When the Smart Money Does Dumb Things

March 20, 2014

Investors can a learn a lot from pension funds, particularly when it comes to diversification, risk management and long-term thinking. But it seems professional money managers are not immune from the behavioural challenges that plague retail investors. Doug Cronk, who writes a useful blog called Institutional Investing for Individual Investors, recently pointed me to a […]

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How Pension Funds Think About Bonds

March 14, 2014

With the bond market up about 3% year-to-date, the bears have been growling less than usual. But I still get a steady stream of email from readers who think bonds “make no sense anymore” because they have low yields and will fall in value if interest rates rise. However, if you’re a pension fund manager […]

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Why Currency Hedging Doesn’t Work in Canada

March 6, 2014

In the last two years, Canadian ETF providers have finally launched US and international equity ETFs that do away with currency hedging. Yet the strategy remains hugely popular: the hedged versions of Vanguard’s international and US total market ETFs remain much larger than their unhedged counterparts, while investors have more than $2 billion in the […]

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