June 2025 Edition

The current US administration has announced on-again, off-again tariffs on global imports from multiple countries. We understand such developments can create uncertainty and concern, particularly regarding the economic impact on your organization and your employees’ financial wellbeing.

Economic impact

Desjardins economists anticipate that the United States and Canada will experience gross domestic product declines over the next quarters due to tariffs impacting various industries, particularly manufacturing. An uptick in the unemployment rate will likely follow. Tariffs may also contribute to inflation, but despite this, the Bank of Canada is expected to gradually reduce its interest rate to counterbalance the negative economic impact from the tariffs.

While US tariffs will no doubt weigh on Canadian economic activity over the medium term, the current trade disruption has opened the door to increased internal and international trade, allowing for more diversification away from the US.

Our commitment to you

At Desjardins, we have a long history of navigating major economic events and are committed to working closely with you to minimize the impact of economic turbulence on your employees' retirement savings.

1. Maintain a long-term perspective: Although short-term market changes can be worrying, it's important to focus on the long-term. Historically, markets have bounced back from economic shocks, and despite ongoing economic uncertainty, Canada is well-positioned to handle it. Desjardins has created a video External link. Opens in a new window. and an article External link. Opens in a new window. which highlight the importance of a keeping a long-term view when it comes to saving.
2. Get informed and seek guidance: Knowledge builds resilience. Desjardins offers resources for businesses External link. Opens in a new window. to help you understand tariffs and get the latest insights from our economists. Our team is also here to help you and your plan members. While most individuals with long-term investment goals can stay the course, we understand market volatility can lead to questions. Our goal is to work with you to ensure that any adjustments you deem necessary are implemented smoothly.
3. Focus on Canadian growth: As a Canadian institution, we are proud to contribute to the strength and resilience of our national economy. Partnering with local businesses and their employees is central to our core beliefs. You can find support to build or manage your business through our Business Partners and Solutions External link. Opens in a new window..

We continue to monitor this rapidly changing environment. Please do not hesitate to reach out to your Desjardins representative for any questions or concerns.

On February 27, 2025, Desjardins Insurance announced the launch of the Canso Broad Corporate Bond Fund on its group retirement savings platform. This new fund enhances our fixed income offering and is in addition to the Canso Corporate Bond Fund currently available on the investment platform. Unlike the Canso Corporate Bond Fund, the new fund is not limited to holding investment-grade bonds and can invest up to 30% exposure in high-yield bonds.

About the Canso Broad Corporate Bond Fund

This fund is actively managed by Canso Investment Counsel and aims to provide enhanced returns primarily through income by investing in a diversified portfolio comprised of corporate debt and money market securities, including high-yield bonds and foreign securities. It targets an annualized return that is at least 1% higher than the FTSE Canada Corporate Bond Index, over four-year moving periods. The focus on fundamental analysis and security selection favours securities that are undervalued compared to their credit risk and potential return.

Desjardins Insurance is proud to announce on March 31, 2025, the DFS Multi-Manager Tangible Asset Fund (the "Fund") made an initial commitment in timberland through the Nuveen Global Timberland Fund. This aligns with the changes to the Fund’s target asset allocation announced in early 2024, setting a 17.5% target in natural resources. The addition of natural resources aims to reduce portfolio risk by integrating assets with a low correlation to real estate and infrastructure investments. At the time of the announcement, the Fund’s natural resources target was temporarily set at 0%, in anticipation of the first strategy to be added to the composition.

The Fund’s revised structure will have a target allocation of 10% to the Nuveen Global Timberland Fund. This target was reached in the initial commitment in March 2025. The capital call was financed from the Fund’s liquid securities and incoming cash flows. Work will continue at the Fund level to eventually reach the target of 17.5% in natural resources.

These changes will not affect the Fund’s investment fee.

About the Nuveen Global Timberland Fund

The fund’s strategy is to invest in timberland and timberland-related assets throughout core markets in the United States and internationally. The fund seeks to provide returns from the sale of timber and, on an opportunistic basis, from the sale of carbon credits, as well as from the capital appreciation of timberland. It can also generate income from payments for ecosystem services and other timberland-related activities, such as hunting and recreational leases. In the current environment, the fund aims to achieve a net annual return of 7% to 8%.

The fund is expected to be predominantly anchored in American investments, with the potential for international exposure in Canada, Uruguay, Chile, Panama and Costa Rica. Over time, the fund manager anticipates expanding the fund’s targeted geographic areas to include Australia and New Zealand. The fund is intended to be diversified by geography, by species, by end-use market and by operating strategy.

The fund manager incorporates ESG considerations when filtering opportunities, performing due diligence, selecting investments and managing timberland. It also aims to generate current and future added value through sustainable investment projects, such as selling carbon credits and establishing conservation easements. In addition, the firm is actively involved in several global initiatives related to responsible investment.

As part of its fund monitoring and governance process, Desjardins Insurance will be removing the following funds from its group retirement savings platform on July 18, 2025:

• Fidelity Canadian Balanced
• Fidelity U.S. Low Volatility Equity
• Fidelity International Low Volatility Equity
• Lazard International Equity
• Desjardins Global Equity (Lazard)
• Desjardins Global Equity Dividend (Mondrian)
• Desjardins Global Equity Growth (Baillie Gifford)
• Desjardins Global Small Cap Equity (Wellington)

Partners, plan sponsors and plan members impacted by these changes have received a communication detailing the replacement fund for each of the removed funds.

It is also important to mention different factors are considered when deciding whether to keep a given fund on the platform. These include meeting the qualitative and quantitative criteria that underlie our fund governance process, the level of interest in the fund as well as its competitiveness with comparable investment options.

Chris Walker, our Regional Vice President of Business Development and Investment Solutions, moderated an engaging discussion at the DC Plan Experience Day on April 24, 2025, hosted by the Canadian Leadership Congress. Panelists representing MFS Investment Management, Fidelity Canada and Kraft Heinz explored strategies to improve plan member engagement and drive better outcomes.

Namely, they highlighted the importance of fully leveraging the power of digital tools as well as clear and relevant communications to create a personalized and engaging experience. They also highlighted how the key to moving the needle on retirement readiness is identifying and measuring indicators of engagement and designing strategies accordingly.

Research presented during the event identified a strong correlation between engagement and plan members’ contribution rate, accumulated savings and overall confidence. It also demonstrated how short-term priorities ‒ which can impact the ability to save for the long term ‒ can negatively impact engagement. This can translate into financial stress, making it difficult for employees to fully engage in their work and in turn impacting an organization’s success.

Plan sponsors therefore have an additional interest in working alongside their service provider to fashion solutions in support of plan member engagement.

You can feel confident knowing your Desjardins Insurance group retirement savings solution includes financial wellness tools and a communication approach that delivers the right message at the right time.

By helping your plan members understand their payslip, you could be enhancing their financial literacy and promoting employee engagement.

Their payslip shows:

• the immediate tax savings thanks to payroll contributions to registered plans
• their CPP or QPP employee contributions that are further helping build their financial future
• Any other benefits offered by the employer (considered additional income and therefore taxable)

It’s a whole new way to look at a payslip!

Encourage your plan members to keep their contact information, such ad their address and email, up to date. We want to make sure we can always reach them and help them stay on top of their group savings program.

It’s easy! They just have to click My profile in the Omni app or the secure site.

Have you fully shifted to online enrolment yet? Although most employees enrol online, you may occasionally still be providing them with a form.

Note that all our plan enrolment forms have been updated to reflect a change of signatories and updated text. As the new forms have been registered with the Canada Revenue Agency (where applicable), please start using them immediately.

Where to find the new forms

The updated enrolment forms can be found on the Plan sponsor services site under the Forms tile.

Cut-off date

We may be unable to accept a prior versions of the forms after July 1, 2025.

Questions?

Please contact Plan sponsor services at 1-888-510-4762, Monday to Friday, 9 am to 5 pm (ET).

In today's competitive job market, companies are constantly seeking innovative ways to attract and retain top talent. While salary and immediate benefits are crucial, an often overlooked yet powerful lever is the group savings program. Offering one can significantly enhance an employer's appeal, increase employee satisfaction and foster long-term loyalty.

A group savings program isn’t just about saving for the future; it represents a commitment from the employer to the employee's financial well-being. This commitment can be a decisive factor when choosing between potential employers.

According to a 2022 survey by the Society for Human Resource Management:

• 82% of employees consider retirement benefits as a key factor when choosing an employer
• 55% of employees cited retirement benefits as a crucial reason for staying with their employer

Offering a comprehensive group savings program

Your Desjardins Insurance group savings program is designed to help you stand out as an employer of choice. In addition to various savings and payout products, it offers an engaging plan member experience that empowers them to improve their financial health and resilience.

Being able to balance long-term goals with short-term priorities contributes to your employees’ peace of mind and well-being—and in turn, your organization’s success. Encourage your plan members to get the most out of their program by using their online account to:

• take stock of where their financial position with On Target Retirement®
• attend webinars on various money matters
• access wellness-focused content

References

Society for Human Resource Management. (2022). Employee Benefits Survey. Retrieved from https://www.shrm.org/about/press-room/shrm-releases-2022-employee-benefits-survey External link. Opens in a new window.