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Showing posts from 2021

AIMCo's Chair on Rethinking Dictatorial Dual-Class Share Structure

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The Globe an Mail published an op-ed from AIMCo's Chair Mark Wiseman on rethinking Rogers’s dual-class share structure: In 1861, in his treatise Considerations on Representative Government , J.S. Mill argued that benevolent dictatorships could never remain benevolent. Similarly, the saga unfolding at Rogers Communications Inc. represents yet another case of abject corporate governance failure in Canada – a power struggle within a family dynasty that is jeopardizing the future of the company and usurping value from common shareholders. This is a door that I, and many other institutional investors and legal experts, have been banging on for decades now. For too long, dual-class share structures have allowed families and insiders to maintain control of companies without adequate accountability to those owning the majority economic interest in those companies. A dual-class structure means simply that specific shareholders possess voting control disproportionate to their eq

The Fed's Inflation Conundrum?

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Matthew Boesler of Bloomberg reports the Fed is on track to taper and says inflation will (eventually) come down: The Federal Reserve is on track to begin tapering its bond-buying program and inflation should come down once supply-chain constraints pushing up prices ease, Fed Chair Jerome Powell said. “We are on track to begin a taper of our asset purchases that, if the economy evolves broadly as expected, will be completed by the middle of next year,” Powell said Friday during a panel discussion at a virtual event hosted by the South African Reserve Bank. “I do think it is time to taper and I don’t think it is time to raise rates.” Global supply-chain constraints and shortages that have led to elevated inflation “are likely to last longer than previously expected, likely well into next year,” Powell said, while adding that “it is still the most likely case” that as those constraints ease, “as they eventually will -- and as job gains move up -- inflation will move back down

CPP Investments' CEO on Why Embracing ''FATE' is the Future of Work

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CPP Investments released a perspective comment from its President and CEO, John Graham, on how the future of work means embracing 'FATE': The global workplace is on the cusp of a new era. Some of the forces behind this revolution—digital technology, shifting demographics, and new beliefs around inclusion and equity—have been building for years. The pandemic provided the spark leading to fundamental changes in how we think about work, and how, where, and when we do it. The health and safety of our colleagues remain our top priority. COVID-19 remains a serious health risk, with new hot spots and variants continuing to emerge. Vaccines continue to be the most effective way to protect our communities and colleagues from the spread of COVID-19. That’s why we implemented a mandatory vaccine policy, in jurisdictions where we can do so, for anyone entering a CPP Investments workplace or event. In addition, we’ve distributed COVID screening kits for colleagues to use before

The World's Best and Worst Pension Systems in 2021

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  Matthew Burgess of Bloomberg reports on the world's best and worst pension systems in 2021: Iceland has the best pension system in the world, according to a global study that shines a light on how nations are preparing their aging populations for retirement. The country took the top spot in the Mercer CFA Institute Global Pension Index published Tuesday, drawing praise for being well governed and providing strong benefits to retirees, including a generous state pension. The Netherlands and Denmark came in second and third respectively after holding the top spots for the past decade.  The scores of 11 countries including India and Korea slipped this year as the world battles to limit the economic fallout from the Covid-19 crisis. The current economic environment with reduced wage growth, historically low interest rates and shrinking returns in many asset classes, is placing additional financial pressures on existing retirement income systems, the report said.  In the

CPP Investments Backs GLP's Fourth Japan Logistics Fund

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Florence Chong of IPE Real Assets reports CPP Investments backs GLP Japan logistics fund: Canada Pension Plan Investment Board (CPP Investments) has extended its partnership with GLP by making a JPY110bn (€852.5bn) commitment to GLP Japan Development Partners IV (GLP JDP IV), a fund which has so far raised JPY311bn. GLP JDP IV, which is expected to reach its full target of JPY412bn in the coming weeks, plans to have assets valued at JYP1trn when fully invested with a 50% gearing ratio. Its 2018-vintage predecessor fund GLP JDP III, which raised JPY250bn, was fully allocated in 2-3 years. GLP JDP IV will be used to develop prime logistics facilities, mostly in Tokyo and Osaka with the first project coming online in 2025-26. Ralf Wessel, managing director, fund management, GLP, told IPE Real Assets: “For the first time, we are seeing a portion of domestic Japanese institutions investing in our development fund. Obviously, we have a significant component in our core, open-en