Join the movement to redefine the future of wealth management at the Women in Wealth Management Summit Canada 2024. This is your opportunity to connect with trailblazers, allies, and industry leaders to gain actionable insights and advance your career in an evolving industry.
FEATURED SPEAKERS
MELISSA LEONG
Personal Finance Expert, National Media Personality, Best-selling Author
FERA JERAJ Chief Technology Officer Canaccord Genuity Group Inc.
ANDREA LINGER
VP, Practice Management and Head of the Women Canadian Advisors Network Raymond James Ltd.
MARIA JOSE FLORES
President Carte Wealth Management Inc.
Don’t overestimate impact of US election
Aglance at CPP Investment’s 2024 annual report is all you need to understand the level of its exposure to the US (42 percent across all asset classes) and the US dollar (45 percent). Of the CPP fund’s five-year net return of 7.7 percent (as of March 31, 2024), 59 percent of these gains were from investments in the US, which, when viewed alone, achieved a net return of 8.9 percent for the same five-year period.
Given our southerly neighbour is such a central pillar of performance for you and your loved ones’ pension pots, there is a fair chance the US election campaign, and the division and uncertainty it’s breeding, has people worried about their long-term economic prosperity.
That’s understandable; money is an emotional topic, and Canada’s close ties to the US are undeniable. And yet our flagship pension fund has almost half its assets directly exposed to the US. But fear not. Breathe easy. Because as far as the financial markets are concerned, it doesn’t matter who wins the US election.
Of course, depending on your political leanings, the election really does matter. You
What really drive and underpin markets are economic fundamentals
may also have strong feelings about the type of person who should occupy high office. But markets have no such bias, and don’t care whether it’s Joe Biden, Kamala Harris, or Donald Trump in the White House.
Furthermore, history shows that election years are mostly positive for stocks. Since 1928, US equities have posted positive presidential election-year returns more than 83.3 percent of the time, with an average return of 11.4 percent.1
In addition, stocks have performed equally well under both Democratic and Republican administrations – with best returns, incidentally, occurring under the Franklin D. Roosevelt (D), Clinton (D), Eisenhower (R) and Reagan (R) administrations. Since 1930, the average annualized price return (excluding dividends) of the S&P 500 was 9.6 percent when a Democrat won and 5.7 percent when a Republican won. But taken over a longer period, results for both parties are similar, with the S&P 500 returning around seven percent.2
What really drive and underpin markets are economic fundamentals, and the US economy will continue to be influenced by consumer spending regardless of partisan politics. The S&P 500 is up more than 19 percent this year as of September 10 on falling inflation and the prospect of US Federal Reserve interest rates cuts, despite the deafening political noise.
Of course, let’s not be flippant – it definitely does matter who leads the US, a country that wields significant global power. But the long-term performance of financial markets will be determined by economic fundamentals, not political posturing.
James Burton, managing editor
EDITORIAL
Managing Editor James Burton
Senior Editor
David Kitai
Journalist
Josh Welsh
Lead Production Editor Roslyn Meredith
Production Editors Kel Pero, Christina Jelinek
ART & PRODUCTION
Art Director Marla Morelos
Designer Khaye Cortez
Production Coordinator Kat Guzman
Customer Success Coordinator Jenelle Guarin
Vice President, Production Monica Lalisan
SALES & MARKETING
Vice President, Global Sales (Wealth) Abhiram Prabhu
Business Development Manager Doris Holinaty
Account Manager Michael Hughes
CORPORATE
President Tim Duce
Director, People and Culture
Julia Bookallil
Chief Revenue Officer
Dane Taylor
Chief Information Officer Terry Szames
COO
George Walmsley
CEO Mike Shipley
EDITORIAL ADVISORY BOARD
Celine Chiovitti, OMERS
Katie McNulty, CAAT Pension Plan
Greg Hurst, Greg Hurst & Associates
Robert Weston, Pharos Platform
Kevin Minas, Mawer Investment Management
Mark Newton, Newton HR Law
Jim Helik, James Helik Consulting Tim Clarke, tc Health Consulting
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WEALTH PROFESSIONAL james.burton@keymedia.com T +1 416
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IMPACT OF FINANCIAL HEALTH
Employers should recognize the link between financial and mental health. Offering services like financial counselling, mental health support, and accessible EAPs can improve overall employee well-being, productivity, and engagement.
GENDER PENSION GAP
In a concerning development, the gender pension gap in Canada has widened to 17 percent.
95%
of Canadians see their financial situation affecting their mental health
43%
percent lack means for professional mental health care
Q2 PENSION GAINS
Canadian pension plans experienced a modest median return of 1.14 percent in Q2 2024, with a strong performance from non-traditional asset classes like hedge funds and private equity.
1 in 4
Canadians reports a decline in their financial situation over the past year
1 in 4
Canadians is affected by the economic downturn, affecting their mental health
REDUCING RISK DURING UNCERTAIN ECONOMIC TIMES
CIBC
head and managing director
Carlo DiLalla
outlines strategies
the institution is using to help with the “growing emphasis on portfolio diversification”
AS MANY in the industry will attest, the financial world can be complex to navigate. But Carlo DiLalla’s journey is one that has been focused on adaptability, strategic foresight, and a passion for client-centered solutions. As managing director and head of institutional asset management at CIBC Asset Management, DiLalla has spent over a decade navigating the complexities of financial markets, guiding his team, and providing tailored solutions for institutional clients.
At the core of DiLalla’s work is a genuine passion for helping clients achieve their financial objectives. “I really enjoy working with clients and helping them achieve their objectives,” DiLalla attests. “That’s been the cornerstone of what I do, and it’s [both] challenging and exciting. It allows me to use my skills and orient my team’s capabilities as well.”
Under his leadership, CIBC Asset Management has strategically positioned its fixed-income portfolios to benefit from the fluctuating interest rate environment. “The interest rates we have today are a welcome
position where fixed income is earning its income,” DiLalla remarks, as his team anticipated a slight decline in rates from their recent highs. As a result, there’s been a trend of reallocating to fixed income altogether.
He explains that the income portion of fixed income is higher and contributes to total
investments. He says investors have already made the move to allocate from traditional securities to private funds, and are now looking for further diversification with hedge fund-like strategies, “where correlations are even lower and, as a result, clients can have a total portfolio that has more risk-management possibilities.”
“I feel that responsibility [for CIBC’s legacy] every day, and I’m satisfied with that challenge”
returns, which has also renewed its appeal for institutional investors. “It now plays its role as diversifier like it used to play,” he says. DiLalla remains cautious, however, acknowledging that rates could continue falling as the possibility of a recession looms on the horizon.
He also acknowledges a growing emphasis on portfolio diversification, with many clients seeking to reduce risk through exposure to hedge-fund-like strategies and private
DiLalla highlights CIBC Asset Management’s active currency strategy, which provides clients with a diversifying asset class without the need to allocate capital, noting that it’s done on an unfunded basis. “You get extra return, you get better portfolio management risk, and you get it in an efficient way without utilizing capital,” he explains. This innovative approach has gained traction, especially outside of Canada,
FAST FACTS
Name: Carlo DiLalla
Company: CIBC Asset Management
Title: Managing director and head of institutional asset management
Years in the industry: 30
Education: MBA from Niagara University; Bachelor of Commerce from Concordia University
Best advice to give: Don’t fear failure
What inspires you? My wife and two daughters. I do everything here for them
INDUSTRY ICON
and now includes clients in the United States, Australia, and Japan. DiLalla’s 34-person institutional team also works closely with clients to design benchmarkoriented approaches. “We either create a liability benchmark for them and use fixed income to achieve the same objective, or we’re examining their needs for short-term obligations to help them with the fixedincome opportunity.”
Another interesting development is CIBC Asset Management’s private credit capability, DiLalla points out. As a bank-owned asset manager, CIBC Asset Management uses a “One CIBC” approach to offer asset owners access to direct lending opportunities that
that said, we’ve had a little bit of ease with some of the rate movements, and inflation seems to be under control. That was a big concern not too long ago.”
“Economically, we’ve had more issues because we’re more sensitive to rate increases,” he explains. “Unlike the US, where they have a 30-year mortgage, our mortgages reset every five years. Therefore, we’ve had more to worry about with these rate hikes, and we’ve had to cut, whereas the US central bank has been able to operate a little differently. We might continue to see that difference because our system has that bigger sensitivity to interest rates. In Canada, we are positioning for continued steepening in the curve.”
“The interest rates we have today are a welcome position where fixed income is earning its income”
were once only available to large bank balance sheets. He says he’s proud to offer access to the unique deal pipeline, leading underwriting and true risk alignment uniquely available through CIBC Asset Management’s private credit platform. “We are now entering a period in which we’re allowing institutional plans to access some of our loans on the banking side,” he explains. “Investors can lend alongside the bank, with economic interests aligned between CIBC’s balance sheet and clients – a unique proposition in the Canadian landscape.”
Currently, the country faces a few economic pressures, as DiLalla highlights the country’s weak dollar, which is hampering exports, along with the higher interest rates that are affecting mortgages and other interest-bearing products. “There’s a lot to be concerned about, but,
As a leader, DiLalla values strategic thinking and collaboration. He takes pride in the collective success of his team and strives to be a defender of both client and employee interests. However, he also acknowledges that leadership comes with its challenges. “Obviously, you can’t have everything your way,” DiLalla admits. “When the door closes on me, those days aren’t as fun. And of course, the more ideas you have, the more doors close on you. I experience that on a regular basis, but I don’t give up. I keep going.”
As DiLalla reflects on his career, one of the life lessons he’s learned – and, indeed, the best advice he would give – is to “not fear failure.”
“That’s something I experienced a lot early on in my career, and it’s guaranteed that you will fail. If you accept that notion, it changes everything in terms of your perspective about
ABOUT CIBC ASSET MANAGEMENT
A RICH HISTORY OF SERVICE:
• 90+ highly qualified investment professionals with an average of over 18 years of industry experience
• $199 billion of assets under management
• 5th largest asset manager headquartered in Canada, and a top 10 institutional manager by Canadian pension assets
• 50+ years of experience in actively managing investment mandates
PORTFOLIO MANAGEMENT AND RESEARCH TEAMS
• Fixed income
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what you do next. It’s always beneficial to find out how to move forward.”
Looking ahead, DiLalla remains focused on the future and committed to his role at CIBC, which is driven by a deep sense of responsibility and a desire to deliver for his clients and his team. “I don’t have a set date for retirement just yet, but I envision continuing the path that I’m on in terms of achieving the objectives and continuing the legacy of CIBC’s institutional business, which has a deep, 50-year history of being excellent,” he says.
“I feel that responsibility every day, and I’m satisfied with that challenge.”
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Maximizing employee satisfaction: unpacking fertility benefits for employers
How comprehensive family-building benefits plans can support employees through every stage of family growth and care
IN CANADA, infertility is becoming more common, affecting between 10 percent and 17 percent of the population.1 This growing issue has a major impact on the physical, mental, financial, and social well-being of those affected. By offering or improving fertility benefits at your organization, you can provide essential support for employees struggling to build their families.
Infertility treatments are frequently left out of health plans, forcing many people to cover the high costs themselves. By offering fertility benefits, organizations can save on healthcare costs in the long run, boost employee engagement and loyalty, and attract a diverse group of candidates who appreciate inclusive benefits.
Desjardins Insurance has recognized for a while the positive impact that
family-building benefits can have on employees. Although the United States was quicker to adopt these benefits, Canada is now starting to follow suit. As a result, discussions with clients on this topic are becoming more common.
“This has been very top of mind for many plan sponsors,” says Neda Nasseri, product director at Desjardins Insurance. “Because
Why offer fertility benefits
Fertility Matters Canada reports that only five percent of employers offer full coverage for both fertility drugs and treatments. This is concerning, especially since the number of Canadian couples facing fertility issues has doubled over the last 40 years, and the cost of treatments and medications remains high. In Canada, a single round of IVF costs about
“Mental stress affects workload and daily routines, as it follows you home, potentially creating tension within the relationship and a loss of closeness”
Neda Nasseri, Desjardins Insurance
we’re facing a significant labour shortage, it’s important to offer a variety of options and to promote diversity and inclusiveness. We need to consider all aspects and scenarios where someone might need help to obtain the best possible support.”
In response to these challenges, Desjardins Insurance launched “Family Focus,” a comprehensive group insurance plan designed to address the diverse needs of plan members who are on the path to starting a family.
$20,0002, and surrogacy expenses can go beyond $80,000.
Research conducted by Carrot 3 shows that 50 percent of Canadians would consider taking on a second job to cover fertility treatment expenses, 37 percent would consider selling minor possessions, and 36 percent would take on credit card debt.
The same research also shows that fertility issues can affect work productivity and performance, emphasizing the importance of fertility benefits in attracting and keeping
Neda Nasseri
employees. In fact, 75 percent of respondents see fertility benefits as a key part of an inclusive company culture, and 65 percent would consider changing jobs to work for a company that provides these benefits.2
There is some progress: more Canadian companies are starting to add or improve fertility benefits for their employees. This not only helps attract talent but also strengthens the company’s values. The
with a fertility doctor, a lawyer, a gestational carrier (also known as a surrogate mother), and an egg donor. The entire process takes approximately two years and incurs significant costs.
There are also important factors to consider for people dealing with health issues that could affect their future fertility. For instance, a woman diagnosed with cancer might decide to freeze her eggs
“Because we’re facing a significant labour shortage, it’s important to offer a variety of options and to promote diversity and inclusiveness. We need to consider all aspects and scenarios where someone might need help to obtain the best possible support”
Neda Nasseri, Desjardins Insurance
increasing demand for fertility benefits shows that employees want more flexible options, and HR teams that prioritize these needs will give their organizations a strong competitive advantage. Now is the time for companies to customize their benefits packages to meet the unique needs of a diverse workforce.
The diverse faces of family-building challenges
As Nasseri points out, family-building challenges vary greatly, depending on individual circumstances. The reality is different for men, women, LGBTQ+ community members, and single parents. Each faces unique hurdles that require tailored support and solutions.
For homosexual couples, the fertility process is both complex and extremely expensive. It requires close collaboration
before starting treatments like radiotherapy or chemotherapy, which could harm her ovaries. This gives her the option to have children later on. However, in-vitro fertilization is a long and invasive process, with egg retrieval being just the first step.
Employers who are ready to support employees in these situations really stand out from their competitors, says Nasseri. By offering strong family-building benefits, they become top contenders in the competitive job market. Plus, you can’t overlook how much this can help with keeping employees loyal and happy. You can’t discount the impact this can have on employee retention as well.
Comprehensive support systems that go beyond financial aid
Beyond the financial burden that family-building procedures can bring, there’s
Sponsored by
also a significant emotional cost. Facing challenges in building a family can deeply affect mental health. As Nasseri points out, “Mental stress affects workload and daily routines, as it follows you home, potentially creating tension within the relationship and a loss of closeness.”
Having access to different healthcare professionals, especially psychologists, is vital to helping individuals and couples deal with the emotional and psychological stress that comes with family-building challenges. A well-rounded plan could offer both a health spending account and a personal wellness account to support these needs.
Nasseri points out that “postpartum care [also matters], because the fourth trimester is crucial. The mother can be especially vulnerable, particularly during her first pregnancy. After the challenging journey to have her child, she is expected to feel nothing but happiness. Yet some mothers feel depressed, and wonder why. This is due to postpartum depression. All of this needs to be taken into account when providing a family-benefits program.”
Employers should strive to develop inclusive guidelines that emphasize compassion and flexible time off. The flexibility is key, as there are specific moments while going through IVF when you need to go to the clinic so you do not miss your favourable window for successful conception.
Providing a wide range of benefits and flexible support shows an organization’s commitment to diversity, equity, and inclusion. It also reflects the organization’s values by showing empathy.
As a result, employees may feel more engaged and secure, with less financial stress and greater happiness in their work environment.
As we continue working towards gender equality, women’s retirement security is an important part of the conversation
HOOPP PARTNERS with Abacus Data annually to survey Canadians about their views on pensions, retirement, and their personal finances in the context of the broader economy. The research we release helps to raise awareness around the value that good pensions like HOOPP bring to our members and the communities they live and work in.
This year, we found that women tend to start saving for retirement later than men, and they generally have less money in savings. Unretired women are also more likely to feel unprepared for retirement and to experience anxiety, fear, and frustration because of their financial situation.
There are a number of factors at play here: women make less money than men, with an average annual income gap of 29 percent in 2022 (meaning women made $0.71 for every dollar made by men), and they’re also more likely to work part-time or to take time off work in order to have a child or care for their family. These social and structural inequalities, alongside the rising cost of living, leave women in a much worse position at retirement.
When preparing for retirement, it is best to save often and save early. For many women in Canada, that is easier said than
done. If you are struggling to afford childcare or to put food on your table, saving for retirement is not top of mind. Unretired men tend to be ahead on saving for retirement from an early age, with 57 percent of men between the ages of 18 and 34 having set aside money for retirement, compared to 45 percent of women in the same age range.
That’s where pensions come in. In fact, defined benefit (DB) pension plans, like HOOPP, can play a crucial role in bridging the gaps caused by gender inequality. As a guaranteed source of income during retirement, a pension can provide peace of mind to members, leading to lower levels of financial stress.
The 2024 Canadian Retirement Survey found that almost half (49 percent) of unretired women with a pension feel prepared for retirement, compared to just 29 percent without a pension. Our research also shows that access to a workplace pension plan enables Canadians to save more efficiently – just 29 percent of those with a workplace pension report having less than $5,000 in savings, compared to almost half (48 percent) of those without.
Pensions, especially those that follow the Canadian pension model, deliver significant value to their members. When women have
access to these kinds of pensions, they’re able to benefit from things like risk pooling, professional investment discipline, and fiduciary governance – a few of the key drivers that result in a higher pension income for less cost than other retirement savings vehicles.
This research makes the value of good workplace pensions clear: they enable women (and all Canadians) to save more efficiently and help them feel more prepared for retirement. What’s more, Canadians are willing to pay to get a pension. Despite the current high cost of living, a majority of Canadians (70 percent) would trade salary for a pension or an improved pension.
Better access to pensions is key to
Defined-benefit pension plans can play a crucial role in bridging the gaps caused by gender inequality
improving retirement outcomes for women and all Canadians. But pension plans also play a fundamental role in ensuring women have a more equitable pension experience.
For example, more than 80 percent of HOOPP’s active members are female, and our plan is designed to work for them – through all of life’s planned and unplanned changes. HOOPP members can continue to contribute
to their pension during a leave of absence, like a maternity leave, taking time off work during a family emergency or if they need to reduce their hours. In fact, almost a third of active HOOPP members currently work parttime, building a secure financial future one shift at a time. By offering similar supports for members, more pensions can help bridge the gap for their female members.
In an uncertain economy, Canada model pensions like HOOPP continue to provide members with something invaluable: stability. And that’s something all Canadians deserve. By improving access to pensions and introducing better supports for members through all of life’s changes, we can create a more equitable and stable future for all.
Ivana Zanardo is the head of plan services at the Healthcare of Ontario Pension Plan (HOOPP). HOOPP serves Ontario’s hospital and community-based healthcare sector, with more than 670 participating employers.
Risk insurance around specialty pharma
Steps that plan sponsors can take to manage the increasing costs of benefits plans and promote financial sustainability
RISING DRUG costs are a major factor driving up benefit plan expenses. They can affect the overall financial sustainability of a plan, even affecting coverage for plan members. In 2023, specialty drugs accounted for 31.2 percent of drug costs, and the number of claimants continues to increase (Telus Health 2024 Drug Data Trends & National Benchmarks report).
The purpose of this article is to highlight how traditional risk insurance products leave organizations exposed to highcost drug claims, and what strategies one should consider to mitigate risk.
Most organizations offer unlimited prescription medication coverage. Typically built into their extended healthcare premiums is a risk insurance product that helps reduce exposure, called stop-loss insurance. It is usually set at a per-indi -
vidual level, and the threshold is often set around $10,000 per person. This means the first $10,000 of a claimed high-cost drug will have a direct impact on claims renewal calculations. The rest will move to a large-amount pool (LAP). The insurer absorbs any cost over the LAP threshold. The smaller the company, the more impact just one claim can have on renewal rates. It would be challenging to market the plan knowing insurers will be wary of taking on that LAP burden.
To better understand this, let us examine the example of auto insurance. If a claim is submitted, the deductible is paid first, then the insurance company covers the balance. At renewal time, it is likely rates will increase due to the cost absorbed by insurer. Similarly, in a benefits environment, rates will increase annually so long as that high-
cost drug is claimed, until the plan member resigns, retires, or dies.
To avoid this undesirable condition, best practice encourages the following strategies. First, consider changing from per individual to per certificate.
Per individual means every insured member has their own stop-loss product. Per certificate treats every plan member, whether single or family, as a certificate, thereby reducing total theoretical risk.
Second, install formulary guard (FG), which is a specialty drug-management program developed in partnership with Bayshore Health and People Corporation. FG extends plan member support in securing alternative funding for their medication. This approach manages the impact of rising drug costs, starting with
SPECIALTY
DRUGS BY SHARE OF ELIGIBLE AMOUNT AND CLAIMANTS, 2023
a thorough analysis of a company’s drug claim history to assess exposure to highcost drugs. The goal is to identify funding sources before the company incurs the cost, exploring three avenues:
1. Alternative private plan (e.g., spousal co-ordination of benefits)
2. Provincial health programs
3. Drugmanufacturer-sponsored programs
People Corporation’s Nadia Lubsey, operations manager – health solutions, recently provided the following insight about the FG process: “After the claims history analysis, we communicate to all stakeholders to educate them about the FG program. Then, the plan member engages with a specialist to
investigate alternative funding sources. Our specialists support members through the entire process, assisting with the completion and submission of required forms, coordinating with the different funders, and managing referrals.”
Success story: “Since launching FG in June 2020, we have successfully secured alternative funding for over 200 cases, resulting in over $7 million in cost savings to our clients.”
Comparable products: “Yes, some offer managed formularies that simply exclude high-cost drugs from the plan. However, those programs do not match the level of plan-member support FG provides. Ours is a strategic solution that provides a comprehensive health solution with hands-on support
throughout the treatment journey.”
The traditional per-individual risk insurance is archaic, especially given the rising cost of drugs and its associated risk. Rather, employing the above strategies – stoploss per certificate coupled with formulary guard – can protect your organization’s risk and provide an empowering relief against current and future trends. Here is the future benefit: reducing claims means healthier renewals and healthier sustainable relationships among all stakeholders.
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BENEFITS INITIATIVES
Proactive client-centric innovation at Desjardins Insurance
Chantal Gagné on anticipating needs, enhancing group benefits, and addressing modern workplace challenges
WITH THE rapid evolution of workplace dynamics, a proactive approach is becoming essential for group insurance companies. In today’s digital and customer-centric era, the insurance industry must adapt. Some insurers are already shifting from a traditional reactive model to a proactive approach.
Chantal Gagné, senior vice president of life and health at Desjardins Insurance, explains, “As insurers we are always asking, what are the unmet needs our clients have today? But also, what might be required in the next five years? Our goal is to develop solutions for these emerging needs.”
In defining a caring group benefits insurer, Gagné emphasizes the importance of staying attuned to the evolving challenges a workforce must navigate. “The best insurers are those who can stay close to their plan advisors, their plan sponsors, and their plan members,
constantly adapting,” she says.
“We are continually linked to the voices of our clients through surveys and regular conversations to understand emerging trends and needs.”
Desjardins Insurance also focuses on strategic partnerships with health organizations to ensure their offerings remain relevant, to increase awareness and knowledge of various health issues for both their employees and their clients, and to help plan sponsors know how to address these issues. For instance, their partnership with Obesity Canada led
In partnering with the Haleo Sleep Clinic –a resource for resolving sleep disorders – plan members can benefit from an assessment of how sleep is a factor in certain medical conditions. Desjardins Insurance also partners with Prenato, so plan members can access screening tests, genetic counselling, and specialized perinatal support at reduced rates.
“This is something we really wanted –to offer something that resonates with all types of families,” Gagné says about this partnership. “Currently, we’re working on a new initiative specifically tailored
“The best insurers are those who can stay close to their plan advisors, their plan sponsors, and their plan members, constantly adapting”
Chantal Gagné, Desjardins Insurance
to more comprehensive documentation for employers as part of their Healthy weight initiative. They are also currently working with the Douglas Foundation to gain better knowledge regarding specific mental health issues, such as addiction, eating disorders, and mood disorders.
While the core business is developing group benefits products, the insurer also believes it has a role to play in providing plan members with easier access to healthcare.
to women’s health needs. We have some exciting developments coming this year. Women’s health is a segment with unique requirements, and we want to be fully supportive.
“This falls under our diversity, equity, and inclusion [DEI] initiatives. Employers have given us feedback, and we have answered. Another aspect we’re focusing on, in conversations with plan sponsors, is addressing the needs of new generations.”
Chantal Gagné
Sponsored by
Addressing modern workplace challenges
The evolution of the workplace, especially post-pandemic, has presented new challenges and opportunities. Gagné highlights two key areas of focus: The various needs of a multi-generational workforce, and DEI. “DEI has become a priority for many organizations, including Desjardins Insurance. We’ve adapted our offerings to support these goals, like our gender-affirmation coverage and inclusive family benefits,” she notes.
sponsors and the trends seen in the market.”
Another phenomenon observed in recent years, due to labor shortages, is the aging workforce, with people staying in employment longer or continuing part-time. As people age, their needs evolve, and coverage levels may become insufficient. Desjardins Insurance is in the process of evaluating how to adopt a more comprehensive and forwardthinking stance on an aging workforce. According to Gagné, with demographic trends indicating that people will continue to
“Currently, we’re working on a new initiative specifically tailored to women’s health needs. We have some exciting developments coming this year. Women’s health is a segment with unique requirements, and we want to be fully supportive”
Chantal Gagné, Desjardins Insurance
Moreover, understanding the distinct needs of different generations is crucial. In 2022, Desjardins Insurance conducted a study to better understand what comprises a person’s overall health and what employees expect from their employers regarding group benefits. It was interesting to find that millennials have high expectations for mental health support, with 78 percent expecting their employers to support them in this area. 1
“In response, this fall, we will be adding services in order to better support three prevalent mental health issues – mood disorders and anxiety, addiction, and eating disorders,” Gagné says. “This initiative was designed to meet the needs of Canadian employees, based on conversations with plan
extend their working lives over the next five to 10 years, it’s crucial to develop these plans progressively.
Affordability and sustainability
While the adaptation and enhancement of group benefit plans are crucial for ensuring access to necessary care, Gagné believes it is equally imperative to prioritize the affordability and long-term sustainability of these plans.
She mentions the management of increasing drug costs as an example. To address this, Desjardins Insurance has promoted the use of biosimilars since 2016 –drugs that are safe, effective, nearly identical copies of originals medications, but sell for a lower cost. With proven efficacy, the adoption
of biosimilars by plan members continues to grow. This approach provides what Gagné calls a “win-win solution,” providing more affordable options to groups while affording the same therapeutic benefits.
To further complement these strategies, Gagné emphasizes that efforts to reduce the number and duration of disabilities have a direct impact on costs and significantly improve the well-being of employees, as well as an organization’s health.
Gagné’s team is developing a new initiative set to launch in 2025 that will recognize partial disabilities. This initiative aims to reduce prolonged absenteeism by enabling employers to benefit from the continued, albeit partial, performance of their employees. At the same time, it will allow plan members to manage their health and recovery while staying partially active in the workplace.
Gagné maintains, “Desjardins Group, as a financial cooperative, inherently places the client at the centre of our priorities. Being a part of it, this client-centric focus is integral to our DNA. In terms of future directions and ongoing efforts, we aim to invest continually in our product offerings and tools. We want to ensure our products meet the emerging needs of our clients while providing simple and modern tools that simplify the lives of plan members.
“Equally important to us is fostering strong client relationships through a human and caring approach. This commitment spans all stages of our interaction with plan members and sponsors, from sales to prevention initiatives through to claims management.”
Sun Life and Canada Life share insights into how employers can adapt to generation’s specific needs
SHELLEY SJOBERG, assistant vice president of product development and support at Canada Life, says Canadians’ views of what constitutes well-being and finding the right support systems have shifted.
“Supports [that help people] navigate healthcare or achieve access to different healthcare practitioners, supports that provide information in a digestible and at-your-fingertips-way, or getting a sleek digital experience are [all] crucial in today’s environment because of the way that our lives are different,” she says.
“Mental health has been top-of-mind for Canadians for a really long time, but we know that the incidence of mental health [issues] is fundamentally different in younger populations,” she explains. “We have to think differently about the challenges that the working-age population – in particular, millennials and Gen Z – face today. What kind of support can we bring to the table?”
Those challenges also extend to employers, as they’ll need to adapt to the new generation’s needs and wants. Gone are the days of a one-size-fits-all approaches. Today’s millennials are seeking personalized, flexible support that aligns with their diverse lifestyles and priorities. In order to provide that support, it’s important employers engage with and listen to their employees, says Nicole Montpetit, vice president of Total Rewards at Sun Life Canada.
“It’s widely known that [different] people use programs differently. For our millennials, we’ve asked them, in the last six months, have you had time away from work – a day or more – to support your mental health? Millennials
are more likely to have reported taking time off to support their mental health. They’re proactively supporting themselves with what they need.”
Sjoberg also suggests that employers take time to get to know their millennial employees, by “really connecting” with them. This helps in understanding the unique needs they may have.
One of the key offerings Sun Life started last year were “care days.” Montpetit explains that care days provide employees with up to five paid days off annually that can be used for personal priorities, including self-care, community service, or emergencies. This flexible time off appeals especially to millennials, who are often driven by purpose and the desire to give back to their communities.
Sun Life also offers a unique sabbatical program, allowing employees to take up to
six weeks off every five years, reflecting their service anniversary. This program has seen significant uptake among millennials, with 67 percent of those eligible in 2023 choosing to take advantage of the benefit, compared to lower participation rates among Gen X and baby boomers at 56 percent.
Millennials are also looking to ensure their financial security, as they consider financial well-being a significant factor in benefits offerings. That’s why Sun Life changed its employee stock ownership plan, adding and increasing the flexibility so that employees can direct their stock ownership and company match for the program to a TFSA, an RRSP, and repayment of student loans to help them build the savings habit. Montpetit also points out that Sun Life removed any waiting period, so new employees can join right away when they join the company.
“I think it’s very progressive,” she remarked. “Different people have different needs for their finances at different stages of their lives. We’re meeting our employees where they’re at. They could be focused on debt repayment. They could be focused on a down payment for a place to live. They could be building up their emergency savings, or maybe they’re just saving for a rainy day or possibly retirement.”
Ultimately, Sjoberg believes millennials want to work for an inclusive workplace and want to feel fulfilled. As she says, “A job is not just a job; it’s not just a paycheque. You spend a large amount of time there, and at the end of the day you want to go home and feel like you’ve contributed to something, you’ve grown personally, and you’ve built a community.
EMPLOYERS 2024 Top
Canada’s top employers in the
and institutional investment space drive employee satisfaction to
BENEFIT BOOSTERS
EMPLOYEES ARE increasingly placing a higher value on benefits that enhance their overall well-being, work-life balance, and financial security, according to Benefits and Pensions Monitor’s 2024 data, reflecting a significant shift in their preferences.
Underlining this development, 42 percent of employees confirmed they would change jobs if offered one that better suited their preferences, despite only 11 percent considering or actively looking for a position with a different employer.
The best companies to work for in the benefits, pensions, and institutional investment space are responding by prioritizing offerings that boost engagement, retention, organizational success, and sustainability.
A comparison of the top five employer benefits most valued by employees in 2024 compared to 2023 highlights their growing importance:
• vacation leave
• dental
• medical coverage
+3.62 percent
+3.85 percent
+3.85 percent
• flexible work options
• retirement plan
+3.95 percent
+3.96 percent
Industry experts underscore that the Top Employers excel in several areas:
• exceptional customer service
• smooth implementation process
• diverse offering of services that support financial, mental, and physical health
• innovative benefits to enhance employee well-being and engagement
• benefits education
“The smartest businesses are catering to those who want more than just money – those who value their RRSPs, pensions, and benefits,” says Taylor Housdon, senior director at Hays, a human resources recruiter. “They are getting creative in what they can offer as a package to make themselves stand out against other employers. It’s coming down to how the business invests in your future as an individual and with your family, not just in terms of compensation.”
“Our board is focused on making ATRF an employer of choice, and they spend a lot of time looking at our total rewards package”
Rod Matheson, Alberta Teachers’ Retirement Fund
Travis O’Rourke, president of Hays Canada and CCO of Hays Americas, emphasizes that innovative benefits, such as health spending accounts that permit the purchase of items such as golf clubs, are critical to staying competitive.
“If you don’t have the best of the best fully employer-funded plans, flexible benefits are the leading way to go,” he says. “Budgets are tight everywhere, and companies are looking to cut costs. It doesn’t make sense to pay the
METHODOLOGY
To find and recognize the best employers in the benefits and pensions industry, Benefits and Pensions Monitor first invited organizations to participate by filling out an employer form, which asked companies to explain their various offerings and practices. Next, employees from nominated companies were asked to fill out an anonymous form evaluating their workplace on a number of metrics, including benefits, compensation, culture, employee development, and commitment to diversity and inclusion.
To be considered, each organization had to reach a minimum number of employee responses based on its overall size. Organizations that achieved a 75 percent or greater average satisfaction rating from employees were named Top Employers for 2024.
same for a 20-something single person with great vision and no medical issues as for a 60-year-old with a heart condition, because everyone’s needs are different.”
Kassen Recruitment president Nathalie Kassen points out the growing demand for flexible benefits as a hallmark of top employers.
“Currently, we are seeing candidates ask about flexible offerings that can be personalized in their benefit and pension plan,” she says. “Each person will be targeting different offerings depending on their stage of life and where they are in their career, so it’s great when they can pick what makes the most sense for them.”
BPM invited organizations to submit details of their offerings and practices to identify the best Canadian companies to work for in the benefits, pension, and institutional investment space.
Companies that met the employee survey participation threshold and achieved a 75 percent or greater employee satisfaction rating across 21 time-tested satisfaction metrics were named Top Employers for 2024.
Among the 10 winning employers, three stand out for their innovative and comprehensive benefits, achieving high job satisfaction and loyalty. Their success underscores a commitment to fostering a positive workplace culture.
PURPOSE-DRIVEN CULTURE AND EXCEPTIONAL BENEFITS DRIVE HIGH SATISFACTION
Alberta Teachers’ Retirement Fund
Overall satisfaction: 90 percent | Top satisfaction factor: retirement plan
A strong sense of purpose and staff-driven values distinguish Alberta’s pension-administration organization as an expert pension manager serving active and retired teachers.
“Our people truly appreciate and value serving the teachers of Alberta with their pension needs, delivering members financial peace of mind as they work through their careers and into retirement,”
CEO Rod Matheson says. Employees rated these top three benefits highly:
• defined-benefit pension plan
• extended healthcare benefits
• employee team-building and social activities
The dedication of Alberta Teachers’ Retirement Fund (ATRF) employees is evident in their professionalism and efforts to make a difference in their members’ lives, aligning closely with the organization’s values:
• “We live by our values, care deeply for our people, and are passionate about our purpose.”
• “I think our organization is continuing to refine what we offer and who we are, and we are becoming more sophisticated in our methods and delivery.”
• “They think about the organization as a whole: to perform well, and recognize and treat employees well, by having their best interests at heart.”
ATRF has a comprehensive total rewards package that is part of what makes them an employer of choice. This package includes:
• competitive compensation
• variable pay program linked to performance
• defined-benefit pension plan
“It is truly a total rewards package that is the right blend of benefits, and it starts with the right tone at the top, from the ATRF board all the way down, to ensure we’re putting an effective total package in place,” says Matheson.
The Top Employer also embeds professional development into its benefits, including:
• financial support for industry-specific training on pension administration and professional designations
• annual leadership training for all
EMPLOYEES’ WILLINGNESS TO CHANGE JOBS IF AN OPPORTUNITY OFFERED WORKING CONDITIONS THAT BETTER SUIT THEIR PREFERENCES AND IF PRESENTED WITH AN OPPORTUNITY ALIGNED WITH THEIR SKILLS
INSIGHTS
Natalie Kassen President Kassen Recruitment
Marie-Pier Bedard
Executive Vice President Randstad Canada
Travis O’Rourke President of Hays CA and CCO of Hays Americas
Taylor Housdon Senior Director, Hays Hiring HR Professionals
leaders to enhance capability; 100 percent of leaders surveyed said the training applies to their day-to-day roles, and attendance is over 85 percent
ATRF supports work-life balance through a hybrid work model, allowing remote work two days a week based on operational needs. The program is flexible and accommodating for personal needs or inclement weather.
“There are times when people need flexibility, and we respect that in our policy; employees can work with their supervisor to
As part of our editorial process, Key Media’s researchers interviewed the subject matter experts below for an independent analysis of this report and its findings.
establish flexibility around hours worked,” Matheson explains.
The organization is proud of its place in the community, and that is reflected in the two paid volunteering days provided to all staff annually. Additional benefits include:
• 100 percent employer-paid benefit premiums for top-tier health benefits for employees and eligible dependents
• annual $1,500 credit that can be allocated between a health spending or wellness account, to offset costs that may not be covered under the base plan
Saskatchewan Teachers’ Federation
Overall satisfaction: 75 percent |
Top satisfaction factor: retirement plan
The Saskatchewan Teachers’ Federation (STF) is unique in Canada as the only organization that administers pension, health, long-term disability benefits, and life insurance within the scope of a union.
This structure helps the Top Employer better align its benefits package with members’ needs and promotes a more cohesive and collaborative approach to employee benefits and pensions. Employees gave high marks to the following three benefits:
• defined-contribution pension plan
• healthcare benefits
• safe work environment
The STF has evolved from a small, grassroots organization built by teachers for teachers to advocate for better pay and working conditions to one staffed by over 160 people working on behalf of the province’s 13,500 teachers.
STF staff oversee the teachers’ pension plan, health plan, and other benefits, along with collective bargaining, professional development, and communications.
The Saskatchewan Teachers’ Retirement Plan, administered by the STF, is a pension plan now worth $8 billion, while the Members’ Health Plan paid out claims worth $26.9 million last year.
WORK ARRANGEMENT THAT EMPLOYEES WOULD PREFER CONSIDERING DIFFERENT OPTIONS
“We have a comprehensive benefits plan and a healthcare spending account. This provides people with the flexibility to claim what makes sense for them” Rob Crowder, The Benefits Trust
To manage these benefits, the STF hired specialists with a variety of professional backgrounds, including investment, pension administration, and benefits administration, roles that were once outsourced, and created opportunities for meaningful employment.
“What I’ve learned to appreciate aftereight years at this organization, after working in the private sector, is that it’s more a family feel,” senior managing director of corporate fund services Troy Milnthorp says. “Day-to-day, you see people taking care of each other, stepping up to help colleagues for various reasons.”
Employees praised the organization for its “above-normal” benefits, which include:
• “Great salary and benefits, including paid time off, sick leave, vacation, and family care.”
• “Positive, friendly attitude. Good benefits, with Christmas week off.”
• “Employee engagement is very high. Work-life balance and professional development are strongly encouraged and part of the culture.”
“Incentive pay is uncommon in a unionized environment. However, we knew the only way to bring in the best investment people was to have a compensation structure comparable to similar organizations,” Milnthorp says.
“Therefore, incentive pay was a must, and a huge reason for the successes the teachers are experiencing today. We continue to perform among the top quartile managers in our space, which is huge kudos to the team.”
Professional development is championed, with career plans established through annual performance reviews. The organization prioritizes an honour system, in which employees are given professional autonomy in a high-trust environment to
control their workloads.
One of its measures of employee satisfaction is its low staff turnover rate of 6.60 percent. Some STF staff have been employed for over 40 years, a testament to why it is such a good place to work. A full review of compensation is conducted every three years, and its health plan is under review.
STF employees, which include 85 percent of its workforce in non-teacher positions, also enjoy these benefits:
• comprehensive health plan, with a $1,000 health spending account
• generous paid time off, including up to seven weeks’ vacation, 10 family care days, and three household emergency days
• optional deferred salary leaves, by which employees can defer 10 percent to 33 percent of their salaries to fund a six-month or longer leave
• after seven years of service, employees are eligible for education leave of up to one year, during which they will be paid 80 percent of their salaries
“We’ve been ahead of the curve for a long time with our benefit package. I’ve been in this business for 25 years, and I can tell you it’s top-notch when compared to similar organizations. This gives us a leg up on keeping people at the STF and recruiting new people to the jobs,” says Milnthorp. “This is topped off with our 35-hour work week (32.5 hours in the summer), which provides for a great work-life balance across the building.”
The Benefits Trust
Overall satisfaction: 82 percent |
Top satisfaction factor: safe work environment
The Top Employer leads by example in the benefits space, offering top-tier benefit administration advice so organizations can develop competitive total rewards packages. As one of the best companies to work for, The Benefits Trust provides its employees with competitive compensation and a
“Teachers have been able to negotiate fairly lucrative benefit packages, and from the benefit perspective, which is generous, what we’ve done was to try to mirror that for our staff”
Troy Milnthorp, Saskatchewan Teachers’ Federation
comprehensive benefits suite.
“We built this business from the ground up and from the client’s perspective,” says founder and president Rob Crowder. “We want to be super-easy to deal with for our clients, their employees and families, suppliers, and partners. One of the key things that separates us: we answer the phone.”
The organization believes that benefits are emotional, as employees usually access them in case of illness or other challenging circumstances.
“Our philosophy is, ‘How can we do it better tomorrow than today?’” he adds. These top three elements stood out in employee ratings:
• safe work environment
• culture
• job security
Work-life balance is a crucial component of the company’s culture. What started as Friday afternoons off on long weekends a few years
ago has evolved to half-day Fridays during the summer, and now includes two half-day Fridays each month throughout the year.
“We discourage people from working nights and weekends,” Crowder says. “We don’t put unruly deadlines on people or projects. It’s just saying, ‘Hey, this is what you do; it’s not who you are.’”
Other benefits that positively affect employees include:
• hybrid work options
• annual salary increases
• results-based bonuses
• comprehensive benefit plan with a healthcare spending account
The organization prioritizes hiring talent with a positive attitude, along with experience. Internal promotions are the norm, along with professional development, to assist employees in advancing their careers. Several of the team have been with the firm for over 25 years.
Employees recognized the Benefits Trust for fostering a culture of continuous improvement and providing superior benefits, including:
• “I am a 100 percent remote worker, and my employer ensures I have all the tools and equipment I need to work from home easily.”
• “We have an incredible culture. We put customers at the top of our podium, and the team here contributes to that. We are passionate and believe in the vision of the Benefits Trust.”
• We offer competitive salaries that consistently increase above inflation, demonstrating a commitment to ensuring our employees’ financial well-being. Performance-based bonuses further incentivize and reward excellence.”
Top Employers boost employee mental health benefits
Many of the best companies to work for
increasingly recognize the need to address employees’ mental health and wellness. “They have expanded their offerings in the post-pandemic work culture that has given rise to work-related stress,” asserts Nathalie Kassen.
“I believe this trend will continue,” she says. “We should see more companies adopt and expand their offerings to include counselling services and stress-management programs.”
Hays O’Rourke adds, “Mental-health offerings are continually expanding. For a while, you might have gotten an hour or a few hours of consultation with a specialist over the phone, depending on your needs. Now, I’m seeing more ongoing options where you can call whenever you want or use shared services like some online programs powered by AI that provide fast help without an appointment.”
Housdon points out that benefits can be a motivator for employees switching jobs, often driven by a lack of comprehensive programs at their current organizations.
“HR leaders frequently express that their ability to provide solutions is limited without a strong benefits package. Access to resources is crucial, and knowledge-sharing, such as offering enrollment meetings, enhances the overall value of these benefits.”
Below is a snapshot of how 2024’s Top Employers go above and beyond for their employees’ mental-health and wellness needs.
The Alberta Teachers’ Retirement Fund
With a firm belief that the well-being of its staff is crucial to maintaining a productive and engaged workplace, ATRF provides a comprehensive wellness strategy structured around four key pillars of wellness: physical, social, financial, and mental health.
This approach ensures that all aspects of employee health are supported. Each quarter, the organization focuses on activities and initiatives emphasizing a specific pillar of wellness, creating a balanced program catering to employees’ diverse needs.
“We have a dedicated health spending
account and a wellness account, and you can customize how you use that and choose which of the things you want to have covered under the wellness account,” says Matheson.
Saskatchewan Teachers’ Federation
The organization ensures employees who are struggling with mental health issues are provided adequate coverage in its health plan. Its paramedical benefit was boosted to $2,500 from a $500 maximum about four years ago.
“This is an area where we made a conscious decision to improve a few years ago to address the increased challenges people were having with their mental health,” says Milnthorp. “We heard that some staff were stopping their psychologist visits because they were running out of benefit coverage mid-year. For those who need this benefit, we did not want this to be a cost issue. It is too important for people not to get the help they need.”
Other specific ways the organization assists with mental health include:
• mental health services through the employee and family assistance plan
• activities to boost staff engagement ,such as annual bowling tournaments, Friday treats, barbecues, and other events
• a paid week off between Christmas and New Year’s to reduce stress
The Benefits Trust
The organization will remove mental health benefits from the traditional paramedical silo beginning in 2025 and doubled the paramedical maximum. It launched its EAP two years ago.
“We’ve broadened the definition of mental health practitioners to anybody qualified to help the employee,” explains Crowder. “We increased the amount of money eligible for that silo, which was quite leading-edge. We were an early adopter of this because we recommended it to many of our clients.”
Top
EMPLOYERS 2024
Alberta Teachers’ Retirement Fund
Phone: 780-451-4166
Email: info@atrf.com
Website: atrf.com
Davis Benefits & Pensions Ltd.
Phone: 604-531-7979
Email: info@davisbenefits.ca
Website: davisbenefits.ca
Ontario Teachers Insurance Plan
Phone: 1-800-267-6847
Email: ogccorporatecommunications@otip.com
Website: otip.com
Saskatchewan Healthcare Employees’ Pension Plan
Phone: 306-751-8300
Email: sheppinfo@shepp.ca
Website: shepp.ca
Saskatchewan Teachers’ Federation
Phone: 306-373-1660
Email: stf@stf.sk.ca
Website: stf.sk.ca
Sutton Special Risk
Phone: 1-800-461-3292
Email: inquiries@suttonspecialrisk.com
Website: suttonspecialrisk.com
The Benefits Trust
Phone: 1-800-487-2993
Email: info@thebenefitstrust.com
Website: thebenefitstrust.com
What’s the state of EM in 2024?
EM experts highlight which countries are doing well and why investors are more optimistic about emerging markets than ever before
EMERGING MARKETS are increasingly being associated with the rise of a global middle class, driven by younger populations and increasing per-capita incomes. Tyler Mordy, CEO and CIO at Forstrong, believes these markets are now entering a new phase of growth. This growth is what he’s coined the “EM Boom 2.0.” Mordy argues the new boom is significantly different from the earlier phase, marked by China’s rapid industrialization, which
spanned from 2002 to 2011.
He provides two macroeconomic frames for understanding the evolution and current state of emerging markets. The first frame is historical, focusing on the previous boom led by China’s entry into the World Trade Organization in 2001, which plugged 500 million new workers into the global labour pool. This period saw a surge in trade, cross-border capital flows, and economic growth centered
around China, often encapsulated by the popular acronym BRICS (Brazil, Russia, India, China and South Africa).
The second frame focuses on the current global context, which Mordy describes as a “global race to re-industrialize.” This race is driven by factors such as decarbonization, re-globalization, and re-militarization, reversing the trends of secular stagnation that characterized the 2010s. “Emerging markets, particularly those with excess
labour and commodity exporting capabilities, are now positioned for long-term outperformance,” Mordy says.
While China’s industrialization was the focal point of the first EM boom, the current phase extends far beyond the country, encompassing a broader range of emerging market nations. India stands out as the centrepiece of this new cycle. Mordy highlights India’s ongoing infrastructure boom, in particular, which includes significant investments in roads, bridges, and trains.
that is a bit of a challenge, but the fundamentals for both are strong.”
Taiwan is home to many leading IT companies, so it makes sense that it’s poised to benefit from the rise of AI-related hardware. As Arup Datta, senior vice president and head of Mackenzie’s global quantitative equity team, points out, India and Taiwan have kept pace with the US market over the past decade. He believes Taiwan’s innovative technology sector, led by industry leader Taiwan Semiconductor
“Increased infrastructure, investment, and trade are integrating more of the world’s developing economies into the global economy”
Tyler Mordy, Forstrong
“It’s now deep into a major capex boom,” he says. “We can see that through the figures in terms of these huge gross capital formations, the surge in private sectors, and new project announcements.” He added that the country is well-positioned due to its English-speaking population, a banking system inherited from British rule, and a diverse economy capable of pivoting into value-added manufacturing.
As Sammy Suzuki, head of emerging markets equities at Alliance Bernstein, points out, treading close behind India in index weight is Taiwan, at 18.5 percent; India currently sits at 20 percent. “They’re both very well positioned. They obviously have slightly different dynamics, but they both add up to almost 40 percent of the index, which is doing quite well. I think the challenge for the Indian side is that it is quite consensus(-driven), and therefore the valuations are particularly high. So
Manufacturing Company (TSMC), will continue to thrive as global demand for AI and cutting-edge semiconductors grows.
“Taiwan is a big tech player,” he says. “I’ll make the case Taiwan is about the innovations in the world. If the innovations in the world continue, Taiwan will do well.”
Other emerging markets, such as Brazil, Chile, and South Africa, are benefiting from the global push for decarbonization, which has increased demand for raw materials. Additionally, countries like Vietnam, Indonesia, and Mexico are capitalizing on supply-chain diversification, as companies seek alternatives to China. Mordy also points to the Gulf states, which are leveraging their strategic location and resources to diversify their economies away from fossil fuels.
“It shouldn’t be difficult to see what’s happening here. Increased infrastructure, investment, and trade are integrating
more of the world’s developing economies into the global economy,” Mordy asserts. “Excluding China, these countries total more than three billion people where demographics are favorable, incomes are growing, and constructive dialogues are leading to a surge in cross-border, commerce, and economic partnerships. More people are participating in it.”
Datta argues that emerging markets, particularly China, are trading at valuations not seen in over 25 years, making the space a compelling opportunity for longterm investors. While China may have been knocked out of first place as a leading country, Datta believes it might find its way back up again as its current valuation is “really cheap.”
“China has lots of issues in real estate. They’re trying to get out of that and trying to figure out how to beef up their economy.
TOTAL RETURNS: EM VS. S&P 500
“The Japanese have focused a lot on corporate governance ... which has really bumped up the Japanese market. Korea may play that playbook”
Arup Datta, Mackenzie Investments
They’re not doing exactly what they’ve done in the past because of the real estate wars,” he says. “I would argue most, if not all of it, is in the price, so that’s why its valuation is really low.”
Suzuki is also cautiously optimistic about China, arguing that even in a lukewarm economic environment, selective stock-picking opportunities may emerge in areas like fintech and e-commerce.
Korea is another valuation case, Datta says, as the country “sells at a discount to EM.” He believes, as does Suzuki, they’re following Japan’s footsteps in corporate governance reform.
“The Japanese, led by some of the largest allocators, have focused a lot on corporate governance for the companies in Japan, which has really bumped up the Japanese market. It’s gone up a lot in the last couple of years. Korea
may play that playbook two years later, so that may unwind the Korean discount valuation,” says Datta.
One of the key factors supporting emerging markets is their relatively low currency valuations, which Mordy describes as a “cheat code” for national economies. “Low currency valuations have always been a great starting point for emerging market outperformance. They’ve got heightened competitiveness, which exports capital, then follows a higher growth. You get that virtuous cycle going forward,” he explains.
Mordy emphasizes that the current emerging markets boom is fundamentally different from its predecessor. Unlike the previous boom, which was largely deflationary due to the influx of cheap Chinese goods, the new boom is likely to have an inflationary impact due to the sheer scale of economic activity and investment across multiple regions.
“It was a huge deflationary force on the world,” he says. “This one is not as deflationary – it’s more on the border of inflationary because there’s so much activity happening right now around the world. There’s so much public and private money flooding into capital projects of all kinds that it’s creating an investment boom in all corners of the world and a revival in the aggregate demand.”
Looking ahead, he believes that emerging markets are on the cusp of a significant growth cycle, driven by structural factors such as favorable demographics, increasing incomes, and deepening economic integration. He notes that while these markets have underperformed and been under-loved for the past decade, they are now beginning to attract attention from global investors.
“We’re in the very early stages of emerging markets becoming acceptable as an asset class again, and I would say for the last decade, they have not been,” Mordy asserts. “The setup is about as good as I’ve seen in a very long time.”
Sources: MSCI Emerging Markets Index, Slickcharts *As of August 30, 2024
MANAGERS OF EAFE & EMERGING MARKETS
ADDENDA CAPITAL INC.
Contact: Janick Boudreau, CFA
Executive Vice-President
Business Development & Client Partnerships
Address: 800 René-Lévesque Blvd. W., Suite 2750 Montréal, QC, H3B 1X9
PH: 514-908-1989
Fax: 514-287-7200
Email: j.boudreau@addendacapital.com
Website: addendacapital.com
Total Canadian clients: 218
Number for whom you currently manage EAFE & EM portfolios: 23
Separately managed AUM in CDN $M for Canadian clients: EAFE $988.4
Pooled AUM in CDN $M for Canadian clients: US $266; EAFE $268
Total EAFE & EM pension AUM for Canadian clients: $4
Total Canadian pension AUM for Canadian clients: $7,027
Total Pension AUM by firm: $7,027
Management style: Active, large, growth
Do you actively manage currency? No
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: May 1, 2012
Ownership structure: Third party (Co-operators Financial Services Limited is the firm’s principal shareholder and owns 96.7%. Addenda Capital employees own 3.3%)
Portfolio managers: 27 Research analysts: 31 Performance presentation standards: GIPS
Number for whom you currently manage EAFE & EM portfolios: 16
Separately managed AUM in CDN $M for Canadian clients: US $357.7; EAFE $392.1
Pooled AUM in CDN $M for Canadian clients:
EAFE $768.4; EM $102.3
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $1,262.8
Total Canadian pension AUM for Canadian clients: $1,620.6
Total pension AUM by firm: $64,178
Management style: Active; other – we offer diversified and single-sector strategies for fixed income and both growth and value equity strategies within EMEA and EM
Do you actively manage currency? Yes
EAFE & EM portfolios primarily managed: Internally
Name and location of affiliate/business relationship: AllianceBernstein is affiliated with several financial service organizations, the most prominent being Equitable Holdings, Inc. (EQH), our majority owner. EQH is a leading financial services company comprised of two principal franchises: Equitable Financial Life Insurance Company and AllianceBernstein. Portfolio managers: 78 – captures fixed income and equity PMs
Research analysts: 163 – captures fixed income and equity analysts
Performance presentation standards: AIMR, other
Locations: As of March 31, 2024, AllianceBernstein maintained offices in 54 cities across 27 countries and jurisdictions. Our headquarters is located in Nashville, TN.
Name and location of affiliate/business relationship: The Capital Group Companies, Inc. (Capital Group) is the parent company of a number of organizational entities that provide investment management and related services. Capital International Asset Management (Canada), Inc. (CIAM) serves as the investment advisor to Capital Group’s mutual funds in Canada. CIAM is a wholly owned subsidiary of Capital Group International, Inc. that is owned by Capital Research and Management Company, a wholly owned subsidiary of The Capital Group Companies, Inc. Questions in this section are answered from the perspective of Capital Group.
Portfolio managers: 126
Research analysts: 232
Performance presentation standards: GIPS
Locations: We have 11 investment and research offices around the world, located in London, Geneva, Los Angeles, San Francisco, Toronto, New York, Washington, D.C., Tokyo, Hong Kong, Singapore and Mumbai. Service offices are located in Amsterdam, Atlanta, Chicago, Frankfurt, Hampton Roads, Indianapolis, Irvine, Luxembourg, Madrid, Menlo Park, Milan, Montreal, Reno, San Antonio, Seattle, Shanghai, Sydney and Zurich.
Address: Institutional Brookfield Place, 181 Bay Street, Suite 3100 Toronto, ON, M5J 2T3
PH: 416-815-2128
Fax: 213-486-9223
Email: kevin.martino@capgroup.com
Website: capitalgroup.com/ca
Total Canadian clients: 9
Number for whom you currently manage EAFE & EM portfolios: 2
Separately managed AUM in CDN $M for Canadian clients: EAFE $476
Pooled AUM in CDN $M for Canadian clients: US $247; EAFE $683; EM $136
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $11
Total Canadian pension AUM for Canadian clients: $823
Total pension AUM by firm: $823
Management style: Active, core; other – market cap = small, mid, and large
Do you actively manage currency? Yes
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: 1978
Ownership structure: Principals, 100%
Business relationships with other companies?
Yes
CONNOR, CLARK & LUNN INVESTMENT MANAGEMENT LTD. (CC&L)
Contact: Brent Wilkins
Head of Institutional Sales, Canada
Address: 1400-130 King Street West, PO Box 240 Toronto, ON, M5X 1C8
PH: 416-364-5396
Fax: 416-363-2089
Email: bwilkins@cclgroup.com
Website: cclgroup.com
Total Canadian clients: 179
Number for whom you currently manage EAFE & EM portfolios: 26
Pooled AUM in CDN $M for Canadian clients: EAFE $326.00; EM: $1,097.80
*As defined by MSCI/ACWI (CDN $M):
Total EAFE & EM pension AUM for Canadian clients: $778.10
Total Canadian pension AUM for Canadian clients: $26,064.30
Total pension AUM by firm: $40,192.80
Management style: Active, large, core; other –market capitalization includes all cap and small cap
Do you actively manage currency? Yes
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: 2013
MANAGERS OF EAFE & EMERGING MARKETS
Ownership structure: Principals, 71%; third party, 29% (Connor, Clark & Lunn Financial Group Ltd.)
Business relationships with other companies? Yes
Name and location of affiliate/business relationship: Connor, Clark & Lunn Financial Group Ltd. Vancouver, Toronto, Montreal, Connecticut (US), London (UK), Gurugram (India)
Portfolio managers: 8
Research analysts: 36
Performance presentation standards: Other Locations: Investment professionals, Vancouver; administration/sales: Toronto, Montreal, Connecticut, London (UK), Gurugram (India)
Total Canadian pension AUM for Canadian clients: $11,201
Total pension AUM by firm: $11,201
Manager style: Active, large, core; other – core with a value bias
Do you actively manage currency? Yes EAFE & EM portfolios primarily managed: Internally EAFE & EM assets managed since: 1991 Ownership structure: Third party, 100% (Desjardins Movement, a financial services co-operative that belongs to its members) Business relationships with other companies? No
Executive Vice-President, Institutional Address: 483 Bay Street Toronto, ON, M5G 2N7
PH: 416-217-7773
Email: michael.barnett@fidelity.ca
Website: institutional.fidelity.ca/fci/en/
Total Canadian clients: 110
Number for whom you currently manage EAFE & EM portfolios: 19
Separately managed AUM in CDN $M for Canadian clients: US $536.81; EAFE $213.75; single country $7,434.09; EM available
Pooled AUM in CDN $M for Canadian clients: US $661.81; EAFE $946.08; single country
$9,480.77; EM $74.62
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $1,234
Total Canadian pension AUM for Canadian clients: $36,208
Total pension AUM by firm: $36,208
Management style: Active; other – market capitalization, all; style, all
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed for: over 30 years
Ownership structure: Fidelity is a privately owned firm
Business relationships with other companies?
Yes
Name and location of affiliate/business relationship: For certain Funds, Fidelity Management & Research Company LLC (“FMR”), FIL Limited (“FIL”), FMR Investment Management (UK) Limited (“FMR IM UK”), Geode Capital Management LLC (“Geode”), and State Street Global Advisors Ltd. may act as a sub-adviser to Fidelity Investments Canada ULC (“FIC”). FIC may engage such sub-advisers to make investments for the Funds. These entities may also provide other services to the Funds, including investment compliance and proxy voting. ii. Fidelity Fund and Investment Operations (“FFIO”), a division of Fidelity Service Company, Inc. (“FSC”), provides fund accounting and investment management support services to the Funds, including calculating the daily Net Asset Value per unit for the Funds. iii. Portfolio trades in respect to the Funds may be made through Fidelity Capital Markets Services (“FCMS”), a broker affiliated with FIC. FIC has received standing instructions from the Funds’ Independent Review Committee regarding trading through FCMS. Portfolio managers: FMR, 214 (Source: Fidelity Investments as of June 30, 2024. Data is unaudited. FMR figure reflects the total number of portfolio managers of Fidelity Management & Research Company, a US company, and its subsidiaries); FIL, 137 (Source: Fidelity International as of June 30, 2024. Data is unaudited. FIL figure reflects the total number of portfolio managers of FIL); FIC, 17 (Source: Fidelity Investments Canada as of June 30, 2024. Data is unaudited. FIC figure reflects the total number of equity portfolio managers of FIC) Research analysts: FMR, 440 (Source: Fidelity Investments as of June 30, 2024. Data is unaudited. FMR figure reflects the total number of Research Professionals [combined total of analysts and associates] of Fidelity Management & Research Company, a US company, and its subsidiaries); FIL, 181 (Source: Fidelity International as of June 30, 2024. Data is unaudited. FIL figure reflects the total number of research professionals [analysts and associates combined] and analysts with dual role with portfolio management role of FIL); FIC, 20 (Source: Fidelity Investments Canada as of June 30, 2024. Data is unaudited. FIC figure reflects the total number of equity portfolio managers of FIC)
MANAGERS OF EAFE & EMERGING MARKETS
Performance presentation standards: GIPS
Locations: Fidelity has investment offices around the globe, including the USA, Canada, UK and Hong Kong. Fidelity Investments Canada’s headquarter is located in Toronto, with regional offices in Montreal, Calgary, and Vancouver.
Minimum investment (CDN $M): Pooled, $7.5
FIERA CAPITAL CORPORATION
Contact: Sarah Aves
Co-Head of Canadian Institutional Clients
Address: 1981 McGill College Avenue, Suite 1500 Montreal, QC, H3A 0H5
PH: 416-475-8566
Fax: 416-866-2390
Email: saves@fieracapital.com
Website: fieracapital.com
Total Canadian clients: 3,543
Number for whom you currently manage EAFE & EM portfolios: 609
Separately managed AUM in CDN $M for Canadian clients: US $1261.68486; EM
$0.51862381
Pooled AUM in CDN $M for Canadian clients: US $3130.18048; EAFE $330.8683394; EM $126.0657671
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $89
Total Canadian pension AUM for Canadian clients: $29,762
Total pension AUM by firm: $34,512 Management style: Active, large, growth, other – Fiera Capital offers a broad spectrum of investment strategies across asset classes, styles and capitalization ranges; GARP – growth at reasonable price
Do you actively manage currency? Yes EAFE & EM portfolios primarily managed: Internally
Name and location of affiliate/business relationship: Fiera Real Estate (Toronto, Montreal, Halifax & London); Fiera Infrastructure (Toronto, London & New York); Fiera Comox (Montreal); Fiera Private Debt (Laval, Montreal, Toronto & New York); Pinestone (Montreal) Portfolio managers: 47
Research analysts: 37
Performance presentation standards: AIMR, GIPS
Locations: Montreal, Toronto, Calgary, New York; Boston; Dayton (Ohio); London (UK); Frankfurt; Isle of Man; Zurich; The Hague; Hong Kong; Singapore; Abu Dhabi
FRANKLIN TEMPLETON
Contact: Dennis Tew
Head of Sales, Canada
Address: 200 King Street W, Suite 1400 Toronto, ON, M5H 3T4
Ph: 416-957-6023
Email: dennis.tew@franklintempleton.ca
Website: franklintempleton.ca
Total Canadian clients: 86
Number for whom you currently manage EAFE & EM portfolios: 23
Separately managed AUM in CDN $M for Canadian clients: Single country $378; EM $341
Pooled AUM in CDN $M for Canadian clients: US $117; EAFE $95; single country $714; EM $591
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $1,027
Total Canadian pension AUM for Canadian clients: $13,419
Total pension AUM by firm: $13,419
Management style: Active; other – market cap: small, mid, large; style: value, growth, core Do you actively manage currency? Yes
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: EAFE, 1954; EM, 1987
Name and location of affiliate/business relationship: Franklin Resources, Inc
Portfolio managers: 223
Research analysts: 207
Performance presentation standards: GIPS Locations: Toronto; Nassau (Bahamas); Fort Lauderdale; Edinburgh; Singapore; Melbourne (Australia); Hong Kong; Shanghai; Rio De Janeiro; Buenos Aires; Warsaw; Istanbul; Moscow; Dubai; Mumbai; Vienna; Bucharest; Johannesburg; Ho Chi Minh City; Kuala Lumpur; Seoul; Bangkok
Minimum investment (CDN $M): Pooled, $1m; separate, varies by strategy
GLOBAL ALPHA CAPITAL MANAGEMENT
Contact: Brent Wilkins
Head of Institutional Sales – Canada
Address: 1400-130 King Street W. P.O Box 240 Toronto, ON, M5X 1C8
PH: 416-364-5396
Fax: 416-363-2089
Email: bwilkins@cclgroup.com
Website: globalalphacapital.com
Total Canadian clients: 58
Number for whom you currently manage EAFE & EM portfolios: 17
Separately managed AUM in CDN $M for Canadian clients: EAFE $864
Pooled AUM in CDN $M for Canadian clients: EAFE $233.50; EM $12.3
*As defined by MSCI/ACWI (CDN $M):
Total EAFE & EM pension AUM for Canadian clients: $822.1
Total Canadian pension AUM for Canadian clients: $2,105.5
Total pension AUM by firm: $5,592.6
Management style: Active, small, core
Do you actively manage currency? No
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: EAFE, 2009; EM, 2021
Ownership structure: Principals, 51%; third party, 49%
Business relationships with other companies? Yes
Name and location of affiliate/business relationship: Connor, Clark and Lunn Financial Group; Montreal, Toronto, Vancouver, Connecticut, London (UK), Gurugram (India)
Portfolio managers: 7
Research analysts: 4
Performance presentation standards: Other Locations: Montreal; administration/sales, Toronto, Vancouver, Connecticut, London (UK), Gurugram (India)
Address: 199 Bay Street, Commerce Court W., Suite 2700
Toronto, ON, M5L 1E8
PH: 416-947-4082
Fax: 416-364-9634
Email: rlacey@guardiancapital.com
Website: guardiancapital.com
Total Canadian clients: 83
Number for whom you currently manage EAFE & EM portfolios: 10
Separately managed AUM in CDN $M for Canadian clients: US $25; EAFE $3; single country $8,412
Pooled AUM in CDN $M for Canadian clients: US $255; EAFE $104; single country $2,131; EM $23
*As defined by MSCI/ACWI (CDN $M)
Total Canadian pension AUM for Canadian clients: $2,690
MANAGERS OF EAFE & EMERGING MARKETS
Total pension AUM by firm: $6,134
Management style: Active; other – market cap: mid to large; style: growth & core
Do you actively manage currency? No
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: 2004
Ownership structure: Wholly owned by Guardian Capital Group Limited
Business relationships with other companies?
Yes
Name and location of affiliate/business relationship: GuardCap Asset Management Limited, London UK; Guardian Capital Advisors LP, Toronto, Vancouver, Calgary; Alexandria Bancorp Limited, Cayman Islands; Guardian Capital Real Estate Inc., Toronto; Guardian Ethical Management Inc.; Alta Capital Management, Utah, USA; Agincourt Capital Management Virginia, USA; Guardian Partners Inc., Toronto; Rae & Lipskie Investment Counsel Inc., Waterloo
Portfolio managers: 34
Research analysts: 21
Performance presentation standards: Other Locations: Toronto, Montreal, Calgary, London (UK), Salt Lake City, Richmond (USA)
Minimum investment (CDN $M): Pooled, $1
EAFE & EM assets managed since: Hillsdale has managed EAFE and EM assets since 2013
Ownership structure: Principals, third party, (Hillsdale is an institutional investment boutique aligned with its clients’ best interests)
Business relationships with other companies? No
Portfolio managers: 6
Research analysts: 10
Performance presentation standards: Other Locations: Toronto
Number for whom you currently manage EAFE & EM portfolios: EM 1,650
Pooled AUM in CDN $M for Canadian clients:
EAFE $13 million; single country (Canadian Equity) $302 million; EM $1,500 million
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $294.8 million
Total Canadian pension AUM for Canadian clients: $7,028 million
Total pension AUM by firm: $7,028 million
Management style: Active, value; other – all cap
Do you actively manage currency? No
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: EAFE, 1987; EM, 1992
Ownership structure: Principals, 77.4% (founders) and 7.8% (active employees); third party, 14.8% (group of private individuals not involved in firm operation – includes Thomas Birks, chair of the board)
Business relationships with other companies? Yes
Name and location of affiliate/business relationship: Arrow Partners, New York, USA; Candoris BV, Amsterdam, the Netherlands Portfolio managers: 18
Address: 77 King Street W., 35th Floor Toronto, ON, M5K 1B7
PH: 416-361-7273
Email: cgirvan@mfs.com
Website: mfs.com
Total Canadian clients: 83
Number for whom you currently manage EAFE & EM portfolios: 19
Separately managed AUM in CDN $M for Canadian clients: EAFE $19.4; single country $171.1; EM $84.7
Pooled AUM in CDN $M for Canadian clients: US $763.5; EAFE $2,246.9; single country $2,058.8; EM $4
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $2,355
Total Canadian pension AUM for Canadian clients: $19,007
Total pension AUM by firm: $146,807
Management style: Active; other – market capitalization: all (small, mid & large); style: all (value, growth, core)
Do you actively manage currency? No EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: EAFE, 1996; EM, 1995
Ownership structure: Principals, up to 20%; third party 80% (Sun Life Financial, Inc.) Business relationships with other companies? Yes
Name and location of affiliate/business relationship: MFS Institutional Advisors, Inc.; MFS International (UK) Limited; MFS Investment
Management K.K.; MFS International Ltd.; MFS International (Hong Kong) Limited; MFS International Singapore Pte. Ltd.; MFS Investment Management Canada Limited; MFS Fund Distributors, Inc.; MFS Service Center, Inc.; MFS do Brasil Desenvolvimento de Mercado Ltda.; MFS Investment Management Company, (Lux) S.ar.l.; MFS Heritage Trust Company, 3060097 Nova Scotia Company
Portfolio managers: 100
Research analysts: 131
Performance presentation standards: GIPS
Locations: Toronto, Boston, Hong Kong, London (UK), Tokyo, Singapore, São Paulo (Brazil), Luxembourg; Sydney (Australia)
NS PARTNERS LTD.
Contact: Brent Wilkins
Head of Institutional Sales – Canada
Address: 1400-130 King Street West, PO Box 240 Toronto, ON, M5X IC8
PH: 416-364-5396
Fax: 416-363-2089
Email: bwilkins@cclgroup.com
Website: ns-partners.co.uk
Total Canadian clients: 18
Number for whom you currently manage EAFE & EM portfolios: 15
Separately managed AUM in CDN $M for Canadian clients: US $85
Pooled AUM in CDN $M for Canadian clients: US
$2,248.4; EAFE $923.80; EM $611.0
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $111.6
Total Canadian pension AUM for Canadian clients: $111.6
Total pension AUM by firm: $585
Management style: Active, large, core, other – market capitalization is all cap. NS Partners’ manager style is a bias towards quality/growth
Do you actively manage currency? No
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: EAFE, 1981; EM, 1996
Ownership structure: Principals, 50%; third party, 50% (Connor, Clark & Lunn Financial Group Ltd.
Business relationships with other companies?
Yes
Name and location of affiliate/business relationship: Connor, Clark & Lunn Financial Group; NS Partners
Locations: Toronto, Montreal, Vancouver, London (UK), Connecticut, Gurugram (India)
Ownership structure: Principals, 100% (Pictet Asset Management is held at 100% by the Pictet Asset Management Holding SA, Geneva. Pictet Asset Management Holding SA is in turn ultimately owned by the seven managing partners of the Pictet Group.)
Business relationships with other companies? Yes
Name and location of affiliate/business
relationship: Pictet Asset Management Inc. (Pictet AM Inc) in Montreal is responsible for effecting solicitation in Canada to promote the portfolio management services of the London-based Pictet Asset Management Limited (Pictet AM Ltd), Geneva-based Pictet Asset Management SA (Pictet AM SA), and Pictet Alternative Advisors (PAA). In Canada, Pictet AM Inc is registered as an Exempt Market Dealer and is authorized to conduct marketing activities on behalf of Pictet AM Ltd, Pictet AM SA and PAA.
Portfolio managers: 214
Research analysts: 61 (note that this includes analysts, economists, and strategists)
Performance presentation standards: GIPS
Locations: Amsterdam, Brussels, Frankfurt, Geneva, Hong Kong, London (UK), Luxembourg,
MANAGERS OF EAFE & EMERGING MARKETS
Madrid, Milan, Montreal, New York, Osaka, Paris, Shanghai, Singapore, Taipei, Tokyo, Zurich
Number for whom you currently manage EAFE & EM portfolios: 4
Pooled AUM in CDN $M for Canadian clients: EAFE $1,270
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $1,430
Total Canadian pension AUM for Canadian clients: $3,447
Total pension AUM by firm: $18,430
Management style: Active, value, other – all cap
Do you actively manage currency? No
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed for: 21 years Ownership structure: Publicly held 100% Business relationships with other companies? Yes
Name and location of affiliate/business relationship: Canada Life/Irish Life Portfolio Managers: 13 Research Analysts: 3
Performance presentation standards: Other Locations : Dublin, Frankfurt, Toronto Minimum investment (CDN $M): Pooled, $50,000; separate, $25,000,000
T. ROWE PRICE
Contact: Lauren Bloom
Head of Canada
Address: 77 King Street West, TD North Tower, Suite 4240
Toronto, ON, M5K 1G8
Ph: 647-355-6887
Email: Lauren.Bloom@troweprice.com
Website: troweprice.com/en/ca
Total Canadian clients: 21
and
Number for whom you currently manage EAFE & EM portfolios: 3
Separately managed AUM in CDN $M for Canadian clients: US $4,727; EAFE $164; EM $329
Pooled AUM in CDN $M for Canadian clients: US $459; EM $46
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $540
Total Canadian pension AUM for Canadian clients: $4,336
Total pension AUM by firm: $1,201,162
Management style: Active; other – market capitalization includes small, medium, and large; style includes value, growth, and core Do you actively manage currency? No
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: We have managed EAFE and EM assets since 1984 as part of our broader non-US portfolios.
Ownership structure: Publicly held, 100%
*T. Rowe Price Group, Inc. is an independent, publicly traded company with significant employee ownership. Common stock owned outright by our associates, combined with outstanding vested stock options and unvested restricted stock awards, total nearly 7% of the firm’s outstanding shares and outstanding vested stock options at December 31, 2023.
Locations: Baltimore (US), London, Hong Kong, Owings Mills (US), Singapore, Tokyo, San Francisco, Colorado Springs (US), Copenhagen, Amsterdam, Stockholm, Sydney, Luxembourg, Toronto, Zurich, Dubai, Milan, Melbourne, Frankfurt, Madrid, New York, Philadelphia, Shanghai, Washington DC
Separately managed AUM in CDN $M for Canadian clients: US $222
Pooled AUM in CDN $M for Canadian clients: US $9,204; EAFE $2,218; single country $188
*As defined by MSCI/ACWI (CDN $M)
Total EAFE & EM pension AUM for Canadian clients: $2,218
Total Canadian pension AUM for Canadian clients: $152,839
Total pension AUM by firm: $153,347
Management style: Active/passive, large, core,
Do you actively manage currency? No
EAFE & EM portfolios primarily managed: Internally
EAFE & EM assets managed since: 1992
Ownership structure: TD Global Investment
Solutions represents TD Asset Management Inc. (“TDAM”) and Epoch Investment Partners, Inc. (“TD Epoch”). TDAM and TD Epoch are affiliates and wholly owned subsidiaries of The Toronto Dominion Bank.
Portfolio managers: 78
Research analysts: 202
Performance presentation standards: Other Locations: Toronto, Montreal, Regina Minimum investment (CDN $M): Pooled, $17; separate, $200
TD GLOBAL INVESTMENT SOLUTIONS
Contact: Mark Cestnik
Managing Director
Address: 161 Bay Street, 34th Floor
Toronto, ON, M5J 2T2
Ph: 416-274-1742
Email: mark.cestnik@tdam.com
Website: tdgis.com
Total Canadian clients: 535
Number for whom you currently manage
Evergreen funds can democratize private markets
Exploring a fund structure that offers a novel means of accessing private market solutions
INVESTORS
INCREASINGLY recognize the advantages of incorporating alternatives into their portfolios. The potential for greater diversification and higher relative and absolute returns can be found when investing in asset classes such as private equity and private debt. However, not all investors, whether institutional or retail, have access to these asset classes through traditional fund structures.
Recent developments in evergreen funds have broadened access to private market investments, offering structural options to investors.
What is an Evergreen Fund? An evergreen fund is a perpetually offered investment vehicle that is fully funded at the outset and does not require subsequent capital calls. For private equity, once a portfolio company exits, the proceeds are reinvested as opposed to being distributed to investors. Similarly, with private debt, once a company repays its borrowed principal, this capital is recycled and lent to another company. With private debt, while the principal is recycled, investors do generally receive distributions of their contractual cash interest payments. Evergreen funds are openended, semi-liquid, have no fixed termination date, and allow for periodic redemptions and subscriptions.1
Key benefits of investing in evergreenfund structures
1 Immediate and flexible capital deployment.
These vehicles deploy capital immediately, offering investors the flexibility to gain exposure at their discretion. They can reallocate at permitted times of their choosing and not just when managers make distributions, thereby putting liquidity decisions in the hands of investors rather than fund managers.
2. Continuous compounding of returns. Evergreen funds, once past the ramp-up period, provide access to a fully invested,
compared to traditional draw-down funds, which often can result in investors adopting an “overcommitment plan” across multiple closed-end funds to reach their desired level of exposure. With evergreen vehicles, commitment plans and external cash management programs to fund future capital calls are unnecessary, as these processes are internal to the vehicles. Periodic rebalancing by the investor through tenders or redemption features reduces the risk of being over- or under-
It is imperative for new evergreen fund investors to understand the unique skill set required to manage a strategy efficiently through this fund structure
visible portfolio with continuous reinvestment of realizations into new investment opportunities, providing for the compounding of returns. This allows investors to maintain a consistent targeted investment level more easily with indefinite exposure.
3. Ease of use for investors. Evergreen vehicles can offer a simplified structure with fewer operational burdens when
weight on target allocations. Administrative burdens and pain points associated with managing a private markets program can be minimized by eliminating the re-ups, re-investment risk, and re-evaluation processes that are required with investments in new fund structures every few years.
4. Potential for periodic liquidity . While private markets investments are illiquid,
Evergreen funds are open-ended, semiliquid, have no fixed termination date, and allow for periodic redemptions and subscriptions
evergreen funds are semi-liquid and allow for subscriptions or redemptions, often on a monthly or quarterly basis.
Considerations for new investors
As part of the education process, it is imperative for new evergreen fund investors to understand the unique skill set required to manage a strategy efficiently through this fund structure. Due to these funds’ complexity, we believe working with professionals who have deep expertise in managing evergreen funds is important. Investors should seek managers who understand the strategies that are most
appropriate for an evergreen fund, as not all strategies are suitable for this type of vehicle.
We believe managers with robust and consistent deal flow, highly selective investment-by-investment portfolio construction that allows for fee efficiency, and strong capital deployment capabilities are essential to maintaining the full investment levels required to manage a perpetual fund appropriately.
These factors, along with whether an evergreen structure and/or closed-ended structure are suitable to meet an investor’s needs, should all be considered when developing an optimal private-markets program.
Conclusion
At Neuberger Berman, we believe evergreen funds can serve as part of an investor’s core private markets allocation or as a complement to traditional private market programs.
Whether a pension fund seeking stable and ongoing investment opportunities, an endowment or foundation with annual disbursement quotas, or a high-net-worth individual or family office targeting generational wealth preservation, evergreen structures can offer flexibility and alignment to help achieve investors’ varied objectives while allowing access to private markets for all.
Joyce Hum is relationship manager –consultant relations at Neuberger Berman, an employee-owned, private, independent global investment manager founded in 1939. Reference:
A neurodiversity-inclusive workplace
The inclusion of neurodivergent people brings significant benefits to organizations, but transforming organizational practices requires concerted action
IN RECENT years, the concepts of neurodiversity and inclusion have expanded to include the unique strengths and perspectives that people from different backgrounds bring to a team. This movement is important because it recognizes and appreciates that different people’s brains work differently. By providing key steps that employers can take to create a more inclusive environment, we hope to show the importance of
embracing neurodiversity in the workplace, particularly for employees with conditions such as autistic spectrum disorder (ASD), attention deficit hyperactivity disorder (ADHD), dyscalculia, dyspraxia, dyslexia, and others.
We have chosen to be highly practical here, as theoretical knowledge holds significant value, yet it is rarely used effectively in the workplace.
Neurodiversity education and training
Awareness programs can be implemented for all employees, to foster understanding of and empathy for neurodiversity. The aim is to create a supportive culture and reduce stigma around neurodivergent conditions. The training sessions, delivered by qualified psychologists or coaches, will help participants recognize and destigmatize
neurodivergent conditions and educate all employees on the value of neurodiversity. Internal awareness campaigns, live webinars, and interactive workshops tailored to the specific needs of different teams will also help.
Work arrangements
Flexible work arrangements are essential for accommodating neurodiversity in the workplace, allowing neurodivergent employees to thrive by aligning their work environments with their unique needs. This flexibility can significantly enhance productivity and job satisfaction.
on their strengths and preferences can create a more collaborative environment – as can providing access to assistive technologies, such as screen readers, which may enhance productivity.
Establishing clear communication protocols is also crucial. Providing written instructions and incorporating visual elements like diagrams, flowcharts, or org charts can often greatly assist neurodiverse individuals by making processes and structures more explicit and easier to follow. Scheduling regular check-in meetings with clear and structured agendas allows neurodiverse employees to ask questions, get
Organizations can attract talented neurodiverse candidates, and create a more diverse workforce and a more inclusive workplace
Allowing employees to work from home can enable them to manage their energy levels and work in a comfortable environment. Implementing flexible working hours allows employees to choose when they work best, accommodating different peak productivity times.
Designing workspaces that minimize sensory overload by controlling noise levels, lighting, and other environmental factors can significantly enhance comfort and productivity. This can include providing quiet areas, noise-cancelling headphones, and options for low lighting to help neurodivergent employees focus better and feel more comfortable. In this respect, it is important to engage in discussions with neurodivergent employees to identify their specific needs.
Allowing employees to share tasks based
clarification, and provide feedback. These check-ins help address any communication issues early. Such practices help neurodivergent employees understand expectations and reduce anxiety around communication.
Building inclusive recruitment practices is important. It is necessary to implement recruitment strategies that prioritize skills and capabilities over traditional interview methods, accommodating different communication styles and assessment techniques. Job ads should use clear, concise language and avoid jargon, clearly list essential skills and qualifications, avoid phrases like “team player” or “excellent communication skills” unless absolutely necessary, and be transparent about the company’s commitment to neurodiversity and inclusion.
The application process should also focus on skills and qualifications, provide
extended time for assessments and exercises, and allow candidates to submit video introductions or portfolios to showcase skills. Interview questions can be shared in advance to allow preparation time along with a detailed agenda of what to expect during the interview process. Offer flexibility in interview formats like practical assessments or informal conversations, ensure the interview space is quiet and minimizes distractions, and allow candidates to bring a support person or job coach if needed.
In the longer term, allowing neurodivergent employees to provide feedback on their experiences will help effect changes and improvements over time. Another interesting step is to pair neurodivergent employees with mentors who can help them navigate workplace challenges and provide professional development support.
By integrating these inclusive practices, organizations can attract talented neurodiverse candidates, and create a more diverse workforce and a more inclusive workplace that not only supports neurodivergent employees but also enhances overall team dynamics and productivity.
At Neuro Plus, we work with organizations to improve their neurodiversity and inclusion efforts. We help clients develop an environment that enhances the skills of their neurodiverse employees, covering areas like technology, accounting, and marketing. Our hope is to help organizations fill key roles and give neurodivergent workers opportunities that suit their needs.
Dr Bruno Wicker holds a PhD in neuroscience and is recruitment director at Neuro Plus. He dedicates a large part of his activity to the implementation of projects aimed at improving the daily lives of neurodivergent people.
“ When you’re playing with a band, there’s a kind of connection”
CHIEF STRATEGIST, LEAD GUITARIST
After a day on the markets, Sébastien Mc Mahon rolls up his sleeves and shreds on his Gibson Les Paul
CHIEF STRATEGIST, senior economist, VP of asset allocation, and portfolio manager. These are not titles that scream rock and roll. Yet Sébastien Mc Mahon, who holds these titles at iA Financial Group, is also lead guitarist in iA’s employee band.
Mc Mahon has been playing electric guitar for almost 30 years. Now he plays with other iA employees – including CEO Denis Ricard – at company events and an annual charity concert.
Mc Mahon plays for his love of music. He adds, though, that the time he spends on stage often dovetails with his career.
“When you’re playing with a band, there’s a kind of connection,” Mc Mahon says. “But I do hundreds of conferences every year, I’m on TV all the time – that showmanship bleeds from one world into another. You learn to be on stage and play a role.
“Sometimes I play the role of the economist on stage, sometimes I play the guitarist.”
1952
Gibson releases the Les Paul electric guitar; Mc Mahon now plays a Tobacco Burst model
1969
Jimi Hendrix plays Woodstock, Mc Mahon’s dream concert
1969
Mc Mahon hears the song “November Rain” and becomes a guitarist
