Canadian Investment Institute

Europe, the U.S., oil prices, interest rates, population change, currency markets, the markets and more—What is the big picture, and how do you make the right decisions to stay ahead of the curve? How does Canada fit into the mix, and how do you plan for your own industry and investments? This presentation will look at the economic outlook, the opportunities in the face of challenges and how the larger picture will affect your own business interests.

Canadian investors are increasingly embracing the role of emerging market assets, both equities and debt. For many years, the focus has been on the growth of China and its increased exposure in the emerging market equity indices. The COVID pandemic has witnessed some challenges and setbacks for the Chinese equity market, and questions are being asked about the best approach to investing in emerging markets as well as the role of China versus emerging markets ex-China.

This session will discuss the recent history of public equity growth investing, the metrics and dynamics that have been at play for this investment style, and the expectations for growth investors going forward. Topics include:

• The opportunity set for growth investors
• Key sectors fueling growth
• Risks to growth.

Many asset managers around the world have joined the Net Zero Asset Managers initiative, pledging to achieve net-zero emission for their assets by 2050. This session will present research conducted by DGAM and CIRANO to assess the impact of adopting science-based carbon reduction targets on portfolio risk/return characteristics. It will discuss the Net Zero initiative, the results of the study, what it means for an asset manager wanting to follow a path toward net zero and what to expect in terms of increased level of engagement from asset managers in the coming years.

This session will present the results from a recent Institutional Investor ESG Sentiment Study and would discuss these trends and their implications for pension plans. Additionally, the session will include updates on recent developments regarding pertinent standards and/or legislation.

• International Sustainability Standards Board (ISSB)
• Canadian Sustainability Standards Board (CSSB)
• CSA and SEC guidance on climate-related disclosures (if updated news)
• Forced labour legislation expected to be introduced into Canada in early 2023
• Climate—Where are we on the climate conversation versus action on transition plans?
• Biodiversity—An up-and-coming topic that investors are challenged to understand and integrate in their investment process
• Indigenous relations—How do we address Indigenous reconciliation and economic reconciliation?
• Executive compensation—How do we address the connection of ESG/ climate targets linked to executive compensation? What’s next in this domain?

Join the afternoon’s speakers as they address your questions about the latest ESG trends and legislation.

AI’s increasing influence on human activity promises profound change for the way we live, work and play. This session examines AI types, how they work, current and future AI use by the investment industry, and ways the technology can be harnessed to address the unique needs of multi-employer pension plans. The session will look at:

• AI rudiments including classifications and examples of: – Reactive artificial intelligence (RAI) – Artificial narrow intelligence (ANI) – Artificial general intelligence (AGI) – Artificial superintelligence (ASI)
• AI use in money management
• AI’s potential to improve DB and DC plan efficiency
• AI’s impact on jobs, productivity and income inequality.

Private equities provide opportunities for higher returns along with some portfolio diversification benefits. However, in order to capitalize on these opportunities, investors face a number of challenges and complexities when compared to investing in public equities. Along with addressing the potential benefits of adding private equity to your investment portfolio and the current market environment for this asset class, this session will:

• Explain the key differences when compared to public equities
• Outline common challenges investors encounter when investing in private equity
• Describe approaches to overcoming these challenges.

Private credit is a well-established asset class that offers compelling return and diversification benefits for pension plans and other institutional investors. This session will address the following:

• History and development of the private credit asset class
• Overview of the key drivers of return and risk
• Approach to sourcing and underwriting private loans
• Diversification benefits when added to an institutional portfolio
• Performance of private credit across multiple market cycles.

This panel discussion will explore the needs and approaches to overcoming decumulation challenges across Canada and how to help members have a secure financial future. This session will cover:

• What are the challenges?
• Research from the National Institute on Aging
• Importance of pensions in decumulation
• Developing participant education.

With a growing global population and as developing nations expand their economic wealth, the value of agriculture production has become more important. Investing in agriculture provides a unique opportunity to diversify your portfolio, generate income and hedge your portfolio against inflation. This session will discuss the key features of agriculture investing, including:

• Why to consider global diversification
• The variety of crops that can be included in a portfolio
• Building strong long-term partnerships with the farming community to support regional economic development
• How climate change and long-term environmental sustainability are considered to ensure stable long-term value.

Over the past few years, real estate as an asset has had major swings. This session will discuss the key issues investors need to consider when looking at this asset class:

• Historical trends vs. today
• Allocation options and the portfolio benefits of real estate
• Industrial, retail space, self-storage
• Repurposing
• Housing issues: Single/multifamily, urban/suburban
• Future of real estate?

The investment environment is becoming more and more challenging. Return tailwinds are being replaced by headwinds, including tighter liquidity, higher inflation and more geopolitical risk. In this session, we will discuss ways to evolve portfolios to maximize long-term expected performance in this new reality.

• Diversification, with a focus on liquid and private market alternatives that access sources of return and income not available in traditional public markets
• Rigorous manager research to identify the most skilled managers
• Active portfolio management to exploit opportunities offered by volatility
• More flexible tools and approaches to risk management

Gain actionable insights from a recently released six-year analysis of nearly 300 institutional equity portfolios around the world. This portfolio construction deep dive reveals the underlying investment elements causing a drag on institutional portfolios—and the steps that could be taken to enable more consistent returns. Key topics will include:

• Uncovering the largest uncompensated risks found in institutional portfolios
• Exploring the cause and effect of the performance-hindering “cancelation effect”
• Identifying the hidden portfolio risks causing unexpected outcomes.

Get all of your questions answered from the speakers over the past few days.