Pension Pulse

Sean Conlon and Sarah Min of CNBC report the Dow tumbles almost 800 points and enters correction, S&P 500 posts fifth straight losing week:  The Dow Jones Industrial Average tumbled on Friday. It fell into correction territory, while Brent topped $110 after incidents in the Strait of Hormuz exacerbated investors’ energy supply concerns. President Donald Trump’s latest comments failed to encourage traders to scoop up shares. The 30-stock Dow fell 793.47 points, or 1.73%, to close at 45,166.64. The S&P 500 lost 1.67% and ended the session at a seven-month low of 6,368.85. The Nasdaq Composite dropped 2.15% and settled at 20,948.36. The broad market index notched its fifth straight weekly decline, dropping 2.1% in the period. The tech-heavy Nasdaq slid 3.2% week to date, while the blue-chip Dow retreated nearly 1% for the week. Friday’s slip comes a day after the Nasdaq on Thursday fell into a correction and has moved almost 13% below its record set in October. ...

Michael Gorman of the CBC reports retired Nova Scotia civil servants call for more fairness in pension plan: The chair of the pension committee for the association representing retired Nova Scotia government employees is calling for changes to address hardships members are facing as inflation cuts into their buying power. Fred Morley told MLAs on the legislature’s public bills committee on Monday that in the last 15 years members of the plan have seen retiree expenses increase by 40 per cent, while pensions have gone up by just 10 per cent. It translates to a cumulative loss of $27,000 in income and spending power, he said. Morley said there have been no increases in the last five years, despite a 20 per cent increase in prices and the highest inflation in the last 50 years. “Inflation has dramatically eroded the purchasing power of our members,” he said. 'A lot of repercussions' In an interview after his presentation, Morley said the situation is forcing members, w...

The Canadian Press reports  Canadian institutional behemoths to purchase renewable energy producer:  Two Canadian institutional giants are buying renewable power producer Boralex Inc. in a deal that they say will provide the scale and resources needed to accelerate growth. Brookfield Asset Management Ltd. and La Caisse have agreed to buy the Quebec-based company for $9 billion including debt, or about $3.8 billion in equity value. The deal comes after renewable power producers have seen valuations drop from the highs of a few years ago as permitting and other headwinds have dimmed their outlook. But the trend has started to reverse over the past year, in part as investors looking at the electricity demands of artificial intelligence have helped boost valuations of all sources of power. Boralex CEO Patrick Decostre said in a news release Wednesday that being part of Brookfield will bring helpful economies of scale as it aims to meet growing demand. “This transaction...

The REMI network reports  Ontario Teachers’ forges German partnership: Ontario Teachers’ Pension Plan has acquired four fully leased multifamily properties in Germany as a launching point to its new joint venture with DW Effectum (DWE) Residential. The partnership with the Munich-headquartered residential investment asset manager is aimed at adding further multifamily assets in major German cities and expanding the pension fund’s holdings across Europe. “We focus on markets where active asset management and local expertise create lasting value and DWE’s market knowledge and operational capability make them the right partner to enhance asset performance and resident outcomes over the long term,” says Jenny Hammarlund, executive managing director, real estate, at Ontario Teachers’. DWE has €700 million (CAD $1.1 billion) in assets under management. “We are very grateful for our new joint venture with Ontario Teachers’,” says Daniel Filser, managing director with DWE. “Th...

Lauren Bailey of the Markets Group reports  OMERS Infrastructure appoints a new head of Europe: The Ontario Municipal Employees Retirement System’s (OMERS) infrastructure arm has appointed Luca Lupo as senior managing director and head of Europe, effective immediately. In his new role, Lupo will lead the regional team based in London and oversee regional origination activities and the platform’s management of its investments in Europe. He will report to Michael Hill, executive vice-president and global head of OMERS Infrastructure and join the Infrastructure Management Committee. In a press release, Hill said Lupo has deep knowledge of European markets, the portfolio and is highly respected by the portfolio company’s management teams, advisers and investment partners. “Europe is, and will remain, a core region for OMERS, and [Lupo’s] leadership will help position our platform for its next strategic phase.” Lupo joined OMERS in 2022 as a managing director,...