Jan
Recent Changes To SIP&Ps
Starting January 1, 2016, plan administrators of Ontario registered pension plans have had to submit the statement of investment policies and procedures (SIP&P) electronically via the Financial Services Commission of Ontario (FSCO)’s Pension Services Portal. Other changes to SIP&P that became effective this year include: The requirement for administrators to include specific information in their plan member annual statements, as well as in biennial retired and former member statements with regard to the SIP&P, including how members can access it. The guidance issued by the FSCO on the content of the SIP&P regarding the DC components of plans or member-directed DC pension plans. The requirement that plan administrators ensure their SIP&P reflects the FSCO’s expectations in both the DC components of plans and environmental, social,…
Jan
What Are The Hidden Risks Associated With Low-Volatility Stocks?
The arena of exchange-traded funds has seen rapid growth of low-volatility ETFs owing to the ability of investors to participate in the stock market upside while limiting the down risk simultaneously. However, low-volatility equity portfolios based on stable companies have been disappointing due to their hidden risks. Some of these risks that contribute to the poor performance of low-volatility stocks include: The Heavy Sector Concentration A recent report released by Unigestion, a leader in the provision of tailor-made investment solutions for families and institutions, revealed that a large percentage of low-volatility stocks belongs to non-cyclical industries such as telecom and utilities. Rising Interest Rates Low-volume stocks are characterized by short interest rates, which means that they tend to get risky if interest rates go up.…
