Pension Pulse

Today, OMERS reported its 2019 results, gaining 11.9% last year: 2019 Highlights Net return of 11.9% or $11.5 billion Funded status of 97% Net assets of $109 billion OMERS, the defined benefit pension plan for Ontario’s municipal employees, reported a 2019 investment return of 11.9%, net of expenses. The 2019 performance exceeds last year’s net return of 2.3%, which was impacted by more challenging stock market conditions. OMERS funded status on a smoothed basis improved to 97% in 2019 . “Our high-quality, well-diversified portfolio produced strong results for our members in 2019,” said Michael Latimer, CEO, OMERS. “All asset classes generated positive returns, led by public equities. Over the past five years, we have earned $9.8 billion of net investment income over the amount required to fund our pension obligations.” “OMERS funded status has improved for the seventh consecutive year,” said Jonathan Simmons, CFO. “The 2019 improvement in our funded status prim...

Fred Imbert of CNBC reports the Dow drops more than 200 points, stocks head for losing week as coronavirus fears resurface: Stocks fell sharply on Friday after the number of new coronavirus cases escalated, fueling worries over a pronounced global economic slowdown. The Dow Jones Industrial Average closed 226 points lower, or 0.8%. The S&P 500 slid 1.1% while the Nasdaq Composite declined by 1.8%. The Dow had its worst daily performance since Feb. 7 while the S&p 500 posted its biggest one-day loss since Jan. 31. The Nasdaq recorded its worst session since Jan. 27. Friday’s losses put the major averages on pace for their first weekly losses in three weeks. The Nasdaq is down roughly 1.9% week to date. The Dow and S&P 500 are both down at least 1.5% for the week. Microsoft and Nike fell more than 2% each to lead the Dow lower. The S&P 500 was pressured by a 2.6% drop in the tech sector. Facebook, Amazon, Netflix, Google-parent Alphabet and Apple all traded a...

Today, CDPQ announced its results, posting a 10.4% annualized return in 2019 and 8.1% over five years (added emphasis is mine): Caisse de dépôt et placement du Québec (CDPQ) today released its financial results for the year ended December 31, 2019. The weighted average return on its depositors funds was 10.4% in 2019, which represents $31.1 billion in investment results. The annualized return over five and ten years was 8.1% and 9.2%, respectively. The returns of CDPQ’s eight main depositors ranged from 9.5% to 10.8% for 2019, and from 7.2% to 8.9% over five years. Over ten years, the returns ranged from 8.6% to 10.0%. Across all periods, the returns generated by CDPQ exceeded its depositors’ needs. CDPQ’s net assets totalled $340.1 billion as at December 31, increasing $114.2 billion over five years, with investment results of $106.0 billion and $8.2 billion in net deposits. Over ten years, investment results were $191.0 billion and net deposits were $17.5 billion. ...

Dell Technologies Inc said on Tuesday it would sell its cybersecurity unit RSA for $2.08 billion to a consortium led by Symphony Technology Group, Ontario Teachers’ Pension Plan and AlpInvest Partners. OTPP put out this press release : A consortium led by Symphony Technology Group (STG), Ontario Teachers’ Pension Plan Board (Ontario Teachers’) and AlpInvest Partners (AlpInvest) has entered into a definitive agreement with Dell Technologies (NYSE: DELL) to acquire RSA in an all-cash transaction for $2.075 billion, subject to certain adjustments. The transaction, which includes the purchase of RSA Archer, RSA NetWitness Platform, RSA SecurID, RSA Fraud and Risk Intelligence and RSA Conference, is expected to close in the next six to nine months. Terms of the agreement were not disclosed. RSA provides risk, security and fraud teams with the ability to holistically manage digital risk, including threat detection and response, identity and access management, integrated risk manag...