“I think managers and sponsors are just trying to get their heads around what the options are. Do they have to lower their weighting in fixed income or are there other solutions that can maintain returns even when rates are rising?”Read article »
“Given the low price of oil and low Canadian interest rates, I don’t think there was necessarily a perception that the loonie was headed significantly stronger in 2017, so I would imagine a significant chunk of the pension exposure was sitting unhedged,” says Andrew Torres, managing partner and chief executive officer at Lawrence Park Asset Management.Read article »
“Investors will be watching closely as speculation ramps up that Canada’s central bank will raise interest rates by 25 basis points on Wednesday.
A modest increase won’t lead to a significant impact on the market in the short term because it has already reacted to the expectations of rising rates in the past few weeks, says Andrew Torres, managing partner and chief executive officer at Lawrence Park Asset.”Read article »
“A report released this month shows 63 per cent of institutional investors plan to maintain their British holdings over the next six months. About 13 per cent of investors surveyed believe they’ll increase their British holdings, while 16 per cent expect to decrease them.”Read article »
“There are better things out there than money market accounts,” says Andrew Torres, Chief Investment Officer at Lawrence Park Asset Management in Toronto. The key is finding a balance between being too cautious – in other words, having cash sitting there doing nothing – or the opposite, in which clients scramble to get their money working for them through riskier plays. Investors should look for what Mr. Torres calls the “sweet spot of liquidity versus volatility.”Read article »
Britain’s majority vote to leave the European Union yesterday has left many global investors reeling.Read article »
The Wall Street Journal recently showed a chart comparing the forward earnings yield of the S&P 500 to that of the 10-year U.S. Treasury yield over the past 30 years. Around 2002-2003, the two yields were almost identical at 5%; today, the proxy yield for stocks is three times that of U.S. 10-year treasuries suggesting, at least by this valuation metric, that stocks are currently cheaper than bonds.Read article »