Pension Pulse

Zak Bentley of Infrastructure Investor reports  AIMCo's Ben Hawkins on the success of AirTrunk sale and midstream performance:  Amid all the headlines surrounding September’s Blackstone -led A$24 billion ($15.4 billion; €13.6 billion) acquisition of data centre group AirTrunk , was a Canadian institutional investor success story. PSP Investments was one of the original acquirers in 2020, alongside Macquarie Asset Management , while CPP Investments would join Blackstone in the new ownership consortium. However, compatriot sovereign wealth fund Alberta Investment Management Corporation was a winner of the process, albeit a more silent one. AIMCo had co-invested with Macquarie back in 2020 and five years later was left counting a “substantial” return that exceeded underwritten expectation, according to Ben Hawkins, AIMCo’s executive managing director and global head of infrastructure, renewable resources and energy transition. Hawkins declined to state exactly wha...

On Thursday, I had a great discussion on emerging markets with Varun Laijawalla, portfolio manager at global investment manager Ninety One : Varun is a co-portfolio manager for the Emerging Markets Equity and Emerging Markets ex China Equity strategies in the 4Factor team at Ninety One. Prior to joining Ninety One, he was vice president of Asia ex-Japan Equity Sales at Macquarie Capital Securities, and was based in Hong Kong for 5 years. Varun started his career in London at Corporate Value Associates, where he consulted blue-chip corporates in the Financial Services sector. Varun holds an MBA from INSEAD with a specialization in Finance. He earned a degree in Bachelor of Science in Management from the University of Warwick. I want to thank Varun for taking the time to talk to me and also thank Laik Sweeney for organizing the Teams meeting and sending me material. I don't generally talk to portfolio managers but it was clear from the onset this wasn't a sales pitch, I...

Sebastien Betermier, Associate Professor of Finance, Desautels Faculty of Management at McGill University and Executive Director of the International Centre for Pension Management (ICPM) published a comment on how to build a stronger and smarter retirement system in Canada: A well-designed pension system brings enormous social and economic value to its members and society as a whole. Retirees have a reliable source of income during retirement when they are elderly and vulnerable. Retirees are also more inclined to spend and contribute to a healthy economy when they can rely on a steady income source.  In addition, a well-capitalized pension system encourages disciplined savings from an early age, which can lead to significant wealth accumulation over the life cycle and lower financial stress. These savings are invested in businesses, real estate, and infrastructure projects, which further contribute to a healthy economy.  Unfortunately, Canada’s pension system does...

Ivan Levingston and Mary McDougall of the Financial Times report Macquarie buys stakes in UK airports from Ontario Teachers’ Pension Plan: Australia’s largest infrastructure investor has bought stakes in three UK airports from Ontario Teachers’ Pension Plan, marking the latest deal in the travel industry as investors capitalise on a post-pandemic rebound. Macquarie Asset Management said on Wednesday it had acquired 25 per cent of London City airport, a 55 per cent share in Bristol airport, as well as a 26.5 per cent stake in Birmingham airport. It did not disclose the value of the stakes. The acquisitions come with Macquarie’s ownership of infrastructure assets in the UK under scrutiny as a result of the crisis at Thames Water, which amassed massive debts and regularly paid dividends during a decade-long ownership to 2017 by the Australian investor. Macquarie said the airports offered “unique propositions and catchment areas which present significant growth opportunities...

Meera Raman of the Globe and Mail reports that according to a new survey, almost half of Canadians say fading retirement dreams are weighing on mental health: Nearly 60 per cent of working Canadians believe they’ll never be able to retire, according to a new survey from the Healthcare of Ontario Pension Plan (HOOPP) — reflecting how anxiety and financial instability are reshaping retirement planning across the country. That fear is taking a toll. The annual survey, released Tuesday, also found that 44 per cent of Canadians say their mental health has worsened because of geopolitical instability. Many reported feeling anxious, fearful and sad about their finances, with concerns intensifying over the past year. After a long bull-market run that increased the size of many people’s nest eggs, the notion of a comfortable retirement has been upended by a storm of economic forces. More Canadians are putting off saving, scaling back plans or questioning whether they’ll be able to...