Pension Pulse

Jordan Fleguel of BNN Bloomberg reports fight over where Canada's pension funds should invest is a 'clash of titans':  One of the main proponents of increased domestic investment from Canadian pension funds says there are two competing theories on the issue that each come to a different conclusion about what’s best for Canada’s pensioners and its economy. “It's a clash of titans, because we have two economic theories,” Daniel Brosseau, co-founder and partner at investment firm Letko Brosseau, told BNN Bloomberg in a Monday interview. Brosseau and his firm helped bring national attention to the debate over where Canada’s pension funds should be investing by penning an open letter last month to Finance Minister Chrystia Freeland , urging policymakers to alter the rules for pensions to “encourage them to invest in Canada.” The letter received pushback from some members of the business community who argued that government should not interfere with pensions’ inv...

The Canadian Press reports AIMCo's balanced fund earned 8.0% in 2023, falls short of benchmark: Alberta Investment Management Corp. says its balanced fund earned a net return of 8.0 per cent for 2023, short of its benchmark return of 9.3 per cent. The investment manager says its public equity investments earned 15.8 per cent, while its fixed income holdings earned 7.7 per cent.  The firm's private equity portfolio generated a return of 6.7 per cent, while infrastructure investments earned 3.8 per cent and its renewable resources portfolio returned 1.6 per cent. AIMCo's real estate portfolio lost 8.4 per cent, while mortgages earned 4.5 per cent and private debt and loan holdings returned 9.6 per cent. In 2023, AIMCo's total fund returned 6.9 per cent compared to a benchmark return of 8.7 per cent.  AIMCo, which had $160.6 billion in assets under management at the end of 2023, invests on behalf of pension, endowment, insurance, and government clients ...

Alex Harring and Yun Li of CNBC report Nasdaq falls more than 2% to post 6th straight losing day as Nvidia craters 10%: The Nasdaq Composite fell for a sixth straight session on Friday, notching its longest losing streak in more than a year. The downtrend comes as Nvidia dived, adding to recent market woes tied to geopolitical conflicts and sticky inflation. The tech-heavy Nasdaq pulled back 2.05% to 15,282.01, while the broad S&P 500 slipped 0.88% to 4,967.23 — below the 5,000 level. Both clinched their sixth straight negative days, streaks not seen for either since October 2022. The Dow Jones Industrial Average rose 211.02 points, or 0.56%, to finish at 37,986.40. The 30-stock index was lifted by a rally of more than 6% in American Express following earnings . Netflix retreated more than 9% even after quarterly earnings beat on the top and bottom lines. The streamer’s subscribers jumped 16% from the previous year, but it said it would no longer report paid memberships sta...

Matthew Black of the Edmonton Journal reports hundreds turn out to discuss state of CPP, possible Alberta pension plan: Hundreds turned out Wednesday night to hear Canada Pension Plan Investment Board (CPPIB) officials discuss the state of the national retirement plan while acknowledging Alberta’s ongoing discussion about leaving it. The public meeting was one the CPPIB is required to hold in each province at least once every two years and came on the heels of a similar event in Calgary on Tuesday night.  Wednesday’s event had to be moved to a bigger venue , at a downtown hotel, with organizers estimating the crowd to be around 400, with government MLA Jason Stephan and Opposition MLA Lorne Dach among those in attendance. In his opening statement, CPPIB Senior Managing Director Michel Leduc characterized the Canada Pe...

Benefits Canada reports Vestcor returns 7.5% for 2023, amid rising inflation, high interest rates: Vestcor Corp. is reporting a 7.5 per cent return for 2023, despite the challenges of rising inflation and high interest rates. The New Brunswick-based investment organization achieved five- and 10-year annualized returns of 6.27 per cent and 6.73 per cent, respectively. In a press release, Vestcor noted these returns ensure its clients continue meeting their funding objectives, even through the period of higher inflation indexing requirements of the past few years. “We are pleased that Vestcor continues to assist our clients with meeting their long-term objectives during an uncertain and variable period in both global financial markets and our operating environment” said John A. Sinclair, president and chief executive officer at Vector, in the release. “Our lower risk approach should continue to help our client’s meet their long-term objectives on behalf of their members.” The...

Derek Decloet and Christine Dobby of Bloomberg report Canada taps ex-BOC governor to examine how pension funds invest: Canada’s finance minister has asked former central bank governor Stephen Poloz to examine ways to entice its pension funds to invest more in the country. Poloz will lead a “working group” that will look at what it will take to get Canadian pensions to put more of their capital into domestic opportunities — including housing development, venture capital and infrastructure such as airports, the government said in budget documents Tuesday. Large public pension managers including the Canada Pension Plan Investment Board have few restrictions on where they can invest. Over time, they’ve made a huge swing into foreign markets, seeking better returns and greater diversification. That shift has spurred debate within the country. Last month, more than 90 business leaders, including current and former CEOs, signed an open letter to Finance Minister Chrystia Fre...