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PSP Investments Loses 0,6% in Fiscal 2020

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PSP Investments just announced its fiscal year 2020 results and the focus is on long-term results: Ten-year net annualized return of 8.5%—above the return objective of 5.7%—generated $32.9 billion of cumulative excess net investment gains.Over the last 10 years, PSP Investments’ performance exceeded the performance of the Reference Portfolio by 1.3% per year without incurring more pension funding risk.Five-year net annualized return of 5.8% exceeded the policy portfolio benchmark of 5.1%. The Public Sector Pension Investment Board (PSP Investments) ended its fiscal year March 31, 2020, with a five-year net annualized return of 5.8% and a 10-year net annualized return of 8.5% on its investments. During the same period, PSP Investments generated $32.9 billion of cumulative net investment gains above the return objective over the past 10 years.

The one-year total portfolio net return was -0.6%, reflecting severe market declines due to the global COVID-19 pandemic in the weeks preceding…

CPPIB Disrupting the Dairy Industry?

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Today, pioneering animal-free dairy maker, Perfect Day, announced the expansion of its Series C to $300 million through a new tranche led by Canada Pension Plan Investment Board (CPP Investments). This follows an initial $140 million C round shared late last year, which was met with excitement and additional inbound interest after production breakthroughs in the company’s proprietary flora-made dairy proteins:
Over the past several months, the company has doubled its ability to produce its hallmark protein, while substantially reducing costs several years ahead of expectations. These production milestones — coupled with an enlarged Series C round led by $50 million from CPP Investments’ Thematic Investing group, and bolstered by long-time supporters Temasek and Horizons Ventures — mark the beginning of a new chapter for the Bay Area startup. Perfect Day’s flora-made protein also recently achieved a major regulatory milestone in the successful completion of FDA’s review of its General…

Has ESG Passed the COVID-19 Challenge?

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Catherine Ann Marshall, principal consultant at RealAlts, recently wrote a comment for the Canadian Investment Review on the slow burn of climate change in heat of pandemic:
Meeting a deadline in the midst of a pandemic seems like a good test of corporate resiliency and, according to a recent survey of Canadian Principles for Responsible Investment signatories that I conducted on behalf of my consulting firm Real Alts, the majority of respondents likely passed.

The survey found that almost 80 per cent of respondents met the annual PRI reporting deadline on March 31, 2020, just two weeks after the country entered lockdowns. In addition, only eight per cent of respondents reported having trouble meeting the deadline due to the novel coronavirus.

The fact that most respondents were able to report on time in the midst of significant business disruptions in late March is consistent with other data on bankruptcy and stock volatility that suggests strong environmental, social and governance …

On The Importance of Pension Communication

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Lisa Papas, a strategic communications leader who was recently OTPP’s Managing Director of Marketing & Communications, shared a guest comment with me on why communication is more important now than ever:
Many CEO’s and executives are afraid of the media – especially social media. From worrying about saying the wrong thing, to facing tough questions that they’d rather avoid, to lamenting a previous interview that didn’t go quite right. Whatever the reason, many senior leaders avoid the media. They adopt a “play it safe” mentality by declining media interview requests and generally avoiding media engagement, figuring that’s the best way to come out ahead. Nothing could be further from the truth.

As you’re standing still and “playing it safe” your competitors and the rest of the world will move out ahead. If you’re not visible, your brand will suffer. And in some cases, your failure to comment on important and relevant topics will make you appear out of touch and unwilling to listen…