Tag: Canada Pension Plan
Canadian experience highlights the challenge of beating low-fee passive investments. I’m a great fan of the Canada Pension Plan (CPP) and often cite it as a wonderful example of how to add equities to trust fund investments. Yet, the CPP’s most recent annual investments report shows that the returns from even this much-lauded effort hav…
The brief’s key findings are: Investing part of Social Security’s reserves in equities has obvious appeal: a higher return means less tax hikes or benefit cuts. But critics fear that equity investment could interfere with private markets or signal that trading bonds for stocks creates magic money. The evidence from the U.S. and Canada shows that suc…