Pension Pulse

Brian Evans and Sean Conlon of CNBC report the Dow closes nearly 500 points higher on cooler inflation data, but index posts third straight losing week: The Dow Jones Industrial Average bounced on Friday to close out a tough week that saw the index plunge 1,100 points in a single day and complete its longest losing streak since the 1970s. Some cooler-than-expected inflation data helped fuel the session’s rebound. The 30-stock Dow gained 498.02 points, or 1.18%, to 42,840.26. The S&P 500 added 1.09% to end at 5,930.85, while the Nasdaq Composite advanced 1.03% and closed at 19,572.60. November’s reading of the personal consumption expenditures price index — the Federal Reserve’s preferred inflation metric — increased 2.4% year over year. That was a tad less than economists expected and helped defuse some of the bearishness that arose earlier this week when the Fed said it would dial back future rate cuts in part because of stubborn inflation. All 11 sectors of the S&P...

IPE Real Assets reports TerraPact secures $240m CDPQ financing to expand US and Canada portfolio: TerraPact has secured $240m (€228.3m) in senior financing from the Caisse de dépôt et placement du Québec (CDPQ) to expand its real estate portfolio across the US and in British Columbia, Canada. The investment will also refinance TerraPact’s existing debt structure. TerraPact is a real estate investment platform specialising in long-term ground leases and rights of way for critical infrastructure assets. It oversees over 700 assets consisting of long-term ground leases and rights of way. The platform generates stable, long-term cash flows, with each site supporting essential digital, utility and energy infrastructure. Marc Cormier, EVP and head of fixed income at CDPQ, said: “TerraPact is a strategically positioned ground lease platform which occupies a core position in the infrastructure value chain, delivering connectivity and energy across North America. “With this ...

Jefferey Jones of the Globe and Mail reports Canadian sustainability board issues its first climate-reporting rules with some breaks on timing: The body in charge of sustainability accounting in Canada has issued its first standards, sticking closely to international guidelines but giving companies extra time to adopt some contentious provisions for emissions reporting, scenario analysis and timing of disclosures. The Canadian Sustainability Standards Board said the additional time, or transition relief, for those measures will help strike a balance between providing investors the data they’ve demanded to make informed decisions and not putting companies at a competitive disadvantage as they take on additional reporting. Major institutional investors on Wednesday welcomed the standards and urged companies to adopt them without delay, while environmental advocates expressed disappointment about the extended implementation periods. The guidelines are based on those develope...

Daniel Johnson of Bloomberg reports fall economic statement: Ottawa seeks to lower pension fund investments caps: The federal government announced a move to ease limits for pension funds investing in Canadian companies in its latest fiscal update, along with responses to tariff threats from the U.S. and other moves aimed at competing for capital. On Monday, the federal government unveiled its fall economic statement amid turmoil in Prime Minister Justin Trudeau’s cabinet. Building on a previous announcement last week, the government said it intends to remove restrictions on pension funds in an effort to spur domestic investment. “The 2024 Fall Economic Statement announces the federal government’s intent to amend regulations to remove the 30 per cent rule for investments in Canadian entities,” the government said in its fiscal update.  “This will make it easier for Canadian pension funds to make significant investments in Canadian entities. During the development of re...

Mark Wiseman, former Chair of AIMCo, former CEO of CPP Investments and current Senior Advisor and Chairman of Lazard Canada wrote a comment for the Globe and Mail on why pension funds are a Canadian success story and politicians must leave them alone: The Canadian pension fund model is the envy of the world and the centrepiece of our lauded social security framework. The system works exceptionally well, yet in the past year, we have seen increasing calls to change this model and use pension funds as a policy tool. This has culminated in an announcement from Ottawa to explore ways to have pension funds invest more domestically. To fully understand the implications of these moves, it is critical to understand what has made the system so successful. Canada’s largest public pension funds, commonly referred to as the Maple Eight, collectively manage approximately $2-trillion in assets, reflecting the winning formula of independent governance, scale, geographical diversification, ...