Pension Pulse

Razak Musah Baba of IPE Real Assets reports Vantage Data Centers EMEA to expand with €750m from Ares, CDPQ and Schroders: Vantage Data Centers is expanding its EMEA platform with €750m financing from Ares Management, Caisse de depot et placement du Quebec (CDPQ) and Schroders Capital. Ares’s infrastructure debt and alternative credit strategies and CDPQ are providing up to €300m each, together with a €150m contribution from Schroders Capital in financing, alongside incremental equity to help Vantage grow its EMEA data centre portfolio . At present, the Vantage EMEA portfolio comprises 14 campuses, serving key markets in Europe and South Africa. Once fully developed, the portfolio aims to generate 751MW of combined IT capacity. Roopa Murthy, head of Ares infrastructure debt Europe, said: “We are pleased to support Vantage in their next stage of growth, delivering mission-critical digital infrastructure across EMEA in a sector experiencing significant demand.” Eli Appelbaum, co-head

Matt Toledo of Chief Investment Officer reports that Scott Chan is named CalSTRS’ new CIO: Chris Ailman has a successor. Scott Chan, deputy CIO of the California State Teachers’ Retirement System, will take over on July 1 as CIO of the world’s largest educators’ pension fund. Ailman, has served as CIO since 2000, is among the longest-serving CIO of any organization. CalSTRS announced Chan’s appointment Wednesday. Ailman will step down from his duties as CIO on June 30, but he will advise Chan in the role until the end of the year to ensure a smooth transition. “I am honored to oversee CalSTRS investments and lead our amazing team,” Chan said in a press release. “Securing the retirement of our members is extremely meaningful to me personally, as the husband of a California educator, and professionally, as we seek innovative opportunities in ever-changing financial markets.” In his new role, Chan will oversee CalSTRS’ 225 investment staff, and will spearhead the investments

Laura Benitez and Nishant Kumar of Bloomberg report hedge funds draw pension money to riskiest corner of a $1.3 trillion credit market: A high-stakes trade in the riskiest corner of a $1.3 trillion credit market is enticing some of the world’s most conservative investors, raising concerns that in their aggressive hunt for higher yields they may be discounting some pitfalls. Pension plans and insurers have been piling into funds that invest in equity tranches of collateralized loan obligations in recent months, according to several asset managers who spoke on the condition of anonymity. The inflows have helped a slew of hedge funds and other money managers, including GoldenTree Asset Management, Sculptor Capital Management, Carlyle Group Inc. and CVC Credit Partners, to raise at least $3.1 billion in less than a year for strategies solely dedicated to these investments. CLO equity — a small slice of the resurgent market for CLOs that bundle leveraged loans into bonds with v

Bob Baldwin wrote an op-ed for the Globe and Mail stating a proposal to encourage more pension fund investing at home is wrong for Canada: Last month’s budget unveiled a working group led by former Bank of Canada governor Stephen Poloz to collaborate with pension fund leaders to encourage funds to invest more of their assets in Canada. This initiative is not consistent with the proper management of pension fund assets. It also lacks proper supporting evidence, is unlikely to be effective in achieving its objective except under one unacceptable condition and ignores the use of alternative tools to achieve its stated goals. The legislation creating the Canada Pension Plan Investment Board includes a statement of “Objects and Powers” that summarizes the approach to investing consistent with fulfilling the fiduciary duty of the fund managers. The objects include: assisting the Canada Pension Plan in meeting its obligations to contributors and beneficiaries; managing any amoun

Benefits Canada reports CAAT returns 9.5% for 2023, led by global, emerging market equities: The Colleges of Applied Arts and Technology pension plan saw a net return of 9.5 per cent for 2023, with net assets of $20.1 billion, up from $18.2 billion in 2022, according to its latest annual report. As of Jan. 1, 2024, the investment organization maintained a healthy funding level of 124 per cent on a going-concern basis — with $1.24 set aside for every dollar promised in pensions — increasing its funding reserves to $5.3 billion. The plan saw positive returns in global equities (19.8 per cent), emerging markets equity (19 per cent), nominal bonds (7.4 per cent) and private equity (5.9 per cent). However, commodities recorded a loss (negative 6.6 per cent) during the year. In 2023, Canadian holdings made up nearly 30 per cent of the plan’s assets, including investments in equities, bonds, real estate and infrastructure. In a press release, Derek Dobson, the CAAT’s chief executi