{"id":607,"date":"2024-03-25T12:00:01","date_gmt":"2024-03-25T12:00:01","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/?p=607"},"modified":"2025-05-15T14:44:20","modified_gmt":"2025-05-15T14:44:20","slug":"canada-economic-crisis-and-pension-fund-exoduses","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/canada-economic-crisis-and-pension-fund-exoduses\/","title":{"rendered":"Good News! Canada&#8217;s Economic Crisis and Pension Fund Exoduses"},"content":{"rendered":"<p>The point of impact of the German torpedo was on the starboard side, amidships just below the bridge.\u00a0 The explosion occurred at 2:10 pm on May7, 1915.\u00a0 Eighteen minutes after the explosion, the RMS Lusitania\u00a0slipped below the waves at 2:28 pm .\u00a0 Less than half of those on board survived.\u00a0 Captain William Turner, who stayed at the helm until the Lusitania sank, was pulled from the icy waters.\u00a0 At 2:29 pm the questions started.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-610 aligncenter\" src=\"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/ship-through-a-port-hole.jpg\" alt=\"ship through a port hole\" width=\"1087\" height=\"1069\" srcset=\"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/ship-through-a-port-hole.jpg 800w, https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/ship-through-a-port-hole-300x295.jpg 300w, https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/ship-through-a-port-hole-768x755.jpg 768w\" sizes=\"(max-width: 1087px) 100vw, 1087px\" \/><\/p>\n<h2><span style=\"font-size: 14pt\">The Sinking of the Lusitania: A Tragic Lack of Preparation<\/span><\/h2>\n<p>Dithering and a lack of crew training prevented the port side lifeboats from being lowered before the listing (to starboard) becoming so severe that they could not be lowered at all.\u00a0 \u00a0Tragically, despite having space for all\u00a0passengers on the lifeboats, the port side lifeboats sank with the ship.<\/p>\n<p><img decoding=\"async\" class=\"wp-image-611 aligncenter\" src=\"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/captain.jpg\" alt=\"captain\" width=\"1019\" height=\"979\" srcset=\"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/captain.jpg 800w, https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/captain-300x288.jpg 300w, https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/captain-768x737.jpg 768w\" sizes=\"(max-width: 1019px) 100vw, 1019px\" \/><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-613\" src=\"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/Lusitania.jpg\" alt=\"Lusitania\" width=\"800\" height=\"785\" srcset=\"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/Lusitania.jpg 800w, https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/Lusitania-300x294.jpg 300w, https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/Lusitania-768x754.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2><span style=\"font-size: 14pt\">Canada\u2019s Economic \u201cLifeboat\u201d in Danger<\/span><\/h2>\n<p>If the Canadian economy was a ship, she&#8217;d be\u00a0listing to starboard.\u00a0 Indeed, it has been taking on water in recent years.\u00a0 Since 2016, Canada has lost $225 billion dollars in foreign investment since 2016.\u00a0<a href=\"https:\/\/financialpost.com\/opinion\/canada-lost-225-billion-foreign-investment-since-2016\">https:\/\/financialpost.com\/opinion\/canada-lost-225-billion-foreign-investment-since-2016<\/a>\u00a0In 2023, foreigners sold $48 billion dollars worth of Canadian stocks &#8211; the largest outflow ever.\u00a0\u00a0<a href=\"https:\/\/betterdwelling.com\/canada-just-saw-the-largest-foreign-investor-sell-off-ever\/\">https:\/\/betterdwelling.com\/canada-just-saw-the-largest-foreign-investor-sell-off-ever\/<\/a><\/p>\n<h2><span style=\"font-size: 14pt\">The Exodus of Canadian Pension Funds: A Harbinger of Trouble<\/span><\/h2>\n<p>This sad state of affairs is reflected in the fact that saving-supertankers of Canadian Pension Funds have diverted their pensioner&#8217;s savings out of Canada towards better performing locales.\u00a0 Like Captain Turner, pension funds have lowered the lifeboats and paddled to safer, more business friendly shores.\u00a0 Unlike Turner, captains of Canadian Industries seem to want to prevent the lifeboats being lowered at all!<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-612\" src=\"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/graph1.jpg\" alt=\"graph\" width=\"800\" height=\"585\" srcset=\"https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/graph1.jpg 800w, https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/graph1-300x219.jpg 300w, https:\/\/advisor.wellington-altus.ca\/evansfamilywealth\/wp-content\/uploads\/sites\/205\/2024\/05\/graph1-768x562.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/p>\n<p>source: <a href=\"https:\/\/www.nbc.ca\/content\/dam\/bnc\/taux-analyses\/analyse-eco\/etude-speciale\/special-report_240115.pdf\">https:\/\/www.nbc.ca\/content\/dam\/bnc\/taux-analyses\/analyse-eco\/etude-speciale\/special-report_240115.pdf<\/a><\/p>\n<p>In 2000, Canadian pensions had 28% of their funds invested in Canadian companies &#8211; last year that fell to just 4%.\u00a0 This won&#8217;t do according to several dozen captains of Canadian Industry.\u00a0 They claim that this preference for other locales is costing Canadian companies a higher borrowing rate.\u00a0 Their solution &#8211; trap capital in Canada! They want Chrystia Freeland to \u201camend the rules governing pension funds to encourage them to invest in Canada.&#8221;\u00a0<a href=\"https:\/\/www.theglobeandmail.com\/business\/article-pension-funds-investing-campaign\/\">https:\/\/www.theglobeandmail.com\/business\/article-pension-funds-investing-campaign\/<\/a><\/p>\n<h2><span style=\"font-size: 14pt\">The Globe and Mail\u2019s Stand Against Forced Pension Fund Investment<\/span><\/h2>\n<p>Fortunately, editors at the Globe and Mail are trying to torpedo the idea, &#8220;Forcing pension funds to invest in Canadian equities is an idea that seems merely terrible at first glance but, when you really dig into the details, turns out to be truly abysmal.&#8221;\u00a0<a href=\"https:\/\/www.theglobeandmail.com\/opinion\/editorials\/article-handcuffing-pension-funds-is-not-the-answer-to-canadas-economic-woes\/\">https:\/\/www.theglobeandmail.com\/opinion\/editorials\/article-handcuffing-pension-funds-is-not-the-answer-to-canadas-economic-woes\/<\/a><\/p>\n<p>Hear, hear!\u00a0 The\u00a0Canadian Pension Plan\u00a0illustrates just how costly an error implementing this change would be.\u00a0 CPP manages both the base CPP and the enhanced CPP.\u00a0 The enhanced CPP has a much greater Canadian stock allocation (44%) compared to just 8% within the base CPP.\u00a0 &#8220;As of the end of fiscal 2023, the base CPP had a five-year net return of 8 per cent. The enhanced CPP had a significantly lower net return of 5.6 per cent. Or to put it another way, the plan heavily weighted to Canada did only 70 per cent as well.&#8221;\u00a0 Simply put &#8211; investors can&#8217;t afford to risk investing all their retirement assets in Canada.<\/p>\n<h2><span style=\"font-size: 14pt\">The Right Question: Focus on Canadian Economic Policies<\/span><\/h2>\n<p>What&#8217;s to be done?\u00a0 I&#8217;ll defer once again to the Editors at the Globe and Mail:<\/p>\n<p>&#8220;So, what can be done to bring more pension-fund investment back to Canada? The answer is \u2013 it\u2019s the wrong question. The solution is to address the policies that are undermining the dynamism of the Canadian economy: an overabundance of regulations; arbitrary and often punitive taxation changes; and protectionist policies that shield too many sectors from the rigours of competition.&#8221;\u00a0<a href=\"https:\/\/www.theglobeandmail.com\/opinion\/editorials\/article-handcuffing-pension-funds-is-not-the-answer-to-canadas-economic-woes\/\">https:\/\/www.theglobeandmail.com\/opinion\/editorials\/article-handcuffing-pension-funds-is-not-the-answer-to-canadas-economic-woes\/<\/a><\/p>\n<p>I couldn&#8217;t say it any better!\u00a0 It&#8217;s not the job of Canadian savers to lower the cost of capital for Canadian businesses.\u00a0 I&#8217;ll stay at the helm like Captain Turner, together we&#8217;ll make our way to the lifeboats if needed &#8211; making sure they don&#8217;t sink with the ship!<\/p>\n<p>&nbsp;<\/p>\n<p>Glen<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The point of impact of the German torpedo was on the starboard side, amidships just below the bridge.\u00a0 The explosion occurred at 2:10 pm on May7, 1915.\u00a0 Eighteen minutes after the explosion, the RMS Lusitania\u00a0slipped below the waves at 2:28 pm .\u00a0 Less than half of those on board survived.\u00a0 Captain William Turner, who stayed at the helm until the Lusitania sank, was pulled from the icy waters.\u00a0 At 2:29 pm the questions started.<\/p>\n","protected":false},"author":193,"featured_media":610,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","footnotes":""},"categories":[93],"tags":[404,402,109],"class_list":["post-607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-insights-news","tag-government-policy-economic-impact","tag-investor-behaviour","tag-risk-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Canada&#039;s Economic Crisis and Pension Fund Exoduses - Evans Family Wealth<\/title>\n<meta name=\"description\" content=\"The Canadian economy is taking on water, much like the Lusitania. 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