Canadian public sector and provincial funds are the most active users of derivatives -- 57% of those entities use them, according to the poll.
Pension funds sponsored by subsidiaries of US corporations are most active in using derivatives to skirt Canada’s foreign exposure limit -- 30% do so. Greenwich found that 45% of Canadian pension funds' exposures to US investments rely on derivatives.
According to the survey, 14% of Canadian pension funds do not use derivatives because they are banned by their investment guidelines, while 13% do not use them because their trustees or investment committee members are uncomfortable with the instruments.
The week on Risk.net, July 7-13, 2018Receive this by email