October 2020

02Oct

Canadian investors acknowledge systemic racism, pledge action

A group of 31 Canadian institutional investors representing $2.3 trillion in assets has signed a joint statement acknowledging systemic racism against black and indigenous populations and pledging to take steps to integrate diversity and inclusion into their investment processes. Read also Canada’s pension fund plans to invest a third of funds in emerging markets by 2025. India is a major component The Canadian Investor Statement on Diversity & Inclusion has been signed by Canadian pension plans and money managers including...

October 2, 2020
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September 2020

29Sep

Canada. Ontario implements new funding relief measures for defined benefit plans

Ontario Regulation 520/20 (the “Amending Regulation”) which amends Regulation 909 under the Pension Benefits Act (Ontario) (the “PBA”) came into force. The Amending Regulation provides temporary relief from pension funding obligations to employers of certain Ontario-registered defined benefit plans in two respects, as discussed below. Extension to make Catch-up Contributions The Amending Regulation provides employers of Ontario-registered defined benefit plans with a temporary extension of time to make contributions that are due under a valuation report (“Catch-up Contributions”) that...

September 29, 2020
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28Sep

Canada’s pension fund plans to invest a third of funds in emerging markets by 2025. India is a major component

Canada’s massive pension fund plans to invest up to a third of its funds in emerging markets over the next five years and India is an important destination, the fund’s Asia Pacific head, Suyi Kim, told CNBC.Domestic consumption, technology and increasing demand for infrastructure to support the growth underpin many of the investment themes and opportunities that CPPIB looks at in India, Kim said.The growth rate of South Asia’s largest economy has taken a hit over the last few years...

September 28, 2020
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22Sep

Canada. OSFI launches discussion on tech risks to pensions, other federal financial institutions

The Office of the Superintendent of Financial Institutions is launching a three-month consultation on risks and other considerations regarding technological advancements impacting Canada’s financial sector. Along with a discussion paper, the consultation’s objective is to ensure federally regulated financial institutions and pension plans have solid strategies to manage non-financial risks. According to the agency, while rapidly advancing technology and digitization have been helpful to Canadian financial institutions, their swift adoption can be risky if not properly managed and understood....

September 22, 2020
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18Sep

Canada pension plan’s fossil-fuel investments raise climate risks, study says

Canada Pension Plan Investment Board (CPPIB), which manages the pensions of 20 million Canadians, is investing billions of dollars in fossil fuel companies, exposing it to significant climate-related risks, research by two universities said on Thursday. The study was done by Canada Climate Law Initiative (CCLI), a project of the University of British Columbia and Toronto’s York University. The research acknowledged the progress made by Canada’s biggest pension fund, including the doubling of its renewable energy holdings, but found...

September 18, 2020
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07Sep

Canada. CPPIB announces $235M investment in GLP Japan logistics fund

On 4 September the Canada Pension Plan Investment Board (CPPIB) confirmed its participation in the launch of a $2.6 billion Japanese logistics fund announced by GLP late last month, marking the latest cooperation between the pension fund manager and Asia’s largest logistics developer. CPPIB, which has backed GLP ventures in Japan since 2011, is committing JPY 25 billion ($235 million) to GLP Japan Income Fund (GLP JIF), an open-ended core vehicle which GLP and its partners have already seeded...

September 7, 2020
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01Sep

Canadian Pension Fund Returns Pressured, Long-Term Strategy Intact

Recent interim and fiscal year results from Canadian pension funds reflect the negative impacts from the coronavirus pandemic on valuations, with underperformance in early 2020 relative to targeted returns, says Fitch Ratings. Still, funds reporting results through June 30, 2020 also reflected a subsequent rebound in performance in the equity markets and credit spread tightening in 2Q20. Long-term fund performance will depend on asset mix, which is largely influenced by a plan's maturity and risk appetite, future market volatility...

September 1, 2020
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August 2020

28Aug

Canadian Pension Fund Sues Walmart over Alleged Role in Opioid Crisis

The Ontario Provincial Council of Carpenters’ Pension Trust Fund is suing retail giant Walmart Inc. in search of documents to investigate potential corporate misconduct and/or mismanagement by its board. The lawsuit said the “demands arise from a troubling set of facts concerning the company’s role in the opioid epidemic.” According to the lawsuit, Walmart “utterly lacked legally required controls designed to flag and stop the diversion of opioid prescriptions into illicit channels,” and it is “in direct violation of...

August 28, 2020
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18Aug

Canada Pension Plan Returns 5.6% in First Quarter

The investment portfolio of the Canada Pension Plan Investment Board (CPPIB), also known as CPP Investments, returned a robust 5.6% net of costs during its first quarter of fiscal 2021 ending June 30, raising the fund’s total asset value to C$434.4 billion ($327.93 billion) from C$409.6 billion at the end of March. The fund also reported earning five- and 10-year annualized net nominal returns of 8.9% and 10.7%, respectively. The fund said its active management strategy and resulting diversified...

August 18, 2020
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07Aug

Eskom Pact Won’t Include Pledge to Use State Worker Pensions

A pact between South Africa’s government, labor unions and business to cut the debt of the stricken national power utility won’t include a pledge to use the pensions of state workers as had been initially proposed. An agreement due to be signed at the next meeting of the President’s Working Council has no firm undertaking to use the funds of the 2.1 trillion rand ($120 billion) Public Investment Corp., which manages state workers’ retirement money, or private pensions, said...

August 7, 2020
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