Since returning to office, the Trump administration has gutted the Office of Federal Contract Compliance Programs (OFCCP)—which has long ensured that employers conducting business with the federal government comply with equal employment opportunity laws. This has made equal employment laws effectively unenforceable for the entire civilian federal contracting workforce.

What’s happening?

In January, President Trump issued Executive Order (EO) 14173 that drastically cut OFCCP’s enforcement oversight and ended affirmative action requirements for federal contractors established by President Lyndon B. Johnson in 1965. In a total about-face from six decades of leveraging the purchasing power of the federal government to encourage private-sector employers to adopt more equitable employment practices and establish written affirmative action programs for women and minorities, Trump’s executive order explicitly discourages any efforts to remedy racialized or gendered patterns of discrimination in employment or pay. Instead, it derisively and inaccurately labels such efforts as “DEI-based discrimination”, implying that they result in workers of color and women unfairly displacing more qualified (assumptively white male) candidates.

Recently, the agency proposed regulations to further unwind its own work and authority. One of the proposed rules would formally rescind the regulations implementing President Johnson’s original EO to establish the agency’s existence and authority. Another would risk weakening data collection on whether federal contractors are meeting “utilization goals”—benchmarks for evaluating the representation of people with disabilities in the federal contracting workforce. These actions showcase the Trump administration’s embrace of Project 2025’s anti-worker and anti-equity agenda, which included a policy proposal to eliminate OFCCP.

Trump’s 2026 budget formally requests Congress to defund OFCCP’s operations. If Congress were to agree to zero out OFCCP’s budget—and if the regulatory unwinding of the agency’s primary mandate proceeds without obstacles—there would no longer be any federal agency dedicated to ensuring that federal contractors operate fair, nondiscriminatory workplaces. In other words, taxpayer dollars could essentially subsidize persistent discrimination. Under the Trump administration’s plans, OFCCP’s remaining legal responsibilities to enforce equal employment opportunity for certain veterans and for workers with disabilities would shift over to the Department of Labor’s (DOL) Veterans Employment and Training Service (VETS) or to the Equal Employment Opportunities Commission (EEOC)—agencies with different mandates and areas of expertise than the federal contracting workforce.

In one promising sign, fortunately, the Senate Appropriations Committee recently voted to advance a bipartisan funding proposal that rejected the Trump administration’s request to zero out OFCCP’s budget. It remains to be seen how appropriators in the House or the Trump administration will respond.

Shuttering the OFCCP will hurt Black and women workers the most

As a relatively small DOL division, OFCCP’s work has gone largely unnoticed by the broader public even though it has achieved important results for workers. According to historical data that the Trump administration removed from the OFCCP website, OFCCP conducted reviews at contractor sites employing over 10.3 million workers between 2014 and 2024. OFCCP investigations resulted in 250,900 workers obtaining financial relief totaling $260.8 million during that period—and over 22,600 individuals employed by federal contractors received new job opportunities or salary adjustments.

Table 1 presents historical monetary relief data by class, revealing the groups most likely to be harmed by Trump’s actions. Black workers and women received most of the monetary relief resulting from OFCCP investigations between 2020 and 2024, demonstrating just how targeted the impact of Trump’s executive order will be.

Stripped of its authority and with only minimal staff remaining, OFCCP’s only remaining equal employment compliance oversight is for disabled workers under Section 503 of the Rehabilitation Act (Section 3) and protected veterans under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). However, as Table 1 shows, no more than 0.1% of monetary relief resulting from OFCCP investigations over the past five years was awarded based on disability or veteran status.

Table 1

While there are no public data on the demographic composition of workers employed by federal contractors, current labor force demographics illustrate the potential magnitude of those changes. Figure A shows the share of the labor force by race, ethnicity, and gender that is either disabled or a veteran. Among Black workers—the largest share of monetary relief recipients—less than 8% of Black women and 13% of Black men would be eligible for monetary relief based on disability or veteran status alone. Across all racial groups, a smaller share of women than men would remain eligible.

Figure A

According to the U.S. Government Accountability Office, the federal government obligated $755.1 billion through contracts in 2024 to procure products and services ranging from aircraft and software to health care and engineering support. The planned elimination of OFCCP represents the Trump administration’s surrender of this tremendous federal leverage to enforce nondiscrimination compliance among private-sector employers. It is also a major shirking of the federal government’s responsibility to demand accountability from businesses who profit from billions in taxpayer dollars, including tax dollars paid by people they now have a lot less obligation to employ and pay fairly. This would be a clear retreat from the principles of economic, racial, and gender justice which are the basis for equal rights and full participation in our society. The American people deserve better.

1.1 What is K’NEX?

K’NEX is a popular construction toy consisting of interconnected rods and connectors that allow users to build complex structures. Originally designed for creative play‚ it has become a tool for educational projects‚ including roller coasters. The system enables the creation of 3D models by snapping pieces together‚ fostering problem-solving and engineering skills. K’NEX sets often include motors‚ gears‚ and tracks for dynamic builds. Its versatility and scalability make it suitable for both children and adults‚ encouraging imaginative designs and hands-on learning. K’NEX roller coaster kits are particularly popular‚ offering step-by-step guides to build functional coasters.

1.2 Benefits of Building a K’NEX Roller Coaster

Building a K’NEX roller coaster offers numerous educational and recreational benefits. It enhances STEM skills by teaching engineering principles‚ such as tension‚ balance‚ and motion. The process fosters creativity and problem-solving abilities‚ as users design and troubleshoot their coaster. It also promotes patience and persistence‚ as constructing complex structures requires careful planning. Additionally‚ it provides a sense of accomplishment and enjoyment‚ especially when the finished coaster operates smoothly. Suitable for all ages‚ K’NEX roller coaster building encourages innovation‚ teamwork‚ and hands-on learning‚ making it a rewarding and engaging activity for both individuals and groups.

1.3 Safety Considerations

Safety is paramount when building a K’NEX roller coaster. Small parts pose a choking hazard‚ so it’s essential to keep them out of reach of children under 3 years. Always read and follow the instructions carefully to ensure structural stability. Avoid overloading the coaster‚ as this can lead to collapse. Supervise young builders during assembly to prevent accidents. Test the coaster thoroughly before operation to ensure all components are secure. Wear protective gear if handling small or sharp pieces. Prioritize stability and balance to prevent injuries and damage. Regularly inspect the structure for wear and tear.

Gathering Materials and Tools

Gather essential K’NEX pieces‚ including rods‚ connectors‚ wheels‚ and tracks. Ensure you have a motor‚ chains‚ and Allen wrench for assembly. Use screwdrivers for adjustments and clamps for stability. Sort and organize parts to streamline construction. Refer to the instruction manual for specific components required. Having all tools and materials ready ensures a smooth building process and minimizes delays.

2;1 Essential K’NEX Pieces

Start by identifying the core components needed for your roller coaster. These include rods of varying lengths‚ connectors‚ wheels‚ and track segments. Chains and motors are crucial for the chain lift mechanism‚ while support beams and joints ensure structural integrity. Small clips and clamps help secure loose ends‚ preventing parts from shifting. Rods with holes are ideal for creating height adjustments‚ and curved or angled connectors allow for loops and turns. Ensure all pieces are included‚ as each serves a specific function in the overall design and operation of the coaster.

2.2 Tools Needed for Assembly

To efficiently assemble your K’NEX roller coaster‚ gather essential tools. A screwdriver or Allen wrench is often required for motor installation. Pliers may help tighten connections securely. A flat surface and good lighting are crucial for visibility. Organize your workspace with trays or bins to sort rods‚ connectors‚ and small pieces. Consider using a magnifying glass for detailed work. While K’NEX pieces typically snap together without additional tools‚ having these items nearby ensures a smoother building process. Keep instructions within reach for quick reference‚ and sort components by type to save time during assembly;

2.3 Optional Accessories for Customization

Enhance your K’NEX roller coaster with optional accessories for a personalized touch. Themed elements like scenery pieces or miniature figures can create immersive environments. Additional track segments allow for expanded layouts or unique designs. Lighting kits add visual flair‚ making your coaster stand out. Decals or stickers can customize the appearance of trains and supports. Motorized components‚ such as automatic gates or moving scenery‚ add interactive features. These accessories let you express creativity and elevate your roller coaster from a simple structure to a detailed‚ one-of-a-kind masterpiece. Explore accessory packs or mix-and-match pieces to achieve your vision.

Understanding the Base Structure

The base structure is the starting point of your K’NEX roller coaster‚ providing stability and support for the entire build. It ensures the coaster remains upright and secure‚ allowing trains to move smoothly. A well-designed base distributes weight evenly‚ preventing wobbling or collapse. Use rods and connectors to create a sturdy foundation‚ following step-by-step instructions for precise assembly. This solid base is essential for the functionality and longevity of your roller coaster design.

3.1 Importance of a Stable Base

A stable base is crucial for ensuring the structural integrity and safety of your K’NEX roller coaster. It prevents the entire structure from collapsing or wobbling‚ which could damage the model or lead to unsafe conditions. A strong foundation also allows the roller coaster to function smoothly‚ maintaining consistent motion and reducing wear on moving parts. According to instructions‚ a well-constructed base distributes weight evenly‚ ensuring durability and longevity. Without a stable base‚ the coaster may fail to operate properly‚ making it essential to follow step-by-step guidance for a secure setup. This step sets the stage for a successful and enjoyable build.

3.2 Step-by-Step Base Construction

Begin by assembling the base on a flat‚ stable surface using K’NEX rods and connectors. Follow the instruction manual to align pieces precisely‚ ensuring a balanced foundation. Start with a rectangular frame‚ securing corners tightly to prevent wobbling. Add crossbeams for extra stability‚ as outlined in the guide. Use vertical rods to create elevation points‚ ensuring they are evenly spaced. Double-check alignment and balance before proceeding. For larger models‚ reinforce the base with additional supports to handle weight and motion. This step-by-step approach ensures a sturdy base‚ essential for the roller coaster’s functionality and durability. Always refer to the provided instructions for specific configurations.

Building the Chain Lift

Construct the chain lift mechanism to propel the roller coaster cars uphill. Follow step-by-step instructions to assemble rods‚ connectors‚ and motor components for smooth operation.

4.1 Purpose of the Chain Lift

The chain lift mechanism is crucial for propelling roller coaster cars up the lift hill. It provides the necessary height and momentum for the ride‚ ensuring smooth and safe operation. The chain lift is motorized‚ automating the ascent and enhancing the roller coaster’s realism. Proper assembly and tension are vital for reliable performance‚ preventing slippage and ensuring the cars reach the correct elevation. This component is essential for initiating the roller coaster’s journey‚ making it a fundamental part of the structure. Its design and functionality closely mimic real-world roller coasters‚ offering an authentic building experience.

4.2 Assembling the Chain Lift Mechanism

Assembling the chain lift mechanism involves attaching the motor‚ gears‚ and chain to the lift hill structure. Begin by securing the motor to the base‚ ensuring proper alignment with the gears. Next‚ thread the chain through the gears and around the lift hill’s pulley system. Tighten the chain to maintain consistent tension‚ preventing slippage. Follow the step-by-step instructions to connect the chain lift to the roller coaster cars. Test the mechanism to ensure smooth operation. Proper assembly of this component is critical for the roller coaster’s functionality and safety. Ensure all parts are securely fastened and aligned for optimal performance.

Constructing the Lift Hill

Constructing the lift hill involves building a tall‚ stable structure using K’NEX rods and connectors. Follow step-by-step instructions to ensure proper height and alignment. Secure the chain lift mechanism to the top of the lift hill‚ connecting it to the roller coaster cars. This component is essential for providing the initial ascent and energy for the ride. Ensure stability by reinforcing the structure with additional supports. Proper construction guarantees a smooth and safe operation of the roller coaster.

5;1 Designing the Lift Hill

Designing the lift hill requires careful planning to ensure proper height and angle for the roller coaster’s initial ascent. Use K’NEX rods and connectors to create a sturdy frame‚ ensuring stability and alignment. The lift hill’s height determines the potential energy for the ride‚ so precise measurement is crucial. Follow step-by-step instructions from K’NEX manuals to achieve the correct structure. Incorporate supports to prevent wobbling and ensure the chain lift mechanism can be securely attached. A well-designed lift hill is essential for a smooth and thrilling roller coaster experience.

5.2 Securing the Lift Hill Structure

Securing the lift hill structure is crucial for stability and safety. Use K’NEX brackets and clamps to reinforce connections between rods and joints. Ensure the lift hill is firmly attached to the base structure to prevent wobbling. Check alignment with the chain lift mechanism to maintain smooth operation. Tighten all connections and test the structure’s sturdiness before proceeding. Additional support towers can be added near the lift hill for extra stability. Follow the step-by-step instructions to guarantee a secure and balanced structure‚ ensuring the roller coaster operates safely and efficiently.

Creating the Drop and Support Towers

Creating the drop and support towers is an exciting phase where you engineer the roller coaster’s descent and structural integrity. Follow the provided step-by-step instructions to build the drop‚ ensuring it connects smoothly with the lift hill. Use K’NEX rods and connectors to construct sturdy support towers that stabilize the track‚ particularly around curves and loops. Proper alignment and secure connections are essential for a safe and thrilling ride.

6.1 Engineering the First Drop

Engineering the first drop is a crucial step in your roller coaster’s design. It sets the pace and excitement for the entire ride. Follow the instructions carefully to construct this section precisely. Use K’NEX rods and connectors to create a stable and secure drop‚ ensuring it aligns perfectly with the lift hill. Properly angled tracks are essential for a smooth transition. The drop’s height and slope must be balanced for safety and thrill. Double-check all connections to avoid any wobbling or instability. Adjustments can be made later to refine the experience‚ but a solid foundation here is key to a successful build.

6.2 Building Support Towers

Building support towers is essential for maintaining the structural integrity of your roller coaster. These towers‚ made from vertical rods and connectors‚ provide elevation and stability for the track. Secure the towers firmly to the base to prevent wobbling. Use horizontal beams to connect them‚ enhancing overall stability. Ensure proper alignment to avoid track misalignment or sagging. Test the towers’ stability before attaching the track and ensure even spacing for a smooth ride. This step is crucial for ensuring your roller coaster remains safe and functional while maintaining its thrilling design.

Designing the Track and Loops

Designing the track involves planning a layout with thrilling drops‚ loops‚ and curves. Ensure smooth transitions between elements to maintain structural integrity and safety for a seamless ride.

7.1 Planning the Track Layout

Planning the track layout is essential for a functional and exciting roller coaster. Start by sketching your design‚ considering the sequence of drops‚ loops‚ and curves. Ensure the chainlift and lift hill align properly with the first drop. Measure and space elements evenly to maintain flow and structural integrity. Incorporate support towers where needed to stabilize steep sections. Plan smooth transitions between curves and loops to prevent abrupt changes. Balance thrill elements with safety‚ ensuring the track remains secure and visually appealing. Use K’NEX pieces strategically to achieve the desired shape and durability for your roller coaster design.

7.2 Constructing Loops and Curves

Constructing loops and curves requires precision to ensure smooth transitions and structural stability. Begin by building small sections‚ using K’NEX rods and connectors to form the desired shape. For loops‚ connect pieces in a circular pattern‚ ensuring symmetry and even spacing. Curves can be created by angling rods incrementally‚ maintaining a consistent radius. Use support rods to reinforce larger loops and curves‚ preventing sagging or collapse. Test each section by gently rocking it to ensure stability. Properly aligned loops and curves enhance the roller coaster’s thrill factor while maintaining rider safety and overall durability of the structure.

Assembling the Station and Motor

Assemble the station using K’NEX rods and connectors for a sturdy base. Attach the motor to power the chain lift‚ ensuring secure placement and proper alignment for smooth operation.

8.1 Building the Loading Station

Start by constructing a stable platform using K’NEX rods and connectors. Attach the base plates to create a solid foundation for the station. Use vertical rods to build walls and a roof‚ ensuring proper alignment. Add seating areas and safety barriers for the “riders.” Connect the station to the track system‚ ensuring smooth transitions. Follow step-by-step instructions to integrate the unloading platform for a complete experience. This step is crucial for functionality and aesthetics‚ requiring precision and patience to ensure all components fit securely together.

8.2 Installing the Motor System

Attach the motor to the base near the chain lift mechanism‚ ensuring it aligns with the drive system. Connect the motor to the tire-drive or chain mechanism‚ following the instructions for proper gear alignment. Secure the motor firmly to prevent movement during operation. Test the motor by powering it on and observing the chain or tire movement. Adjust the motor’s position if necessary to ensure smooth operation. This step is critical for automating the roller coaster’s functionality‚ allowing the car to ascend the lift hill effortlessly. Proper installation ensures reliability and consistent performance.

Adding Themed Elements

Add themed elements like neon lights or themed stations to enhance your roller coaster’s visual appeal. Use additional K’NEX pieces to create unique and imaginative designs.

9.1 Incorporating Themes

Incorporating themes into your K’NEX roller coaster adds personality and creativity. Choose a theme‚ such as a futuristic city or a jungle adventure‚ and customize your design accordingly. Use themed K’NEX pieces‚ like neon lights or colored rods‚ to match your chosen aesthetic. Add decorative elements such as small figurines or scenery to enhance the visual appeal. Themes can also inspire unique track designs‚ such as loops shaped like animals or structures that resemble landmarks. This step allows you to express your imagination and make your roller coaster truly one-of-a-kind. Themed elements can also be found in official K’NEX instruction manuals for inspiration.

9.2 Enhancing Aesthetics

Enhancing the aesthetics of your K’NEX roller coaster involves adding decorative elements to make it visually appealing. Use colored rods and connectors to create vibrant designs. Add themed scenery‚ such as miniature trees‚ rocks‚ or buildings‚ around the base. Lighting can also elevate the look—incorporate glow-in-the-dark pieces or LED lights for a striking effect. Customize the track with unique patterns or shapes‚ and consider adding small details like tiny vehicles or figures. These additions bring your roller coaster to life‚ making it not only functional but also a visually stunning creation that showcases your creativity and attention to detail.

Testing and Troubleshooting

Test your K’NEX roller coaster to ensure smooth operation. Check for structural stability and proper chain movement. Troubleshoot issues like jams or wobbles to ensure safe functionality.

10.1 Initial Testing

Begin by conducting a thorough initial test of your K’NEX roller coaster. Start with the chain lift‚ ensuring it moves smoothly without jamming. Check the motor’s operation to confirm it powers the chain consistently. Test the first drop and loops to ensure the roller coaster car navigates them safely. Inspect the track for any gaps or misalignments that could cause derailments. Verify that all support towers are secure to maintain structural integrity. If issues arise‚ such as wobbling or stalls‚ pause testing to address them before proceeding. This step ensures your creation operates safely and efficiently.

10.2 Common Issues and Solutions

During testing‚ common issues may arise‚ such as track misalignment or car derailments. Inspect connections to ensure all pieces are securely attached. If the structure wobbles‚ tighten loose rods or add support beams. Motor issues may occur if the chain lift is overloaded; reduce the number of cars or ensure the motor is properly aligned. For loops or curves‚ check that the car has enough momentum to complete the turn smoothly. Addressing these problems early ensures a seamless and enjoyable roller coaster operation. Patience and adjustments are key to achieving a reliable and thrilling ride.

Advanced Building Techniques

Advanced techniques involve intricate designs‚ such as multiple loops‚ corkscrews‚ and complex track layouts. These methods require precision and creativity to ensure stability and smooth operation. Proper alignment and support are crucial for maintaining structural integrity. Experimenting with unique elements enhances the roller coaster’s visual appeal and functionality‚ offering a challenging yet rewarding experience for skilled builders.

11.1 Adding Multiple Loops

Adding multiple loops enhances the roller coaster’s complexity and visual appeal. Start by planning the track layout to ensure smooth transitions between loops. Use rod connectors to create tight curves and ensure proper alignment. Support structures are critical to maintain stability; add beams and pillars to prevent collapse. Test each loop incrementally to check for structural integrity and smooth movement. Avoid excessive tension‚ as it may cause tracks to misalign. For advanced designs‚ incorporate varying loop sizes and angles for dynamic appeal. Refer to specific models like the Steel Python for inspiration and step-by-step guidance on complex loop configurations. Safety and precision are key to achieving a flawless design.

11.2 Incorporating Corkscrews

Incorporating corkscrews adds a dynamic twist to your roller coaster‚ creating a thrilling experience. Begin by building the corkscrew section after the initial loops‚ ensuring a smooth transition. Use K’NEX rods and connectors to form tight spirals‚ securing them with additional support beams for stability. Test the section to ensure the car moves seamlessly through the corkscrew without getting stuck. For advanced designs‚ combine corkscrews with loops for added complexity. Refer to models like the Steel Python for inspiration and detailed guidance on constructing intricate corkscrew patterns. This feature enhances the ride’s excitement and showcases your engineering skills. Safety and balance are crucial for a flawless design.

Final Touches and Display

Complete your roller coaster by ensuring all parts are securely connected and test its stability. Display your creation proudly‚ enhancing its appeal with themed elements for a polished look.

12.1 Completing the Build

Completing the build involves ensuring all components are securely connected and functioning properly. Double-check the chain lift‚ track alignment‚ and support towers for stability. Test the roller coaster by running the motor and observing its movement to ensure smooth operation. Verify that all loops and curves are correctly assembled and that the structure is balanced. Address any wobbling or loose connections to guarantee safety and durability. Once everything operates seamlessly‚ your K’NEX roller coaster is complete and ready for display. This final step requires patience and attention to detail to achieve a polished and functional result.

12.2 Displaying Your Creation

Displaying your K’NEX roller coaster is the final step to showcase your hard work. Choose a sturdy‚ flat surface to ensure stability and prevent wobbling. Consider adding themed elements like miniature scenery or lighting to enhance its visual appeal. For protection‚ avoid placing it near direct sunlight or moisture. Dust regularly to maintain its appearance. Share your creation with friends or family to highlight your engineering skills. Proudly exhibiting your roller coaster celebrates your creativity and dedication to the project. Proper display ensures your structure remains intact and continues to impress for years to come.

Additional Resources

Explore official K’NEX websites‚ instruction manuals‚ and online tutorials for detailed guides and inspiration. Downloadable manuals and video tutorials provide step-by-step assistance for complex builds and troubleshooting.

13.1 Instruction Manuals

K’NEX roller coaster instruction manuals provide detailed‚ step-by-step guides for building specific models. These manuals are available for download or print‚ ensuring easy access. Many sets‚ such as the Original 8ft K’NEX Roller Coaster (model 63030) and the K’NEX EDUCATION STEM Explorations Roller Coaster (code 77078)‚ include comprehensive instructions. They outline piece counts‚ base construction‚ and advanced features like chain lifts and motor systems. Manuals also include safety warnings‚ such as choking hazards for small parts‚ and are designed for users aged 3 and above. They serve as essential resources for both beginners and experienced builders.

13.2 Online Tutorials

Online tutorials offer visual and interactive guides for building K’NEX roller coasters‚ complementing instruction manuals. Platforms like YouTube and K’NEX forums feature step-by-step videos and community-shared builds. Tutorials often cover specific models‚ such as the Steel Python or Neon Lightning Coaster‚ detailing complex mechanisms like chainlifts and motorless tire-drive systems. These resources are ideal for visual learners‚ providing real-time assembly demonstrations. Additionally‚ online communities share tips for troubleshooting common issues and offer creative modifications for custom designs‚ fostering collaboration and innovation among enthusiasts. They are invaluable for both beginners and advanced builders seeking to refine their skills.

Completing your K’NEX roller coaster is a rewarding experience‚ teaching engineering and creativity. It encourages innovation and fun‚ inspiring future projects and more complex designs.

14.1 Summary of the Process

Building a K’NEX roller coaster involves a structured approach‚ starting with planning and gathering materials. The process includes constructing a stable base‚ assembling the chain lift‚ and designing the lift hill. Support towers‚ drops‚ and tracks are added‚ followed by loops and curves for excitement. Motor installation and themed elements enhance functionality and aesthetics. Testing ensures safety and functionality‚ with troubleshooting addressing any issues. The process fosters creativity‚ engineering skills‚ and patience‚ culminating in a fully functional and personalized roller coaster model. This hands-on project offers a rewarding experience‚ encouraging learning and innovation.

14.2 Encouragement for Future Projects

Completing a K’NEX roller coaster is a rewarding achievement that sparks creativity and confidence. With each successful build‚ enthusiasts gain valuable engineering and problem-solving skills. Encouraging experimentation with new designs‚ loops‚ and themes can lead to even more complex and imaginative creations. Embrace challenges‚ explore advanced techniques‚ and push the limits of what’s possible with K’NEX. Every project is an opportunity to innovate and create something unique. Continue building‚ learning‚ and having fun while turning your visions into reality with K’NEX roller coasters!

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Below, EPI economists offer their insights on the jobs report released this morning, which showed 73,000 jobs added in July. 

From EPI senior economist Elise Gould:

Read the full thread here.

Big news in today’s #jobs report are the revisions. The labor market is much weaker than originally reported the last two months. While payrolls grew 73k in July, May and June data were revised down a total of 258k to 19k and 14k, respectively, bringing 3-month average growth down to 35k.
#EconSky

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— Elise Gould (@elisegould.bsky.social) Aug 1, 2025 at 7:46 AM

Health care jobs grew the strongest in July. Private-sector job losses were reported in professional and business services, manufacturing, and wholesale trade. The surprising uptick in state and local government jobs for June was revised down as federal jobs continued to fall in July.
#NumbersDay

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— Elise Gould (@elisegould.bsky.social) Aug 1, 2025 at 8:01 AM

Federal cuts continue to cost jobs as federal employment fell another 12k in July. Federal employment is now down 84,000 since January. The latest federal UI claims data for mid-July shows the economic pain continues and the full extent of the job losses won’t be seen until we get data for October.

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— Elise Gould (@elisegould.bsky.social) Aug 1, 2025 at 8:11 AM

 

From EPI chief economist Josh Bivens: 

To me, today’s jobs report is what entering a recession looks like. Could we pull up? Sure. But if we look back and end up dating an official recession that starts 3-6 months from now, this is what it would look like today – rapid softening/deterioration in the labor market.

— Josh Bivens (@joshbivens-econ.bsky.social) Aug 1, 2025 at 7:41 AM

 

From EPI president Heidi Shierholz:

Whoa, the jobs numbers are really bad. With the new July numbers and revisions to May/June, the avg monthly job growth of the last 3 months is 35,000. As Josh says, if we were entering a recession, this is what it would look like.

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— Heidi Shierholz (@hshierholz.bsky.social) Aug 1, 2025 at 7:47 AM

Trump’s war on immigrants shows up clearly in the data: the age 16+ immigrant popn has dropped 3.8%—1.9 million—since January. It’s a moral catastrophe, and an economic one. Deporting 1 million immigrants per year will cost ~6 million jobs over Trump’s term.

www.epi.org/publication/…

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— Heidi Shierholz (@hshierholz.bsky.social) Aug 1, 2025 at 8:19 AM

Seeking guidance from angels can bring comfort and clarity to your life. Discover how these spiritual beings offer support, signs, and wisdom to help navigate life’s challenges.

Overview of Angelic Guidance

Angelic guidance offers a profound way to seek wisdom and support in life. Rooted in spiritual beliefs, it involves receiving messages and signs from angels, such as white feathers or coins, to navigate challenges. Many believe these beings provide comfort, clarity, and strength during difficult times. Whether through meditation, prayer, or subtle cues, angelic guidance encourages trust in divine support, helping individuals make decisions and find peace amidst uncertainty. This timeless practice fosters emotional and spiritual well-being, reminding us of the presence of loving guidance always available.

Defining Angelic Guidance

Angelic guidance refers to divine support from spiritual beings, offering wisdom, comfort, and strength through subtle signs and messages, helping individuals trust in divine influence and purpose.

What Are Angels?

Angels are spiritual beings, often seen as messengers of God, embodying purity and immortality. They are believed to serve as guardians and guides, offering protection and wisdom. Many cultures view angels as intermediaries between the divine and humanity, with roles varying across religious traditions. Their presence is thought to bring comfort and inspiration, with some believing they can take human form to assist in times of need. Angels are often associated with unconditional love and divine support, always present to offer guidance and strength.

The Role of Angels in Guidance

Angels are believed to serve as divine messengers and guides, offering protection, wisdom, and comfort. They are thought to provide subtle signs, such as white feathers or coins, to nudge individuals toward the right path. Their role is to inspire hope, clarity, and strength, helping people navigate life’s challenges. Angels are often seen as unconditional supporters, offering reassurance and guidance during difficult times, and their presence is felt as a loving, gentle influence that fosters peace and trust in divine plans.

Signs of Angelic Presence

Common signs of angels include finding white feathers or coins, noticing faint lights, or hearing soft whispers. These subtle cues bring reassurance and comfort.

Common Signs from Angels

Angels often communicate through subtle yet meaningful signs. Finding white feathers or coins in unexpected places is a common indication of their presence. Many people also report seeing faint lights or hearing soft whispers. These signs are believed to bring comfort and reassurance, reminding individuals they are not alone. Angels may also use repeating numbers or familiar scents to convey messages. These gentle nudges are thought to guide individuals toward positive decisions or provide emotional support during challenging times.

Interpreting White Feathers and Coins

White feathers and coins are widely regarded as symbols of angelic guidance. A white feather may signify peace or a gentle nudge from the divine, while coins, especially pennies, are believed to represent abundance and financial blessings. These signs often appear in moments of uncertainty, offering reassurance that angels are near. They encourage trust in the universe’s plan and remind individuals to stay open to divine messages. Such symbols are powerful reminders of spiritual support and unconditional love.

Connecting with Angels

Connecting with angels involves creating a calm, open mindset through meditation and prayer. This personal, heartfelt communication fosters a deeper, trusting relationship with divine guidance.

Meditation Techniques for Angelic Connection

To connect with angels through meditation, create a calm, sacred space. Focus on your breath, quieting the mind. Set an intention to receive guidance, then visualize a radiant light representing your angel. Trust in their presence and listen for gentle, loving thoughts. You may sense their energy or receive symbolic messages. End by expressing gratitude, reinforcing your openness to divine support. Regular practice strengthens this bond, fostering trust and clarity in their guidance.

Prayer and Communication with Angels

Prayer is a powerful way to connect with angels, offering a direct line of communication. Speak from your heart, expressing your intentions and needs. Trust that your words are heard and that guidance will follow. Angels often respond through subtle signs, like white feathers or coins, reinforcing their presence. Approach prayer with openness, patience, and faith, knowing that their support is always available. This sacred dialogue fosters trust and deepens your relationship with these divine messengers.

Cultural Perspectives on Angels

Angels are revered across cultures as messengers of divine love and guidance. Their roles vary, from guardians in religious texts to symbols of hope in folklore, inspiring art and guiding individuals through life’s journey.

Angels in Different Religious Traditions

In Christianity, angels are messengers of God, often depicted as divine beings who carry out His will. Similarly, Islam recognizes angels like Jibril and Mika’il as essential to divine communication. In Judaism, angels serve as protectors and intermediaries. Beyond Abrahamic faiths, Hinduism and Buddhism incorporate spiritual beings, like devas, who guide and assist humanity. These diverse perspectives highlight the universal belief in angels as guides and protectors, bridging the earthly and spiritual realms across cultures and traditions.

Cultural Stories of Angelic Encounters

Cultural tales of angelic encounters are abundant, offering inspiration and hope. In many traditions, these stories highlight moments of divine intervention, where angels provide comfort, guidance, or salvation. For example, some recount strangers appearing in times of crisis, only to vanish afterward, leaving behind a sense of peace. These narratives often emphasize trust in the unseen and the belief that angels are ever-present, guiding us through life’s challenges with grace and wisdom.

Famous Stories of Angelic Guidance

Famous accounts of angelic guidance inspire faith and reassurance. Historical tales of divine intervention highlight moments of profound comfort and direction, offering hope during life’s challenges and uncertainties.

Historical Accounts of Angelic Intervention

Throughout history, stories of angelic intervention have inspired faith and hope. From biblical accounts of angels guiding prophets to medieval tales of divine protection, these narratives highlight moments of profound spiritual support. Many religious texts describe angels appearing in human form to offer guidance, while others recount miracles attributed to their presence. Such stories, like the angelic visitation to the Virgin Mary or the protection of Daniel in the lion’s den, illustrate the comforting belief that angels have long played a role in human lives, offering reassurance and direction during times of uncertainty.

Modern-Day Stories of Angelic Help

In contemporary times, people share inspiring accounts of angelic assistance. Many report encounters with mysterious strangers who appear in times of crisis, offering aid before disappearing. Others speak of finding white feathers or coins in meaningful places, viewing these as signs of angelic presence. Such stories, often shared online and in communities, highlight the enduring belief in angels as guides and protectors. These modern narratives encourage trust in divine support, fostering hope and resilience in everyday life.

Practical Applications of Angelic Guidance

Seek comfort and clarity by trusting angelic signs, such as white feathers or coins, and use prayer or meditation to connect with their wisdom for everyday challenges.

How to Ask for Angelic Assistance

To seek angelic help, calmly communicate your needs through prayer or meditation. Be open-hearted and specific about what you desire. Trust in divine timing and guidance. Many believe angels appear in human form, so kindness to everyone is essential. Spotting white feathers or coins can signal their presence. Say a silent prayer when you see these signs, asking for clarity or courage. Angels are believed to offer support, so express gratitude and stay open to their subtle messages.

Deciphering Angelic Messages

Trust in divine guidance by paying attention to subtle signs like white feathers or coins, which often symbolize angelic presence. Angels may appear in human form, so kindness to everyone is crucial. When you see these signs, take a moment to reflect on their meaning. Pray silently for clarity, and trust the process. Remember, angelic messages are gentle yet powerful, offering comfort and direction when needed. Stay open-hearted and patient, knowing their guidance is always available to you.

The Role of Guardian Angels

Guardian angels are believed to serve as protective guides, offering support and wisdom throughout life. They are thought to be constant companions, providing divine assistance and comfort.

Understanding Guardian Angels

Guardian angels are believed to be spiritual protectors, offering divine assistance and comfort. They are thought to guide individuals throughout their lives, helping with decisions and protecting from harm. Many believe these angels are assigned at birth and work tirelessly, often in subtle ways, to ensure their charges’ well-being. Their presence is seen as a source of strength and reassurance, reminding individuals they are never truly alone on their life’s journey.

How Guardian Angels Influence Daily Life

Guardian angels subtly influence daily life by offering comfort, guidance, and reassurance. They are believed to send signs, like white feathers or coins, to provide direction and hope. These angels help individuals navigate challenges, fostering a sense of peace and clarity. Their presence encourages trust in divine timing and faith in life’s path, reminding us we are supported in every moment, even when their assistance feels unseen or unspoken.

Angels in Times of Crisis

Angels provide comfort and strength during difficult times, offering hope and guidance. Their presence helps individuals navigate challenges and find peace, even in moments of uncertainty and fear.

Seeking Comfort Through Angels

Angels offer profound comfort during life’s challenges, providing reassurance and peace. Many believe they send signs, like white feathers or coins, to remind us we’re never alone. By asking for their help, individuals can find solace in times of grief or uncertainty. Angels are often seen as gentle guides, offering strength and hope. Their presence helps ease emotional pain, fostering a sense of calm and trust in divine support. This comforting connection can be a powerful source of healing and renewal.

Angelic Support During Difficult Decisions

Angels are believed to offer guidance during challenging decisions, providing clarity and reassurance. Many find comfort in seeking their support, trusting that divine wisdom will illuminate the right path. By communicating through prayer or meditation, individuals can receive subtle signs, such as white feathers or coins, which are interpreted as messages of encouragement. This angelic influence helps ease uncertainty, fostering confidence and trust in the decisions made. Their presence reminds us that we are not alone in navigating life’s complexities.

Emotional and Spiritual Support

Angels provide emotional and spiritual support, offering comfort during life’s challenges. Their presence brings healing and reassurance, helping individuals find peace and guidance through difficult times.

Healing Through Angelic Presence

Angels bring profound healing through their presence, offering emotional and spiritual comfort. White feathers and coins often signify their support, reminding us to trust in divine guidance. By meditating or praying, individuals can connect with angels, finding solace in their loving energy. This connection fosters inner peace, helping to heal emotional wounds and restore balance in life. Angels remind us to stay open to their messages, as their presence is a gentle reminder of unconditional love and support during challenging times, guiding us toward wholeness and harmony.

Angels and Emotional Well-being

Angels play a vital role in nurturing emotional well-being by offering comfort and reassurance. Seeing white feathers or finding coins can be signs of their presence, providing solace during difficult times. By connecting with angels through prayer or meditation, individuals can find emotional balance and strength. Their loving energy helps alleviate stress and anxiety, fostering a sense of peace and clarity. Trusting in angelic support allows people to navigate life’s challenges with greater resilience and emotional harmony, knowing they are never truly alone.

Inspiration and Personal Growth

Angels inspire personal growth by offering divine guidance and motivation. They help individuals discover their life’s purpose and align with their spiritual path for fulfillment.

Angels as Motivators for Personal Development

Angels serve as gentle yet powerful motivators, encouraging individuals to embrace their potential. Through subtle signs and guidance, they inspire self-reflection, resilience, and growth. Their presence reminds us to stay aligned with our purpose, fostering a deeper connection to our inner selves and the world around us. By trusting in their support, we can overcome challenges and strive for meaningful personal development.

Angelic Influence on Life Purpose

Angels gently guide individuals toward discovering their life purpose, offering inspiration and clarity. Their presence encourages self-reflection and resilience, helping us align with our true passions and values. By trusting in their wisdom, we can uncover our divine plan and navigate life with purpose. Angels remind us to stay focused on meaningful goals, fostering a sense of direction and fulfillment in our journey.

Angels offer divine guidance, nurturing trust and inner strength. Their presence helps navigate life’s challenges, bringing peace and clarity. May their wisdom inspire your journey forward.

Summarizing the Guidance of Angels

Angels serve as divine guides, offering comfort, wisdom, and support in times of need. Their presence, often marked by subtle signs like white feathers or coins, provides reassurance. By trusting in their guidance, individuals can navigate life’s challenges with clarity and purpose. Angels remind us to stay open to divine messages, fostering personal growth and a deeper connection to our spiritual journey. Their influence encourages hope, healing, and trust in the universe’s plan, helping us find our way when uncertain.

Final Thoughts on Angelic Influence

Angelic guidance offers profound comfort and wisdom, reminding us of the divine support always available. By trusting in their presence and signs, we can navigate life’s challenges with faith and clarity. Angels inspire personal growth, healing, and trust in a higher purpose. Their influence encourages us to embrace hope, foster emotional well-being, and find meaning in our journeys. May their gentle nudges and loving presence continue to illuminate your path, guiding you toward fulfillment and peace.

The post may the angels be your guide appeared first on Every Task, Every Guide: The Instruction Portal
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Layan Odeh of Bloomberg reports Alberta Fund’s severance costs jump 383% after executive purge:

Alberta Investment Management Corp. paid nearly C$6 million ($4.4 million) in severance and other benefits to a departing chief investment officer who was in the job for about 20 months.

Marlene Puffer left the public money manager last September, several weeks before the provincial government stunned staff by firing the entire board, Chief Executive Officer Evan Siddall and other executives.

The severance disclosure is contained in Aimco’s new annual report, which says the firm shelled out a total of C$7.9 million in termination pay for “key management personnel” during the year, a 383% increase from the previous year.

In sacking Siddall and the board, the government accused them of allowing costs to soar as they added new international offices and increased staff. Former Canadian Prime Minister Stephen Harper was named Aimco’s chair and it’s currently operating under an interim CEO, Ray Gilmour. 

Since the November purge, the firm has been in restructuring mode, closing offices in New York and Singapore and laying off staff. Aimco’s total operating costs were C$1.15 billion for the fiscal year ended March 31, slightly above budget.  

Third-party fees of C$689 million were a bit higher than expected, and the firm had unbudgeted costs for closing those two offices, the report said. Aimco had just opened its New York location at One Vanderbilt, a top office property near Grand Central Terminal.

Aimco recently laid off around a dozen employees and decided to freeze around 25 vacant roles, Bloomberg News reported. Earlier, the firm eliminated 19 jobs, including the role responsible for the diversity, equity and inclusion program. It’s searching for a new chief investment officer.

This month, Aimco added former CIO Sandra Lau to its board.

The firm, which manages about C$180 billion of pension money and other capital, produced a 12.6% return last year in its balanced fund, missing its benchmark of 13.4%. Its total fund return was 12.3%. Those results were better than some peers in the so-called Maple Eight, including the Ontario Municipal Employees Retirement System and Ontario Teachers’ Pension Plan. 

Alright, let's get into it, shall we, because I'm tired of posting my thoughts on LinkedIn. 

First, let's have a look at executive compensation at AIMCo for 2023 taken from that year's annual report:

As you can see, former CEO, Kevin Uebelin got a severance of almost $5M in 2021 after the famous "vol blowup" back in 2020 and kept getting paid in 2022 and 2023 almost another $4M in severance even though he didn't work there.

Former CIO, Dale MacMaster, received a severance of $4.4M in 2021 and another $2.6M in severance in 2022 and 2023 even though he didn't work there either those years.

At the time, I remember finding this arrangement weird and reading former Chair's Mark Wiseman comment in the newspaper stating this is "industry standard" irritated me.

Obviously, both Kevin and Dale had a very strong legal case and that's why they were able to extract a pound of flesh from AIMCo after leaving that organization.

The much publicized vol blowup was way overblown because the VIX went to 80 during the pandemic -- something which is a 20 sigma event -- and came back down subsequently. In fact, had AIMCo kept that vol selling program alive, they would have made money but the headline risk was too large so they shut it down fast (it wasn't perfect, that's for sure, but it certainly wasn't as bad as critics claimed).

Now, why were Kevin Uebelin and Dale MacMaster who I consider to be one of the best CIOs ever at the Maple Eight fired (forced to resign)? Because the Government of Alberta was embarrassed and voiced its displeasure and members were equally irate. 

Typically at the large Canadian pension funds, it's rare a CEO gets fired, the board of directors prefers to let their contract run out and when it comes up for renewal, they do not get renewed.

That's how it works 99% of the times, no big fuss, "we thank you for your service, adios amigo". 

Next, have a look at executive compensation at AIMCo for 2024 taken from that the latest annual report: 

I circled the $6.2M former CIO Marlene Puffer obtained as a comp + severance and you can add $423,967 as part of her long-term incentive plan which she also gets since she's leaving the organization. 

In total, that's over $6.6M for a CIO that departed the organization after only 20 months there. 

"Ridiculous", "insane" were the comments people were texting me and at first glance, it's an egregious amount for the time served.

But there's obviously more to this story than meets the eye.

For Marlene Puffer to walk away with over $6M in compensation + severance after exiting the organization after less than two years, it's crystal clear to me she had a solid legal case and AIMCo had to pay her to avoid more damages.

Take note boys and girls, if you have deep pockets and a solid legal case, don't stop till you extract a pound of flesh, and in this case, that's what Marlene did.

To be fair to her, she's also at an age where finding another CIO job at a large Canadian pension fund is next to impossible so that worked in her favour too.

Whatever the case, something was amiss when she was let go and judging by her severance, she made a great case to defend her rights.

Next year, we will find out what former CEO Evan Siddall and former Senior Executive Managing Director, Global Head of Private Assets and Strategic Partnerships David Scudellari are going to receive in severance and I expect it to be another hefty sum.

I knew this was coming after AIMCo was purged and the negative press is distracting and quite frankly, a morale killer. 

Members aren't going to be happy, the public outcry will be loud and Alberta's Government just wants to make this all go away quietly.

Here's is what I initially wrote on LinkedIn:

Severance costs are publicly listed in all annual reports but yes, to the average Canadian making ends meet, this is ridiculous! In my opinion, all of Canada’s Maple Eight should publicly list their severances for each year going back to inception. If they want to be transparent, this shouldn’t be a big issue. Governments and members are paying attention, I can assure you of this. 

Typically, in any annual report, it publicly states "if any senior exec is fired without cause, this is the amount of severance owed to them".

I didn't read this in AIMCo's annual reports which is very odd. 

Anyways, I'm a stickler for transparency, real transparency, not window dressing, and if it were up to me, all Crown corporations would publicly list compensation for all employees and severance amounts doled out each year for all employees that were let go going back to inception. 

The lawyers will tell me it's impossible because of non disclosure agreements (NDAs) but if you ask me there is no way of knowing if there's real meritocracy and a real commitment to diversity, equity and inclusion unless you get compensation transparency including severance packages.

Lastly, I haven't gone over compensation details at all of Canada's large and mid sized pension investment managers but it's coming in September.

I'm on record stating most of the senior execs at Canada's Maple Eight are extremely well paid and they know it which is why they fiercely guard their positions. If they get let go, slim chance they'll get another job that pays as much.

That's not conjecture, that's a fact.

It doesn't mean they aren't good pension fund managers, they all are and the long-term results prove it, it just means there's a limit to how high compensation levels can get at what are Crown corporations.

Sure, they can make a case that they deserve to be paid a lot more than other Crown corporations where government interference is rampant but up to a certain limit.

Having independent governance isn't a free pass to inflate compensation every chance you get, it's a gift and should be used very wisely and judiciously.

That's my opinion so feel free to agree or disagree with me, I  don't have a monopoly of wisdom on everything related to pension funds.

As far as AIMCo, I will circle back on its 2024 Annual Report as I feel it's only fair to cover it properly in a separate comment. 

If you have anything to add, feel free to email me at LKolivakis@gmail.com.

Below, Alberta finally releases results of 2023 pension survey. 

Not surprisingly, only10% of Albertans supported the creation of a provincial pension, according to 2023 survey results recently released. As Sean Amato reports, the NDP says the government should have come clean and abandoned the idea months ago.

Update: On LinkedIn, Josef Pilger, a global pension expert shared this comment:

Interesting outline Leo. The government was prepared to pay $600m in fees for external managers, but focused instead on the ballooning operating costs and compensation. The globally admired Canadian model of direct investment comes at a price on operating costs. But in my experience, this is peanuts compared to the external fee savings and high risk adjusted net returns. Hence, how do we define acting in members and tax payers best interests?

I replied:

Great point, internalizing asset management has saved members and sponsors millions in fees but it doesn’t change the fact they are managing billions in assets of captive clients and are Crown corporations (backed by governments). Therefore, they should be held to the highest standards in terms of transparency and accountability. And just so you know, the direct model is changing, more reliance on strategic partners going forward which means higher fees as assets grow but co-investments will lower fee drag and to do those properly, you need a qualified staff that is paid properly.

I thank Josef for his insights and I'll be back next week. 

Brian Evans and Alex Harring of CNBC report S&P 500 closes at a record Friday, overcoming even more trade angst:

The S&P 500 hit fresh records on Friday as traders managed to look past new comments from President Donald Trump tied to U.S.-Canada tariffs. The broad market index’s rise new highs marks a sharp turnaround from the lows seen in April during the height of trade policy tensions.

The benchmark added 0.52% and closed at a record of 6,173.07. Earlier in the session, the S&P 500 rose as much as 0.76% to a high of 6,187.68, taking out its previous record of 6,147.43. The Nasdaq Composite, which also hit an all-time high and closed at a record, rose 0.52% to 20,273.46. The Dow Jones Industrial Average added 432.43 points, or 1%, settling at 43,819.27.

Stocks pulled back from their session highs after Trump said on Truth Social that trade talks between the U.S. and Canada were being terminated. Initially, investors had bid up equities after Commerce Secretary Howard Lutnick told Bloomberg News late Thursday that a framework between China and the U.S. on trade had been finalized. Lutnick added that the Trump administration expects to reach deals with 10 major trading partners imminently.

Friday’s sharp moves mark the latest episode in which Wall Street tries to navigate an ever-changing global trade landscape.

After rising to a new high in February on hopes for business-friendly policies from Trump, stocks tumbled as the president decided to instead implement stiff tariffs first. At its low in April, the S&P 500 was down nearly 18% for 2025. The benchmark began a stunning comeback after Trump walked back his stiffest tariff rates and the U.S. began negotiations for trade deals.

The S&P 500 is up more than 20% since reaching a nadir on April 8 and now up nearly 5% for the year. Along the way, investors kept buying despite a spike in oil prices spurred by the Israel-Iran conflict and a yield surge on deficit worries. A recovery in the artificial intelligence trade led by Nvidia and Microsoft helped fuel the comeback.

“I can see where the risks are here - if the trade [progress] is just hype from the White House and no deals are really forthcoming, then this market is going to roll over,” Thierry Wizman, global FX and rates strategist at Macquarie Group. “Ultimately, this all comes back to growth in the U.S. economy and growth of earnings.”  

Stocks curtail gains after Trump says U.S. is ending trade talks with Canada

The three major averages trimmed their earlier gains on Friday after President Donald Trump said the U.S. is ending all trade talks with Canada immediately.

The move was in response to Canada’s decision to impose a digital services tax on American tech firms, Trump said in a Truth Social post Friday afternoon.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” he said. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.” 

Crypto stocks slide into the final weekend of the month and quarter

Crypto stocks slid to end the week amid some potential repositioning for quarterly portfolio rebalancing and general profit-taking heading into the final weekend of a winning month for the sector.

Among the crypto trading providers, Coinbase fell more than 5%, while Robinhood lost 1% and eToro dipped 2%. Crypto financial services firm Galaxy was lower by about 1%. Circle dropped 11%.

Amalya Dubrovsky , Karen Friar and Ines Ferré of Yahoo Finance also report S&P 500, Nasdaq notch record closes, brushing off renewed trade tensions: 

US stocks recovered on Friday afternoon to clinch fresh records despite renewed trade tensions after President Trump said he was terminating talks with Canada.

The S&P 500 (^GSPC) closed at an all-time high for the first time since February. The benchmark index was trading near record territory for much of the session over optimism on the trade front — the US and China clinching a trade truce — and hopes of a rate cut from the Fed sooner rather than later.

The Nasdaq Composite (^IXIC) also notched a record high. Meanwhile, the Dow Jones Industrial Average (^DJI) gained 1%, or about 400 points.

Stocks temporarily took a dramatic turn after Trump posted on social media that he was "terminating ALL discussions on Trade with Canada, effective immediately," citing Canada's digital services tax as the cause. He said he would set a new tariff rate on Canadian goods within the next week.

Markets had gotten a boost on the trade front on Friday after Trump said that the US and China have "signed" a trade deal. The two sides have cemented the tariff truce sealed last month in Geneva, and China has confirmed details of the agreed trade framework, per several media reports.

Under the pact, China has committed to delivering rare earth minerals to the US, Commerce Secretary Howard Lutnick told Bloomberg. Once that is underway, “we’ll take down our countermeasures,” he said.

Also on Friday, Treasury Secretary Scott Bessent on Friday said the US could complete the balance of its most important trade talks by Labor Day, raising hopes that the US wouldn't be firm on its July 9 tariff deadline.

Meanwhile, the Fed's rate path also remained in focus. The latest reading of the Fed's preferred inflation gauge showed price increases accelerated in May as inflation remained above the Fed's 2% target. Fed Chair Jerome Powell has stressed that an uptick in price pressures could be a stumbling block to a rate cut. That report also contained signs of an economic slowdown, however, which could further complicate the emerging debate between.

Fed rate cut and tech boom could lift markets but a choppy summer still looms, analyst warns

Despite recent gains in tech stocks, markets have largely traded sideways for seven months, Yahoo Finance's Francisco Velasquez reports. 

Velasquez writes:

After a roller-coaster first half for US stocks, investors hoping for smooth sailing in the back half of 2025 should hold off on celebrating.

Keith Lerner, co-chief investment officer at Truist, says the technical picture remains bullish, but valuations are stretched, and seasonal volatility could test investor resolve before year-end.

While July is historically a solid month, “August and September tend to be a little more challenging,” he said.

Long-term investors should stay in the market but keep expectations in check, especially as valuations near their ceiling. A softening Fed, steady economic data, and robust earnings from key sectors still underpin the bull case.

Read more here.  

Palantir shares hit a wall as Middle East conflict eases

Palantir stock (PLTR) dropped more than 5% Friday, after President Trump said during the NATO Summit that the conflict in the Middle East was “over" for now.

Trump added, "Can it start again? I guess someday it can. It could maybe start soon." 

Shares of Palantir had soared in early June after announcing a new $463 million contract to provide its AI software to the US Special Operations Command within the US military. The stock continued to rise after Israel first carried out airstrikes on Iran on June 12 and after the US carried out its own bombings on Iran’s nuclear sites later in the month. Palantir provides its AI software to the Israeli Defense Force.

“Shares of PLTR did seem to benefit from the tension and conflict in the Middle East, so with more quiet outlook for the region, PLTR may be giving some of those gains back,” DA Davidson analyst Gil Luria told Yahoo Finance.

In addition to the ceasefire between Israel and Iran, The Washington Post reports that there is a renewed push between Arab mediators and Israeli hostage families to negotiate an end to Israel's war on Gaza.

The drop also comes a day after protesters rallied outside of Palantir’s Palo Alto offices to oppose the company’s work with ICE amid Trump’s sweeping deportations.

In other news for Palantir, the company announced Thursday that it’s partnering with a nuclear power company, The Nuclear Company, to develop AI software to help build plants “faster and safer.” 

Chip stocks set to see growing benefit from rising AI spending, JPMorgan says

JPMorgan analysts said in a report following a survey of 168 chief information officers that artificial intelligence spending is set to jump over the next three years, with positive implications for chip stocks.

According to the survey, AI-related computing hardware as a percentage of CIOs' IT budgets is set to rise to 15.9% in three years from 5.9% currently, the analysts wrote.

“The survey results support our view of a strong multi-year spending cycle in the AI infrastructure build-out and should continue to support sustained strong revenue growth for the AI beneficiaries,” the report said.

Those beneficiaries include chipmakers Advanced Micro Devices (AMD), Broadcom (AVGO), Marvell Technology (MRVL), Micron (MU), Arm (ARM), and Nvidia (NVDA), as well as producers of high-performance networking products for AI data centers such as Astera Labs (ALAB).

The PHLX Semiconductor index (^SOX) has come roaring back since hitting a low in April. The index is up more than 14% over the past month.

Alright, it's Friday and it was another big week in the stock market led by large cap tech names like Amazon, Microsoft and Nvidia: 
But if you look at year-to-date performance, it's Industrials (XLI), Communications Services (XLC), Financials (XLF), Utilties (XLU) and Information Technology (XLK) leading the charge:  In other words, yes, Microsoft and Nvidia are making new record highs but so is JPMorgan, Boeing and a bunch of other companies across all sectors.
 Even more impressively, the move from April lows in some stocks is nothing short of astounding: 
 And there's more, check out Robinhood (HOOD) and Roblox (RBLX) shares this year and how they surged from their April lows:

And remember Cathie Wood and Ark, how her ARK innovation ETF got destroyed after 2021, well, she's had a nice run since April lows:

Of course, if you look at ARK's top holdings, you'll understand why:

Ever since the post Liberation Day selloff, momentum ETFs have been on a rampage:

 And again, it's not just tech lifting these momentum ETFs higher, it's more broad based:

So, where do we go from here? I titled this post "From MOMO to FOMO Rally?" because the moves I am seeing in the stock market across many sectors is nothing short of astounding, almost as crazy as the big 1999-2000 tech rally.

The best way I can describe it is it feels like CTAs and quant funds have taken over the market and they're focusing on large and mid cap liquid names and driving them higher.

Do you chase this rally? A logical person will say the Nasdaq is up 37% from April lows, I'll wait for a nice correction.

But the algos keep hitting the bid, chasing stocks higher, forcing a lot of under-performing institutional funds to chase the high flyers higher.

It's insane and let me be clear, from my vantage point trading stocks, the pain trade remains up. 

Still, valuations are stretched and with earnings season around the corner, and a lot of uncertainty on the economic and geopolitical front, it will be interesting to see if MOMO will drive more FOMO.

It might, we might see a summer melt-up followed by a fall meltdown. Stay tuned!

Below, you'll find the top-performing US large cap stocks and all cap stocks this week (all data from barchart.com):

One last comment on US dollar weakness as people seem hysterical these days:

 

Astute analysts will note that there have been some major deals announced in Europe lately from US alternative fund managers and flows have favoured the euro.

I'm not a big believer that the US dollar is trouble here, it will come back and I wouldn't extrapolate recent weakness too far into the future.

Below, the CNBC Investment Committee debate whether the 'fear of missing out' is driving the market higher. Listen carefully to Bryn Talkington and Stephanie Link, they nail it here.

Stephanie Link and Brian Belski also debate how to trade Nike shares as the stock surges following their Fiscal Q4 report. Again, I agree with Stephanie Link, sell the rip on Nike!

Third, Ed Yardeni, Yardeni Research president, joins CNBC's 'Closing Bell' to discuss market outlooks, reactions to the U.S. terminating trade talks with Canada, and more.

Fourth, Dan Niles, Niles Investment Management founder and portfolio manager, joins CNBC's 'Squawk on the Street' to discuss market outlooks, earnings expectations, and more.

Fifth, Treasury Sec. Scott Bessent joins 'Closing Bell Overtime' to talk the Trump administration announcing it is ending all trade talks with Canada over a digital services tax.

Lastly, earlier this week, Philippe Laffont, Coatue founder and portfolio manager, joined 'Squawk Box' to discuss the latest market trends, state of the 'Magnificent Seven', future of tech investing, his thoughts on bitcoin, state of the economy, impact of AI technology, who'll come on top in the AI arms race, and more.Laffont also discussed he AI arms race, the Fed's interest rate policy, future of TikTok, the NYC mayoral race, and more.

Laffont founded Coatue Management in 1999. He is a so-called Tiger Cub, having spent time working at Julian Robertson's Tiger Management hedge fund. He's one of the best tech investors in the world and all of Canada's large pension funds are his clients. Worth listening to his views and scroll his latest holdings here. Enjoy your weekend!

 Uda Rana of Global News reports the number of Canadians with pension plans jumped by 300K:

An additional 293,500 Canadians enrolled as members of a registered pension plan in 2023, Statistics Canada data released Tuesday showed.

According to a StatCan report, the number of Canadians who were active members of a registered pension plan (RPP) grew by 4.2 per cent to a total of roughly 7.2 million in 2023.

Of these, 4.9 million members were part of a defined benefit plan, which is a type of pension plan in which an employer or sponsor promises a specified pension payment, lump sum or a combination of the two on retirement.

In a defined benefit plan, the pension amount depends on an employee’s earnings history, tenure of service and age, rather than on individual investment returns.

This is in contrast to defined contribution plans, in which the employee’s pension benefits are determined by the size of their pension pot at retirement, rather than by a predetermined formula based on their salary and service.

Employees have control over investment choices, and the benefits are not guaranteed. The number of new members in defined contribution plans rose by 65,300 members, an increase of 5.1 per cent compared with 2022.

The number of Canadians enrolling in pension plans outpaced the employment growth rate. According to the Labour Force Survey, employment grew by 690,844, or 3.8 per cent, during the same period.

More women than men joined RPPs between 2022 and 2023. There were 150,700 more women with membership in an RPP, an increase of 4.2 per cent from 2022 to 2023, taking their number beyond 3.7 million.

The number of men with active RPP memberships increased by 142,800 in 2023 compared with one year earlier, bringing their total membership to just over 3.5 million. Women’s share of active memberships held steady at 51.3 per cent in 2023.

Memberships were up across the country, with all provinces except Manitoba seeing an increase in enrolments. There were 1,300 fewer Manitobans enrolled in RPPs compared with the previous year.

The largest number of new RPP members was in Ontario, which saw 161,800 new members. This was followed by Quebec with 54,800 new members, British Columbia with 32,000 new members and Alberta with 18,700 new members. 

This is good news, more Canadians are now being covered by registered retirement plans (RPPs) and the bulk of these new plans are defined benefit plans.

Moreover, more women than men joined RPPs between 2022 and 2023 and that is also critically important as women have struggled to keep up in retirement and this needs to change.

Last week, I discussed pension expert Sebastien Betermier's thoughts on bolstering Canada's retirement system. 

I also recently discussed HOOPP and Abacus Data's 2025 Canada Retirement Survey. 

Among the key findings:

• Fifty-nine per cent of unretired Canadians do not think they will ever be able to retire due to their financial situation. Half (49%) have not set aside any money for retirement in the past year and 39% have never saved for retirement. 
• Nearly two-thirds (62%) of Canadians view homeownership as a key part of their retirement strategy, either as a financial investment or a source of stability in retirement and as part of their strategy, half (50%) of unretired homeowners plan to rely on the sale of their home to set themselves up for retirement. 
• More than a third (36%) of Canadians report having less than $5,000 in savings, including for retirement, and one-in-five (20%) have no money saved. Those who do not own a home are significantly more likely to have less than $5,000 saved (57% vs. 19% of homeowners). 
• An overwhelming majority of Canadians (88%) would choose to pay 9% of their salary, with contributions matched by their employer, to a DB pension plan in exchange for a lifetime income in retirement. 

It is clear that we lack proper coverage especially in the private sector and until this changes, most Canadians will experience a difficult retirement. 

This week, I was pleased to learn SickKids staff will join hospital workers across Ontario as members of HOOPP: 

The Healthcare of Ontario Pension Plan (HOOPP) and The Hospital for Sick Children (SickKids) are pleased to announce that SickKids employees will become members of HOOPP’s defined benefit pension plan, effective Dec. 29, 2025. This means all hospitals in the province will soon be HOOPP employers.

“HOOPP is one of the strongest and most stable pension plans in Canada and offers its members a secure pension for life,” says Rachel Arbour, HOOPP’s Head of Plan Benefits, Design and Policy. “We look forward to working with SickKids employees over the coming months to help and support them as they transition into HOOPP.”

Susan O’Dowd, Vice-President, Human Resources and Commercial Services at SickKids, notes that the move follows staff feedback about SickKids’ current defined benefit pension plan. “After thorough review and careful consideration, we determined that transitioning all future service into HOOPP is the most viable path forward,” she says. “Enhancing our pension plan and joining HOOPP is not only something many staff have been asking for, but also a logical step for SickKids as it aligns us with the broader sector.”

HOOPP serves Ontario’s hospital and community-based healthcare sector, with more than 700 participating employers. Its membership includes nurses, medical technicians, food services staff, housekeeping staff, physicians and many others who provide valued healthcare services. In total, HOOPP has more than 478,000 active, deferred and retired members.

Almost all active members currently in SickKids’ defined benefit plan will be joining HOOPP for future service, which enables current defined benefit pension plan members to continue to grow their existing SickKids pension, even after the move to HOOPP. While most staff can look forward to an enhanced pension, a small group of staff, who would be disadvantaged by this change, will remain in the SickKids pension plan. “Moving to a ‘future service’ model protects the value of past contributions and service, which retain their full value. While past contributions and past service will remain with the SickKids plan, staff members' years of service with SickKids will also count towards HOOPP’s early retirement calculations.” says O’Dowd.

SickKids staff who have already retired, will retire before the end of 2025, or left SickKids and deferred their pension will receive a SickKids pension only.

“HOOPP offers value and high-quality retirement benefits to workers across more than 700 employers,” says Arbour. “Workers at SickKids are important members of Ontario’s healthcare community and we look forward to helping them build a stronger financial future.”

About the Healthcare of Ontario Pension Plan

HOOPP serves Ontario's hospital and community-based healthcare sector, with more than 700 participating employers. Its membership includes nurses, medical technicians, food services staff, housekeeping staff, physicians, and many others who provide valued healthcare services. In total, HOOPP has more than 478,000 active, deferred and retired members.

HOOPP is fully funded and manages a highly diversified portfolio of more than $123 billion in assets that span multiple geographies and asset classes. HOOPP is also a major contributor to the Canadian economy, paying more than $3 billion in pension benefits to retired Ontario healthcare workers annually.

HOOPP operates as a private independent trust, and its Board of Trustees governs the Plan and Fund, focusing on HOOPP's mission to deliver on our pension promise. The Board is made up of appointees from the Ontario Hospital Association (OHA) and four unions: the Ontario Nurses' Association (ONA), the Canadian Union of Public Employees (CUPE), the Ontario Public Service Employees' Union (OPSEU), and the Service Employees International Union (SEIU). This governance model provides representation from both employers and members in support of the long-term interests of the Plan.

About SickKids

The Hospital for Sick Children (SickKids) has been changing the game for paediatric health care since it became the first children’s hospital in Canada in 1875. Affiliated with the University of Toronto, SickKids is one of Canada’s most research-intensive hospitals and has generated discoveries that have helped children globally. Its mission is to provide the best in complex and specialized care; promote a culture centred around patient and family experience; pioneer scientific and clinical advancements; foster an academic environment that nurtures health-care professionals; and champion an accessible, comprehensive and sustainable child health system. In 2025, SickKids is celebrating 150 years of excellence in children's health, continuing to advance Precision Child Health, its groundbreaking movement to deliver individualized care, including responsibly using artificial intelligence to improve clinical care and research. SickKids is proud of its vision for Healthier Children. A Better World. For more information, please visit www.sickkids.ca.

I can't think of a more deserving staff in Canada to join HOOPP.

And there are more potential members for HOOPP, like private radiology clinics across Ontario that are booming (a friend of mine is the radiologist based here in Montreal  that reads most of the cases).

Anyway, the point is we need to fill a gap and address the growing demand for a solid pension that Canadians can count on for life.

In my opinion, the looming Canadian retirement crisis is real and it's a huge policy blunder that federal and provincial governments never adequately addressed it.

HOOPP, OPTrust, CAAT Pension Plan, UPP, IMCO and others are doing their part but a lot more needs to be done.

We can't wait decades for enhanced CPP to kick in, we need to figure out ways to cover more Canadians in the private sector so they can retire in dignity.

I keep saying this, smart retirement policy is smart economic policy over the long run, and it has nothing to do with your political beliefs (I'm a right of center Conservative and strongly believe things need to be drastically changed).

Below, Michelle Munro, Director of Tax and Retirement Research, discusses the results of Fidelity Canada’s 19th retirement report survey where 2,000 Canadians were surveyed coast to coast on their retirement planning (July 2024).

Also, step into the past and explore how SickKids' campus has evolved and expanded since its founding in 1875. From its humble beginnings in an 11-room residential home, the hospital's campus grew to better support the three pillars of the organization: care, learning and research.

Lastly, paediatric health care has long been limited by boundaries, traditions and old ways of doing things. But that’s about to change. "Through our new five-year strategy, SickKids 2030, we’re rewriting the rules. We will no longer accept a world where children’s health is determined by averages and a one-size-fits-all approach."

Like I said, this is an incredible organization and their staff deserve and incredible pension plan that covers them for life.

James Bradshaw of the Globe and Mail reports B.C. pension manager earned 10% annual return on deals in volatile market:

British Columbia Investment Management Corp. earned an average return of 10 per cent for clients last fiscal year, missing its internal benchmark but showing its ability to make deals in a volatile market.

The 10-per-cent return combines the performance of Victoria-based BCI’s six largest pension-plan clients for the year that ended March 31.

In a “heck of a year” marked by upheaval in investing markets, “we had a good year,” Ramy Rayes, the fund’s executive vice-president of investment strategy and risk, said in an interview. BCI added $21.9-billion of investment income after fees.

The internal benchmark BCI uses to measure its performance gained 12.3 per cent. BCI is one of several large Canadian pension funds with broad portfolios of public and private assets that have struggled to keep pace with benchmarks focused on public equities, most notably large U.S. technology companies that have surged in value.

Over 10 years, BCI has earned an average annual return of 7.4 per cent, ahead of its benchmark of 7.1 per cent.

BCI now manages $295-billion of gross assets, compared with $250-billion a year earlier. After subtracting real estate debt and other liabilities, BCI’s net assets are $251.6-billion.

Many large investors have lamented the uncertainty plaguing markets, which has dampened deal-making and made it a hard year to put money to work.

By contrast, “we had quite a year in terms of deployment” of capital, Mr. Rayes said.

“People think the market is kind of jammed and low deal activity. We’re not seeing that,” he added.

BCI’s private-equity group, which earned a 13.4-per-cent return, made $2.2-billion of new investments and sold two of the largest assets in its portfolio: a stake in internet provider Ziply Fiber, which sold for $5-billion to Bell Canada parent BCE Inc.(BCE-T), and a 60-per-cent stake in European alternative asset manager Hayfin Capital Management.

The fund’s infrastructure and renewable-resources portfolio, which gained 8.3 per cent last year, made $5.1-billion of new investments, including taking BBGI Global Infrastructure SA private for $1.9-billion.

“We stayed active,” Mr. Rayes said. “We’re seeing so many opportunities right now, good opportunities, I would say at good value.”

The lone portfolio that lost money for BCI was its equity investments in real estate, which fell 1.8 per cent as assets were marked down in value. The real estate debt arm earned a 6.1-per-cent return.

Fewer of BCI’s new investments have been in the United States, where 39 per cent of the pension fund’s assets are invested, as uncertainty over tariffs and potential tax changes shifts the balance of risk and return.

“In some cases it’s been challenging to deploy in the U.S. and we’ve been prudent, and we’ve put things on pause at BCI,” Mr. Rayes said.

That is partly because of potential U.S. tax changes that would significantly raise tax bills for foreign investors. Senators have pushed to delay the implementation of the tax until 2027, but Canadian pension funds eyeing new, long-term investments have started to factor the tax into their decisions anyway.

“We price it in,” Mr. Rayes said, echoing recent comments by Canada Pension Plan Investment Board CEO John Graham.

“It doesn’t mean that we’re stopping investing [in the U.S.] but we’re certainly intentionally creating new partnerships in Europe and Asia,” Mr. Rayes added. “We want to make sure that we have a good, diversified portfolio.”

Even though BCI missed its fiscal-year benchmark, Mr. Rayes said he trusts that the pension-fund manager’s allocations to private-equity investments and other private assets will match up over the longer term.

“I don’t believe public equity will do 30-per-cent returns over 10 years. I really don’t,” he said, referring to outsized stock market gains driven by shares in major U.S. tech companies.

“I feel comfortable with it, but it does create that noise on a shorter-term period.”

Layan Odeh of Bloomberg also reports B.C. pension giant taps uncertainty in market to ink 45 deals in six months: 

British Columbia Investment Management Corp. (BCI) signed 45 deals during the past six months as the pension fund manager exploits the uncertainty in the market.

The public pension manager began its new fiscal year in April with ample liquidity after a series of asset sales, giving it dry powder to invest across a number of asset classes, according to a senior investment strategist.

“We have room to deploy,” Ramy Rayes, executive vice-president of investment strategy and risk, said. “While others might be stalling, we see good opportunities and good value, too.”

BCI announced this week the closing of a £1 billion take-private deal for Luxembourg-based BBGI Global Infrastructure SA — the first time it has done a privatization as the sole investor. The fund also bought Maple Leaf Self Storage, a chain based in western Canada.

Overall, the pension fund manager returned 10 per cent in the fiscal year, missing its benchmark of 12.3 per cent and bringing net assets to $251.6 billion, according to a statement Wednesday.

The fund’s infrastructure holdings notched an 8.3 per cent gain in the fiscal year ended March 31, while investments in private equity and private debt earned 13.4 per cent and 10.2 per cent, respectively.

The private equity unit made two sales in the secondary market, fetching $1.6 billion in proceeds. BCI also was an investor in Ziply Fiber, the United States broadband internet company that’s being acquired by BCE Inc. for $5 billion.

BCI cut its U.S. exposure to about 39 per cent last year from 43 per cent the previous year as it sold part of its equity portfolio, which is heavily tilted toward the country, Rayes said. The pension fund manager is also allocating capital to regions such as Europe and Asia amid U.S. President Donald Trump’s erratic trade policies.

Rayes said uncertainty about the world’s largest economy means investors will either bid lower for assets or require higher growth to compensate. “We might start underwriting a transaction in the beginning of the year — things change, the uncertainty increases and you get out,” he said. “Pens down on the transaction.”

While Trump’s proposed so-called revenge tax has been delayed and revised by the U.S. Senate, it adds another layer of complexity. Known as Section 899, the provision has non-U.S. investors worried that it could make investing in the country more expensive.

BCI has done its own scenario analysis on the so-called revenge tax. “For our total portfolio at BCI, we could have an impact of 15 basis points as it stands today,” Rayes said, but it’s unclear and the number would vary depending on the structure of the investment.

BCI, which invests the retirement savings of British Columbia’s public sector workers, increased its exposure to Canada by seven percentage points to 37.8 per cent during the year. That was driven by an increased allocation to government bonds, private debt and real estate. Rayes said BCI would be interested in investing in Canadian infrastructure, such as airports.

BCI decided to “start moving within the capital stack,” investing more in infrastructure debt, convertible preferred shares within private equity and asset-backed loans, he said.

“Right now being just in the equity sleeve or just purely in the debt sleeve may not get you the perfect risk-adjusted return,” Rayes said. Hybrid assets offer the chance to maximize returns and create downside protection, he said.

Earlier today BCI released its results stating it achieved 10% annual return in fiscal 2025:

Marks 25th anniversary by delivering $9.3 billion in added value since inception

VICTORIA, BC — June 25, 2025 — British Columbia Investment Management Corporation (BCI) today announced an annual combined pension plan return¹ of 10 per cent for the fiscal year ended March 31, 2025. The combined pension plan return represents the performance of BCI’s six largest pension clients by assets under management (AUM).

Gross AUM² grew to $295 billion with net AUM totalling $251.6 billion. Investment income contributed $21.9 billion net of all fees to AUM growth, demonstrating the strength of BCI’s diversified investment approach.

“Despite the severe market turbulence leading up to our March 31 year-end, we did an excellent job in fiscal 2025 rolling out a resilient, defensive-leaning investment strategy closely aligned with our clients’ long-term investment needs,” said Gordon J. Fyfe, BCI’s Chief Executive Officer and Chief Investment Officer.

BCI continues to deliver annualized long-term returns that exceed clients’ actuarial discount rates. Over the five-year period, BCI returned 8.9 per cent and 8.6 per cent over 15 years. Since inception, BCI has delivered $9.3 billion in cumulative value add, demonstrating the strength and resilience of its well-diversified investment strategy. BCI repeatedly delivers sustainable value for its clients, regardless of market volatility or economic uncertainty.

“BCI’s long-term performance has enabled our pension clients to remain in surplus positions, with funding ratios ranging from 103 to 133 per cent,” added Fyfe. “As we continue to face market uncertainty, we are actively modelling client portfolios against a range of risk scenarios. In all market conditions, great deals can still be found, and we continue to leverage our strong liquidity position to transact across asset classes globally.” 

Strong Performance Across Asset Classes 

All asset classes generated positive returns except for Real Estate Equity, which faced continued market headwinds despite modest interest rate cuts. Public Equities, Fixed Income, and Private Equity were the largest contributors to total performance during the fiscal year.

Within Public Equities, absolute return strategies generated strong results during a period when active equity managers faced headwinds. These strategies aim to provide consistent positive returns regardless of market conditions. Since inception in fiscal 2020, they have achieved a 16.1 per cent annualized return.

The Fixed Income portfolio delivered robust returns through active interest rate positioning and strong credit selection. The Corporate Bond Fund grew to $18.5 billion in net AUM, while the Principal Credit Fund expanded to $19.4 billion in net AUM. The Fund broadened its offerings by introducing asset-backed lending (ABL) through three new strategic partnerships, providing enhanced downside protection and attractive risk-adjusted returns. With shorter loan durations and increased flexibility, ABL strengthens portfolio resilience and offers stability and opportunity during periods of market volatility.

BCI Private Equity delivered strong results despite challenging market conditions. The team executed $2.2 billion in new investments and announced significant exits, Hayfin Capital and Ziply Fiber3, two of its five largest assets. It also generated $1.6 billion in proceeds from the completion of two secondary sales.

BCI Infrastructure & Renewable Resources experienced 18 per cent net AUM growth for the calendar year. In fiscal 2025, the group originated and executed $5.1 billion in new investments. The asset class delivered excellent total returns despite turbulent markets and geopolitical stress. Notable transactions included the take-private of BBGI Global Infrastructure S.A. and two key investments which support the energy transition economy, Renewi PLC, a recycling company, and Shepherds Flat wind project, one of the world’s largest windfarms.4

BCI’s Real Estate investments demonstrated resilience and strategic positioning in tough market conditions. The Real Estate Debt portfolio delivered a positive return due to strong asset selection and active management. Real Estate Equity produced the lone negative result, due to market-driven valuation adjustments coming from higher interest rates rather than realized losses. Strong portfolio fundamentals and positive income supported overall performance, with stable occupancy rates and rent growth experienced by industrial, alternative, and residential sectors. 

Committed to Responsible Investing 

During the fiscal year, BCI continued making strong progress in responsible investing. Highlights for the year included surpassing $6 billion in cumulative sustainable bond participation, exceeding BCI’s 2025 expectation of $5 billion, hosting BCI Private Equity’s inaugural ESG Value Creation Conference, and achieving a 100 per cent score from the Global Sovereign Wealth Fund’s Governance, Sustainability and Resilience Scoreboard. 

BCI’s Ecosystem5 

The effects of BCI’s operations extend far beyond investment returns. In 2024, the organization’s ecosystem contributed $24.4 billion to British Columbia’s provincial GDP, representing 5.9 per cent of the province’s economy. This impacted 1 in 10 British Columbia households and supported the creation of 225,800 jobs provincially and an additional 8,000 jobs nationally, generating $12.2 billion in wages for workers across all age groups.

For more corporate highlights, including BCI’s focus on sustainable growth, innovation, and operating on a global scale, read the 2024-2025 Corporate Annual Report released today. 

Please refer to our Annual Report for additional details, which may supplement or supersede the information provided herein.

All figures are in Canadian dollars unless otherwise stated.

¹ The combined pension plan clients reflect the investments of BCI’s six largest pension clients: BC Hydro Pension Plan, College Pension Plan, Municipal Pension Plan, Public Service Pension Plan, Teachers’ Pension Plan, and WorkSafeBC Pension Plan.

² Gross assets under management include all investment assets, before deducting Real Estate Debt and Equity recourse debt directly issued by QuadReal Property Group, BCI and QuadReal Property Group Real Estate Debt and Equity uncollateralized derivative liabilities, and BCI’s Funding Program liabilities.

3 Transaction has been announced but not yet closed; remains subject to satisfaction of closing conditions, including regulatory approvals.

4 Transactions were signed before BCI’s March 31 year-end but closed during the first quarter of the subsequent fiscal year.

5 These figures come from a 2024 Canadian Centre for Economic Analysis study and show the economic activity supported by BCI’s payments, its clients, operations, and investments during its fiscal year ending March 31, 2024. The study focused on BCI’s economic contributions and does not compare different retirement or insurance plan options.

Alright, BCI is the last of the Maple Eight pension funds to report its results.

The results were in line with what others reported with gains primarily coming from Global Public Equity (mainly US, 14.3%),  Private Equity (13.4%), Private Debt (10.2%) and Infrastructure & Renewable Resources (8.3%).

I would have liked to discuss the results with CEO/CIO Gordon Fyfe but he's never around when results are released (goes on vacation) and BCI's Comms team didn't contact me to set up an interview with Ramy Rayes, Executive Vice President, Investment Strategy & Risk, with whom I've spoken within the past (very nice guy featured above).

Communications was never BCI's strong suit so I was glad Ramy spoke to a couple of reporters today to give some tidbits into their thinking and strategy.

Still, this blog is the best platform in the pension investment world and in my opinion, those who do not partake and support it show great disrespect to their members, not to me (I couldn't care less, I'll continue covering their activities).

Let me jump into it. Take the time to read BCI's annual report here (click on the PDF icon next to the question mark at the top to read the PDF file, much easier and faster to jump within and between sections).

The annual report is well written and easy to read.

Let me go over the main things starting with BCI's asset mix:

As you can see, Fixed Income (34%) and Public Equities (24%) make up 58% of the total assets.

Here, it's worth noting that even though BCI has shifted assets into private markets over the last ten years since Gordon Fyfe arrived as CEO (in June 2014), the bulk of the assets remain in public markets because BCI manages assets of mature plans relative to its Maple Eight peers and needs liquidity (which they manage carefully) to pay out pension benefits.

Next, let's look at geographic exposure:

 

Not surprisingly, the bulk of BCI's assets are in the US (39%) and Canada (38%), with Europe (13%), Emerging Markets (8%) and Asia Pacific (3%) making up the rest.

BCI's higher weighting in domestic assets relative to its large Canadian peers is due to legacy issues (they used to have all their real estate assets in Canada before diversifying outside of Canada through a deal with RBC Asset Management) and they have a lot of Canadian bonds (again, they manage assets of mature pension plans and need that liquidity to pay benefits).

Next, read Chair Peter Milburn's letter:

I note the following:

Over the years, BCI has built a resilient investment program designed not just to withstand volatility, but to adapt to it. While the current macroeconomic environment has been volatile and increasingly uncertain, BCIs long-term approach and experienced leadership provide a steady hand. Those guiding the organization today have led through past market disruptions and continue to be focused on long-term, sustainable growth and value creation.

As I reflect on fiscal 2025, the BCI Board continued to focus on enabling BCI’s success in the  increasingly complex environment we faced. Regulatory expectations for pension funds are evolving, and strong governance remains central to our oversight role. This year the BCI Board undertook an external effectiveness review, reaffirming our commitment to strong governance and continuous improvement. We also continued to strengthen our environmental, social, and governance (ESG) frameworks to better align with global standards and growing client expectations, and refined our approach to risk and strategy. These activities prepare the organization to successfully navigate future challenges and opportunities as we have in the past.

People are at the heart of BCI’s success, and the BCI Board supported ongoing investment in talent development and the organization’s commitment to equity, diversity, and inclusion, ensuring it remains a place where top talent can excel as we deliver on our purpose. 

I can't speak to BCI's commitment to equity, diversity and inclusion but judging from all their posts on LinkedIn, it seems they do take it seriously (a bit overkill on LinkedIn, everyone needs to give it a break).

Next, let's go over CEO/CIO Gordon Fyfe's letter:

 

I note the following:

Nearly all asset classes delivered strong results, in both absolute and relative terms. Our Private Debt and Infrastructure & Renewable Resources assets were noteworthy performers. Over the course of the fiscal year, these programs increased their focus on high-growth Asian markets with Private Debt seeking investment opportunities with attractive yields and diversification benefits, while Infrastructure & Renewable Resources made its first direct investment in Japan.

Private Equity and Real Estate Equity underperformed their respective benchmarks. Although Private Equity delivered a robust 13.4 per cent return, it missed its 30.1 per cent benchmark which was driven by strong public equity returns and the Magnificent Seven AI-related companies. BCI’s Real Estate portfolio, managed by QuadReal, also underperformed its 6.8 per cent absolute return benchmark by 8.5 per cent, though it remained impressive compared to Maple 8 peers in these difficult market conditions.

From a longer-term perspective, BCI continues exceeding actuarial discount rates, with client funding ratios ranging from 103 to 133 per cent. However, given the lingering uncertainty around global trade and the investment environment, we may face several tough years ahead. We are closely monitoring developments, actively modelling client portfolios against potential scenarios, and briefing clients on risk-reduction strategies designed to help mitigate geopolitical and trade uncertainty impacts.  

All of BCI's clients are fully funded, some more than others, but as Gordon warns, given the lingering uncertainty, tougher years may lie ahead.

He notes Private Equity underperformed its benchmark last year by a wide margin because of the Mag-7 dynamics dominating the S&P 500 and Real Estate managed by QuadReal also underperformed its absolute return benchmark by 8.5% but was still impressive compared to Maple Eight peers (I'd say some peers performed better than others).

Anyways, I'm not going to get into private equity and real estate benchmark issues, I know too much on the subject and suffice it to say there's no perfect benchmark so best to judge absolute and relative performance over a longer time period (5,10, 20 years if data is available). 

I did note this on BCI's Private Equity performance last fiscal year from their press release:

BCI Private Equity delivered strong results despite challenging market conditions. The team executed $2.2 billion in new investments and announced significant exits, Hayfin Capital and Ziply Fiber3, two of its five largest assets. It also generated $1.6 billion in proceeds from the completion of two secondary sales. 

So timely distributions realizing nice gains and two secondary sales made up the bulk of the returns there.

In Infrastructure and Renewable Resources, I note this from the press release:

BCI Infrastructure & Renewable Resources experienced 18 per cent net AUM growth for the calendar year. In fiscal 2025, the group originated and executed $5.1 billion in new investments. The asset class delivered excellent total returns despite turbulent markets and geopolitical stress. Notable transactions included the take-private of BBGI Global Infrastructure S.A. and two key investments which support the energy transition economy, Renewi PLC, a recycling company, and Shepherds Flat wind project, one of the world’s largest windfarms.4 

This group was extremely busy last fiscal year and Gordon noted this in his letter:

This year, we released a new three-year business plan, focused on three ambitions: Driving Sustainable Growth, Accelerating Innovation, and Operating on a Global Scale. In pursuit of the latter ambition, we continue to expand our footprint globally. In fiscal 2025, we established a new European Private Equity hub in London, which will strengthen access to deals and help attract talent, while equipping us to operate in closer proximity to our already sizeable holdings in the region. About $11.5 billion of BCI’s $33.6 billion Private Equity portfolio is currently invested in Europe, while more than 50 per cent of our Infrastructure and Renewable Resources assets are outside North America.

In an era of great volatility and restructuring of international trade relations, diversification and adaptability become crucial for long-term portfolio resilience. Beyond our growing New York and London offices, we now maintain a small Mumbai team overseeing investments in India, the Philippines and Middle East, while scouting out ASEAN opportunities. 

Let me wrap it up there, take the time to read BCI's annual report here. 

I would have appreciated a long and detailed discussion with Ramy but it didn't happen (BCI's members lose out, not me). 

Below, BCI's Head of Global Private Equity, Jim Pittman, discussed trends he sees in the industry at the Milken Conference a month ago:

Pittman highlighted that while 2021 saw a record US$1.2 trillion in deals sold, 2024’s figure plummeted to just US$250 billion, pointing to a confluence of factors including inflation, geopolitical risk, and supply chain disruptions. All panelists agreed: “Nothing kills M&A activity more than uncertainty.”

After several years marked by sluggish distributions and a backlog of aging portfolio companies, 2025 is showing signs of renewed activity. Panelists expressed cautious optimism that, as volatility decreases, the IPO market could see significant improvement. Strategic corporate buyers are also showing early signs of renewed M&A interest. This optimism is supported by industry data, with global exit values rising 34% year-over-year and exit counts up 22%, according to a recent Bain report, signaling that pent-up demand is beginning to translate into real deal flow.

Pittman’s commentary reflected a broader industry push to unlock liquidity for limited partners (LPs) after several lean years. He pointed to the growing relevance of the secondary market and continuation funds as alternative paths for exits. GPs are also looking at other ways of unlocking liquidity through “componentized sales” – selling off portions of their holdings to unlock liquidity. One GP emphasized the importance of considering multiple exit strategies: “Less than 20 per cent of [their] realisations now come from IPOs. Over 50 per cent come from some type of strategic sale, such as large corporate buyers.”

The panel also highlighted a healthy pipeline of investments at attractive valuations. “I’m super excited about the buyer’s market. We’re buying things 50% off or more-pricing we haven’t seen since the global financial crisis,” remarked one panelist.

Pittman reinforced that BCI is actively seeking opportunities in sectors with strong fundamentals and operational value creation potential. He noted that BCI remains active, having sold three companies and acquired three others in the past eight months. In the past year, BCI Private Equity unlocked C$2.8 billion of capital through asset sales, successfully generating liquidity and securing strong realized returns as a result of the program’s focus on active portfolio management. The sale of BCI’s majority stake in Hayfin Capital and the announced sale of our investment in Ziply Fiber are two recent examples, in addition to secondary fund sales.

Watch the panel discussion below which is also available here along with more key takeaways.

Great discussion, all the panellists are smart and experienced and offer unique insights. KKR's Alisa Amarosa Wood is particularly impressive and she really nails it on a few points, including dispersion of returns in the private equity industry and getting the right alignment to drive value creation at their portfolio companies.

Update: On Monday, July 7th, BCI posted and interview where CEO/CIO Gordon J. Fyfe shares how BCI has evolved over the years, where we stand today, and his vision for the future. Watch the video to discover the journey and what’s next for BCI.

 

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 what “substantial” meant, although sources have told Infrastructure Investor that it could be as much as about 30 percent.

“We bought into the thesis that AirTrunk would be able to potentially grow in a fairly rapidly growing broader data center market, but also in a rapidly growing part of the world, and one which is actually pretty difficult to be successful in developing data centres,” Hawkins told Infrastructure Investor.

“Ultimately, the pandemic hit and created some tailwinds and then AI fuelled growth beyond that. When I think about that type of co-investment opportunity, it was an interesting mix of relatively straightforward infrastructure, cash-producing assets with15-year contracts but where the platform value has the potential of providing significant upside.”

As for future similar opportunities, Hawkins remains cautious, warning that parts of the data centre market are reminiscent of the renewable power market from years gone by.

“We think there’s interest and opportunities, but spend a lot of time really looking at the fundamentals as much as we can to try to evaluate the gap between the narratives that are being priced in in various places and just how much of a constraint power is,” he stated. “It does raise some questions just as to what really can be practically delivered in some of these markets and just highlights how critical having some answers to those questions are to continue to realise on this story.”

Still, Hawkins again acknowledged the fundamentals and said the market “certainly could have the potential to have a lot more room to surprise”.

AirTrunk, Hawkins said, was one of the stronger performing assets last year for AIMCo, whose infrastructure portfolio delivered a 12 percent return, it said last month, with a 12.7 percent return delivered over the last four years.

Other highlights were in the midstream sector, such as the 416 mile-long Coastal GasLink Pipeline in British Columbia, which it owns alongside KKR, and its 87 percent stake in midstream platform Howard Energy Partners.

“We’ve been big believers in natural gas as a long-term transition fuel for a long time and I don’t know if the market had fully endorsed our view through the last five years, but it definitely feels like they’ve come around in the last couple,” Hawkins said.

Coastal GasLink was a significant construction project, which reached mechanical completion in November 2023, while Howard Energy is a portfolio of operational pipelines.

“We don’t take the underlying commodity risk but look to a variety of contractual structures which provide a floor to the contracted volumes, but then also benefit when those volumes uptick,” Hawkins explained. “Both those elements deliver on value as you’d expect, it’s supposed to be infrastructure, but we like infrastructure which has a little bit of upside to it as well.”

Another highlight was one of AIMCo’s more recent investments: its 2022 acquisition of rail haulage group Cando Rail, based in Canada.

“They’ve been able to outperform what the normal GDP story would imply, but they’re also looking at further growth opportunities, so are hoping to expand that business model going forward,” Hawkins added.

Partnership model

The model through which AIMCo made its AirTrunk investment is relatively uncommon for the Canadian institution. Direct investments remain its primary investment approach, with about 85-90 percent of deals done on a direct basis, despite the co-investment success with Macquarie.

It has about C$19.8 billion ($14.3 billion; €12.7 billion) in infrastructure under management, comprising about 12 percent of the fund’s total portfolio.

“We came to realise that there were deals or regions in the world where we weren’t really as well-equipped to do direct deals and digital is one of those where we really value third-party managers, and in Asia as well,” Hawkins maintained.

“Co-investments are an important part of our broader strategy, but we’re highly selective, so there’s only a handful of managers that we work with and really try to find those which can complement what we do on a direct deal basis.”

However, AIMCo has found new deals difficult to come by, a theme going back about two years, and that has meant a repositioning of its focus.

“By and large, we’re trying to leverage our existing portfolio companies where we can to look to them as platforms,” Hawkins said.

“Our underlying portfolio companies have capabilities that we don’t have in-house, so we’re talking about their sector-specific expertise, boots on the ground and the broader capabilities and ability to source proprietary dealflow that wouldn’t necessarily come to us. They could be more organic in nature or bolt-on acquisitions that don’t really get a lot of attention, but in some ways that’s what makes it more interesting when they can pull that off.”

Riding the volatility

The difficulty in the search for new deals isn’t helped by today’s volatile market situation, a dynamic Hawkins said is shared by his fellow private markets colleagues.

“It feels like a lot of sellers have pulled their processes and are waiting for some of the uncertainty to dissipate, although I think infrastructure is, for the most part, pretty well insulated from some of the tariff noise and ideally where there’s inflation protection, even protected from some of the indirect consequences of some of the tariff uncertainty,” Hawkins maintained. “It still has had a bit of a chilling effect just in terms of transactions.”

Canada, of course, has been at the forefront of trade tensions with the US. Hawkins said about 10 percent of AIMCo’s infrastructure portfolio is in Canada, while close to half resides in its southern neighbour. Hawkins is bullish that the institution hasn’t had heightened concerns as a result of this and won’t be changing course.

“The US is just too important of a market to really be looking to adjust our approach, focus or even portfolio for that matter,” he said. Hawkins added that AIMCo is focused on redeploying capital from its AirTrunk sale in Asia, while it is still trying to find a new home in Europe for capital received from the sale of Spanish IPP Eolia Renovables to Engie in November 2021.

Back in Canada, the federal government in March opened up the possibility of bringing Canadian pension funds and institutional investors investing in the country’s airports. Would AIMCo, having been part of a Canadian-dominated consortium owning London City Airport since 2016, be interested?

“I think that could be really interesting to Canadian pension investors and probably much broader than that as well, and could be pretty sizeable. One could easily see a number of really large consortiums looking to participate,” he responded.

“That all said, it really comes down to the circumstances behind that, and it’s really hard to say when or if this comes together. I think if it ever did, I think you could see a pretty hotly contested process for parties trying to find a way into some of the larger assets and more strategic locations.”

Alright, this is an excellent interview with AIMCo's Ben Hawkings who I like and interviewed back in November 2022 (read my comment here).

I also covered Blackstone and CPP Investments's acquisition of AirTrunk for A$24bn here and at the time, the press releases stated the sellers were Macquarie Asset Management (MAM) and the Public Sector Pension Investment Board (PSP) so I didn't know AIMCo also co-invested in the initial acquisition of AirTrunk along with PSP.

As a reminder, back in April 2020, Macquarie Infrastructure and Real Assets (MIRA) led a consortium to buy an 88% stake in the A$3bn (€1.7bn) data centre firm AirTrunk.

The consortium, led by Macquarie Asia Infrastructure Fund 2 and including other MIRA-managed partners, acquired its stake in the business from Goldman Sachs, Sixth Street Partners and founder, Robin Khuda.

Obviously PSP Investments was the major co-investor on that deal and AIMCo a minor one but both organizations realized big gains when Blackstone and CPP Investments bought AirTrunk for A$24bn. In just five years, Macquarie, PSP and AIMCo made great returns on AirTrunk.

And the red hot data centre space is showing no signs of abating, so I'm sure Blackstone and CPP Investments will also make great returns on AirTrunk.

Macquarie raked in A$1.3bn in performance fees on the sale and moved on.

Less than a month after selling its majority stake in AirTrunk, Macquarie Asset Management agreed to provide up to $5 billion in funding for US data centre startup Applied Digital.  

In any case, both PSP and AIMCo made great returns on the sale of AirTrunk and PSP's CEO Deb Orida told me that being first mover in data centres really helped.

Back to Ben Hawkings, the article states he remains cautious, warning that parts of the data centre market are reminiscent of the renewable power market from years gone by:

“We think there’s interest and opportunities, but spend a lot of time really looking at the fundamentals as much as we can to try to evaluate the gap between the narratives that are being priced in in various places and just how much of a constraint power is,” he stated. “It does raise some questions just as to what really can be practically delivered in some of these markets and just highlights how critical having some answers to those questions are to continue to realise on this story.”

Still, Hawkins again acknowledged the fundamentals and said the market “certainly could have the potential to have a lot more room to surprise”.

Ben also states co-investments with a handful of strategic partners is how they capitalize on opportunities all over the world, especially in Asia (where their office in Singapore was closed so they need strong strategic partners).

Another thing I found interesting is how they're trying to leverage off their existing portfolio companies to use them as an extension of their investment team:

 “Our underlying portfolio companies have capabilities that we don’t have in-house, so we’re talking about their sector-specific expertise, boots on the ground and the broader capabilities and ability to source proprietary dealflow that wouldn’t necessarily come to us. They could be more organic in nature or bolt-on acquisitions that don’t really get a lot of attention, but in some ways that’s what makes it more interesting when they can pull that off.”

On tariffs, he rightly notes that infrastructure is largely insulated and has embedded inflation protection but nonetheless, transactions have slowed considerably:

“It feels like a lot of sellers have pulled their processes and are waiting for some of the uncertainty to dissipate, although I think infrastructure is, for the most part, pretty well insulated from some of the tariff noise and ideally where there’s inflation protection, even protected from some of the indirect consequences of some of the tariff uncertainty,” Hawkins maintained. “It still has had a bit of a chilling effect just in terms of transactions.”

Alright, excellent interview with Ben Hawkings who is an excellent investment manager at AIMCo and a very nice and decent guy. Glad he's still around.

In other AIMCo news, Layan Odeh and Paula Sambo of Bloomberg report that they're looking for a new CIO amid push to expand Calgary office:

Alberta Investment Management Corp. is hunting for a new chief investment officer as it carries out an overhaul that began last year when the provincial government fired the board and its top executive.

The new CIO would be based in Calgary, the largest city in Alberta and the home of Canada’s major oil and gas companies. Edmonton-based Aimco is considering both internal and external candidates, according to people familiar with the matter, asking not to be identified because they weren’t authorized to speak publicly.

Four people held the CIO title at Aimco in less than four years. The most recent, Marlene Puffer, departed in September.

Aimco, which manages about $180 billion of pension capital and other money for the Canadian province, wants to increase its staff in Calgary to boost the city’s financial sector. Newly appointed Chief Legal Officer John Walsh works out of the Calgary office, which has about 70 of Aimco’s 680 employees.

“The size of the team in Calgary has grown and we’re looking for space to accommodate them,” Aimco spokesperson Carolyn Quick said.

The firm is also changing its remote-work policy, requiring employees to work from the office three times a week starting in January, the people said.

Aimco’s restructuring was set in motion on Nov. 7, when Alberta’s finance minister sacked the board, Chief Executive Officer Evan Siddall and three other executives, saying they had allowed expenses to soar to unacceptable levels. Ray Gilmour was named interim CEO and Stephen Harper, the former Canadian prime minister, was installed as chair.

Since then, the money manager’s global expansion, championed by Siddall, has reversed. It shuttered its offices in New York and Singapore and parted ways with David Scudellari, its global head of private assets, and Kevin Bong, the executive who ran the Singapore office.

Last month, Aimco laid off around a dozen employees and decided to freeze around 25 vacant roles, according to one of the people. Earlier this year, Aimco eliminated 19 jobs, including the role responsible for the diversity, equity and inclusion program.

Aimco produced a 12.6% return last year in its balanced fund, missing its benchmark of 13.4%. Its total fund return was 12.3%. But the fund’s results exceeded those of some peers in the so-called Maple Eight, such as Ontario Municipal Employees Retirement System and Ontario Teachers’ Pension Plan, which last year earned 8.3% and 9.4%, respectively.

Canada’s largest pension funds are under pressure to consider investing more in the domestic economy as the US wages a tariff war against its closest trading partners.

In addition to Edmonton and Calgary, Aimco has offices in Toronto, London and Luxembourg. 

Let me be brief here. The best CIO AIMCo ever had was Dale MacMaster and never mind the much publicized vol blowup, he was exceptional and I talk to all of them. 

I think there are excellent CIOs who can easily work out of the Calgary office but I'm a bit perplexed as to why they're not looking to first hire a CEO as Ray Gilmour was named interim CEO.

In my opinion, proper governance is you hire a CEO who is then in charge of hiring a CIO that reports to him or her. 

It's sad to see more people were let go at AIMCo and I really hope all these cuts are justified and won't hurt the organization. 

Let me end it there, it was a bit a whirlwind weekend and hard to believe that at this writing, Trump has announced a ceasefire between Iran and Israel.

Below, Mark Esper, Fmr. Secretary of Defense, joins 'Closing Bell Overtime' to talk Iran's latest missile strike on US targets in the Middle East. Next, President Trump said on Monday afternoon that Iran and Israel have agreed to a ceasefire between the two nations that have been exchanging air and missile strikes for over a week now. Iran launched a missile attack at a US base in Qatar today, after the US attacked Iran nuclear sites over the weekend with B2 Spirit bombers.

Also, Fox News chief political anchor Bret Baier breaks down what led to President Donald Trump announcing a ceasefire agreement between Israel and Iran on 'The Ingraham Angle.'

Iran’s Foreign Minister Seyed Abbas Araghchi on Monday refuted claims that Tehran had agreed to a US-brokered ceasefire deal with Israel, while signaling his country was ready to stop hostilities. 

Let's hope this war ends fast and better days lie ahead for the Middle East. 

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 wanted to dig deep into emerging markets and Varun really knows his stuff as you'll see below.

I began by asking him to give me a background about himself and how he got to Ninety One which he did:

Sure, I've been at the firm for 10 years. I'm co-manager Emerging Markets Equity portfolios. I've only invested in emerging markets through the duration of my career. Before the joining the firm, I was based in Hong Kong where I spent four years working on the sell side, working for Macquarie Capital. There I was focused on Asia ex-Japan, so the current role is a broadening role to global emerging markets.

I'm originally from India, I was born in India, my family are from there. I grew up in Holland but with very close ties to India through my grandparents and my family. I married an Indian girl, my in-laws live in India so we go back very often.

I asked him if it was Mumbai and he said that's where he was born. I noted it's definitely a burgeoning place

I then asked him to tell me a bit about Ninety One and which asset classes it specializes in. He replied:

Ninety One is very straightforward. We manage I think close to 250 billion Canadian dollars, and roughly 60% of those assets are emerging markets related. We are one of the few asset managers that are emerging markets focused. That's emerging markets equities, emerging markets fixed income, emerging markets private markets. So if you were to put us into one category, I'd say we are an EM house and that speaks to the heritage of the business. 

The business was founded in South Africa during an interesting time, in 1991 hence the name, and it was a particularly monumental time of our position because it's when apartheid ended. We were founded in a market undergoing tremendous change and that's in our DNA, operating in difficult markets where change happens sometimes for the good, sometimes for the bad. 

I asked him if he broke down assets between public and private markets, are they predominantly public and he said yes. 

I then shifted my focus to investments telling Varun I'm a macro person, used to allocate money to the best directional hedge funds in the world, had very few EM managers in my L/S book of managers and for me Emerging Markets were always about Risk On/ Risk Off markets meaning when rates were low and vol was low, they outperformed, when rate climbed and vol picked up, they got dinged. 

But I told him this "macro top down view" isn't necessarily still binding as there has been a profound shift in emerging markets over the last ten years and you see it as Canadian pension funds shifted their focus there, and there are powerful secular trends -- urbanization, rise of a strong middle class, digitization and communications and even though these countries remain export oriented, there is a growing service economy there leading to more economic stability. 

I asked him if he agreed or if it's still Risk On/ Risk Off like we thought about emerging markets in the 90s? He replied:

I think your intuition is correct. If you take a 20-year view, and you line up the best-performing asset class every calendar year all the way to the worst-performing, Emerging Markets Equities will be the very best or the very worst in roughly 75% of those calendar years over a 20 year period.

To your point, there's is absolutely Risk On/ Risk Off, a lot of volatility and inherent cyclicality. 

To your point about things changing, you're absolutely right. What has changed is vol (volatility), vol has changed and if you look at vol through that lens, the vol of emerging markets has been falling precipitously over the past 15 years. So much so, over the last couple of years there have been periods where vol of EM was lower than vol of DM, and when I say DM, I mean MSCI Equity. It's quite an eye-opening thing to appreciate.

And the reason for the vol divergence or narrowing of vol, I think there are structural reasons and cyclical  reasons. The structural reasons from a macro perspective, the policy has improved for EM because you used to have bad policy frameworks and that has changed. What I mean by that is you have strong central banks particularly in places like Brazil, India and Indonesia. That is leading to better policy-making. 

You also have flexible exchange rates that have moved away from pegged exchange rates, therefore the sudden breaking of the currency is less common.

That is the macro side of how things have changed, the other is plumbing, the general plumbing in a lot of these emerging markets has improved. And by plumbing I mean they've become deeper markets locally or domestically. 

Take India for example, it's a very deep, domestic market where the annual domestic flows have almost tripled since pre-Covid. So the Indian equity market saw roughly $12 billion of inflows pre-Covid. Post-Covid, $12 billion became $29 billion in a short amount of time.

The reason that has dampened vol is if you have foreigners running for the exits, you still have the domestic funds there to hold up the market. It's a much more genuine market rather than one governed by foreigners.

I think the final thing is we talk about US exceptionalism, if you put numbers against a narrative, equity vol has increased and it has increased because it's a concentration risk around US assets, particularly around the Mag-7. 

So you have almost the DMification of EM or the EMification of DM where we are looking a lot more developed market like and developed markets are looking a lot more like emerging markets.

Things are changing. 

Indeed, over the last 20 ears, things have changed drastically in emerging markets.

I noted there's definitely more diversification now in the EM markets than the US market but it's the same across the DM worlrd ex-US, meaning that Mag-7 and other tech heavyweights in the US (eg. Broadcom) are skewing the S&P 500 there.

I noted in emerging markets, you have good financial services, telecoms, materials but similar to Canada, they don't have that powerful technology sector which has led the US and world equities since 2010 frankly.

So there are diversification benefits in emerging markets but I also told Varun that countries like India worry me a bit because there are still three or four billionaires which control the main publicly listed equities there.

He responded:

Those comments are well placed but I think there's nuance if you would allow me to explain.

To your point on technology and the US being the innovation hub and the rest of the world following or being a fast follower, I'm not sure I agree with that and the reason I say that is if you think about AI, AI as it relates to the stack. You've got the apps at the very top, predominantly US based, then you've gt the GPTs in the middle, again, US based, but at the bottom of the stack, you have the infrastructure which is how to bring the whole thing to life. That is the fundamentals to how a house is built. And that is entirely emerging market based, predominantly Taiwan and Korea based. Think about Taiwan Semiconductor, Nvidia doesn't exist without the chip manufacturing and capability of TMSC nor doe sit exist without HAMNI Semiconductor which specifically provides high bandwidth memory chips that make AI possible.

The question I would pose to you, Leo, is during a gold rush, do you want to own the goldmine which is the apps, or do you want to own the guys that make the picks and shovels? the picks and shovels is in emerging markets.  

I interjected to say that is very interesting because Taiwan Semiconductor is still a stock that is very cheap by my standards:

I asked him to give me a breakdown of sector exposure because I always assumed financials make up 20-30% and technology maximum 10% in emerging markets. He responded:

You'd be surprised. If we look at Technology, it's now 25% of the benchmark.Taiwan Semiconductor is the largest, then you have Samsung Electronics based in Korea, Xiami (the Apple of China), and then a long list of other businesses but those are the top three [Note: Not sure which benchmark he is referring to because in the iShares MSCI Emerging Markets ETF (EEM), Alibaba and Tencent also figure among top holdings.]

So Technology is 25% of our world, Financials is 25% of our world. Innovation is happening in our markets, it's almost a quarter of the opportunity set.

I also asked him whether it's fair to say there is more value added in emerging markets because they're not as widely covered as US markets.

He responded:

I would certainly think so. The way I evidence this and we've done a white paper on this, we try to answer the question in which asset class does it really pay to go active vs being passive?

So we lined all up all the asset classes, and the one where it consistently paid to go active was emerging markets over the last 20 years. And that speaks to your point about the inefficiency.

If you think about the reasons for this inefficiency, I'll point out a couple. Retail participation is a really big one. China is 30% of the benchmark, roughly 80% of Chinese trading is dominated by the retail investor. 80% of the biggest market in the opportunity set, that's enormous. 

If you look at places like Korea, Saudi Arabia, they're dominated by the retail investor. So an active approach that is disciplined --and we'd like to think we are in that category -- has a pretty good shot of generating alpha over an extended period.

The other area of inefficiency i one of the characteristics of emerging markets is you have family owned businesses, like the point you made about India. Whats interesting about that as it related to inefficiency is you tend to have two types of families. The first is the family that wants to grow the size of the pie and therefore treat minorities well, that is a win-win type of approach.

The second is a family that wants to grow their share of the pie. That's not a win-win approach. What you tend to have in that second category of family is leakage. Leakage in related party transactions with their own side businesses, leakage sin terms of allocating capital to M&A, leakages in terms not paying out dividends or buying back shares when they should be because perhaps they own a minority stake in the business. 

That leads to opportunity if you can determine which business to invest in and which business to avoid.  

He gave me an example of a Russian airline they were looking at five years ago which looked remarkably good on paper but they looked at the board structure, governance structure and specifically changes to the board and one of the proposals was to add a 2-year old boy. They discovered the founder entered into a proxy battle with the board and to ridicule other board members, he proposed his 2 year old boy be a board member.

That was an extreme example but worth noting that governance and board structure matters in emerging markets. 

Lastly, I asked him about Trump's tariffs and how they are impacting emerging markets. 

He responded:

Tariffs are a lose lose game, there's no sugarcoating, everyone loses. That's the first thing.

Second thing, let's look at the price action, forget my opinion. Emerging markets are outperforming developed markets year-to-date. And one of the best performing markets year-to-date is China which supposedly should be hardest hit by tariffs. 

So, there's a narrative and there's reality. The reality is emerging markets are outperforming developed markets and China is doing very well.  

I interjected and told him last year when David Tepper came out with his big long on China, I was very skeptical because China is a communist country. So I asked him why is China outperforming?

He answered:

This is where my view comes in, if you look at why China has underperformed over the last 5 years, you'll get a lot of emotion around regulations, geopolitics, etc.

Take all that away, there's a financial reason that China has underperformed. There are five things that drive any market at any point and time: revenue growth, margin growth, currency, revaluation and fifth most important for China is net issuance.   

Think about net issuance as a company issuing capital vs a company doing a buyback or paying a dividend.  

That is what happened in China, net issuance has been off the charts over the past decade predominantly because you had very large companies in the late 20teens that went to IPO, the Chinese internet companies. And when they IPOed, they IPOed at a very high multiple in relation to the market multiple. They IPOed at roughly 27x P/E, the market multiple was 10 times. 

That's not a problem in and of itself, the problem is you had regulations in 2021 and those high priced companies derated to the market multiple. They are very big index companies, that is a dilutive impact on the benchmark, hugely dilutive. Alibaba's weighting in the benchmark now is 2.85%, it's come down a lot since it IPOed. 

That's history. If you look at what is happening now to think about the future, the net issuance in China is reducing substantially. It's reducing substantially because in 2024, the value of buybacks was almost double the value of buybacks in 2023. 

So the capital allocation framework for the average Chinese company has flipped on its head, the behaviour has changed. Now Chinese companies are saying the following: "I can't control the geopolitics, I can't control policy in my own country, I can't control whether the consumer saves or spends, there's only one thing I can control as an entrepreneur, it's with what do I do with the cash that flows into my business. And with that cash I will not be empire building, buying companies willy nilly, I'm going to do a buyback because my stock is cheap, I will be paying myself a dividend." 

That is why you have record high buybacks, record high  dividends in China. That is leading to net issuance declining significantly.

To recap, the financial reason China underperformed is net issuance, not anything else. The financial reason China could outperform is net issuance, that drag goes away and that is happening.

We ended up with a discussion on which markets he likes in the EM world and he told me UAE because it's uncorrelated and it's becoming more open to business, reducing tariffs and in 2019, they issued a golden visa for foreigners allowing them to remain in the country if they lose their job so immigration there is enormous (Dubai is booming).  

He told me he likes Aldar Properties in Abu Dhabi. He also like PopMart in China where Chinese buy small collectible toys which sit in mystery boxes so you don't know what you're buying and this business in China is booming (check out Labubu on Tik Tok). These mystery boxes are now selling all over the world and the margin overseas is significantly higher than the margin in China.

He told me they're underweight Taiwan because given tariffs are here to stay they want to be selective with businesses there that have pricing power (like Taiwan Semiconductor). 

Alright it's late but this was a fantastic discussion and I wanted to post it so my readers can digest it over the weekend. 

Varun Laijawalla is a really smart guy who is a real pleasure to talk to and he opened my eyes to the opportunity set in the emerging markets.

Below, a conversation with Varun Laijawalla, Portfolio Manager at Ninety One, where he manages long only EM and EM ex-China portfolios. Take the time to listen to this interview.

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 not stand out on the global stage. According to the Mercer CFA Institute Global Pension Index, Canada scores a B and ranks 17 out of 48 countries. This is passable but not great. What can Canada do differently to strengthen its pension system? I’ll use the Rule of Three and discuss three distinct strengths of the Canadian pension system, three major problems, and three actionable solutions. 

Strengths of the Canadian Pension System

The Canadian pension system has the distinct advantage of being balanced, providing a combination of safety and flexibility. Programs such as Old Age Security Pension (OAS) and Guaranteed Income Supplement (GIS) are means-tested and provide a social safety net for those with lower incomes. The Canada Pension Plan and its Quebec analog, the Quebec Pension Plan, provide a defined benefit plan for all Canadians. CPP/QPP benefits are portable, indexed to inflation, and cover up to one-third of the average Canadian pensionable earnings throughout retirement. In addition to these government schemes, many employers offer corporate pension plans to their employees. And individuals wishing to save more have a menu of tax-efficient vehicles to invest in.

The financial sustainability of the CPP/QPP schemes presents another distinct strength of the Canadian pension system. Thanks to important reforms passed in the mid-1990s, these national schemes, which previously operated on a pay-as-you-go basis, are now partly capitalized. Over the past twenty-five years, the high return generated from the invested capital has enabled the schemes to stay afloat and keep contributions and payouts stable despite the increased funding pressures resulting from the ageing population. By contrast, pension systems that continue to operate exclusively on a pay-as-you-go basis, such as the system in France, face mounting financial imbalances that are triggering politically unpopular discussions about raising the retirement age.

Another unique strength of the Canadian pension system is the strong governance structure of its large public-sector pension plans, which provide defined-benefit pensions for the military, teachers, and other public-sector workers. These plans operate at arm’s length from their governments, are run like private-sector organizations, and are renowned globally for their cost-efficient investment model, which consists of investing directly in a wide universe of assets ranging from listed equities to private infrastructure. The high returns earned over the past 20 years (about 8% annually on average) have enabled these plans to pay decent pensions to Canada’s public-sector workers and remain open and fully funded.

Challenges Facing the Canadian Pension Landscape

Unlike the public sector, where pension coverage is excellent, pension coverage in the private sector is surprisingly low, which partly explains the B score. Nearly 80% of private-sector workers do not have access to an occupational pension scheme. And for the 20% that do have access, the benefits offered by the plans are often subpar. 

Part of the problem is the high level of market fragmentation. Each province has its own regulator, making it challenging for companies hiring workers in multiple provinces to offer consistent and scalable pension plans. Added to this, most pension plans are tied to employers. This means that individuals relocating to another province or switching jobs may accumulate several pension pots, making it challenging to keep track of the different pots. 

The low household savings rate is another problem: Canadians do not save much for retirement. Canada has the highest household debt-to-disposable income ratio in the G7, at 185%. Furthermore, a survey conducted online with 2,000 Canadians aged 18 and over reveals that 4 in 10 Canadians have less than $5,000 in savings. Almost a third of unretired Canadians aged 55-64 say they expect to continue working in retirement to support themselves.

A third problem is that the governance of our public-sector plans is under threat. The eight largest Canadian pension funds, collectively known as the Maple 8, currently manage over CAD 2 trillion of assets. Increased nationalism and concerns about low productivity growth in Canada have triggered a hot debate about whether governments should exert greater control over the way pension funds invest. Last Fall, the Alberta government abruptly dismissed the entire board and CEO of AIMCo, the large asset manager for the province’s pensions and endowments.

Actionable Reforms for a Stronger Pension System

The more assets public-sector pension plans accumulate, the more tempting it will become for fiscally constrained governments to control the way the plans’ capital is invested. Stronger guardrails must be established to ensure the plans remain operationally independent.

One such guardrail is the adoption of an independent committee to identify and nominate new pension fund board directors who are appointed by the government. This will maximize the likelihood that new directors are highly qualified and non-partisan. Another guardrail is the requirement that the legislative branch confirms the new directors. This will ensure the appointments are made with parliamentary review and scrutiny. Finally, governments should not have the ability to terminate board directors before the end of their term under regular circumstances. This will ensure the directors have the freedom to act with a long-term focus, free from political pressures. 

For private-sector pension plans, the priority is to bring them up to par with the public-sector plans. For this to happen, we need to create scale. One path forward is to adopt a common set of standards and regulations for registered pension plans across provinces, which goes above and beyond the current CAPSA guidelines established by pension regulators to promote the coordination and harmonization of regulatory principles and practices across provinces. A common set of standards and regulations will level the playing field, provide an easier, more consistent, and scalable environment for employers, and reduce costs. 

Another pathway to creating scale is to promote pension plan arrangements that do not require an employer-employee relationship. This is the pathway pursued in Australia, where employees can request their employer to direct pension contributions to the pension plan of their choice. These plans do not offer the same degree of customization as employer-based plans, but are much more scalable and specialize in handling a large number of small accounts efficiently. In Canada, such a structure does not exist. One exception is the Saskatchewan Pension Plan (SPP), a defined-contribution plan created by the Saskatchewan government that is available to all Canadians, is portable, operates at arm’s length from government, and does not require an employer-employee relationship. 

In addition to creating scale, we need to improve the quality of private-sector pension plans. Most private-sector organizations provide a standard defined-contribution plan where employees are on their own and bear all the risks. The challenge is how to reduce risks for members without transferring those risks to employers.

One solution is to encourage the growth of jointly sponsored pension plans such as CAAT Pension Plan, Healthcare of Ontario Pension Plan (HOOPP), OPTrust Select and University Pension Plan (UPP). Jointly sponsored pension plans allocate risk across a broader membership base than single-employer plans and provide a “DB-like” stream of retirement income for employees without exposing employers to a significant risk of rising contributions. Another solution is to promote the growth of Variable Payment Life Annuities (VPLAs). These new types of annuities, which were recently proclaimed into law in Canada, provide an opportunity for pension fund members to pool a part of their retirement savings. In doing so, members can reduce important risks such as their own longevity risk in a cost-efficient way without putting employers on the hook. 

Building the Political Will for Change

Scoring an A on the Mercer CFA Institute Global Pension Index is possible. We know what the issues are and how to fix them. It’s a matter of building political will and coordination, and learning from other countries that have reached near-universal pension coverage and offer cost-efficient pension solutions for the private sector. Pushing forward these changes is a no-brainer, as a more robust pension system will improve financial well-being, reduce senior poverty and dependence on government, and encourage long-term investments. 

I thank Sebastien Betermier for sending me this excellent comment.

He's a well-known pension expert in Canada and his knowledge of our pension system is second to none.

He highlights all the important points but there are areas where I disagree with him on some of his views.

First, he's right, Canada has a decent pension system with Old Age Security (OAS), Guaranteed Income Supplement (GIS) and CPP/ QPP benefits forming the three-legged stool, but there is a growing retirement crisis and it's entirely in the private sector where comprehensive coverage is low or non-existent.

And let me be crystal clear, by comprehensive coverage, I mean the gold standard, a defined-benefit plan backed by the provincial or federal government that retirees can count on till the day they die.

Earlier this week, I discussed HOOPP and Abacus Data's 2025 Canada Retirement Survey. 

Among the key findings:

• Fifty-nine per cent of unretired Canadians do not think they will ever be able to retire due to their financial situation. Half (49%) have not set aside any money for retirement in the past year and 39% have never saved for retirement. 
• Nearly two-thirds (62%) of Canadians view homeownership as a key part of their retirement strategy, either as a financial investment or a source of stability in retirement and as part of their strategy, half (50%) of unretired homeowners plan to rely on the sale of their home to set themselves up for retirement. 
• More than a third (36%) of Canadians report having less than $5,000 in savings, including for retirement, and one-in-five (20%) have no money saved. Those who do not own a home are significantly more likely to have less than $5,000 saved (57% vs. 19% of homeowners). 
• An overwhelming majority of Canadians (88%) would choose to pay 9% of their salary, with contributions matched by their employer, to a DB pension plan in exchange for a lifetime income in retirement. 

That last point is telling because the majority of Canadians are screaming out "we need help to retire in dignity" but nobody is listening to them.

Their MPs at the provincial and federal level all have gold-plated defined-benefit pensions guaranteed for life and all they need is to serve two full terms to get it.

Added bonus, these MPs can vote for hefty pay increases when they think it's deserved and that also boosts their pension payout (for life).

Why do you think Jagmeet Singh stuck around, he wanted his pension. And while Conservatives were targeting his pension, their leader Pierre Poilievre is set to draw more than $230,000 annually once he turns 65. 

Anyways, back to Sebastien's comment and bolstering Canada's retirement system.

He's absolutely right that our Maple Eight funds are the envy of the world, operating like businesses independently from government and the long-term returns support this notion.

More importantly, they all have more than enough assets to meet their long-dated liabilities and this is the ultimate measure of success for any pension plan.

So that independent governance is critical and producing the much-needed long-term results. 

Sebastien then claims the governance of our public-sector plans is under threat using what happened at AIMCo as an example when the Alberta government abruptly dismissed the entire board and CEO.

Here is where I have different views and let me explain.

What happened at AIMCo was unfortunate but it was also a big warning shot across all of Canada's large pension funds, if you piss off your major shareholder, the provincial or federal government, your board and senior management can easily be fired and replaced.

I know for a fact many provincial governments and the federal government are becoming increasingly uncomfortable with giving their public pension funds too much leeway as compensation runs amok and costs mount, so while we are unlikely to see another Alberta "clean the house up" episode ever again, never say never.

In other words, independent governance is truly a balancing act and these large Canadian pension funds are increasingly being asked to provide a lot more detailed transparency on where they invest and every aspect of their operation including compensation and costs is being scrutinized.

So, they have to satisfy their most important shareholder, their sponsor governments which have enormous power and will use it if they're not happy with their relationship with their large pension investment managers.

At the end of the day, whether they like it or not, these are Crown corporations, not private investment managers and they need to manage their most important relationships with governments accordingly if they want to maintain their independent governance.

That's what the AIMCo cleanup proved to me at least. 

What else? I like Sebastien's idea of adopting an independent committee to identify and nominate new pension fund board directors who are appointed by the government.  

In my opinion, given the complexity at these shops, you need to seriously consider putting more former employees from all departments (front office, back and middle office, risk, finance and IT) of large Canadian pension funds at the board levels.

There are pros and cons about placing former employees on the board as I've seen good and bad outcomes from doing this but the complexity of these shops and their underlying strategies, you can't expect to find qualified people with the requisite experience to properly assess and monitor all their activities.

I'll be blunt, most board members look great on paper, they're smart and experienced people but many of them are in over their head overseeing activities at these large Canadian pension funds.

But I want to be clear, hiring a former CEO or senior executive from a Maple Eight fund to put them on your board doesn't guarantee better oversight (it could backfire and perpetuate more problems/ abuses) but I know through my conversations with senior people, many board of directors at the Maple Eight funds are in way over their head (most are fine and all learn a lot along the way).

It's a tough job overseeing these large pension funds and it’s not getting any easier. 

Lastly, Sebastien is right, we need to create scale and offer private sector employees better retirement outcomes.

We need to use what is working at CAAT Pension Plan, UPP, HOOPP to expand coverage but I also think we need bigger and bolder action here and offer every private sector employee a defined-benefit plan like public sector workers have. 

The most important retirement legislation in Canada was passed years ago, it's called enhanced CPP and it will help future generations of Canadians retire in security but it won't help Canadians getting ready to retire over the next five, ten or fifteen years.

I'll state once again what I stated a couple of days ago, we need a royal commission to look into bolstering Canada's retirement system and we need it sooner rather than later.

We have to think outside the box and discuss all options including creating a new large pension fund that covers existing private sector workers who have no DB plan, model its governance after the Maple Eight funds.

What about Canada's large banks and insurance companies, how will they react? If they're smart, they will welcome such a development and focus on delivering value add where they can, wealth management and other services.

Again, in my opinion, it's time to think big and think boldly.

Let me once again thank Sebastien Betermier for sending me his comment and getting me to think hard about what needs to be done to bolster Canada's retirement system.

Below, in this webinar, pension researcher Sebastien Betermier from McGill University presents findings from a GRI report that he co-authored with Keith Ambachtsheer from the University of Toronto and Chris Flynn from CEM Benchmarking. The focus of the research is to identify trends in how much Canadian pension funds invest in Canada (from 11 months ago).

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” and that it was committed to helping airlines expand their route networks.

The sale of Ontario Teachers’ stake in London City has completed, while the Birmingham and Bristol airport deals are subject to regulatory approval and are expected to complete by the end of this year.

Ontario Teachers acquired its holdings in Birmingham and Bristol in 2007 and 2008, respectively, before adding its share of London City in 2016.

The Macquarie deals follow a spate of transactions in the UK’s airport sector. US private equity group Blackstone struck a £235mn deal with Canadian pension investor PSP in March for a 22 per cent stake in the owner of the Aberdeen, Glasgow and Southhampton airports.

Private investors have also backed several other UK airports, including London’s Heathrow and Gatwick. Spanish construction company Ferrovial agreed last year to sell the majority of its stake in Heathrow to private equity group Ardian and Saudi Arabia’s sovereign wealth fund.

The Labour government has made airport expansion one of its areas of focus, with four out of London’s five major airports seeking to expand. London City airport received permission to expand its passenger numbers by more than a third last August.

Richard Lowe of IPE Real Assets also reports Ontario Teachers sells stakes in UK airports to Macquarie:

Ontario Teachers’ Pension Plan has sold its stakes in three UK airports to Macquarie Asset Management – more than 24 years after first entering the UK airports sector.

The Canadian pension fund has sold a 55% stake in Bristol Airport, a 26.5% interest in Birmingham Airport and a 25% share of London City Airport to Macquarie European Infrastructure Fund 7.

Ontario Teachers first invested in UK airport infrastructure in 2001, later acquiring direct stakes in Birmingham in 2007, Bristol in 2008 and London City in 2016.

In 2017, Ontario Teachers reduced its exposure to Bristol and Birmingham airports by selling stakes to New South Wales Treasury Corporation and Sunsuper Superannuation Fund (now Australian Retirement Trust). Ontario Teachers had previously taken full ownership of Bristol Airport in 2014, after acquiring Macquarie’s 50% stake. Stepstone is also listed as a minority owner of Bristol Airport.

Ontario Teachers has owned a 48.25% stake in Birmingham Airport since it acquired an additional 19.25% stake from Victorian Funds Management Corporation in 2015. The rest of the airport is owned by West Midlands metropolitan boroughs and employees.

The Canadian investor had co-owned London City Airport as part of a consortium including fellow Canadian pension funds Alberta Investment Management Corporation and OMERS, and Wren House Infrastructure, an arm of the Kuwait Investment Authority.

Charles Thomazi, senior managing director and head of infrastructure for EMEA at Ontario Teachers, said: “UK airport infrastructure has been a key area of focus for Ontario Teachers over the past 20 years and we’re very proud to have supported Bristol, Birmingham and London City as they’ve grown, developed and continued to strengthen the experience for passengers.

“Each airport plays an important role in its region and, with all currently undergoing expansion programmes, will continue to grow and deliver for their passengers, communities and the broader economy.”

Macquarie is acquiring the stakes on behalf of its latest European infrastructure fund, for which it raised €8bn. Last year, a previous fund in the series sold a stake in AGS, the owner and operator of Aberdeen, Glasgow and Southampton airports.

Gordon Parsons, senior managing director at Macquarie Asset Management, said: “As a leading investor in airports around the world, including the UK, we understand their importance to local communities and for economic growth. Collectively, Birmingham, Bristol and London City airports serve over 25m passengers each year and are a valued home for leading regional and global airlines.

“Each airport has a unique path for growth ahead, and we’re supportive of the management teams’ plans to deliver enhanced customer experiences and more routes to each of the communities they serve. We look forward to playing our part, as a long-term investor, to support all three airports on their development in the years to come.”

Capital Brief also reports Macquarie buys stakes in three UK airports from Ontario Teachers’ Pension Plan: 

The news: Macquarie Group has agreed to acquire ownership stakes in Bristol, Birmingham and London City airports from Ontario Teachers’ Pension Plan.

The numbers: The investment by Macquarie Asset Management, via its Macquarie European Infrastructure Fund 7, was for an undisclosed amount and includes a 55% stake in Bristol Airport, a 26.5% stake in Birmingham Airport and a 25% stake in London City Airport.

The London City Airport deal has reached financial close, while the acquisitions of the other two airports are expected to conclude by the fourth quarter of fiscal 2025, subject to regulatory approvals, the company said.

The three airports collectively serve over 25 million passengers each year.

Macquarie said it plans to support the airports over the long term by expanding route networks, improving passenger experience and working with management and stakeholders on sustainability strategies.

The context: Macquarie has invested in airports globally for over 20 years and operated in the UK for 35 years. It has previously held stakes in airports in Australia, Belgium, Italy, Denmark, Ecuador, Colombia and the UK.

Last year it exited its ownership in AGS Airports, where it had invested £250 million ($516 million).

It comes a day after Macquarie said it had closed the $US6.8 billion Macquarie Infrastructure Partners VI fund for investments in the Americas, alongside $US1.3 billion in co-investment capital.

Earlier today, Ontario Teachers' issued a press release on this deal:

18 June 2025 - Ontario Teachers’ Pension Plan Board (Ontario Teachers’) announces today that it has reached an agreement to sell its interests in three UK airport assets - Birmingham Airport (BHX), Bristol (BRS) and London City Airport (LCY) - to Macquarie Asset Management (Macquarie).

Ontario Teachers’ has been a long-term investor in these airports, contributing to their growth, modernisation and decarbonisation over the past two decades. Ontario Teachers’ first invested in UK airport infrastructure in 2001, later acquiring direct stakes in Birmingham in 2007 and in Bristol in 2008. A 25% stake in London City Airport was acquired in 2016. These airports have continued to serve tens of millions of passengers annually, driving connectivity across the country, continent and globe and together, play a central role in regional economic growth across the UK, contributing collectively over £3.7 billion in gross value added (GVA) and 37,600 jobs.

Charles Thomazi, Senior Managing Director and Head of Infrastructure in EMEA at Ontario Teachers’ said:

“UK airport infrastructure has been a key area of focus for Ontario Teachers’ over the past 20 years and we’re very proud to have supported Bristol, Birmingham and London City as they’ve grown, developed and continued to strengthen the experience for passengers. Each airport plays an important role in its region and, with all currently undergoing expansion programmes, will continue to grow and deliver for their passengers, communities and the broader economy. We’d like to thank our fellow shareholders for their collaboration and our management teams and airport staff for their dedication and support, not least during the Covid-19 pandemic. We are confident that BHX, BRS and LCY will continue to flourish and are pleased to be passing the baton to new investors Macquarie as they support them in the next stage of their growth.”

During Ontario Teachers’ ownership, highlights include:

Bristol Airport

• Significant growth to over 10 million passengers per annum, with a 72% increase in traffic since 2008 and the fastest recovered major UK Airport post-Covid 19 pandemic;
• Investment of over £300m over the past decade, including in improving the customer experience, Next Generation security, new retail & catering facilities, car parking and the development of a new public transport Interchange
• Strong growth in the number of airlines operating from the airport, providing increased choice for customers to the 115 destinations it serves; and
• Level 4+ accreditation in the international Airport Carbon Accreditation (ACA) scheme; airport on track to achieve a net zero position for scope 1&2 emissions by 2030.

Birmingham Airport:

• 35%+ growth in passengers, from 9.6 million in 2007 to over 13 million at the end of 2024
• Significant investments totalling over £425m made over past 18 years to modernise and expand BHX, including extension of the runway, the opening of a new pier, a new baggage system, upgraded security and check in areas and an enhanced passenger drop off area;
• Multiple new flight routes added, today provided by over 30 airlines connecting travellers to over 165 destinations;
• Level 3 accreditation in the (ACA) scheme since 2023; airport on track to meet commitment for operations to become net zero by 2033.

London City Airport:

• Significant investments by shareholders over last 9 years totalling over £600 million to expand LCY to accommodate larger aircraft and expand facilities, with development projects including the UK’s first remote digital air traffic control tower, expansion of the airside footprint through reclamation of land as part of the City Airport Development Programme (CADP), Next Generation security expansion and a new baggage facility;
• Continued focus on enhancing the passenger experience and destination choice and Level 4+ accreditation in the international Airport Carbon Accreditation (ACA) scheme since 2019.

The sale of Ontario Teachers’ stake in London City Airport has reached financial close following signing. The sales of its stakes in Birmingham and Bristol airports are subject to regulatory approval, and are expected to complete in Q4 2025.

About Ontario Teachers’ Pension Plan

Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $266.3 billion as at December 31, 2024. Ontario Teachers' is a fully funded defined benefit pension plan, and it invests in a broad array of asset classes to deliver retirement security for 343,000 working members and pensioners. For more information, visit otpp.com and follow us on LinkedIn. 

Alright, even though financial details are not disclosed, this is a significant distribution for Ontario Teachers' as it was invested in these three UK airports for a long time.

It acquired its holdings in Birmingham and Bristol in 2007 and 2008, respectively, before adding its share of London City in 2016. 

As the press release states, significant value added was obtained on all three airports as Teachers' and its fellow shareholders implemented a plan to contribute to growth, modernize and decarbonize their operations.

Macquarie Asset Management, via its Macquarie European Infrastructure Fund 7, acquired a 55% stake in Bristol Airport, a 26.5% stake in Birmingham Airport and a 25% stake in London City Airport. 

Macquarie is no stranger to airports. Late last year, along with Ferrovial, it sold its stakes in AGS Airports to AviAlliance, PSP Investments' airports platform:

Macquarie Asset Management (Macquarie), via Macquarie European Infrastructure Fund 4, and Ferrovial have reached an agreement to sell AGS Airports to AviAlliance.1 The terms of the transaction represent an enterprise value for the business of approximately £1.53 billion.

AGS Airports owns and operates the primary airports serving Aberdeen, Glasgow and Southampton. These airports provide essential domestic and international connectivity to three important economic and population centres across the UK and serve more than 10.8 million passengers annually.2 The airports contribute approximately £2 billion in Gross Value Added to the UK economy per year and support more than 30,000 jobs across a sophisticated supply chain.3

AGS Airports was established as a 50:50 joint-venture between Macquarie and Ferrovial following their 2014 acquisition of the airport portfolio from Heathrow Airport Holdings Limited. A partnership approach with Ferrovial has enabled AGS Airports to invest £250 million to deliver vital improvements, including:

• The largest investment in Aberdeen International Airport’s capacity since its main terminal was opened in 1977. The £20 million investment increased terminal space by 50 per cent to accommodate enhanced security facilities, an increased retail offering, new areas for baggage reclaims, expanded business lounges, and new immigration and arrivals facilities.
• A £9 million investment to revamp infrastructure at Glasgow Airport to accommodate all wide-body aircraft alongside improvements to a dedicated pick-up and drop-off facility, new car rental centre, expanded security facilities, and improved retail and lounge options.
• A £17 million runway extension at Southampton Airport, which opened in 2024, securing the airport’s future contribution to local communities and businesses across the South East and importantly allowing for the airport to be able to operate larger aircraft and diversify its airline base.

During the COVID-19 pandemic, when UK air arrivals fell by 89 per cent between April 2020 to January 20214, Macquarie and Ferrovial also provided vital support to ensure the ongoing resilience of the airports group despite the unprecedented challenges posed to its day-to-day operations.

Martin Bradley, Head of Infrastructure for Macquarie Asset Management in EMEA, said: “Since 2014, we have worked in partnership with Ferrovial to support around £250 million of investment by AGS Airports aimed at delivering a better experience for passengers travelling via Aberdeen, Glasgow and Southampton airports. Following this decade of investment, we are pleased to be passing the baton to AviAlliance to unlock the next phase of growth.”

Andy Cliffe, Chief Executive Officer of AGS Airports, said: "Over the past 10 years, Macquarie and Ferrovial have played a central role in unlocking our full potential. Their close partnership with the teams across our three airports ensured we had the support to invest in our passenger offering while improving our operations. We are grateful for their close stewardship and look forward to continuing to develop our services and beneficial impact on passengers and communities across the regions of Aberdeen, Glasgow and Southampton.”

Macquarie has invested or arranged more than £60 billion in UK infrastructure over the past two decades and is supporting £20 billion of investment across its portfolio over the coming years to deliver improved energy, transport, utilities, social and telecommunications infrastructure in England, Wales and Scotland. 

The transaction is expected to reach financial close by Q1 2025, following the satisfaction of customary closing conditions and regulatory approvals. 

1. A wholly owned subsidiary of Public Sector Pension Investment Board (PSP Investments)
2. LTM June 2024 passenger numbers across Aberdeen, Glasgow and Southampton Airport, AGS Airports
3. https://www.glasgowairport.com/media-centre/2019-and-older/glasgow-airport-contributes-1-44-billion-to-scottish-economy-and-supports-over-30-000-jobs/
4. GOV UK statistics relating to passenger arrivals in the United Kingdom since the Covid-19 outbreak 

Clearly Macquarie knows how to add value to airports it invests in and given that UK regulators aren't too happy about how they managed Thames Water, I'm confident they will take the necessary steps to work closely with existing shareholders and add value to the airports they just acquired stakes in.

Now, what will Ontario Teachers' do with the funds it receives? It will invest them elsewhere as opportunities arise.

These airports deals demonstrate how large alternative asset managers can compete with the Maple Eight or work with them to acquire and sell prized assets.

If it makes sense to sell stakes in an infrastructure asset and they get a decent price, why not sell?

It's part of managing their portfolio and yes, it will also boost returns of OTPP's Infrastructure group this year.

Below, Ontario Teachers’ Pension Plan, one of the world’s largest and most influential institutional investors manages nearly $200 billion dollars in assets globally. Global markets are in flux on the back of geopolitical & trade uncertainties While emerging technologies like AI threaten to disrupt business models across sectors. Prashant Nair caught up with Jo Taylor, the CEO At Ontario Teachers’ Pension Plan to discuss the impact of potential changes in the global economy and also the Plan's investment strategy in India (March 30, 2025).

Also, Faultline recently reported on the battle over London's $80 billion airport. Worth watching this, very interesting and has nothing to do with why OTPP sold its stakes in these three UK airports.

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 retire at all.

“I feel like history is repeating itself, only worse,” said Alison Smith, a 50-year-old banking professional in the Greater Toronto Area. “I just don’t have enough. I don’t have enough private savings to survive by the time I retire.”

Ms. Smith lost her job during the 2008 financial crisis, and even though she was able to find another job, she is still concerned about how her savings will stand up to recent market swings. “It’s going to be time to pay the piper pretty soon, and I think we’re all feeling the pressure,” she said of her Gen X peers.

The survey by HOOPP, which manages pension investments for more than 478,000 members at more than 700 employers in Ontario’s hospital and health care sector, found that almost half of Canadians haven’t set aside any money for retirement in the past year. Thirty-nine per cent say they’ve never saved for retirement at all. More than a third say geopolitical instability has already affected their travel plans, with many Canadians delaying or cancelling their trips to the United States.

The findings were based on a survey of 2,000 Canadians aged 18 and older from April 11 to 16, 2025.

Even for Canadians who have managed to squirrel away some savings, the stress remains.

“When the markets are down, they recover faster than a retiree’s confidence returns,” said Adam Chapman, a certified financial planner based in London, Ont. “The markets come back, but the retirees are still ultra-hesitant and anxious.”

Mr. Chapman said that while portfolio values may have stabilized, his phone keeps ringing. Many of his retiree clients are overwhelmed, not just by the memory of recent market dips, but by the barrage of news about tariffs, interest rates and global instability.

“They’re having a hard time following the news that’s happening, with announcements changing week to week, sometimes day to day,” he said.

Mr. Chapman points out a technical term in financial planning for what many retirees are going through: “sequence of returns risk.”

It refers to the risk of a market downturn in the first few years of retirement — a period when retirees begin to draw down their portfolios. If the market drops early on, losses can compound faster than if the same dip happened later in retirement.

But Mr. Chapman says that only tells part of the story.

“That just looks at the numbers,” he said. “It doesn’t look at what’s the emotional effect of a down market in the first couple of years for a retiree who just retired. People are feeling insecure and not confident.”

That emotional effect is rippling through even the best-laid retirement plans, he said, prompting some to question whether they should have retired in the first place.

Jennifer Rook, vice-president of strategy, global intelligence and advocacy at HOOPP, said the emotional toll is reflective of the times.

“People are living longer, and we’re in uncertain times,” she said. “Just the very concept of retirement is hard for people to think about right now.”

Mr. Chapman recommends that soon-to-be retirees and those already retired prioritize not just financial planning, but emotional support. That could mean speaking with a mental-health professional or working with a financial adviser who understands the psychological toll that retirement can take, he said.

Some advisers and firms are recognizing this growing need. Many now pursue additional training to better support clients through the emotional side of retirement, including grief, fear and uncertainty about the future.

“Really good financial planners and financial advisers go way beyond the math when the math doesn’t work,” Mr. Chapman said. 

A friend of mine who is a really good financial advisor says his number one job is being a psychologist, consoling and reassuring his clients through these news-driven turbulent times.

People get very emotional with money and that often leads them to do stupid things at the wrong times.

Admittedly, we are human, not algorithmic machines trading markets every second of the trading day so when the S&P 500 goes down 20% after Trump's Liberation Day, you bet people are calling their financial advisors to get out of the market. 

More worrisome, Gigi Suhanic of the National Post reports more Canadians are relying on a home to fund their retirement despite the risks:

A majority of Canadians believe that owning a home is a critical part of their retirement strategy and the number of them relying on the sale of their home to help them retire continues to rise, according to a major pension plan, even though there are issues with that strategy.

Sixty-two per cent of people surveyed by the Healthcare of Ontario Pension Plan (HOOPP) said homeownership is “a key part of their retirement strategy, either as a financial investment or a source of stability in retirement.”

Forty-four per cent of people said they were depending on the sale of their home to put a retirement fund in place, up from 42 per cent last year and 38 per cent in 2023.

“When people are younger, they have to save for two key assets in life, one being a house and one being retirement,” Jennifer Rook, HOOPP’s vice-president of strategy, global intelligence and advocacy, said. “As the house becomes more expensive, you are kind of forced to choose a little bit more. What we are seeing is people are really still striving for the house and putting stock in (it).”

One-third of homeowners said they would remortgage their homes to fund their retirement — the first time HOOPP asked that question in the seven years of the survey.

But the survey uncovered risks associated with relying on selling a house for retirement.

“If you’re relying on that as your retirement asset, that plan is a lot less certain than it was when you embarked on that path many years prior,” Rook said.

HOOPP said 65 per cent of homeowners who are working say they are worried that they will still have a mortgage by the time they are ready to retire, up from 51 per cent in 2024 and 45 per cent in 2023.

On a more positive note, 48 per cent said they worried about being able to afford their current or future mortgage payments, compared to 52 per cent last year.

But 62 per cent of non-homeowners doubt they will ever be able to purchase a home based on current interest rates, a similar number to last year.

At the time of last year’s survey, interest rates were at their most recent peak of five per cent before the Bank of Canada started cutting. Rates now stand at 2.75 per cent.

The survey said younger generations are more likely to be banking on homeownership to fund their so-called golden years, with 55 per cent of those aged 18 to 34 saying they are going to rely on their home to “set them up for retirement,” compared to half of those aged 35 to 54 and 41 per cent of those aged 55 to 64.

“When you’re young, you think of things differently than you do as you get a bit older,” Rook said. “But it might also speak to the availability of a pension.”

Perhaps that’s why 88 per cent of those surveyed by HOOPP said they would be willing to contribute regular instalments to a defined-benefit pension plan, which is structured to guarantee payments for life once you stop working.

HOOPP also said Canada’s frayed relations with the United States was the top concern weighing on Canadians’ minds and affecting their financial planning, with 67 per cent “very concerned” about it, but that increased to 71 per cent for those near retirement.

Inflation and general economic uncertainty were also among the top concerns of those surveyed.

Overall, planning for retirement is still hard for many people, with the survey painting “a grim picture” of Canadians’ retirement preparedness: 66 per cent of unretired Canadians said they will need to continue working later in life to financially support themselves; 15 per cent of retired people said they didn’t have savings when they stopped working; and more than one-third said they have less than $5,000 in savings.

Abacus Data conducted the survey of 2,000 adults for HOOPP from April 11 to 16. The survey has a margin of error of 2.19 per cent 19 times out of 20.

Jennifer Rook, HOOPP’s vice-president of strategy, global intelligence and advocacy is absolutely spot on: “When you’re young, you think of things differently than you do as you get a bit older, but it might also speak to the availability of a pension.”

What do all these retirement surveys show? They show many Canadians are living paycheck to paycheck and cannot afford to retire.

An increasing number of the lucky ones that own a home will remortgage their home to afford retirement and that's become the de facto national retirement plan for a large subset of the population with no access to a defined-benefit plan.

For the ones that do not own a home, the situation is dire. 

It's a slow motion retirement nightmare for most Canadians and it's taking its toll on their mental health.

No doubt, Old Age Security and Guaranteed Income Supplement (GIS) will help many low-income Canadian retirees get by during their retirement years but the key phrase here is (barely) "get by” (helps top out their CPP/ QPP benefits). 

The economic effects of more and more Canadians unable to retire or retiring with little to no savings are profound.

I have a conservative friend of mine who agrees with me, every Canadian working 25+ years deserves a decent DB pension plan, it's ridiculous that our politicians are not taking appropriate actions to make this a reality but like everything else in Canada, there are powerful vested interests that want to maintain the status quo.

The folks at HOOPP understand the value of a good pension and they've been at the forefront advocating for better pensions for all the population. 

Why? What do they care? They boast of having one of the best DB pension plans in the world and can literally ignore this issue.

But it's an important policy issue for them and since they are healthcare professionals, they understand the mental, physical and financial toll of retirement insecurity, a bit akin to food insecurity.

So we should commend them for advocating for better pensions for all.

Below, here is the executive summary and key findings from the seventh annual Canadian Retirement Survey that HOOPP and Abacus Data put out: 

Executive Summary 

The Healthcare of Ontario Pension Plan (HOOPP) partnered with Abacus Data on the seventh annual Canadian Retirement Survey, conducted in the spring of 2025. This public opinion tracking survey examines Canadian individuals’ retirement savings behaviour within the current economic environment, and the personal, societal and economic issues impacting their retirement security.

The results of this year’s survey highlight the importance Canadians place on achieving financial security in retirement, even amid mounting affordability concerns and global economic uncertainty. Nearly nine-in-10 Canadians would choose to pay 9% of their salary, with contributions matched by their employer, into a defined benefit pension plan in exchange for a secure lifetime income in retirement. This consensus is consistent across all age groups.

This sentiment persists despite significant economic uncertainty, which has left many Canadians prioritizing their daily expenses over saving for retirement. Those especially struggling include Canadians who do not own a home and homeowners with rising mortgages due to rate increases at renewal, casting doubt on homeownership as a path to a secure retirement.

Key findings Affordability issues hurt Canadians retirement  

As Canadians navigate broad economic uncertainty and affordability challenges, most (77%) are worried about the negative impact of inflation on their ability to afford their daily expenses and 60% say they have no disposable income.

With many struggling to keep up, the top concerns for Canadians are Canada–U.S. relations (67%) and the cost of daily living (67%). Other concerns include:

• economic uncertainty (65%)
• housing affordability (60%)
• having enough money in retirement (56%)

Canadians are particularly worried about the impact of geopolitical uncertainty, including global trade tensions, on:

• the increasing cost of living (61%) and housing (54%)
• their retirement savings (46%)
• losing their jobs (33%)

Rising expenses and economic uncertainty have hurt Canadians’ retirement savings and outlook. Fifty-nine per cent of unretired Canadians do not think they will ever be able to retire due to their financial situation. Half (49%) have not set aside any money for retirement in the past year and 39% have never saved for retirement.

The economic challenges facing Canadians have also taken a toll on their well-being, leaving them more likely to feel anxious (52%, +7 pts from 2024), fearful (48%, +6) and sad (47%, +6) about their finances.

Many see homeownership as part of a retirement plan, despite challenges

Despite the challenges posed by a lack of affordable housing and a struggling housing market, nearly two-thirds (62%) of Canadians view homeownership as a key part of their retirement strategy, either as a financial investment or a source of stability in retirement.

As part of their strategy, half (50%) of unretired homeowners plan to rely on the sale of their home to set themselves up for retirement. Yet only 30% of Canadians who do not own a home say they have enough money coming in to save, and 62% are worried about the impact of interest rates on their ability to buy a home.

Meanwhile, a growing proportion of unretired homeowners are concerned about their ability to pay off their mortgage so they can retire when planned (65%, up 14 pts from 2024). In fact, 66% of homeowners with a mortgage say their payments have increased in the past year or are expected to go up within the next 12 months. Of this group:

• 78% agree the increase has meant or will mean cutting back in other areas to continue to afford their housing.
• 78% agree the increase has or will reduce their ability to save for retirement.

Non homeowners struggling, less prepared for retirement 

With affordability top of mind for many, more than a third (36%) of Canadians report having less than $5,000 in savings, including for retirement, and one-in-five (20%) have no money saved. Those who do not own a home are significantly more likely to have less than $5,000 saved (57% vs. 19% of homeowners).

The rising cost of rent is also a concern for most (84%) non-homeowners. In fact, the top financial priority for non-homeowners is paying rent (66%), while homeowners are more likely to focus on saving for retirement (54%). Only 38% of non-homeowners selected saving for retirement as a priority.

This may help explain why unretired homeowners are twice as likely as non-homeowners to have ever saved for retirement (71% vs. 36%).

Notably, the results suggest having a workplace pension can help Canadians save more, regardless of homeownership. Just 13% of homeowners and 50% of non-homeowners with pensions reported having less than $5,000 in savings, compared with 33% of homeowners and 66% of non-homeowners without retirement benefits.

Canadians see pensions as key to retirement security

Canadians continue to face rising prices, rents and mortgages, leaving many concerned about how these challenges could affect their futures:

• 66% of unretired Canadians expect to continue working in retirement to support themselves financially.
• 49% of all Canadians are concerned about outliving their retirement savings and 46% expect their quality of life to decrease in retirement.

Having a pension improves Canadians’ outlook. Canadians with a defined benefit (DB) pension are most likely to agree they will be able to meet their financial needs in retirement (59%), followed by 55% of those with a defined contribution pension and 30% of those without retirement benefits.

Most Canadians also recognize the value pensions provide, with nearly two-thirds (62%) agreeing that amid global uncertainty, workplace pensions are of greater value for individual contributors.

Underscoring this, an overwhelming majority of Canadians (88%) would choose to pay 9% of their salary, with contributions matched by their employer, to a DB pension plan in exchange for a lifetime income in retirement. Canadians of all ages see the value of a DB pension and would opt-in if they could, including:

• 82% of those aged 18 to 34
• 88% of those aged 35 to 54
• 92% of those aged 55 to 64
• 93% of those 65+

Conclusion

Amid mounting affordability challenges, broad economic uncertainty and ongoing trade tensions, most Canadians are prioritizing their daily expenses over saving for retirement. Those who do not own a home, as well as homeowners with rising mortgage payments, are especially worried about the impact of their housing expenses on their ability to afford day-to-day expenses.

Remarkably, these difficulties have not diminished Canadians’ desire to contribute to a defined benefit (DB) pension plan in order to receive a secure, lifetime income in retirement. This reflects Canadians’ understanding of the importance of retirement security, and the value of a DB pension for workers.

The findings suggest Canadians understand the societal value provided by pensions and believe more workplaces should offer these benefits:

• 83% of Canadians agree it is in everyone’s best interest for more people to have better retirement savings.
• 78% agree companies have a responsibility to offer a pension plan that workers can access for adequate retirement income.
• 73% agree that regardless of economic conditions, companies could afford to offer workers good pensions if they wanted to.

These findings are based on an online survey of 2,000 Canadians aged 18 and older from April 11 to 16, 2025. A random sample of panelists was invited to complete the survey from a set of partner panels based on the Lucid exchange platform. These partners typically use double opt-in survey panels, blended to reduce potential skews in the data from a single source. The margin of error for a comparable probability-based random sample of the same size is +/- 2.19%, 19 times out of 20. The margin of error will be larger for data that is based on sub-groups of the total sample. The data were weighted according to census data to ensure the sample matched Canada’s population according to age, gender, educational attainment and region. Totals may not add up to 100 due to rounding.

I think the most telling finding is most Canadians would be willing to contribute 9% of their salary to a DB pension if their employer matches their contribution in order to have lifetime income during retirement. 

Our politicians in Ottawa need to wake up and have a royal commission on retirement security to explore ways we can address the needs of a growing population that wants a DB pension.

Alright, let me end it there, I suggest everyone reads the report in detail here. 

Below, Blueprint Financial discusses the retirement crisis in Canada in 9 minutes, referring to HOOPP's findings. Take the time to watch this and ask your politicians to take retirement security more seriously -- it's a national crisis. 

And no, most Canadians don't need $1 million to retire but they certainly can't retire on $5,000 or less in savings and people need to wake up and crunch the numbers properly. Parallel Wealth explains and to be truthful, I have some questions on some of his numbers but he highlights important points worth noting.