Thread by @TorontoStar

As more Canadians retire, pressure is mounting on our largest public-sector pensions to take on more risk to beat the market.

Billions have been poured into leveraged alternative investments, such as airports and toll roads. But just how safe is that?

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A new neighbourhood emerged over the past decade in Manhattan. It's the $25-billion (U.S.) Hudson Yards development. This was backed, in part, by Canadian pension fund, Oxford Properties, real estate arm of the Ontario Municipal Employees Retirement System
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It's not unusual. Canada’s largest public-sector pension funds have become global financial players, spending billions on ventures around the world. There’s just one problem: the higher than average returns always come with higher than average risk. thestar.com/business/2022/…

Canada's big pension funds don’t get a lot of bad press because they're quietly successful and don’t invite a lot of scrutiny. That’s why it was notable when, in a 2016 publication, the Bank of Canada pointed to the potential for trouble.

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In a few lines, the Bank of Canada said “If not properly managed these trends may lead in the future to a vulnerability that could create challenges in a severely stressed financial environment.” thestar.com/business/2022/…

Three years later, a report pointed to “rising risk-taking” by the country’s pension funds, noting the increased use of complex financial strategies, increased leverage and exposure to illiquid asset classes, among other concerns. thestar.com/business/2022/…

Let's take a closer look. Just how does your pension stack up?

Our exclusive pension dashboard lets you compare returns and expenses, see how Canada is doing versus the rest of the world:
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Here's an example of two of our interactive graphics, focussed on what and where Canada's eight biggest pension funds are spending their money.

Our interactive graphics here:
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“We’ve now gone 13 years since we had a really bad investment year." Malcolm Hamilto, a senior fellow at the C.D. Howe Institute and retired pension actuary said. “When the bad years come, they’re going to take a beating.”

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Are Canada’s largest pensions putting your retirement at risk? A growing chorus of experts say they are.

Our #RiskyBusiness series with @christinedobby
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