The Quant Winter, and is Canada Pension Plan a Scam? | Rational Reminder 291

Are you ready for a deep dive into quantitative investing, the private credit trend, and the Canada Pension Plan (CPP)? Then this episode is for you! Joining us today is Robin Wigglesworth, The Financial Times’ global finance correspondent, and author of Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever, a groundbreaking book about the past, present, and future of passive investing. We talk with Robin about quantitative investing and the ideas he lays out in his article ‘A Quant Winter’s Tale’, before hearing his insights on the private credit trend and his intriguing new book titled Bonds, all about the history of the bond market. Today’s episode also features our Mark to Market segment, where Mark McGrath joins us to talk about the Canada Pension Plan (CPP), providing a comprehensive overview of its inner workings, his response to the criticisms levelled against it, and why he believes it’s of huge benefit to a great many Canadians. Next, we take a look back at our conversation with Alexandra Macqueen on annuities before sharing our thoughts on its relevance to today’s discussion and why it’s worth revisiting. Be sure to stay tuned for our after-show segment where we share our book, blog, and viewing recommendations, plus our favourite reviews, followed by a sneak peek of some of the exciting guests we have coming up. Press play now for a deep dive into quant investing, the hype around private credit, saving for retirement, and a whole lot more!
Timestamps:
0:00:00 Intro
0:04:52 Main Topic: Quant Winter
0:06:19 Special Guest: Robin Wigglesworth
0:48:23 Mark to Market
1:13:10 Episode 59: 60 Seconds
1:15:05 Aftershow
Links From Today’s Episode:
Robin Wigglesworth - robinwigglesworth.com/
Robin Wigglesworth on LinkedIn - / robin-wigglesworth-171...
Financial Times - www.ft.com/
Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever - www.amazon.com/Trillions-Rene...
‘Quant Winter's Tale’ - www.ft.com/content/e0f98278-4...
Episode 184: Robin Wigglesworth - rationalreminder.ca/podcast/184
Episode 93: Cliff Asness from AQR - rationalreminder.ca/podcast/93
Cliff Asness - www.aqr.com/About-Us/OurFirm/...
AQR - www.aqr.com/
Two Sigma - www.twosigma.com/
D.E Shaw - www.deshaw.com/
CPP Investments - www.cppinvestments.com/
StatsCan - www.statcan.gc.ca/en/start
Financial Planning for Canadian Business Owners Episode 116: True Cost of CPP with Aravind Sithamparapillai - jasonpereira.ca/all-content-j...
Episode 59: Alexandra Macqueen - rationalreminder.ca/podcast/59
Pensionize Your Nest Egg - www.amazon.com/Pensionize-You...
Griselda Blanco - www.imdb.com/title/tt15837600/
Cocaine Cowboys - www.imdb.com/title/tt0380268/
Queen of the South - www.imdb.com/title/tt1064899/
Fortune's Children: The Fall of the House of Vanderbilt - www.amazon.com/Fortunes-Child...
Farnam Street - fs.blog/
24 in 24 Reading Challenge - rationalreminder.ca/24in24
The Money Scope Podcast - moneyscope.ca/
The Money Scope Podcast on KZbin - / @moneyscopepod
Rational Reminder on iTunes - itunes.apple.com/ca/podcast/t....
Rational Reminder Website - rationalreminder.ca/
Rational Reminder on Instagram - / rationalreminder
Rational Reminder on X - / rationalremind
Rational Reminder on KZbin - / channel
Rational Reminder Email - [e-mail]
Benjamin Felix - www.pwlcapital.com/author/ben...
Benjamin on X - / benjaminwfelix
Benjamin on LinkedIn - / benjaminwfelix
Cameron Passmore - www.pwlcapital.com/profile/ca...
Cameron on X - / cameronpassmore
Cameron on LinkedIn - / cameronpassmore
Mark McGrath on LinkedIn - / markmcgrathcfp
Mark McGrath on X - / markmcgrathcfp

[@freedomlife3623]

I re-listened many of your episodes, learning something new every time. Such is nature of adult learning. Really appreciate long form of your program, which offers more depth and less of rushing the guests. Thanks, gentlemen for providing such a great platform.

[@ElektrikaCo]

Oh yeah, Mark to Market is back! 😊

[@cbqmrbqm8972]

A nobel for the podcast! Well deserved! 😊

[@chrisjeanneret5091]

Glad to see you nerded out on YMPE! I've been looking at it in relation to my old bank pension as it too is linked to YMPE. My calculation of rate of increase agrees with Ben's.

[@lessparling5450]

Glad to hear that potential clients are engaging with you based on gaining familiarity with your philosophy and style in these podcasts. I know you don’t really promote the business in the podcast which is nice thus allowing anyone that is interested to reach out. I find myself in the category of looking for a better solution and am in the process of taking a deeper dive into PWL. Part of looking at the different options is looking at what makes one product different from the others right now it is this podcast and Ben & Camron. Thanks

[@rui569]

Very helpful as usually. Started listening to some early episodes and don't intent to stop doing it.

[@sameer159]

My problem with investing in the CPP is (A) the potential for government to delay retirement another 5 years. (B) they invest too much about 35% in private equity, and worry there are mismanagement or bad deals due to influence. (C) just like HOOP we have an issue where the retired population becomes much greater than the working population which will affect the liquidity and capital structure of CPP. I understand they plan ahead for this risk, but its a risk that still bothers me.

[@og7952]

Can you talk about the RRQ in Quebec and the differences with CPP ?

[@seanphurley]

Excellent speaker! pleasantly surprised!

[@Mark-zk7uj]

People throw the word 'scam' around way too liberally these days. Same with 'cult'. Anything that seems shady or in-group-y is a full on 'scam' or 'cult' now. Literally! Another fave of mine

[@NuVueExteriors]

As a small business owner in BC, paying yourself a salary to get the CPP benefit and RRSP contribution room is not as enticing when you also have to pay employer health tax of 1.95-2.925% and WorkSafeBC premiums of 4-6%.

[@jmc8076]

Good topics. @7:43 incl BlackRock Alladin?

[@deceptivesmurf4809]

Non canadian here - would CPP work in a declining population?

[@EvilGenius007]

Dividend investing: of all the worst investment strategies, it's the best.