Pension Pulse

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...

Suzie Neuwirth of Alternative Credit Investor reports  Canada’s largest pension plan backs Nuveen’s Australian RE debt fund:  Nuveen’s Australian commercial real estate debt strategy has secured an A$300m (£144m) investment from the Canadian Pension Plan Investment Board (CPP Investments), bringing total commitments to more than A$650m. The Canadian pension plan, through its subsidiary CPPIB Credit Investments, joins existing investors Teachers Insurance and Annuity Association of America (TIAA) and Temasek. Nuveen said that the fund, which has now reached second close, is expected to exceed A$1bn in total assets under management (AUM) including capital approved for co-investments. The strategy is already more than 40 per cent deployed, focusing on senior and junior loans secured by prime real estate in Australia. There is a preference for industrial, logistics and residential sectors, with a selective approach to retail and office space across major cities in...