The Connection Between Population Structure and Returns on Infrastructure Investments

Infrastructure is an important asset class in any balanced portfolio. It provides many attractive features including inflation-adjusted cash flows and diversification. The infrastructure itself also provides benefits to the communities it services. The amount of value created will have a dependence on the demographics of the area it serves.

Data-Sharing Frameworks in Financial Services: Discussing Open Banking Regulation for Canada

This research paper reviews the components of open banking, including APIs and screen scraping. The author discusses the implications for traditional banks, FinTechs and Third Party Providers (TPPs) within data-sharing frameworks. The paper then reviews the implementations in the U.K. and Australia, and the potential implications for Canada’s financial system.

The Canadian Pension Fund Model: A Quantitative Portrait

Between 2004 and 2018, Canadian pension funds outperformed their international peers both in terms of asset performance and liability hedging. This project shows a central factor driving this success is the implementation of a three-pillar business model that consists of i) managing assets in-house to reduce costs, ii) redeploying resources to investment teams for each asset class, and iii) channeling capital toward growth assets that increase portfolio efficiency and hedge liability risks.

Risk Shifting Versus Risk Management: Canadian Pension Plan Liability Discount Rates

The design of a pension plan should reflect preferences of the stake holders and be resilient to economic, financial and demographic stresses. Observers have often assumed that moral hazard plays a role in pension fund asset allocation. However, based on our empirical findings, it is fair to highlight that, in Canada, discount rates are a reflection of risk preferences, rather than of regulatory structure or political incentives.

The Impact of Derivatives on Cash Markets: Evidence from the Introduction of Bitcoin Futures Contracts

According to industry research, total cryptocurrency derivatives trading volume in futures, options, and swaps surpassed $3 trillion USD in 2019. In this research we study whether the introduction of cryptocurrency derivatives is beneficial or detrimental to the underlying cryptocurrency spot markets.

Assessing the Exposure of Critical Infrastructure and other Assets to the Climate Induced Failure of Aging Dams in the U.S.

GRI’s research partnership with the Columbia Water Centre has explored how the aging of dams, and the factors of climate change increase the risk of dam failures. The research has highlighted the many impacts that a dam failure can have on assets, highlighting the importance for the financial sector to assess their lending, insurance or investment portfolios for climate risk.