Podcast
Questions and Answers
What is the primary document governing a pension plan's investment program?
What is the primary document governing a pension plan's investment program?
Which of the following is NOT typically included in a pension plan's Statement of Investment Policies and Procedures (SIPP)?
Which of the following is NOT typically included in a pension plan's Statement of Investment Policies and Procedures (SIPP)?
In which Canadian province is a written Statement of Investment Policies and Procedures (SIPP) NOT mandated for pension plans?
In which Canadian province is a written Statement of Investment Policies and Procedures (SIPP) NOT mandated for pension plans?
How often are administrators required to review and amend the SIPP for Defined Benefit (DB) or administrator-directed Defined Contribution (DC) plans according to Canadian pension legislation?
How often are administrators required to review and amend the SIPP for Defined Benefit (DB) or administrator-directed Defined Contribution (DC) plans according to Canadian pension legislation?
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Which entity recommends the content to include in a pension plan's Statement of Investment Policies and Procedures (SIPP) as a standard of good practice for registered pension plans?
Which entity recommends the content to include in a pension plan's Statement of Investment Policies and Procedures (SIPP) as a standard of good practice for registered pension plans?
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What aspect of a pension plan's SIPP does the process for decision approval and implementation address?
What aspect of a pension plan's SIPP does the process for decision approval and implementation address?
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What is the definition of 'alpha' in investment returns?
What is the definition of 'alpha' in investment returns?
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According to the Efficient Market Hypothesis, what does alpha result from?
According to the Efficient Market Hypothesis, what does alpha result from?
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What are some reasons for terminating an investment manager?
What are some reasons for terminating an investment manager?
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In pension plans, what are common types of investments represented?
In pension plans, what are common types of investments represented?
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What is a key characteristic of bonds?
What is a key characteristic of bonds?
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How do pooled funds operate in pension plans?
How do pooled funds operate in pension plans?
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What distinguishes the balanced investment management approach from the specialist approach?
What distinguishes the balanced investment management approach from the specialist approach?
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What is the maximum ownership limit in terms of shares eligible to elect a board according to federal pension standards legislation?
What is the maximum ownership limit in terms of shares eligible to elect a board according to federal pension standards legislation?
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What is the cap on investments in any single entity under federal pension standards legislation?
What is the cap on investments in any single entity under federal pension standards legislation?
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Under the federal PBSA, for related-party transactions, when can the transaction value be deemed nominal by the plan administrator?
Under the federal PBSA, for related-party transactions, when can the transaction value be deemed nominal by the plan administrator?
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What must a DB pension plan SIPP disclose in terms of investment categories under the federal PBSA?
What must a DB pension plan SIPP disclose in terms of investment categories under the federal PBSA?
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What aspect of asset mix should be outlined in a DB pension plan SIPP according to the federal PBSA requirements?
What aspect of asset mix should be outlined in a DB pension plan SIPP according to the federal PBSA requirements?
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Under the federal PBSA requirements, what is one of the considerations for lending cash and securities?
Under the federal PBSA requirements, what is one of the considerations for lending cash and securities?
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What factor should a DB pension plan administrator consider regarding the response of liabilities and investments to economic events when preparing a SIPP?
What factor should a DB pension plan administrator consider regarding the response of liabilities and investments to economic events when preparing a SIPP?
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What type of employment changes can impact retirement patterns and should be considered when developing a statement of investment policy for a DB pension plan SIPP?
What type of employment changes can impact retirement patterns and should be considered when developing a statement of investment policy for a DB pension plan SIPP?
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What is a key benefit of alternative investments according to the text?
What is a key benefit of alternative investments according to the text?
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Why is valuation and performance measurement considered a challenge in alternative investments?
Why is valuation and performance measurement considered a challenge in alternative investments?
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What is one factor that plan administrators should consider when choosing investment options for a non-pension Capital Accumulation Plan (CAP) plan?
What is one factor that plan administrators should consider when choosing investment options for a non-pension Capital Accumulation Plan (CAP) plan?
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What is a common risk associated with alternative investments?
What is a common risk associated with alternative investments?
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Which activity is NOT a component of investment manager monitoring?
Which activity is NOT a component of investment manager monitoring?
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Why do assets like commodities serve as inflation-hedging assets in alternative investments?
Why do assets like commodities serve as inflation-hedging assets in alternative investments?
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What is the purpose of a request for proposal (RFP) for the selection of a pension fund investment manager?
What is the purpose of a request for proposal (RFP) for the selection of a pension fund investment manager?
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What role does leverage commonly play in alternative investments?
What role does leverage commonly play in alternative investments?
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What should be defined in the mandate when selecting an investment manager?
What should be defined in the mandate when selecting an investment manager?
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What is a significant challenge posed by regulatory variability in alternative investments?
What is a significant challenge posed by regulatory variability in alternative investments?
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Which metric assesses the dispersion of returns in a portfolio?
Which metric assesses the dispersion of returns in a portfolio?
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What is NOT an example of a monitoring metric used in investment manager activities?
What is NOT an example of a monitoring metric used in investment manager activities?
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'Assessing success in meeting objectives' is a component of which activity related to investment manager monitoring?
'Assessing success in meeting objectives' is a component of which activity related to investment manager monitoring?
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'Develop Scoring Systems' is a step involved in the selection of an investment manager. What is its purpose?
'Develop Scoring Systems' is a step involved in the selection of an investment manager. What is its purpose?
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'Meet Manager Constraints' is a crucial step in selecting an investment manager. What does it involve?
'Meet Manager Constraints' is a crucial step in selecting an investment manager. What does it involve?
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What does the 'Target asset allocation' provide information about?
What does the 'Target asset allocation' provide information about?
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What is the main difference between active and passive fund management?
What is the main difference between active and passive fund management?
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Which type of risk arises when the market value of investments fluctuates due to interest rate changes?
Which type of risk arises when the market value of investments fluctuates due to interest rate changes?
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What is the primary focus of liability-driven investing (LDI) in managing pension plan risk?
What is the primary focus of liability-driven investing (LDI) in managing pension plan risk?
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Which strategy best defines responsible investing (RI)?
Which strategy best defines responsible investing (RI)?
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What do private equity investments typically involve?
What do private equity investments typically involve?
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In hedge funds, which type focuses on companies involved in significant corporate transactions?
In hedge funds, which type focuses on companies involved in significant corporate transactions?
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What is the goal of relative value funds in hedge funds?
What is the goal of relative value funds in hedge funds?
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Which type of investments include energy, agricultural, industrial, and precious metals?
Which type of investments include energy, agricultural, industrial, and precious metals?
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Which risk arises when the market value of investments changes not matched by corresponding liabilities?
Which risk arises when the market value of investments changes not matched by corresponding liabilities?
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What is the primary aim of Liability-Driven Investing (LDI)?
What is the primary aim of Liability-Driven Investing (LDI)?
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Hedge funds do not employ strategies like short selling and leverage for additional gains.
Hedge funds do not employ strategies like short selling and leverage for additional gains.
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Infrastructure and private equity assets do not match long-term liabilities.
Infrastructure and private equity assets do not match long-term liabilities.
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Alternative assets have high correlation with stocks and bonds, increasing overall portfolio risk.
Alternative assets have high correlation with stocks and bonds, increasing overall portfolio risk.
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Valuation and performance measurement in alternative investments are objective and have standardized benchmarks.
Valuation and performance measurement in alternative investments are objective and have standardized benchmarks.
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Leverage is not commonly used in alternative investments.
Leverage is not commonly used in alternative investments.
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Alternative assets have extensive historical data available for analysis.
Alternative assets have extensive historical data available for analysis.
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High management fees are not typically associated with hedge funds and private equity investments.
High management fees are not typically associated with hedge funds and private equity investments.
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Fund-of-fund structures in alternative investments do not lead to additional fees.
Fund-of-fund structures in alternative investments do not lead to additional fees.
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Alternative investments provide investors with more control compared to traditional investments.
Alternative investments provide investors with more control compared to traditional investments.
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Regulations for alternative asset managers are consistent across all locations.
Regulations for alternative asset managers are consistent across all locations.
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