October 2017

05Oct

Canada’s Pension Funds Are Piling on Leverage, Moody’s Warns

Canada’s public pension funds, among the biggest in the world, are piling on risk with leveraged bets in a chase for higher returns, Moody’s Investors Service warns. The nation’s six biggest pension funds have increased their average leverage to 24 percent, from 19 percent in 2009, in an effort to offset the impact of declining pension member contributions and low interest rates on their cash flow and investment returns, Moody’s said in an Oct. 3 report written by analyst Jason...

October 5, 2017
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September 2017

26Sep

CPPIB allocates $1 billion for Indian public market investments

Not all foreign funds are balking at Indian equities -spooked by rich valuations, slow corporate earnings or at the growing prospects of interest rate hikes in the US. Canada Pension Plan Investment Board (CPPIB), the most active Canadian investor in India, has just reaffirmed its commitment, by allocating a dedicated $1-billion corpus, exclusively for public market investments, said multiple sources aware. As one of the 10 largest retirement funds in the world, the initial thesis of CPPIB has been to...

September 26, 2017
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14Sep

Canada. Québec’s largest pension fund turns to carbon budgets to address climate risks

Investment managers at Caisse de dépôt et placement du Québec have a new tool to help them account for the increased financial risks posed by climate change: Carbon budgets. These “budgets” allow managers to allocate a specific amount of carbon-dioxide emissions that might result from an investment decision, effectively setting limits on the carbon footprint of a manager’s portfolio. Within the carbon budget, “you have to make choices as to where you invest and how you invest because what we...

September 14, 2017
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August 2017

28Aug

Canada. CPPIB to end Kotak JV plan for stressed assets

Canada's largest pension fund CPPIB will call off its proposed joint venture with Kotak Mahindra Group to invest in stressed assets in India. The $525-million fund that was announced in March 2016 will be wound up as it failed to find investments in stressed assets, said two people with direct knowledge of the development. Kotak Group will now go alone with commitments from some sovereign funds such as Abu Dhabi Investment Authority (ADIA) and Qatar Investment Authority on a deal...

August 28, 2017
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23Aug

Canada Pension Plan reform to boost assets above $15 trillion by 2090

The upcoming enrichment of the Canada Pension Plan will help fuel a 48-fold boost to the public fund’s assets over the long haul – to more than $15.8 trillion by 2090, according to federal calculations. In comparison, the public plan’s investment manager reported $326.5 billion in net assets at the end of the first quarter of 2017-18. Long-term projections on the evolution of the CPP’s post-reform assets were included in an internal briefing note prepared for federal Finance Minister Bill Morneau...

August 23, 2017
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July 2017

25Jul

Canada. Morneau Shepell releases the results of its Performance Universe of Pension Managers’ Pooled Funds

According to the report, in the second quarter of 2017, diversified pooled fund managers posted a median return of 0.7 per cent before management fees. "In the second quarter, the Canadian stock market underperformed by 1.6 per cent, while global stock markets posted positive returns. The rise in the Canadian dollar versus several foreign currencies had a negative impact on Canadian investors. For the second quarter in a row, emerging market equities dominated with the MSCI Emerging Markets Index returning...

July 25, 2017
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12Jul

Canada Pension Plan Investment Board and Vermilion Energy Inc. Announce Strategic Partnership in Corrib

Canada Pension Plan Investment Board ("CPPIB") and Vermilion Energy Inc. ("Vermilion") (TSX:VET)(NYSE:VET) are pleased to announce a strategic partnership in the Corrib Natural Gas Field in Ireland ("Corrib"), whereby CPPIB will acquire Shell Exploration Company B.V.'s ("Shell") 45% interest in the project, with Vermilion operating the assets after completion of the acquisition. Through its wholly owned subsidiary, CPP Investment Board Europe S.a.r.l., CPPIB has entered into a definitive purchase and sale agreement with Shell, to acquire 100% of Shell...

July 12, 2017
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11Jul

Canada’s OPTrust Fund Forced to Take Risks to Shore Up Returns

Frustrated by poor returns, OPTrust Chief Executive Officer Hugh O’Reilly is moving into riskier investments as contributors to the retirement pot age. “We can’t just match cash flows, we have to take risks,” O’Reilly, whose company oversees $19.2 billion of investments for Ontario government workers, said in an interview. “We don’t want to increase contributions or reduce future benefit accruals where the active members will bear the whole risk.” OPTrust is starting a C$300 million ($233 million) venture-capital portfolio and is...

July 11, 2017
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06Jul

Canada. Executive shakeup at CPPIB reveals apparent change of heart about risk management

The Canada Pension Plan Investment Board, which stood apart from other major pension plans and Canadian financial institutions because it didn’t have a chief risk officer, appears to have had a change of heart. Neil Beaumont, who was most recently vice-president of Finance Minerals America for BHP Billiton, will become chief financial and risk officer at CPPIB on July 24. Beaumont will take over some functions from Benita Warmbold, who is retiring, but adds duties to reflect the pension fund’s “continued...

July 6, 2017
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June 2017

29Jun

Canada public pension fund commits up to $1 billion to buy U.S. oil, gas assets

Canada Pension Plan Investment Board (CPPIB), the country's biggest public pension fund, plans to invest up to $1 billion to buy oil and gas assets in the United States in a partnership with Encino Energy Ltd. CPPIB said on Wednesday the partnership, Encino Acquisition Partners, would seek non-core assets being sold by global energy majors and would focus on basins already producing oil and gas. Houston-based energy company Encino Energy, which is privately-owned, will operate the assets acquired by the partnership...

June 29, 2017
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