the green light, where everything is correct. We want to maintain this.

In the second part of the continuum, the person is still at work but experiencing health risk factors or health disorders. The goal here is to prevent the condition from worsening in order to prevent sick leave or a disability. Again, if we draw a parallel with the traffic lights, we’re on yellow.

Finally, the third part of the health continuum is when the person is on sick leave or disability. Here the traffic light is red. The goal at this step is to help the person recover their health as quickly as possible and to facilitate their reintegration at work.

landscape has changed dramatically in the last few decades. On the plus side, people have far more choice today than they did 20 or 30 years ago. But the growth in available options has contributed to more confusion.

When people are unsure where to begin when seeking a specialized health service, we generally recommend starting with the primary care physician. A significant percentage of Canadians don’t have a regular family doctor and are reliant on either walk-in clinics or, in more extreme cases, hospital emergency departments. The difficulty with that is that practitioners in those settings don’t have the benefit of knowing the person’s individual or family history, and that is often critical to making the right diagnosis and recommending the appropriate treatment.

Employers also have a role to play in preventing psychological health problems Daniel Dufour, Beneva Plan sponsors and group insurance plans provide many services that can be offered at different steps of this health continuum. It’s important to have a good understanding of all the services and to support employees.

Moreover, good management practices will promote health. Employers can contribute to good mental health by integrating good management practices. It’s essential to integrate a good culture of health and wellness at work at all levels of the organization and to promote the services included in the group insurance plan.

The mental health landscape has become increasingly confusing for the average consumer. There are so many different types of practitioners and treatments, and many people don’t know where to begin or what type of treatment will be most helpful for their particular needs. How can people make their way through the confusion?

Mikail: You’re right. The mental health

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It is important to match the treatment to the individual’s needs and disposition. That requires a nuanced approach to selecting the right practitioner.

My suggestion is, when a person is seeking psychological treatment, they should call several practitioners first and ask some key questions to make an informed decision.

To start with, be sure the practitioner is a regulated health professional. That means they hold a license issued by a provincial/ territorial regulator that has been established by the Ministry of Health and LongTerm Care. Belonging to a professional association is not the same thing, and is not enough on its own.

Questions to ask include: Does your scope of practice include diagnosis? Can you tell me a bit about your approach to treatment and what I can expect? What does the research say about that form of treatment?

I have been feeling X or need help with Y – can you tell me about your experience in working with those concerns?

Dufour: Presently we have an abundance of information on many aspects, which is very confusing to wade through. This is where insurers have a role to play by explaining the services available and how to use them.

Insurers must support plan sponsors with their integration into the health continuum because it can be complex.

It’s not always easy for many employers to have a good understanding of the all the services, which is why education is very important. Often, services are available, but people may not know of their existence or how to use them.

Employers also have a role to play in preventing psychological health problems.

They must provide a healthy work environment to reduce health risk factors at the source.

To do this, primary prevention is essential.

What adds to confusion on the part of an employee is that it is not easy for someone to accept a disability for mental health and to live with what others will think. In summary, it’s important to have an integrated approach to the health continuum and offer the right care or service at the right time.

The pandemic was a real catalyst in the growth of virtual healthcare. Is this a trend that is likely to continue?

And if so, within the context of mental health, how does it compare to in-office treatment?

Dufour: Yes, technology has opened the door to virtual healthcare and created new possibilities. Telemedicine is widely available. Someone with minor health problems can easily have access to a doctor and obtain a medical prescription. In these instances, virtual appointments can be very useful for both physical conditions and mental health conditions.

Some patients prefer in-person therapy, and while virtual technology exists and is available, not everyone has access to it.

Employee assistance programs also allow virtual consultations, not only for psychological reasons but [also for] financial and legal issues. For those with a demanding schedule, it is also a good approach. Some

members of the younger generations prefer virtual therapy. However, virtual healthcare is not one-size-fits-all. Given the lack of access to care, and the long wait times, it is complementary to in-person care. Sometimes it’s a mix of both approaches that will be the most efficient.

Mikail: It’s useful to first define what we mean by virtual healthcare. Healthcare, and mental healthcare in particular, can be delivered virtually in several ways.

For example, there are numerous wearable devices now that track physiological and behavioural indices. Today, wearable devices are sophisticated and can track heart rate, blood pressure, arrhythmia, blood glucose levels, movement during sleep, wrist temperature, walking speed, and walking or running distance and so on – all of which can be correlated to various dimensions of health and forwarded to a person’s healthcare provider.

Numerous apps are also available that keep track of the symptoms and symptom severity of several mental disorders, send reminders to do a breathing and relaxation exercise, and record substance use.

There are also apps and web-based platforms that offer self-guided modules for the management of mood and anxiety disorders, grief, chronic pain, etc. Many of these include aides for meditation, mindfulness,

or relaxation exercises geared toward regulating emotions and reducing distress levels.

Virtual care can also take the form of traditional psychotherapy delivered by a clinician to an individual, couple, or group, using a secure video-conferencing platform.

Many benefits plans offer reimbursement for this treatment.

In the case of psychological assessment, we’ve also witnessed impressive advances in the development of traditional psychological assessment instruments that can now be administered remotely through video conferencing platforms.

In the very near future, we are likely to see increasing use of artificial intelligence to perform diagnoses more quickly and reliably than can be done by practitioners.

At this juncture, apps are not regulated, but Health Canada is looking at creating a regulatory process to assess mental health apps in a manner equivalent to the regulation of new drugs or medical devices, and many have not been shown to be effective when held up to empirical scrutiny.

The module-based platforms are showing some promise, particularly for disorders that fall in the mild to moderate severity range. But what the research also shows is that there is a high dropout rate for these treatments.

The evidence for the use of video-based

psychotherapy suggests that outcomes are on par with in-person treatment. Of course, certain precautions must be in place, like ensuring the person is in a private and quite space, having a safety plan in place in the event of a crisis, and having a backup plan in the event of technology failure. In my own practice, I find that most people I see are asking for and prefer to come in-person unless geographic distance, illness, mobility, or other circumstances are significant barriers.

Conclusion The Canadian Psychological Association (CPA) recommends that mental health coverage in EHC plans should be between $3000–$4500 annually. That is the amount needed to cover the cost of 15 to 20 sessions of psychotherapy, which is what research suggests is needed to treat a first episode of depression.

However, according to the latest data provided by Sun Life, based on 2020– 2021 numbers, only eight percent of plan members had access to the CPA-recommended coverage levels. One-third of plan members had access to coverage for fewer than four sessions annually – which essentially amounts to what is needed for an assessment and preliminary discussion about a proposed treatment plan – and no coverage for actual treatment.

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FEATURE

SRI REPORT

Canada stands out by embracing sustainable investing regulation Regulation is driving long-term Canadian SI –in a positive way

BY AND large, global asset owners continue to take a robust long-term view of their sustainable investing (SI) strategies, although macroeconomic and geopolitical factors have also influenced respondents’ short-term sentiment, finds a report from FTSE Russell.

FTSE Russell’s 7th Annual Sustainable Investment Asset Owner Survey 2023 shows that SI continues to mature, although asset

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managers are reconsidering their strategies. Following five years of steady growth, there has been a directional dip to 80 percent this year from 88 percent in 2022 in the level of asset owners globally who are implementing and evaluating SI. This dip can be attributed to influential macroeconomic factors, such as high interest rates to combat inflation and geopolitical volatility caused by the war in Ukraine.

However, despite short-term influences on sentiment toward SI, respondents maintain long-term conviction for this continually maturing investment theme, with asset owners in Canada now driven primarily by regulatory requirements (40 percent).

“We’re seeing a contrast in Canada compared to other countries where regulatory requirement is driving asset owners’ long-term conviction of adopting SI strategies within portfolios,” says Paul Bowes, Canada country head at FTSE Russell.

“Almost half of the survey respondents view regulation as helpful in meeting their SI goals, rather than a barrier. This is consistent with how independent Canadian pension boards have worked together with regulatory bodies to create one of the best-run pension industries in the world.”

Bowes says that when the Canadian data in the survey is broken out – or rather, the US data is removed – “the trend shows [the number of ] Canadian asset owners applying or considering ESG as a factor in their investment strategies continues to grow.”

Governance a rising priority Governance is a priority that has significantly risen across all regions, increasing notably

from one in three (33 percent) in 2022 to 54 percent of asset owners globally in 2023. In Canada, climate/carbon is a priority for 47 percent of asset owners, followed closely by governance at 46 percent. In fact, regulation of SI and ESG (environmental, social, and governance) helps asset owners meet their SI goals very well, according to 47 percent of Canadian respondents.

Bowes says the report shows governance is very important to Canadians. “I think we have proven with our pension industry how good governance can result in an extremely well-run pension industry. The Canadian model, through collaboration among pension funds, government, and regulators, can arguably make a more sustainable pension industry than in some other countries.

“I am intrigued by this idea that governance is a priority, particularly in Canada. In fact, rather than hiding behind governance, we can use governance and regulators to help the industry make further progress and further embed through reporting requirements.”

Over half (58 percent) of Canadian asset owners say regulation is helpful in removing barriers to SI adoption while 50 percent note it may improve investor disclosures to the market around SI strategies and SI outcomes. Another 32 percent say regulation helps improve the quality and consistency of corporate reporting and disclosures, with 23 percent indicating it might be helpful with respect to providing guidance around fiduciary/investor duty.

As SI matures, asset owners believe their firms are successfully meeting top priorities for governance and climate/ carbon-related strategies, although some data and regulatory challenges do persist as perceived barriers to increased implementation of sustainable investment.

Fifty-seven percent of respondents in Canada expressed concerns around the availability of ESG data and use of esti-

EXTENT TO WHICH SUSTAINABLE INVESTMENT OR ESG REGULATION HELPS MEET SUSTAINABLE INVESTMENT GOALS, BY AUM Not at all 4%

Not very well

Somewhat well

5%

Very well 2%

Extremely well 4%

19% 32%

40% 46% 29%

39% 14% 50% 43% 9% 33% 16% 5%

Total

<$1B AUM

5% 3%

$1B to less than $10B AUM

>$10B AUM

R1a. Using the scale below , to what extent do you think sustainable investment or ESG regulation helps you meet your sustainable investment goals?

Tonal Asset Owners (n=319)

Investors “view regulation as helpful in meeting their SI goals, rather than a barrier” Paul Bowes, FTSE Russell mated data. Respondents also indicated the most challenging factors in meeting regulatory requirements are the inability to align portfolio/index with SI/climate (55 percent) and the lack of transparency across ESG ratings (45 percent).

“Sustainable investment is not the new thing,” says Bowes. “It is maturing and becoming the new norm. However, we still need further maturation. It’s really about the data, and we do need better data to

make better investment decisions.

“The sustainable investment industry is sort of at a crossroads, and we probably need to work with regulators to ensure that some of the reporting requirements are more consistent, more understandable, and more comparable.”

FTSE Russell spoke to 350 asset owners with AUM between US$7.9 trillion and US$14.2 trillion between March 27 and April 28, 2023.

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FEATURE

SRI REPORT

Strategy hard to justify ‘if it’s not creating alpha’ North American SI investment landscape more complex, nuanced than Europe

SUSTAINABLE INVESTING (SI) continues to gain widespread acceptance among institutional investors and full integration is projected to surge in the next five years, says a study by Coalition Greenwich commissioned

by AGF Investments.

In fact, nine out of 10 institutional investors in North America and Europe expect to be investing sustainably or working toward the goal of introducing SI practices into their portfolios within the next five years, says the Coalition Greenwich study Emerging Trends in Sustainable Investing: Best Practices and Wildcards for Institutions. Indeed, implementing SI across portfolios with full integration is projected to grow to three times today’s level in five years.

The study explores the priority themes most often targeted by asset owners through thematic approaches showing that asset owners are focusing on energy transition, water services, and climate adaptation. In fact, the energy transition, at 34 percent, is the area most targeted by asset owners through thematic funds. At the same time, participants from endowments and foundations cite a commitment to diversity, equity, and inclusion as the top reason to increase their sustainable strategies.

Integrating sustainability across asset classes In addition, institutional investors are looking to integrate sustainability across asset classes.

However, the motivation behind adopting

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sustainable investing practices differs, with North American investors focused on improving risk-adjusted returns, and European investors focused on creating positive impact.

The trend toward full integration is picking up steam, says the report. Looking ahead five years, 63 percent of European

institutions predict that sustainability will be integrated across their entire portfolio, and in North America, 55 percent of institutions expect sustainability to be fully integrated within five years.

While European investors are committed to the environment as part of their investment strategies, in North America it’s more nuanced,

PRIORITY THEMES IN SUSTAINABLE INVESTING 1-High priority

2

3-Moderate priority

4

Energy transition (i.e., hydrogen)

34%

27%

Water services and climate adaptaion

31%

Diversity and inclusion

29%

5-Low priority 20%

24%

6%

29%

13%

3%

13%

20%

28%

10%

12%

30%

23%

12%

12%

Food and health

23%

Biotechnology

20%

30%

27%

9%

13%

Circular economy and pollution control

19%

34%

21%

13%

14%

Timber and forestry

13%

26%

30%

15%

16%

Note: Based on 143 respondents. May not total 100% due to rounding.

“People now are more thoughtful about what SI means and how to be part of it” Todd Glickson says Todd Glickson, head of investment management – North America at Coalition Greenwich. “It’s not that there isn’t a commitment,” he says, “but there are some divergences in uptake in North America. [North American investors] are good with SI, but it also has to improve their risk-return profile. So, if it’s not adding alpha compared to what I’m investing in presently, I may struggle to justify that to my constituent group.”

Glickson adds that one theme that investors are interested in is transition investing. This includes organizations that are transitioning from a certain market state to a greener state.

“There are industries that are considered ‘less clean’ such as oil or natural gas versus wind or solar,” he says. “There are companies in those spaces that have traditionally been in one space but are moving to a cleaner one. For investors who want to improve their risk-re-

turn profile and want a diversified portfolio, they will have to look at firms that are at all different points on the spectrum.”

Gaining widespread acceptance As sustainable investing gains widespread acceptance, it is moving into a new and more mature stage. Now that institutional investors have at least some experience with sustainable investing, certain common trends and best practices are beginning to emerge, says the report. These trends include: • Heightened expectations for investment performance: While some of the earliest adopters of sustainable investing were prepared to make a trade-off between impact and returns, investors today expect sustainable investments to match or outperform

investment benchmarks – while also delivering positive impact.

• A journey toward full integration: Although investors today are using a variety of approaches, the long-term trend appears to be a clear movement toward full integration of sustainable investment practices into investment processes across portfolios, asset classes, and strategies.

• Guarding against greenwashing: Greenwashing is acknowledged as a real concern, and investors are taking active steps to guard against it.

• Enhancing potential for impact and returns with thematic strategies: Even as investors move to fully integrate sustainability into their portfolios, they continue to employ thematic strategies that allow them to concentrate assets in order to enhance environmental and social impact as well as investment returns.

Even as the industry begins to coalesce around these and other emerging standards and practices, there remain some wildcards in the form of key unanswered questions and variables that will affect the future evolution of sustainable investing: • No consensus on impact measurement: As yet the investment industry has not reached any universal agreement on how best to measure the non-financial performance and impact of sustainable investments.

• Regulatory headwinds and uncertainty: Political pushback in the United States against ESG investing and lingering regulatory uncertainty around the world remain headwinds to the continued growth of sustainable investing.

The journey to SI used to be about avoiding so-called sin stocks, but now asset owners are making SI an important part of their investment strategies. “People now are more thoughtful about what SI means and how to be part of it,” says Glickson.

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ESG/SRI DIRECTORY LISTINGS

ADDENDA CAPITAL INC. Contact: Janick Boudreau, CFA, Executive Vice President, Business Development and Client Partnerships Address: 800 Rene-Levesque Blvd. W., Ste. 275, Montreal. QC, H3B 1X9 PH: 514.908.1989 Fax: 514.287.7200 Email: info@addendacapital.com Web: www.addendacapital.com ESG/SRI Products/Services: Integrated ESG research for all asset classes, Impact Investing, Fossil Fuel Free Global Equity, Climate Transition Canadian and International Equity, Eco-Social Commercial Mortgages, Clientdirected SRI screens Year SRI Products or Services First Offered: 1992 Philosophy/Style: At Addenda Capital, we consider environmental, social, and governance (ESG) matters in all of our investment and stewardship activities. Our objective is to enhance long-term investment performance for our clients and promote sustainable development for society.

ALLIANCEBERNSTEIN LP Contact: Wendy Brodkin, Managing Director Address: 200 Bay Street, North Tower 12th floor, Toronto, ON, M5J 2J2 PH: 647.375.2803 Email: wendy.brodkin@alliancebernstein.com Web: www.alliancebernstein.com ESG/SRI Products/Services: Sustainable platform, responsible+ strategies, impact strategies.

AllianceBernstein seeks to integrate financially material ESG factors into most of our actively managed strategies. We also offer three types of Portfolios with Purpose. These strategies, in addition to their financial return/risk objectives, integrate one or more ESG objectives/ approaches into their day-to-day management.

Year SRI Products or Services First Offered: AllianceBernstein has long integrated ESG factors into our research and investment processes, even before we became a PRI signatory in 2011. We integrate material ESG

and climate change factors at applicable steps of the investment process for most of our actively managed strategies. AB began offering dedicated ESG products when we launched our first Portfolio with Purpose in 2013.

Number of ESG/SRI Canadian Pension Fund Clients: 20 Philosophy/Style: Responsible investing is a way we seek to unlock opportunity for our clients. We integrate material ESG factors into our investment process for most actively managed strategies. We design portfolios with purpose to achieve financial objectives with dedicated ESG themes.

ALPHAFIXE CAPITAL Contact: Jonathan Lapointe, Vice President, Business Development, Partner Address: 1800 McGill College, Suite 2420, Montreal, QC, H3A 3J6 PH: 514.861.3493 Email: j.lapointe@alphafixe.com Web: www.alphafixe.com/ ESG/SRI Products/Services: Pooled Funds: AlphaFixe ESG Fund – Green Bonds, AlphaFixe ESG Fund – ReturnPlus, AlphaFixe ESG Fund – Floating Rate Bank Loans, AlphaFixe ESG Fund – Short Term Credit, AlphaFixe ESG Fund – Short Term Corporate Opportunities.

Exchange-Traded Funds: NSCB, NSCC, NSSB. Mutual Funds: NBC5452, NBC5752, NBC5457, NBC5757. AlphaFixe manages many segregated impact bond mandates for its clients. Moreover, all strategies managed by AlphaFixe integrate ESG risks, and portfolio managers engage with issuers on broad ESG topics, including energy transition opportunities.

Year SRI Products or Services First Offered: ESG: Since the creation of the firm in 2008 / Impact: Since 2017 Number of ESG/SRI Canadian Pension Fund Clients: 48 Philosophy/Style: Our overall approach toward responsible investment revolves around the integration of multiple strategies covering all our investment decisions. These strategies include: ESG integration, negative screening, integration of the TCFD recommendations, engagement and collaboration, impact investing, detailed ESG/Impact reporting.

AMUNDI Contact: Tanya Bishop, Senior Vice President Address: 120 Adelaide St. W, Toronto, ON, M5H 1T1 PH: 647.201.4225 Email: tanya.bishop@amundi.com Web: www.amundi.com ESG/SRI Products/Services: ESG Advisory: ESG Policy Design, ESG Portfolio Screening & Action plan, ESG Market Standards, ESG Rating Model. ESG Investment Solutions: According to Amundi’s Responsible Investment Policy, according to Clients’ Responsible Investment Policy, Manager selection / Responsible funds. ESG Services: ESG Reporting, ESG Training, Integrated ESG data solutions & ALTO Sustainability platform. ESG OCIO: Integrated ESG consulting and services with assets under advisory management Year SRI Products or Services First Offered: 1986 Number of ESG/SRI Canadian Pension Fund Clients: 17 Canadians pension fund clients with ESG-related considerations Philosophy/Style: As a responsible asset manager, our role is to create long-term sustainable value for our customers and all our stakeholders, taking into account the major challenges facing our world and society.

BGO Contact: Yvonne Davidson, Principal Address: 1100 – 1 York Street, Toronto, ON, M5J 0B6 PH: 416.681.3414 Email: yvonne.davidson@bgo.com Web: www.bgo.com ESG/SRI Products/Services: BGO Prime Canadian Property Fund Year SRI Products or Services First Offered: 1983 Number of ESG/SRI Canadian Pension Fund Clients: 78 Philosophy/Style: Core Canadian open-end real estate fund established in 1983 with CAD$7.2 billion of assets. Constructing a diversified portfolio and providing investors a stable income return with an emphasis on sustainable investing.

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ESG/SRI DIRECTORY LISTINGS

BMO GLOBAL ASSET MANAGEMENT Contact: Samantha Cleyn, CFA, MBA, Managing Director & Head, Institutional Sales & Service Address: 100 King Street West, Toronto, ON, M5X 1A1 PH: 514.862.2653 Email: samantha.cleyn@bmo.com Web: www.bmogam.com/ca-en/institutional/ ESG/SRI Products/Services: BMO AM Responsible Global Equity ESG Fund, BMO Sustainable Opportunities Canadian Equity Fund, BMO Sustainable Opportunities Global Equity Fund, BMO Women in Leadership Fund, BMO Balanced ESG ETF (ZESG), BMO ESG Corporate Bond Index ETF (ESGB), BMO MSCI ACWI Paris Aligned Climate Equity Index ETF (ZGRN), BMO MSCI Canada ESG Leaders Index ETF (ESGA) Year SRI Products or Services First Offered: 1984 Number of ESG/SRI Canadian Pension Fund Clients: 6 Philosophy/Style: We believe that integrating ESG analysis is critical to our fiduciary duty, allowing us to manage risk, as well as supporting long-term returns and a more sustainable future – all in service to our mission to “Boldly Grow the Good.”

BURGUNDY GLOBAL ASSET MANAGEMENT Contact: Mike Sandrasagra, Vice President, Head of Canadian Institutional Group Address: 181 Bay Street, Suite 4510, Toronto ON, M5J 2T3 PH: 416.869.8980 Fax: 416.869.1700 Email: msandrasagra@burgundyasset.com Web: www.burgundyasset.com ESG/SRI Products/Services: Burgundy Global Equity Foundation Fund, Burgundy EAFE Foundation Fund, Burgundy Emerging Markets Foundation Fund, Burgundy European Foundation Fund, Burgundy Balanced Foundation Fund, Burgundy Foundation Trust Fund, Burgundy Canadian Equity SRI Fund,* Burgundy Global Equity SRI Fund* *Indicates a product available only to private clients.

Year SRI Products or Services First Offered: November 1996 Number of ESG/SRI Canadian Pension Fund Clients: 20 institutional clients Philosophy/Style: We integrate ESG into our investment approach. Assessing ESG factors helps us make better investment decisions.

We seek quality companies led by outstanding business leaders who are acutely aware of all factors, including ESG, that could materially affect their businesses.

CAPITAL GROUP CANADA Contact: Kevin Martino, Vice President Address: 181 Bay Street, Suite 3730, Toronto, ON, M5J 2T3 PH: 416.815.2128 Email: kevin.martino@capgroup.com Web: capitalgroup.com/ca ESG/SRI Products/Services: Capital Group manages USD$2.4 trillion as of June 30, 2023 in actively managed equity, fixed income, and multi-asset investment portfolios through funds and segregated accounts worldwide. Our research-driven, long-term investment approach integrates material ESG risks and opportunities – alongside financial and other metrics – into our investment decisions across our strategies.

More information on our approach, including our ESG policy, can be found on our Web: https://www.capitalgroup.com/institutions/ca/ en/investments/esg.html Year SRI Products or Services First Offered: Capital Group continues to review potential opportunities to further strengthen the firm’s ESG offering in light of continued demand for ESG products. These efforts supplement the launch of our first UK OEIC, Capital Group UK – Global High Income Opportunities, on January 18, 2023, which applies ESG and norms-based screening and is managed to a carbon footprint target, as well as our first two SFDR Article 8 fund adoptions, Capital Group New Economy Fund (LUX) and Capital Group Global High Income Opportunities (LUX) and first SFDR Article 8 fund launch, Capital Group MultiSector Income Fund (LUX), in 2022.

Philosophy/Style: We integrate ESG acrossinvestment strategies. Consideration of material ESG risks and opportunities is deeply woven into the Capital System and factored into our fundamental research, due diligence, and

engagement. Our investment process includes a three-component approach to ESG integration.

CIBC ASSET MANAGEMENT Contact: Carlo DiLalla, CFA, Managing Director and Head, Institutional Asset Management Address: 161 Bay Street, Suite 2230, Toronto, ON, M5J 2S1 PH: 416.980.276 Email: carlo.dilalla@cibc.co Web: www.cibcam-institutional.com ESG/SRI Products/Services: Services: Investment management. Products: CIBC Sustainable Canadian Core Plus Bond Fund, CIBC Sustainable Canadian Equity Fund, CIBC Sustainable Global Equity Fund, CIBC Sustainable Balanced Solution, CIBC Sustainable Conservative Balanced Solution, CIBC Sustainable Balanced Growth Solution, CIBC Socially Responsible Balanced Pool Year SRI Products or Services First Offered: 2011 Philosophy/Style: At CIBC Asset Management, we recognize that we have a responsibility to act in the best interest of our clients when managing their capital. We believe ESG factors create risks and opportunities for investors, and it’s therefore in the best interest of our clients to consider these factors when making an investment decision. Evaluating the sustainability of a company’s business model and its impact on the communities and economies within which it operates is critical in assessing its long-term viability and success.

It’s our belief that ESG factors play a critical role in the evaluation of the long-term health and stability of a company. Integrating an evaluation of these ESG factors into our research process plays a fundamental role when assessing the value and performance of an investment over the medium and longer term. We believe that integrating both sustainability and fundamental factors will ultimately enhance the financial performance of investment mandates and improve outcomes for our investors.

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ESG/SRI DIRECTORY LISTINGS

CONNOR, CLARK & LUNN FINANCIAL GROUP Contact: Brent Wilkins, Senior Vice President, Head of Institutional Sales, Canada Address: 1400–130 King Street West, P.O. Box 240. Toronto, ON M5X 1C9 PH: 416.364.5396 Email: bwilkins@cclgroup.com Web: www.cclgroup.com ESG/SRI Products/Services: Global Equity, International Equity, Emerging Markets, Market Neutral, Canadian Fixed Income, Canadian Value, Real Estate, Infrastructure and Commercial Mortgages Year SRI Products or Services First Offered: 1995 Number of ESG/SRI Canadian Pension Fund Clients: 217 Philosophy/Style: We believe that many ESG factors have a material impact on investment performance across time horizons and asset classes. As such, all investment teams spend significant time researching ESG risks and opportunities and engaging with company management on ESG topics.

DESJARDINS GLOBAL ASSET MANAGEMENT Contact: Natalie Bisaillon, Vice President & Chief of Partnerships & Institutional Client Relations Address: 1, Complexe Desjardins, 20th Floor, South Tower, Montreal, QC, H5B 1B2 PH: 1.877.353.8686 Fax: 514.281.7253 Email: natalie.bisaillon@desjardins.com Web: www.desjardins.com/dgam ESG/SRI Products/Services: RI Active Canadian Bond - Low CO2 – ETF, RI Canada - Low CO2 Index – ETF, RI Canada Multifactor - Low CO2 – ETF, RI Developed ex-USA ex-Canada - Low CO2 Index – ETF, RI Developed ex-USA ex-Canada Multifactor - Low CO2 – ETF, RI Emerging Markets - Low CO2 Index - ETF, RI Emerging Markets Multifactor - Low CO2 – ETF, RI Global Multifactor - Fossil Fuel Reserves Free – ETF, RI USA - Low CO2 Index – ETF, RI USA Multifactor Low CO2 – ETF, Desjardins Societerra US Equity ETF, Desjardins Societerra Canadian Bond Fund, Desjardins Societerra Canadian Equity Fund,

Universe Bond Fund, Advisory Mandate RI Canadian Bonds, Advisory Mandate RI Canadian Equity, Advisory Mandate RI Canadian Equity-Ex Fossil Fuel Year SRI Products or Services First Offered: 1990 Number of ESG/SRI Canadian Pension Fund Clients: 32 Philosophy/Style: At DGAM, responsible investment is key to our management philosophy. We believe responsible investment is consistent with our mandate as portfolio managers, requires action and innovation, means taking a longer-term vision, and involves inspiring and influencing.

FIERA CAPITAL CORPORATION Contact: Krista McLeod, Head of Client Relations Address: 1981 McGill College Avenue, Montreal, QC, H3A 0H5 PH: 514.954.3300 Fax: 514.954.9692 Email: kmcleod@fieracapital.com Web: www.fieracapital.com ESG/SRI Products/Services: The following link contains the list of ESG labelled products and funds we have available on our Canadian platform: https://www.fieracapital.com/ wp-content/uploads/default/20230511/ esg-product-overview-chart-en-v4.pdf.

Please note, however, that we conduct ESG integration in our non-ESG labelled products as well.

Year SRI Products or Services First Offered: Some of our ethical funds (SRI products) pre-date the creation of Fiera Capital in 2003.

Number of ESG/SRI Canadian Pension Fund Clients: As of June 2023, we have 240 Canadian pension fund clients. We integrate ESG considerations in all of our strategies, but exposure to exclusionary strategies (ethical/SRI and or FFF) may be limited to some of them.

Philosophy/Style: We believe that for ESG factors to be well-integrated within the investment decisions we make, investment teams must be accountable for their ESG integration processes. This belief guides the way our investment teams implement their strategies, conduct materiality assessments, and integrate ESG factors in a manner that best suits their respective asset class, investment style, and geography.

FOYSTON, GORDON & PAYNE INC. Contact: Kimberley Woolverton, Executive Vice President, Head of Distribution Address: 1 Adelaide Street East, Suite 2600, Toronto, ON, M5C 2V9 PH: 416.848.1936 Fax: 416.367.1183 Email: kwoolverton@foyston.com Web: www.foyston.com ESG/SRI Products/Services: In addition to offering one standalone ESG product, the FGP Canadian Ex-Energy Equity strategy, we integrate ESG into all our investment strategies.

Year SRI Products or Services First Offered: 2018 Number of ESG/SRI Canadian Pension Fund Clients: 25 Philosophy/Style: Companies that effectively address ESG issues tend to be more attractive long-term investments. Assessing ESG factors, including actively engaging with company management to encourage and educate them on best practices and policies, has long been a component of our fundamental investment analysis.

FRANKLIN TEMPLETON INSTITUTIONAL CANADA Contact: Duane Green, President & CEO Address: 200 King Street West, Suite 1400, Toronto, ON, M5H 3T4 PH: 416.957.6165 Email: duane.green@franklintempleton.ca Web: www.franklintempleton.ca ESG/SRI Products/Services: Our various investment teams independently evaluate ESG factors from multiple angles, varied by asset class (Equity, Fixed Income & Alternatives), sub-asset class, regional focus, or individual mandates.

Year SRI Products or Services First Offered: Introduced in 1954, by Sir. John Templeton, the Templeton Growth Fund was our Firm’s first product offering that followed a socially responsible investment criteria Number of ESG/SRI Canadian Pension Fund Clients: In Canada, we currently have 6 pension

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ESG/SRI DIRECTORY LISTINGS

plans invested in Sustainable focus mandates.

Philosophy/Style: Each of the Franklin Templeton investment teams has autonomous sustainable investment approaches with dedicated personnel in each asset class, region, and specialism. To leverage the expertise across these teams, a firm-wide Stewardship and Sustainability Council was established to provide a forum for dialogue and sharing of best practices around sustainable investing.

GUARDIAN CAPITAL LP Contact: Robin Lacey, Head of Institutional Asset Management Address: 199 Bay Street, Suite 2700, Toronto, ON, M5L 1E8 PH: 416.364.8341 Email: lacey@guardiancapital.com Web: www.guardiancapital.com ESG/SRI Products/Services: GEM Canadian Equity, GEM Global Equity, GEM Fixed Income, GEM Balanced, Guardian Canadian Equity Carbon Constrained Strategy Year SRI Products or Services First Offered: 2005 Philosophy/Style: ESG considerations are integrated into all of our investment processes and our stewardship activities, commonly referred to as ESG. Integration and Active Ownership: Our Guardian Ethical Management (GEM) products utilize negative screens in conjunction with NEI’s extensive Active Ownership program.

HILLSDALE INVESTMENT MANAGEMENT INC. Contact: Harry Marmer, Executive Vice President Address: 1 First Canadian Place, 100 King Street West, Suite 5900, P.O. Box 477, Toronto, ON, M5X 1E4 PH: 416.913.3907 Fax: 416.913.3901 Email: hmarmer@hillsdaleinv.com Web: www.hillsdaleinv.com ESG/SRI Products/Services: Hillsdale offers customized ESG testing, screening, and weighting services for institutional investors

within their investment strategies including the following – Global & International Strategies: Global Equity, Global Small Cap, Global Small Cap Ex US, International Small Cap, Hedged Absolute Return; US Strategies: Large and Mid Cap, 130/30, Small Cap, Small Cap Momentum, Micro Cap; Canadian Strategies: All Cap, Momentum ESG, Quality Equity Income, Value Momentum Quality, Low Vol, Small Cap, Micro Cap Year SRI Products or Services First Offered: 2011 Number of ESG/SRI Canadian Pension Fund Clients: 3 Philosophy/Style: Hillsdale’s philosophy combines the best of fundamental thinking, tested through a proven, rigorous quantitative methodology, with continually evaluated results relative to expectations. We believe that successful investment processes are adaptive in nature, searching for new alpha sources, potential strategy enhancements, and advanced risk-management techniques.

JARISLOWSKY FRASER Contact: Mark Fattedad, CFA, Lead, Sustainable Investment Strategy, Senior Institutional PM Address: Head office: 1010 Sherbrooke St. W., 20th Floor, Montreal, QC, H2A 2R7 PH: 1.800.736.8666 Email: mfattedad@jflglobal.com Web: www.jflglobal.com ESG/SRI Products/Services: ESG integration for all strategies and values-based mandates; Fossil Fuel Free Funds: Bond, Canadian Equity, Global Equity, Balanced; JF Sustainable and Impact Bond Fund Year SRI Products or Services First Offered: 2017 Number of ESG/SRI Canadian Pension Fund Clients: All Philosophy/Style: A recognized leading ESG investment manager, we integrate material ESG factors into fundamental investment analysis across all our strategies. We believe a company’s ESG policies and track record is a helpful lens through which to gauge quality, furthering our ability to invest in the most sound companies. Our sustainable investing approach includes constructive engagement with investee companies on material ESG issues. This is further reinforced in our proxy

voting decision-making, which is fully integrated into our investment process.

LETKO, BROSSEAU & ASSOCIATES INC. Contact: David Després, Vice President, Investment Services, Partner Address: 1800 McGill College Avenue, Suite 2510, Montreal, QC, H3A 3J6 PH: 514.499.1200 Fax: 514.499.0361 Email: david.despres@lba.ca Web: www.lba.ca ESG/SRI Products/Services: Letko Brosseau ESG Fossil Fuel Free Global Equity Fund, Letko Brosseau ESG Fossil Fuel Free RSP Global Equity Fund, Letko Brosseau ESG Fossil Fuel Free Global Equity Fund (US), Letko Brosseau ESG Canadian Equity Plus Income Fund, Letko Brosseau ESG Fossil Fuel Free Emerging Markets Equity Fund Year SRI Products or Services First Offered: We have been practicing ESG integration since the firm’s inception in 1987. The composite inception date of our Fossil Fuel Free Global Equity (Canadian Bias) Strategy is June 1, 2020.

Number of ESG/SRI Canadian Pension Fund Clients: 8 Philosophy/Style: At Letko Brosseau, we believe that companies with sound business practices, including strong corporate governance and responsible management of material environmental and social issues, have better success and deliver stronger financial performance over time.

LEITH WHEELER INVESTMENT COUNSEL LTD. Contact: Lisa Meger, ESG Analyst & Portfolio Manager Address: 400 Burrard St Suite 1500, Vancouver, BC V6C 3A6 PH: 604.683.3391 Email: lisam@leithwheeler.com Web: www.leithwheeler.com ESG/SRI Products/Services: Leith Wheeler

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ESG/SRI DIRECTORY LISTINGS

Carbon Constrained Canadian Equity Fund Year SRI Products or Services First Offered: 2017 Number of ESG/SRI Canadian Pension Fund Clients: 4 Philosophy/Style: Leith Wheeler follows an ESG Integration approach in the management of all Canadian equity portfolios. Within our Carbon Constrained strategy in particular, we additionally filter out any business that earns >30% of revenues from fossil fuel-related industries.

LINCLUDEN INVESTMENT MANAGEMENT Contact: Wayne Wilson, Vice President Address: 201 City Centre Drive, Mississauga, L5B 2T4 PH: 905.273.3018 Email: wayne.wilson@lincluden.net Web: www.lincluden.com ESG/SRI Products/Services: ESG Mandates – Canadian Equities, Global Equities Year SRI Products or Services First Offered: 2012 Number of ESG/SRI Canadian Pension Fund Clients: 5 Philosophy/Style: Value Equity portfolios where ESG analysis is integrated into all portfolios in forming of the assessment of the quality and stability of each company’s cash flows. Portfolio construction seeks alignment with globally accepted temperature warming goals, while targeting a consistent higher income with less capital risk. Investments are assessed on policies that mitigate environmental degradation, promote human rights, diversity and inclusion, and good corporate governance.

NEI INVESTMENTS Contact: Tasos Dimitriou, Manager, Institutional Sales & Relationship Management Address: 151 Yonge St., Suite 1200, Toronto, ON, M5C 2W7 PH: 416.453.2400 Email: tdimitriou@neiinvestments.com Web: www.neiinvestments.com ESG/SRI Products/Services: Fixed Income,

Income Equity, North American Equity, Global Equity, Balanced Funds, and Impact Funds.

Sustainable Intelligence Consulting services.

Year SRI Products or Services First Offered: 1986 Number of ESG/SRI Canadian pension fund clients: Undisclosed Philosophy/Style: For NEI, responsible investing seeks to generate sustainable value for investors, shareholders, other company stakeholders and society as a whole by incorporating ESG analysis of company performance into the investment decision-making process.

PICTET ASSET MANAGEMENT Contact: François Forget, Head of Distribution – Canada Address: 1000 de la Gauchetière West, Suite 3100, Montreal, Quebec, H3B 4W5 PH: 514.518.8587 Email: fforget@pictet.com Web: www.am.pictet ESG/SRI Products/Services: Positive tilt: Absolute Return Fixed Income (ARFI), Asia Equities ex Japan, China Equities, Digital, Emerging Markets, Family, Global, Fixed Income Opportunities, Japanese Equity Opportunities, Premium Brands, Robotics, Security. Best in Class: Emerging Local, Currency Debt, Global Emerging Debt, Positive Change, Sustainable Emerging Debt Blend, Quest – Emerging Sustainable Equities, Quest – European Sustainable Equities, Quest – Global Sustainable Equities. Positive Impact: Biotech, Clean Energy Transition, Climate Government Bonds, Global Environmental Opportunities (GEO), Global Megatrend Selection (GMS), Global Sustainable Credit, Global Thematic Opportunities (GTO), Health, Human, Nutrition, Regeneration, Smart City, Timber, Water. ESG Integrated: all other strategies Year SRI Products or Services First Offered: 1995 Philosophy/Style: A global leader in environmental and sustainable strategies, responsibility is central to our way of thinking.

We systematically integrate ESG in all investment processes and expect issuers to respect planetary boundaries and international standards on governance, human rights, and ethical business practices.

STEWART INVESTORS Contact: Hugh Tancred, Head of Distribution, Americas Address: 10 East 53rd Street, Level 21, New York, NY10022 Email: hugh.tancred@stewartinvestors.com Web: www.stewartinvestors.com ESG/SRI Products/Services: Stewart Investors manages Worldwide, Emerging Markets, Asia Pacific, European and Indian Subcontinent equity investment strategies, available as pooled vehicles or segregated mandates.

All of these strategies invest explicitly in businesses contributing to, and benefiting from, sustainable development.

Year SRI Products or Services First Offered: Stewart Investors traces its history back to The Scottish American Investment Trust which was established in Edinburgh in 1873. The first Stewart Investors’ strategy run according to our core philosophy (taking a long-term approach to investing in high-quality companies with strong stewardship) was launched in 1988. The investment team has been managing portfolios explicitly dedicated to sustainable development since 2005.

Number of ESG/SRI Canadian Pension Fund Clients: We do not currently have any Canadian pension fund clients. Our Canadian client base is made up of family offices and foundations/ charities.

Philosophy/Style: We are long-term, equity investors with a focus on stewardship and engagement. We take a bottom-up, benchmarkagonistic approach to stock-selection. We only invest in high-quality companies that contribute to, and benefit from, sustainable development.

.

SUN LIFE GLOBAL INVESTMENTS Contact: Anne Meloche, Head of Institutional Business Address: 1 York St, Toronto, ON, M5J 0B6 PH: 514.347.6137 Email: anne.meloche@sunlife.com Web: slgiinstitutional.com ESG/SRI Products/Services: Integrated ESG

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ESG/SRI DIRECTORY LISTINGS

research for all asset classes; net-zero glidepath solutions; sustainability-focused listed infrastructure Year SRI Products or Services First Offered: 2019 Philosophy/Style: We assess a manager’s ESG approach through three key pillars: firmwide commitment, implementation of ESG considerations in their strategy, and approach to active stewardship. These help us assess their strengths and weaknesses, and where they are on their ESG journey.

T. ROWE PRICE Contact: Lauren Bloom, CFA, Head of Canada Address: Suite 4240, 77 King Street West, Toronto, Ontario, M5K 1G8 PH: 416.320.7217 Email: lauren.bloom@troweprice.com Web: www.troweprice.com ESG/SRI Products/Services: T. Rowe Price Global Impact Equity Strategy, T. Rowe Price Global Impact Credit Strategy Year SRI Products or Services First Offered: 2020 Philosophy/Style: Our Impact investment approach is defined by its dual mandate, which simultaneously seeks both benchmark outperformance and positive environmental and social impact by investing in durable, growing businesses with measurable impact criteria.

compatible with our goal of seeking to provide strong risk-adjusted returns. Please see TDAM’s Sustainable Investing Approach: https://www.td.com/ca/en/asset-management/ documents/institutional/pdf/SustainableInvesting-Approach-EN.pdf TD GLOBAL INVESTMENT SOLUTIONS Contact: Anne Giroux, Vice President & Director, Institutional Distribution Address: 1350, Boul. René-Lévesque Ouest, Bureau 501, Montréal, QC H3G 1T4 PH: 514.286.4323 Email: anne.giroux@tdam.com Web: www.td.com/ca/en/ global-investment-solutions ESG/SRI Products/Services: Over the last few years, TDAM has significantly expanded its sustainable fund solutions. These funds provide a more focused avenue for clients to achieve their ESG-oriented objectives. Please refer to the “Sustainable Fund Solutions” section of TDAM’s Sustainable Investment Report 2022, available on our website, for details on each of the sustainable fund solutions launched recently: https://www. td.com/content/dam/tdgis/document/ca/ en/pdf/resource-pdf/reports/annual-reports/ Annual-sustainability-report-EN.pdf. Additionally, for institutional clients who set their own environmental objectives and targets, TDAM is able to customize solutions that can support their ESG-related investment objectives.

Year SRI Products or Services First Offered: 2020 Number of ESG/SRI Can Pension fund clients: Nine (9) Institutional ESG Clients Philosophy/Style: Incorporating ESG factors into applicable investment strategies, including for non-ESG funds when ESG factors can have a material impact on security valuation, is

TRIASIMA PORTFOLIO MANAGEMENT INC. Contact: Nathalie Nowlan, Partner, Client Relationships Address: 2520-900 de Maisonneuve Blvd. W., Montréal, QC, H3A 0A8 PH: 514.906.0667, ext. 247 Email: clients@triasima.com Web: triasima.com ESG/SRI Products/Services: Triasima currently offers the Triasima Canadian Equity Ex-Fossil Fund and the Triasima All Country World Ex-Fossil Fund. We also offer custom-made solutions for clients who wish to have their listed equities managed with formal objectives of sustainability or impact.

Year SRI Products or Services First Offered: 2016 Philosophy/Style: Our portfolio management approach is to combine three methods of analysis to add depth and perspective to traditional analysis. We believe that integrating ESG factors into stock selection and portfolio construction creates long-term opportunities to optimize risk-return and generate positive social and environmental impacts.

Benefits and Pensions Monitor directories can be found at www.benefitsandpensionsmonitor.com

Canada’s leading source of news, analysis, and insights for professionals within the benefits, pension, and institutional investment space. www.benefitsandpensionsmonitor.com

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PEOPLE

PLAN SPONSOR PROFILE

HOW UPP MAINTAINED FUNDED STATUS DURING VOLATILE TIMES Chief investment officer Aaron Bennett talks about the role of strategy and commitment in the plan’s success

DURING A year when defined benefit pension plans posted hard-hitting losses amid volatile global economic conditions, maintaining a healthy funding and liquidity position remained the top priority, and that is what University Pension Plan of Ontario (UPP) achieved in 2022.

2022 was UPP’s first full operational year as a pension provider. The plan was able to maintain a healthy funding position for the year at 103.3 percent with a $0.4 billion funding surplus. UPP’s portfolio posted a 9.1 percent net loss in 2022, but it outperformed median defined benefit pension returns in Canada by 3.3 percent.

“2022 was one of the more difficult years I’ve seen in my 20-plus years of being in finance and investing,” says Aaron Bennett, UPP’s chief investment officer. “So, in that context and in the context that we had a portfolio in transition – we really only gained control of the entire portfolio in April 2022 – we were able to produce numbers that were better than the median of our broader defined benefit peer group.

“Most importantly, and the key position for us, is we remained well funded and well positioned to deliver on the benefits that our

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members expect of us. We were able to support them through a period of very high inflation as well with increased payments. So, given the context of an incredibly difficult backdrop and the transitional state of our portfolio, we had a good result.”

UPP was created in 2021 by three

The UPP team took on the assets, largely fully invested across a variety of different strategies and portfolios. They got to work quickly and made significant headway throughout 2022. They wanted to find ways to capture returns and lower costs while at the same time lowering risk for members.

“Our total assets are around $11 billion, and we manage all of those assets as a single, coherent, cost-effective pension fund, with the goal of creating a resilient portfolio” universities – University of Toronto, Queen’s University, and University of Guelph – to take on the pension assets for both staff and faculty.

Provide benefits of scale “Our total assets are around $11 billion, and we manage all of those assets as a single, coherent, cost-effective pension fund, with the goal of creating a resilient portfolio that meets the needs of our members and provides them the benefits of scale,” says Bennett.

“We focused on consolidating elements, particularly on the liquid side of the business, to public markets, fixed income, public equities, and hedge funds, and finding ways to reduce costs, increase returns, and line them up with our target asset mix that was designed to produce a resilient portfolio and fund the liabilities. We also set strategies to determine how to provide more benefits of scale.

“Within the year, we were able to recruit the team, do the pipeline development, and

lens of climate change and diversity, equity and inclusion [DEI] to our manager selection, and that’s going to put us in a better position and help us do a better job of capturing return and managing risk.”

The organization wants to “walk the talk” when it comes to sustainable practices.

“We’ve spent time this year really looking at

“We were able to reduce our carbon footprint over the course of 2022, and kept on track to meet our net-zero commitment”

Aaron Bennett

ultimately make our first new investment in an infrastructure fund before the end of 2022.

We’re really excited about that.”

As well, “the team was able to negotiate with existing managers to find ways to lower costs on the existing portfolio. So, along with many of the moves we made on the public markets, that put us in a position to provide a more resilient portfolio. Now, we want to provide a portfolio that provides positive returns over the longer term. And we feel that, given the foundation that we’ve built so far, we’re really well positioned to

come to fruition and benefit our members.”

Committed to sustainability Another key element of the UPP strategy is sustainability.

“This was another exciting element that we were able to introduce in 2022. We were able to reduce our carbon footprint over the course of 2022, and kept on track to meet our net-zero commitment – net-zero portfolio emissions by 2040 or sooner.”

Aside from a responsible investment strategy, “we want to find ways to apply this

our own operations because it seems only fair that if we’re going to work with companies and hold them accountable in achieving their own net-zero targets, we have our own net zero targets.”

Bennett says he’s proud of what UPP has accomplished so far and to be a part of a such a high-quality team. “We had none of the infrastructure when we started out in July 2021. By April 2022, we had built out the infrastructure to fully take control of this entire portfolio in a short period of time and with a limited number of people. Despite these challenges and the challenges from economic volatility, the performance we had put us in a position where we were able to make the additional payments to members because we are indexed to inflation. We were also able to achieve our first new investment in infrastructure toward the end of the year.”

He adds, “We are really well positioned, with a great foundation to build from here to grow. We are open for business, and that includes new members and new partners in the investment world.”

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FEATURE

VIRTUAL CARE

Gotodoctor is making healthcare easier and more convenient Virtual care provider is reducing wait times by efficiently aligning public and employee benefits services

tified, they proactively engage with the plan member, offering them a range of options.

Normally, when it comes to family physicians, the wait time can be frustrating and uncertain. Instead, Gotodoctor explores various options, depending on the individual situation. Cheung uses the analogy of a ski lift – the first one may be full, but look

FAST FACTS

1 MILLION

ONE COMPANY is breaking new ground in the healthcare industry – at the click of a button.

There are several reasons why plan sponsors are using Gotodoctor’s services, from reduced wait times (by up to 75 percent, the company says), to an improved return on investment for sponsors and employers, to their blend of in-person and virtual care through 250 CareBridge pharmacy and clinic sites.

Gotodoctor, with its partner Enhanced Care, is bridging the gap between public healthcare systems and employee benefits services and, as the preferred virtual care provider for the McKesson Retail Banner Group and Rexall pharmacies, there’s no other company reaching the same breadth of

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communities, according to its president and CEO, Tommy Cheung.

“What we wanted to do is align with the public healthcare system and maximize the benefit that’s available for the employee benefits side,” said Tommy Cheung, president and CEO of Gotodoctor. “What we have seen in the market is that there is a big silo between the two sides, and we came up with a new process with our platform, with the technology to support it. We call it the service engine, which basically helps members navigate and find the right service, and it goes far beyond just typical virtual care.”

Gotodoctor delves into the public system, locating available physicians or specialists tailored to a patient’s specific needs. Once iden-

members connected and served

by Gotodoctor

250+

in-person CareBridge service sites (pharmacies and clinics) across the country

75%

decrease in average wait time using Gotodoctor

beyond it and there’s another one coming. He also used mental health cases as an example of the benefit Gotodoctor can provide.

For example, Gotodoctor recently had a patient who needed mental healthcare. Gotodoctor’s navigation service was able to get a clear picture of the member’s needs and the available options. From the original referral, which involved a wait time of six months, they were able to find a new option within a couple of weeks, in a local hospital that had a psychologist and a new mental health program.

“Six months is a long time,” Cheung explains. “You talk about productivity, quality of life, and [within that time], a medium-

enhances productivity and the well-being of the workforce.

Arthur Kennedy, senior advisor for Gotodoctor, explained why they use the public health system as much as they can. “A lot of the competitors in this field are creating a parallel system,” he said. “They’re recruiting nurses, doctors, etc. We fundamentally believe in and respect the public system, and we’re just trying to enhance it.”

Kennedy describes a situation in which they had a patient who needed a biopsy because a lump was discovered in the liver.

If a biopsy is four months away, the patient’s going to be anxious, and so Gotodoctor can

PERCENTAGE OF CANADIANS WITHOUT A FAMILY DOCTOR BY PROVINCE BC: 20% Alberta: 16%

“What we wanted to do is align with the public healthcare system and maximize the benefit that’s available for the employee benefits side” Tommy Cheung, president and CEO of Gotodoctor term issue could become a significant issue.”

“You’re talking about cutting time,” Cheung says. “It sounds simple, but it’s very significant – and there’s more to do. We didn’t just run it in parallel. We found the program and he agreed to explore that …

That’s where we see the impact of our service – to help patients with access.”

With the reduced wait times Gotodoctor provides, Cheung says they are helping employers and sponsors save hundreds of dollars by accessing public healthcare, so they don’t have to pay twice.

“There is virtual care coverage for physicians to provide a service in almost every province. Is it required that the employer pay for it again?

I’m an employer myself. I don’t mind paying for it when it’s not covered by the province, but when it’s covered, I want to align with it.”

Employers and sponsors also benefit from having access to the sheer number of clinics and pharmacies that Gotodoctor provides.

Once this benefit frees up company dollars, the money can be allocated to other services like coaching and prevention, which in turn

suggest an American provider who will do the biopsy. But they’ll still bring the patient back to their oncologist.

“All we’ve done is compressed one particular portion of the process. But now we’re back into the public system. So that’s what we try to do, as best we can – use resources that are already available,” Kennedy added.

“When someone has diabetes, they may have a mental health issue or some kind of issue attached to that. But from an employer’s perspective, we can get right into the prevention side of things. With this kind of coaching and this kind of material, that’s where the real savings come in. If someone has metabolic syndrome and we prevent type 2 diabetes, that’s a massive savings to the employer,” Kennedy said.

As the healthcare system across Canada continues to recover post-pandemic, a recent study released by the Canadian Medical Association found that one in five Canadians is still without a family doctor or struggles to see the one they have.

Saskatchewan: 21% Manitoba: 17% Ontario: 13% Quebec: 26% New Brunswick: 25% Nova Scotia: 26% Newfoundland: 21% Source: The Angus Reid Institute and the Canadian Medical Association.

Survey conducted between Aug. 1–8, 2023 among a representative randomized sample of 5,010 Canadian adults who are members of Angus Reid Forum.

“The challenge is that none of the providers will have the time they want to provide all the options to their members,” Cheung said. “If they can spend more time using our system and using our service engine technology to help them, then they would be able to know what options are available. The more patients we service, the more efficient we will become.”

Gotodoctor provides online services like general assessments, prescriptions and renewals, health and wellness, counselling and lab requisitions, and pediatrician consultation. Cheung said Gotodoctor provides healthcare service to between 20,000 and 25,000 members and patients every month.

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39

BACK PAGE

OPINION

Time to think about inflation New research reveals more about what oil price shocks really do in the bigger picture IT HAS been more than a decade since I have looked at inflation research. Over that time, there has been little need to do so, as we seemed to be living in a low interest-rate environment with inflation steady and under control.

Many investors and researchers had accepted this and moved on to other topics.

Those left were locked in a seemingly endless debate about whether inflation was a monetary issue or a problem of demand – a fundamental question, but one that hasn’t been resolved in almost a century.

Sidestepping this question are two recent papers that offer up greater knowledge of today’s inflation. The first paper, which has been accepted by the journal Energy Economics but has yet to be published, is by Jongrim Ha, M Ayhan Kose, and Franziska Ohnsorge, all of the World Bank, and Hakan Yilmazkuday of Florida International University, titled, “Understanding the Global Drivers of Inflation: How Important are Oil Prices?”’

This work is unique in that it looks at both developed and developing economies and studies a very long time series with several shocks, including global recessions, periods of volatility in the oil market, and the post-COVID period.

So, what role do oil price shocks play?

The authors found that oil price shocks may not have been a key driver of inflation (accounting for only about four percent of the variation in inflation among the 55 countries the authors examined during the 1970–2022 period), but that they had a measurable impact on three-quarters of the countries examined. For example, the oil

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price shock of the early 2022 period during the Russian invasion of Ukraine is associated with a 1.2 percent increase in inflation in the median country. The role of oil price shocks in inflation calculations is also typically much larger in developed countries than in developing countries. Oil price shocks were also more prominent in explaining changes in the inflation rate during global recessions and/or periods of significant disruption in

Unlike other studies, which look at longterm consequences of shocks, the authors here study the extent to which shocks result in an immediate change of individuals’ economic expectations. Inflation expectations play a key role in household behaviour through changing demand patterns. The authors created a survey of inflation expectations of all tenured economic professors at German universities and compared this to a sample of German households. The Russian invasion caused an immediate increase in experts’ short-run inflation expectations of 0.75 percentage points. Mid-term effects (i.e., for the next year) were a lower inflationary increase of 0.47 percentage points.

Ordinary households had much lower inflation expectations (about half that of the experts), and the effects for households only came several days after the invasion, suggesting that experts in this case were both better informed and quicker to

Work on shocks to the economy can help us understand today’s inflation. This research shows that while shocks are important, their effects don’t last forever the oil market. They calculate that oil price shocks contributed about 3.4 percentage points to the seven percent inflation rate recorded between the end of 1973 and the beginning of 1974. Even in today’s COVIDdriven inflation rates, oil prices accounted for about 10 percent of the overall increase in inflation. Generally speaking, the importance of oil price shocks has risen over time – from four percent during the last century to nearly nine percent in the time since 2000.

So, how long will these shocks have an impact? For this, we turn to a recent unpublished paper by Lena Drager, Klaus Grundler, and Niklas Portrafke, all from the Leibniz Institute for Economic Research, titled, “Political Shocks and Inflation Expectations: Evidence From the 2022 Russian Invasion of Ukraine.”

react to shocks. Interestingly, both groups predicted an effect of near-zero for the longer term (i.e., two years).

Work on shocks to the economy can help us understand today’s inflation. This research shows that while shocks are important, their effects don’t last forever, which means we might soon see a return to a period of lower inflation rates around the world.

Jim Helik is a contributing author to the Managing High Net Worth and the Commodities as Investments courses published by CSI Global Education. He is also one of the first holders in Canada of the Human Resource Management Professional designation from the Society for Human Resource Management.

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