{"id":399911,"date":"2020-04-30T11:09:51","date_gmt":"2020-04-30T15:09:51","guid":{"rendered":"https:\/\/www.investmentexecutive.com\/?p=399911"},"modified":"2020-04-30T11:09:51","modified_gmt":"2020-04-30T15:09:51","slug":"fp-canada-iqpf-release-2020-projection-assumption-guidelines","status":"publish","type":"post","link":"https:\/\/www.investmentexecutive.com\/news\/industry-news\/fp-canada-iqpf-release-2020-projection-assumption-guidelines\/","title":{"rendered":"FP Canada, IQPF release 2020 Projection Assumption Guidelines"},"content":{"rendered":"<p>The FP Canada Standards Council and the Institut qu\u00e9b\u00e9cois de planification financi\u00e8re announced the release of the 2020 <a href=\"https:\/\/fpcanada.ca\/docs\/default-source\/standards\/2020-pag---english.pdf\" target=\"_blank\" rel=\"noopener\">Projection Assumption Guidelines<\/a> on Thursday.<\/p>\n<p>The guidelines, which are designed to help financial planners make long-term projections of 10 years or more, were developed prior to the significant market volatility triggered by Covid-19 in February, according to a release.<\/p>\n<p>\u201cPeriods of market volatility, like the one we\u2019ve seen recently, can trigger fear and uncertainty among clients,\u201d Lesley Poole, chair of FP Canada Standards Council\u2019s Standards Panel, said in a statement. \u201cThe Projection Assumption Guidelines provide a useful tool for financial planners in helping clients stay focused on their long-term plan.\u201d<\/p>\n<p>The 2020 guidelines assume an annual inflation rate of 2% and return rates of 2.4% and 2.9% for short-term and fixed income investments, respectively.<\/p>\n<p>Canadian equities are projected to return 6.1%, foreign developed market equities are projected to return 6.4% and emerging market equities are projected to return 7.1%.<\/p>\n<p>The guidelines are based on a variety of sources, including the Canada Pension Plan Actuarial Report and the Quebec Pension Plan Actuarial Valuation, and historical data from the S&amp;P\/TSX composite index, the S&amp;P 500 index and the MSCI EAFE index.<\/p>\n<p>An <a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2791321-1&amp;h=3254260885&amp;u=https%3A%2F%2Ffpcanada.ca%2Fdocs%2Fdefault-source%2Fstandards%2F2020-addendum---english.xlsx&amp;a=Addendum\" target=\"_blank\" rel=\"noopener\">addendum<\/a> includes the data sources on which the guidelines are based.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The guidelines were developed prior to the market volatility sparked by Covid-19<\/p>\n","protected":false},"author":148356,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2318,2312],"tags":[2489],"yst_prominent_words":[6517,60455,42374,42372,42371,42369,30934,24019,24017,24016,24014,2116,6263,5946,5812,5382,5323,5159,5003,4031],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/399911"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/148356"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=399911"}],"version-history":[{"count":3,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/399911\/revisions"}],"predecessor-version":[{"id":399916,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/399911\/revisions\/399916"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=399911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=399911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=399911"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=399911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}