Pension Plans Missing Out on Fixed Income
What are the opportunities in fixed income?
BY Jennifer Hughey | March 31, 2010
The average asset allocation of pension plans is often missing both global and U.S. bonds, according to Franklin Templeton and 2008 Canadian Pension Fund Overview.1
Global fixed income is not only a key source of alpha for pension plans, but it also plays a significant role in diversifying those plans. Michael Reed, Vice-president and Portfolio Specialist with Franklin Templeton’s Fixed Income Group will discuss this at the upcoming Global Investment Conference.
With the global economy in varying levels of recession and the significant level of government stimulus support within the worldwide market, the projected economic growth is being lead by countries outside of North America. On top of that, jobless claims growing and interest rates are at an all-time low among the vast number of other variables within the global fixed income market place, which in turn provides Canadian pension plans post recession opportunities for strong returns – outside of traditional Canadian fixed income investments – that are far too great to ignore.
Mike will talk to why Canadian pension plans should be considering global fixed income and how they should be using global fixed income to position their plans to take advantage of global opportunities.
Mike is responsible for product management of Franklin Templeton Fixed Income Group’s strategies managed in San Mateo. Prior to joining the Portfolio Specialist Group in 2007, he spent some time on the equity trading desk, as well as five years as a Research Analyst working closely with the firm’s high grade and multi-sector portfolios. He also worked with the firm’s Fixed Income Policy Committee, on both economic and sector-specific research. Mike joined Franklin Templeton Investments in 2000. He received a Bachelor of Arts degree with honors distinctions from Queen’s University at Kingston, Canada. He is also a member of the CFA Society of San Francisco.
For more information on the Global Investment Conference, visit Upcoming Events.
1 Canadian Institutional Investment Network Stats