Pension Pulse

AIMCo CEO Evan Siddall wrote an op-ed for the Globe and Mail stating ‘shadow banks’ aren’t a problem for the financial system – they are the solution: During the Great Financial Crisis of 2008-09, society paid a heavy price for having allowed financial institutions to become “too big to fail.” Now that the issue has been addressed through reforms, a new one has seemingly emerged: In the face of fears about the rise of “shadow banks,” regulatory sabres are being rattled among global financial regulators about non-bank financial institutions, or NBFI. The term NBFI captures a wide range of enterprises and therefore defies a common regulatory approach. It is not monolithic and includes such varied enterprises as pension fund investment managers such as AIMCo , insurance companies, investment banks, broker dealers, hedge funds, mortgage investment companies – and still others. However, this diversity should rather be seen as a source of strength, not as a vulnerability. NBFIs

AFP reports Norway's sovereign wealth fund hits record profit in 2023: OSLO: Norway’s sovereign wealth fund, the world’s biggest, said Tuesday it raked in a record profit of 2.2 trillion kroner ($213 billion) last year, driven by tech stocks and a weak national currency. The fund’s total value reached close to 15.8 trillion kroner last year. The 16.1 percent return follows a huge loss in 2022 . “Despite high inflation and geopolitical turmoil, the equity market in 2023 was very strong, compared to a weak year in 2022,” said Nicolai Tangen, the chief executive of Norges Bank Investment Management. “Technology stocks in particular performed very well,” Tangen said in a statement . Fuelled by revenues from Norway’s state-owned oil and gas companies, the fund is aimed at financing future spending in the generous welfare state. Around 71 percent of its portfolio was dedicated to equities, with stakes in 8,859 companies worldwide — or 1.5 percent of all listed stocks. T

David Kaminski-Morrow of FlightGlobal reports Canadian investment firm CDPQ establishes new lessor with SMBC Aviation Capital: Canadian investment company CDPQ is tying up with SMBC Aviation Capital to establish a new leasing and aircraft finance platform. It will be worth $1.5 billion – sourced from $500 million annual investment over three years – and focus on modern, next-generation aircraft. The new platform will operate under the name Maple Aircraft Company Holdings. “Building on CDPQ’s experience in the aircraft financing industry, through this new platform, we will continue to provide flexible financing solutions for airlines to meet their future fleet requirements,” says CDPQ executive vice-president Marc Cormier. CDPQ, based in Quebec, has a portfolio which covers a range of sectors including real estate, infrastructure and technology. It says SMBC Aviation Capital has a “successful track record” and demonstrated a “commitment” to sustainable air transport. SMBC Avi

Alex Harring and Pia Singh of CNBC report the S&P 500 and Nasdaq fall Friday to snap six-day win streak, but both notch weekly gains: The S&P 500 closed slightly lower Friday, but clinched weekly gains as the latest economic data added to a positive picture of the economy. The broad market index inched down by 0.07% to 4,890.97. The Nasdaq Composite slipped 0.36% to 15,455.36, hurt by a post-earnings slide in Intel . The Dow Jones Industrial Average bucked the trend by adding 60.30 points, or 0.16%, to 38,109.43, an all-time closing high. All three major averages are now up more than 100% from their pandemic lows. Despite Friday’s mixed session, the major averages recorded a winning week. The S&P 500 advanced around 1.1%, while the technology-heavy Nasdaq Composite climbed about 0.9%. The blue-chip Dow gained approximately 0.7%. Friday’s losses ended a six-day winning streak for the S&P 500 and Nasdaq. Through the end of Thursday’s session, the benchmark S&P

James Bradshaw of the Globe and Mail reports Teachers' invests in portable battery company aiming to replace gas-powered generators: Ontario Teachers’ Pension Plan is leading a US$95-million funding round for Instagrid GmbH, a German maker of portable battery systems designed to replace gas-powered generators. Teachers’ Venture Growth (TVG), the venture capital investing arm of the $250-billion pension fund, is the lead investor in Instagrid’s Series C funding round and gains a seat on the company’s board. Instagrid also attracted an investment from Morgan Stanley Investment Management through its climate-focused private equity fund, 1GT. Instagrid sells its main product in 29 countries, primarily in Europe. It’s a portable battery system that promises a cleaner alternative to generators that burn fossil fuels, widely used on construction sites and film sets and by emergency services. Crucially, Instagrid claims its portable batteries can rival the power available fro