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Sky-high stock valuations present portfolio allocation challenge for major pension funds

Published: 30 March 2026

Soaring stock prices boosted returns at major Canadian pension plans, even as a slowdown in private equity weighed on overall performance at funds like the Ontario Teachers' Pension Plan. But strong equity returns don't necessarily mean pension plans should allocate more capital to stocks, Sebastien Betermier told Bloomberg. 

"Valuations are high, so there is a risk of investing in listed equities at their peak," says Betermier, an associate professor of finance at 91Ë¿¹ÏÊÓÆµ Desautels.  

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