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Claude Lamoureux - When You Have to Make A Decision, Always Make the One That Will Help You Sleep Better, Not Eat Better | #128

E128 • Oct 31, 2018 • 51 mins

In Episode 128, we welcome pension fund expert, Claude Lamoureux. We start with Claude’s background, which took him from Met Life to running the Ontario Teachers Pension Plan. When Claude took over the pension, the fund was invested in just Canadian debt, and the size of the pension obligation was underestimated. Claude decided to use derivatives to diversify the portfolio. He expanded into the S&P, recruited an investment department, and within three years, had successfully reallocated the fund into the broad asset classes they wanted.

Key Points

Claude Lamoureux, the first CEO of the Ontario Teachers Pension Plan Board, discusses his approach to turning the fund into a diversified, successful pension plan, focusing on internal management, realistic assumptions about liabilities, and transparency with stakeholders.
The Canadian Coalition for Good Governance, co-founded by Lamoureux, aims to improve corporate governance by advocating for separation of chair and CEO roles and representing investor interests in regulatory and law changes.
Lamoureux emphasizes the importance of historical study in investment, the need for conservative future projections, and the role of demographic considerations in the long-term sustainability of pension funds.

Speakers

Meb Faber

Host • 24%

Claude Lamoureux

Guest • 75%

Chapters

0:00	Introduction to the podcast and Meb Faber's background
1:06	Claude Lamoureux's background and journey in the pension fund world
8:16	Importance of transparency, compensation, and diversification in pension fund management
14:45	Discussion on valuation of liabilities and unrealistic return expectations in pension plans
22:18	The role of a supportive board and policy allocation in investment decisions
26:33	The necessity of retirees participating in risk for a sustainable pension plan
32:33	Learning from European pension fund models and the importance of realistic valuation
37:08	Lessons from Ontario's investment strategies and the importance of studying history in investment decisions
43:01	The founding and purpose of the Canadian Coalition for Good Governance
48:59	Investment in sports business and Cadillac Fairview, and closing remarks by Meb Faber
50:29	End of podcast and platforms available for listening

Transcript

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