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Honoring a Canadian Pension Pioneer

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The Canadian Business Hall of Fame recently welcomed four noteworthy companions and among them, Claude Lamoureux, the inaugural CEO of the Ontario Teachers' Pension Plan:
In recognition and celebration of their lifetime achievements, four exceptional business leaders will be inducted as Companions of the Order of the Business Hall of Fame by Chancellor David Denison during the 41st annual Gala Dinner and Induction Ceremony, taking place tonight at the Metro Toronto Convention Centre.

Each year, outstanding business leaders from across the country gather to celebrate and honour Canada's most distinguished leaders across all areas of business for their impact and enduring contributions to the economy and Canadian society.

The Inductees being recognized this year include:
Claude Lamoureux O.C., FCIA, Retired President & Chief Executive Officer, Ontario Teachers' Pension PlanChief Clarence Louie O.C., First Nations leader, Chief of the Osoyoos Indian BandStephen J.R. Smith…

Beyond the Fed's Pivot

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Jeffrey Gundlach, chief executive of DoubleLine Capital and the most widely followed bond investor, said the Federal Reserve’s dovish turn in its policy statement on Wednesday took its lead from the bond market:
The Fed is doing “what the bond market says - with a lag,” said Gundlach, who oversees more than $130 billion in assets. “The bond market definitely helped to encourage the ‘Fed pivot.’”

The Fed on Wednesday signaled it could cut interest rates by as much as half a percentage point over the remainder of this year, as it responded to increased economic uncertainty and a drop in expected inflation. The U.S. central bank’s next policy meeting will be held in July, with the following meeting in September.

In a telephone interview with Reuters, Gundlach said economic data would have to be weak for the Fed to slash rates in July. If policymakers do cut rates next month, “They are basically admitting they are behind the curve,” he said.

Federal funds futures implied traders were ful…

CalPERS to Leverage Up its Portfolio?

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Arleen Jacobius of Pensions & Investments reports that CalPERS officials might leverage the portfolio as part of a plan to help the pension fund weather an economic downturn:
The topic came up in a response by CIO Yu Ben Meng to a question from Lynn Paquin, California Controller Betty T. Yee's designee on the board, regarding what investment policy changes the staff could request so staff members could act more quickly in the event of a market drawdown.

"Yes, very good question. So, for example one of the undesirable outcomes during a drawdown is we don't have money to deploy to take advantage of a market dislocation," Mr. Meng said. "And one of the ways to generate additional liquidity is put on leverage on the total fund. So, we borrow money."

This would impact the total fund's leverage policy, Mr. Meng noted.

However, he added that the emerging plan is currently under development and the staff will return to the investment committee to seek an i…

BlackRock's Canucks Shaking Up PE

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Christine Idzelis of Institutional Investor recently reported that private equity is driving two Canadians at BlackRock crazy, and they're trying to fix it:
BlackRock’s new private equity fund is nearing its first purchase of a company, with a chance it could do something unusual in the industry: Never sell it.

It’s sure to be a highly scrutinized deal, coming as the firm seeks billions of dollars for the pool of capital, which is designed to push the evolution of the buyout industry.

“We’re under exclusivity for one transaction right now,” says AndrĂ© Bourbonnais, the head of BlackRock’s long-term private capital team, known as LTPC. The fund, which aims to raise $10 billion to $12 billion, may complete the deal within weeks.

BlackRock formed the LTPC fund to hold companies for “up to forever,” structuring it with input from cornerstone investors to create a better alignment of interests than in traditional private equity, according to Mark Wiseman, chairman of BlackRock’s altern…

IMCO's Joint Venture With Tishman Speyer

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Last week, the Investment Management Corporation of Ontario (IMCO) and Tishman Speyer announced the creation of a joint venture established to build a valuable portfolio of new developments and repositioned office and multi-residential properties in major US gateway cities:
The planned investment program bolsters IMCO’s commitment to generating strong results for its clients through high-quality assets and developing long-term and mutually beneficial strategic partnerships. For Tishman Speyer, the venture will facilitate the expansion of its presence in major U.S. markets specifically by taking advantage of value-add opportunities.

With IMCO’s initial commitment of $500 million (USD), and additional co-investment opportunities of $250 million (USD), IMCO and Tishman Speyer will jointly acquire and develop property in major supply-constrained U.S. markets. This includes New York, Washington, Boston, Los Angeles, San Francisco, Chicago and Seattle. Investments will target new developme…