BCI announced today a significant minority equity stake in Broadstreet Partners:

On April 10, 2025, BroadStreet Partners (the “Company”) announced that BCI, Ethos Capital, and White Mountains Insurance Group, Ltd. will acquire a co-control ownership position in the Company, alongside current investor, Ontario Teachers’ Pension Plan.

“BroadStreet is a marquee insurance brokerage platform with a differentiated agency partnership strategy that drives sustainable long-term growth with entrepreneurial ‘Core Partners’ across North America,” said Derrick Estes, Senior Managing Director, Private Equity at BCI (featured above). “BCI’s investment demonstrates our confidence in the BroadStreet strategy, their experienced management team, and the organic and inorganic growth opportunities ahead. We’re pleased to co-invest alongside our partner, Ethos Capital, and prominent insurance specialist, White Mountains, to support BroadStreet in driving future growth.”

Learn more about this investment in the BroadStreet news release.

The news release states Ethos Capital, BCI, and White Mountains will partner with BroadStreet and Ontario Teachers' to drive the next chapter of growth:

COLUMBUS, Ohio & BOSTON & TORONTO--(BUSINESS WIRE)--BroadStreet Partners (“BroadStreet” or the “Company”), a leading North American insurance brokerage company, announced today that an investor group led by Ethos Capital (“Ethos”), British Columbia Investment Management Corporation (“BCI”), and White Mountains Insurance Group, Ltd. (“White Mountains”), will acquire an ownership position in BroadStreet. Under the terms of the agreement, Ontario Teachers’ Pension Plan (“Ontario Teachers’”) will maintain a significant co-control stake and operate in partnership with the Ethos-led investor group.

BroadStreet is a leading middle-market insurance brokerage focused on commercial and personal property & casualty and employee benefits. BroadStreet partners with leading independent insurance agencies, known as Core Agency Partners. Complementing its M&A capabilities and capital solutions, the Company provides a vast network of market resources, tools, and expertise to its Core Agency Partners, working alongside them to drive organic growth and improve agency performance.

BroadStreet is unique in the market because of its co-ownership model with more than 800 colleagues that own equity in their local Core Agencies. The co-ownership approach creates focused alignment between BroadStreet and its Core Agency Partners around growth and value creation. The partnership with Ethos and its co-investors will support BroadStreet’s long-term plans, including its continued investment in technology and digital transformation.

Mike O’Connor, Chief Executive Officer, BroadStreet said: “BroadStreet is uniquely positioned as the partner of choice for successful entrepreneurs seeking new avenues for growth. Our differentiated co-ownership model and proven strategy empower our 30 Core Agency Partners to scale their businesses with confidence. For over a decade, the Ontario Teachers’ team has been a value-added partner to us. We are excited to continue this collaboration and now join forces with Ethos, BCI, and White Mountains, leveraging their collective expertise to enhance our capabilities and drive sustained growth.”

Rick Miley, Founder and Board Member, BroadStreet said: “We are proud of the tremendous growth that we have achieved on our journey over the last dozen years with the support of Ontario Teachers’. We now look forward to continuing and strengthening that partnership with the addition of the new Ethos-led investor group. We see tremendous value in being able to tap into the combined expertise of the Ontario Teachers’ and Ethos-led teams to the benefit of our Core Agency leaders. By coming together, BroadStreet is taking a significant step forward on our mission to become the preferred home for premier insurance agencies in North America.”

Ethos Capital invests in seasoned companies like BroadStreet, with proven business models and management teams, which are ready for accelerated growth, sustainable long-term value creation, and enhanced performance. The firm’s unique Executive Partner model pairs experienced investors and industry practitioners with the leaders of its portfolio companies, partnering in their growth.

Brent Stone, Managing Partner, Ethos Capital said: “BroadStreet has developed a highly differentiated business model – consistently building its expertise and scale through its industry network and a growing set of Core Agency Partners. Our Ethos leadership team and co-investors have significant experience in accelerating growth and long-term value creation for high-performance companies including in the insurance sector. We look forward to partnering with an executive of Mike’s caliber and his team to pursue their future growth ambitions.”

Ontario Teachers’ acquired a majority stake in BroadStreet in 2012 and has taken an active role in supporting the organization’s growth by focusing on long-term value creation. Under its ownership, BroadStreet has meaningfully scaled the business and become one of the top private brokerages in North America, with a presence in all 50 U.S. states and all 10 Canadian provinces. The business has consistently delivered strong operational performance by leveraging its extensive local relationships and nationwide expertise.

Jeff Markusson, Senior Managing Director, Private Capital, Ontario Teachers’ and BroadStreet Board Member commented: “BroadStreet has experienced tremendous growth as a result of its unique co-ownership model and strong management team. As we continue to focus on creating long-term value at BroadStreet, we are delighted to bring in like-minded partners with a proven track record in the insurance industry. Ethos and its co-investors share our vision of growing BroadStreet into the premier insurance brokerage company in North America by capitalizing on sectoral tailwinds and accelerating both organic and inorganic growth efforts.”

Ardea Partners served as lead financial advisor to Ontario Teachers’ and BroadStreet, and RBC Capital Markets and BMO Capital Markets served as co-advisors. Latham & Watkins LLP and Torys LLP served as legal counsel to Ontario Teachers’ and BroadStreet. Kirkland & Ellis LLP served as legal counsel to Ethos Capital. Debevoise & Plimpton LLP served as legal counsel to BCI. Cravath, Swaine & Moore LLP served as legal counsel to White Mountains.

About BroadStreet Partners

BroadStreet Partners is an insurance brokerage company headquartered in Columbus, Ohio. The Company invests in select, entrepreneurial, high-performing independent agencies looking for capital support and partnership. With 30 Core Agency Partners, BroadStreet provides ownership opportunities for more than 800 agency professionals across the U.S. and Canada. The company is a top North American private brokerage firm according to Insurance Journal's 2024 Top Property/Casualty Agencies. www.broadstreetcorp.com

About Ethos Capital

Ethos Capital is a global investment firm that makes majority and minority control investments in middle-market companies, primarily across North America and Europe. The firm’s 21 Executive Partners collaborate with its portfolio companies, providing them with a network of resources and expertise to strategically enhance operations and accelerate their growth. For more information, visit www.ethoscapital.com.

About Ontario Teachers’

Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $266.3 billion as of 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.

About BCI

British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada, with C$250.4 billion in gross assets under management as of March 31, 2024. Based in Victoria, British Columbia, with offices in Vancouver, New York, and London, U.K., BCI manages a portfolio of diversified public and private market investments on behalf of its British Columbia pension fund and institutional clients.

BCI Private Equity actively manages a C$31 billion global portfolio of privately held companies and funds with the potential for long-term growth and value creation. Leveraging sector-focused teams in financial services, business services, consumer, healthcare, industrials, technology, media and telecommunications, BCI works with strategic private equity partners to source and manage direct and co-sponsor/co-investment opportunities. Learn more at www.bci.ca.

About White Mountains

White Mountains Insurance Group, Ltd. (NYSE: WTM) is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange and the Bermuda Stock Exchange under the symbols WTM and WTM.BH, respectively. Additional financial information and other items of interest are available at the company's web site located at www.whitemountains.com.

Before I share my thoughts, it's worth going back to February 2012 when OTPP announced it acquired a majority interest in BroadStreet:

TORONTO - Ontario Teachers' Pension Plan (Teachers'), through its private investment department, Teachers' Private Capital (TPC), today announced that it has entered into a definitive agreement for the acquisition of a majority interest in BroadStreet Capital Partners (BroadStreet), a U.S. holding company that makes majority interest investments in high-performing independent insurance agencies.

Together with Century Capital Partners (Century), Teachers' will acquire approximately 84 percent of BroadStreet from State Automobile Mutual Insurance Company (State Auto).  The remaining share of the company will be retained by State Auto and BroadStreet CEO Rick Miley. In addition to their initial equity investment, Teachers' and Century have committed to provide follow-on capital to support future investments by BroadStreet in the United States. Terms of the transaction are not being disclosed.

Based in Columbus, Ohio, BroadStreet is focused on the middle-market retail insurance brokerage industry in both commercial and personal P&C insurance. With its partner agencies, BroadStreet ranks among the top insurance agencies in the U.S., with annual revenue in excess of $100 million.

"BroadStreet has developed an attractive business model and a proven ability to create value in a highly fragmented market," said Jane Rowe, Senior Vice-President, TPC. "With our partners Century, we look forward to supporting BroadStreet's strong leadership team as it continues to pursue attractive growth opportunities."

"In BroadStreet we are pleased to be able to back a management team of the highest calibre in a sector we believe has enormous growth potential," said Davis Fulkerson, Managing Partner at Century Capital.

"We are very pleased to have the support of investors of the quality of Teachers' and Century, as well as the on-going support of our founding partner State Auto," said BroadStreet CEO Rick Miley.  "We look forward to working together to continue BroadStreet's track record of successful growth."

In May 2020, Century Focused Fund III exited its investment in BroadStreet via a recapitalization of the business, leaving OTPP as the majority owner of the business.

According to Century:

BroadStreet Partners is a diversified commercial and personal insurance brokerage business. The company has a unique acquisition strategy through which they acquire a majority interest in “core” agencies, allowing the agency management team to maintain an equity interest in the business post-transaction. 

That's a big differentiator and as stated in the press release:

BroadStreet is unique in the market because of its co-ownership model with more than 800 colleagues that own equity in their local Core Agencies. The co-ownership approach creates focused alignment between BroadStreet and its Core Agency Partners around growth and value creation. The partnership with Ethos and its co-investors will support BroadStreet’s long-term plans, including its continued investment in technology and digital transformation. 

This remains me a little bit of Pete Stavros at KKR forging a new path for capitalism giving employees an equity stake. 

Look at this from BroadStreet's website:

That last point is worth repeating: "BroadStreet’s majority owner is a pension plan (OTPP), which has a uniquely long investment horizon and allows us to build a sustainable business."

The press release states "Ontario Teachers' will maintain a significant co-control stake and operate in partnership with the Ethos-led investor group."

Teachers' Private Capital has made significant investments in financial services: property and casualty insurance, asset and wealth management, consumer finance, commercial finance, financial technology and services businesses.

It's basically a leader investing in private insurance companies as is CDPQ.

Great insurance businesses are great assets to own over the long run, just ask the Oracle of Omaha.

Alright, lt me wrap things up.

Before I forget, BCI recently announced it is supporting Blackstone in Rogers Communication infrastructure JV

“BCI is pleased to support Blackstone through partially funding their equity investment in the new Rogers Communications joint venture subsidiary holding backhaul network infrastructure,” said Daniel Garant, Executive Vice President & Global Head, Public Markets, at BCI. “Rogers is a longstanding and respected Canadian company, with a strong network of telecommunications infrastructure. Blackstone’s equity investment will ultimately enable Rogers to unlock greater value from their existing assets.”

Read more about the consortium’s investment in Rogers here

Also, BCI recently posted this on LinkedIn:

Ramy Rayes, BCI’s Executive Vice President of Investment Strategy and Risk, recently shared insights in an interview about our new mandate to oversee $2 billion for the Four Pillars Society. This not-for-profit organization represents the financial interests of 325 First Nations across Canada.

This significant mandate is part of a $2.8 billion settlement fund granted by the Government of Canada to address the loss of culture and language rights due to residential schools. The Four Pillars Society has entrusted BCI with the stewardship of these funds, marking a momentous milestone in the management of Indigenous capital in Canada.

At BCI, we are committed to growing and safeguarding these collective assets with our total portfolio approach, in-house asset management capabilities, and responsible investment leadership.

Read the full article to learn more about this important partnership here.

That's a wrap. 

Below, Peter Berezin, BCA's Chief Global Strategist, joins 'Fast Money' to talk how trade concerns continue to pressure markets. I highly suggest you follow Peter on X here.

Also, osh Brown, CEO of Ritholtz Wealth Management, joins CNBC's "Halftime Report" to share his view on the volatility in the market right now.

James Bradshaw of the Globe and Mail reports Ontario fund manager IMCO earned 9.9% in 2024, its best year since inception:

Investment Management Corporation of Ontario’s first five years in the market included a global pandemic, war in Ukraine and high inflation – and even after that, chief executive officer Bert Clark said it feels “jarring” to watch the current chaos and uncertainty gripping investors.

On Wednesday, IMCO reported an average gain of 9.9 per cent for its clients in 2024, which was the pension fund manager’s best single-year performance since it was created to consolidate public-sector fund assets in Ontario in 2017.

Yet the wild swings in public markets over the past week – as U.S. President Donald Trump surprised investors with the severity of tariffs imposed on trading partners – had Mr. Clark looking nostalgically back to a calmer time last year.

“None of us have been in an environment where it feels like the stock market is being driven entirely by one person’s pronouncements,” Mr. Clark said in an interview. “That’s quite unusual.”

The challenge, he said, is how to test the pension fund manager’s portfolios against conditions that are constantly changing. Within hours of the interview, Mr. Trump announced a 90-day pause on reciprocal tariffs he announced one week earlier, but doubled down on his trade war with China.

Trade upheaval is prompting IMCO – and other major Canadian pension funds – to reassess how much exposure they want to the United States and the U.S. dollar. IMCO has 52 per cent of its $86-billion of assets invested in the United States.

“The U.S. is currently signaling that it wants to play a fundamentally different role in the international community, and as regards international trade,” he said.

“Does that mean you need to fundamentally rethink the role the U.S. and the U.S. dollar play in your portfolio?” he added. “Those are exactly the questions that we’re asking ourselves, and we haven’t come to any conclusion yet.”

Last year, IMCO’s publicly-traded stock portfolio gained 24.2 per cent, and private equity investments were up 16.4 per cent. Infrastructure and credit assets returned 8 per cent, while real estate lost 0.8 per cent.

Over its first five years of investing, IMCO’s average annual return was 4.2 per cent, which fell short of IMCO’s long-term targets. That is partly a result of a tumultuous half-decade for investors that included IMCO’s 8.1-per-cent loss in 2022.

But it is also an offshoot of the years of work IMCO has been doing to knit together the disparate collection of legacy assets it inherited when its clients joined to form a portfolio with a more coherent strategy.

IMCO has eight clients, the largest of which are the Workplace Safety and Insurance Board and the Ontario Pension Board.

“This is a year we’re proud of, and we’re particularly proud of it because it reflects a lot of work over the last five years to reposition every one of the strategies and the client’s total portfolios,” Mr. Clark said. “These are returns that feel like our returns, and they reflect our approach to investing.”

Mr. Clark said the major work to revamp IMCO’s portfolio is done, and that recent returns – this year’s 9.9-per-cent gain, and last year’s 5.6-per-cent return – are a better reflection of what clients can expect in the future.

To be sustainable over the long run, IMCO needs to earn 6.5 per cent to 7.5 per cent per year, on average, he said.

In pursuit of steadier returns, Mr. Clark said IMCO aims to avoid “unnecessary complexity,” does not try to time the market, and steers clear of big bets that could punch a hole in its returns.

After European battery maker Northvolt AB filed for bankruptcy protection last year, IMCO marked down its US$400-million investment in the company, as did other major investors. “That was of a size where it didn’t impact overall good returns,” Mr. Clark said.

Layan Odeh of Bloomberg also reports IMCO gained 9.9% last year, fuelled by stocks and private equity:

Investment Management Corp. of Ontario returned 9.9% last year, driven mainly by gains in stocks and private equity holdings.

The results for the Canadian pension manager “reflect the strength of our disciplined, long-term approach to investing,” Chief Executive Officer Bert Clark said Wednesday in a statement.

IMCO’s stock holdings gained 24.2% and private equity investments returned 16.4%, while the real estate portfolio declined about 1%.

As of July, IMCO discontinued its public market alternatives strategy, which employed active and niche strategies uncorrelated to the equity markets — such as mortgages, structured credit and risk transfers. The asset class returned 6.2% last year and comprised 2% of the total portfolio. The strategy is now pursued in IMCO’s public equities and global credit.

Canadian pension fund managers are dealing with a different reality since US President Donald Trump launched tariffs globally, wreaking havoc on markets. “Our portfolio is constructed and managed to be resilient to volatility,” Chief Investment Officer Rossitsa Stoyanova said in an emailed statement to Bloomberg. “In private markets, our approach has always been to avoid investments with ‘stroke of the pen’ risk.”

Assets under management rose to C$86 billion ($60.6 billion) at year-end. The US accounted for 52% of that total — up from 42% in 2021, while Canada made up about a third of the portfolio and Europe 11%.

Stoyanova said that IMCO doesn’t time the markets or make adjustments based on near-term market events, and instead focuses “on the things we can control – managing costs and liquidity effectively; and systematically rebalancing our portfolio,” she said. 

The Toronto-based fund manager wrote down its $400 million investment in Northvolt AB, the electric vehicle battery maker that filed for bankruptcy protection last year. 

IMCO was founded in 2016 to consolidate the management of a number of retirement funds for government workers in Ontario, Canada’s most populous province.

Earlier today IMCO issued a press release stating it achieved a 9.9% return in 2024:

Strong returns driven by disciplined, long-term investment approach

2024 HIGHLIGHTS

• Delivered positive absolute returns across all asset classes, except real estate
• Grew assets under management (“AUM”) to $86 billion, up from $77.4 billion in 2023
• Over five years, grew AUM to $86 billion from $73.3 billion and distributed over $7 billion to clients
• Became Strategic Asset Allocation advisor to clients
• Recognized as a Greater Toronto Top Employer for a second consecutive year

TORONTO (April 9, 2025) – The Investment Management Corporation of Ontario ("IMCO") announced today that the weighted average net return of its clients’ portfolios was 9.9 per cent for the year that ended Dec. 31, 2024. This was IMCO's strongest performance since inception. Assets under management ("AUM") rose to $86 billion.

"While we don't measure success based solely on one-year returns, we are pleased with our 2024 results. They reflect the strength of our disciplined, long-term approach to investing," said Bert Clark, President and Chief Executive Officer of IMCO. "We avoid unnecessary complexity and focus on building well-diversified, cost-effective portfolios for our clients, with strong liquidity management."

Except for real estate, IMCO delivered positive absolute returns across all asset classes in 2024, led by public equities and private equity. In public equities, IMCO’s mix of passive, factor and focused fundamental investment strategies delivered strong absolute returns of 24.2 per cent. Private equity’s 16.4 per cent return was driven by solid operating performance across a diversified set of portfolio companies. Total returns also benefited from the appreciation of the US dollar.

"We believe that helping our clients select the optimal asset mix, while avoiding market timing, big bets and unnecessary complexity, and pursuing outperformance in a very targeted way, positions us to effectively navigate an uncertain environment for our clients," said Rossitsa Stoyanova, Chief Investment Officer of IMCO.

Over the last five years, IMCO has adjusted asset class strategies and helped clients modify their target asset mixes, with a view to generating better long-term investment results. IMCO results now reflect that work at the asset class and client portfolio design level.

Read IMCO's 2024 Annual Report

ADDITIONAL BACKGROUND

 

ABOUT IMCO

The Investment Management Corporation of Ontario ("IMCO") manages $86 billion of assets on behalf of its clients. Designed exclusively to drive better investment outcomes for Ontario's broader public sector, IMCO operates under an independent, not-for-profit, cost recovery structure. We provide leading investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. As one of Canada's largest institutional investors, we invest around the world and execute large transactions efficiently. Our scale gives clients access to a well-diversified global portfolio, including sought-after private and alternative asset classes. Follow us on LinkedIn and X @imcoinvest.

Also today, Bert Clark, IMCO's President and CEO posted this comment on LinkedIn:

A MILESTONE YEAR FOR PERFORMANCE

2024 marked a pivotal year for IMCO. It was our fifth year executing on our investment strategies (giving us a five-year track record). I’m proud to share that this was our strongest year ever, with a one-year weighted average net return of 9.9 per cent. While we don't measure our success based on one-year results, we were very pleased.

Public markets outperformed significantly this year and apart from real estate, we delivered positive returns across all asset classes. These results underscore the effectiveness of our disciplined, long-term approach to investing.

We focus on building cost-effective, well-diversified, growth-oriented portfolios that are tailored to our clients’ objectives and risk tolerances. We maintain adequate liquidity to avoid being a forced seller during times of market stress and we look to outperform only in areas where we have a real comparative advantage. Our strategy also avoids unnecessary complexity, large concentrations and outsized risk-taking. We don’t pursue short-term tactical changes in asset mix, and we don't believe in trying to time the markets.

This steady, measured approach positions our clients well to achieve their long-term goals.

Our overall results have continued to improve as we have shifted more clients into our recommended asset mix in recent years. However, our current range of client results shows that some client asset mixes don’t yet fully reflect our advice. As we continue transitioning more clients to our recommended Strategic Asset Allocations (“SAAs”) and disposing of off-strategy investments, we expect the range of performance among clients to narrow and overall results to improve further.

CLIENT SUCCESS AT THE FOREFRONT

Our clients remain at the heart of everything we do. This year, we achieved our highest-ever client satisfaction survey results, resulting from increasing service levels, capabilities, and dedication of our team. We also welcomed four new clients, bringing our total to eight.

A major milestone in 2024 was becoming the primary asset mix advisor for our clients. This shift represents a critical step forward in aligning our clients’ portfolios with their long-term goals and IMCO’s recommended SAAs.

STRENGTHENING OUR CULTURE

The achievements of 2024 were only possible because of the incredible talent and dedication of our team. This year, we launched a comprehensive Talent Management Strategy to ensure IMCO remains a leading investment manager and an employer of choice in Ontario. We introduced new leadership development and people management programs to support our staff in their professional growth.

For the second consecutive year, IMCO was recognized as a Greater Toronto Top Employer. This honour reflects our commitment to fostering a purpose-driven culture and ensuring our people thrive both personally and professionally.

FINANCIAL STEWARDSHIP AND COST EFFICIENCY

Costs matter--especially in investment management, where they directly impact net returns for our clients. I’m pleased to report that IMCO achieved our 2024 investment results while keeping costs under budget, demonstrating the team’s focus on maintaining cost efficiency and scalability.

As we continue to scale our business, we remain committed to exploring opportunities to improve cost efficiency without compromising the quality of our services. This disciplined approach is integral to our five-year strategy and to supporting our clients’ fiduciary responsibilities.

LOOKING AHEAD

I want to thank our team for their hard work and commitment to our mission. Together, we are well-positioned to build on the successes of 2024 and continue delivering strong, sustainable outcomes for our clients.

Alright, what a day in the markets so I'm going to cover IMCO's results quickly and end with some clip's on today's market action.

First, not surprised, solid results reflecting an asset mix that is almost 50% in Public Markets (23% Public Equities, 24% Fixed Income) and global equities were on fire last year:

As shown below, Public Equities, Private Equity, Infrastructure and Credit led the charge with Fixed Income coming in flat and Real Estate down a little less than 1%: 

Again, solid year even if IMCO underperformed its benchmark by 240 basis points (9.9% vs 12.3%).

Among the asset classes, the biggest underperformance relative to the benchmark was in Global Infrastructure (8% vs 16.4%) which tells me they have a listed Infrastructure benchmark with lots of beta but if you look at 5-year returns, they outperformed their benchmark there (6.8% vs 4.7%).

Real Estate still has ongoing issues with legacy assets in Office and Retail but it seems to be getting better there as they reposition that portfolio (takes time).

Bert Clark addressed the $400 million hit from Northvolt -- the biggest exposure there along with OMERS -- and said it didn't impact overall returns as they are diversified.

Some anonymous person emailed me to tell me the people in charge of Northvolt were given promotions but I can't verify any of these claims and again, Northvolt was written off and only made a small part of their overall portfolio.

Like I said, overall results were solid and to be expected given IMCO's asset class, nothing really earth shattering even if it was their "best year since inception."

Markets have shifted dramatically this year, so I expect large Canadian pension funds like IMCO who have more exposure to public markets to feel the pain if we see this volatility continues for the remainder of the year.

I leave you with the Q&A with IMCO's CIO Rossitsa Stoyanova from the Annual Report:

I would have liked to go over the results with Rossitsa but nobody from IMCO contacted me and to be honest today I was too focused on markets to talk pensions.

Also worth publicly sharing that IMCO and BCI are the only major Canadian pension funds that do not support this blog.

I invite both their CEOs to do the right thing by supporting this blog financially and by sharing insights with my readers.

I work hard to cover all pensions fairly and appreciate all of you who support the work that goes into it.

Lastly, it was an insane day in the markets and let me quickly share with you what I think happened.

Trump blinked/ caved but what led him to his decision to pause tariffs for 90-days, maintaining a 10% base tariff for all countries except for Canada and Mexico where he maintained the same tariffs and China where he increased the tariff again to 125% in response to their latest retaliation. 

Put simply, he didn't seem to care much as stocks sold off but once Treasury Secretary Scott Bessent told him there were cracks in the bond market, and once he heard Jamie Dimon and Larry Fink say the US was likely in a recession, he wisely decided to pause the tariffs and work on negotiations.

Also, politically, he was losing Republican support and he needs to pass his tax cuts which stood little chance of passing as long as this tariff fallout kept going on.

His morning ‘buy’ call netted huge returns for those who listened as stocks shot up in a historic reversal in afternoon trading after he announced a walkback on some tariffs.

It was a day to remember but it's worth remembering this was mostly short covering, a massive short squeeze, and rates remain elevated as the bond market faces many headwinds, including rising inflation expectations.

All this to say we avoided total disaster but are not out of the woods by any stretch of the imagination and tariffs remain a problem, albeit much more predictable for now except for China where problems persist.

For now, investors are breathing a sigh of relief.

Below, Mohamed El-Erian, Allianz chief economic advisor, joins ‘Closing Bell’ to discuss Trump’s tariff pause on some countries and why he says more needs to be done.

Next, Dan Niles, Niles Investment Management founder, joins 'Closing Bell Overtime' to talk how to digest Wednesday's market rally.

Third, Stephen Roach, former Morgan Stanley Asia chair and Yale Law School’s Paul Tsai China Center senior fellow, joins 'Fast Money' to talk the escalating trade war between the US and China.

Lasrtly, NBC News goes over today's events and interviews former Ambassador to China Gary Locke to discuss how both sides will suffer if this trade war with China persists.

CDPQ released its 2024 Sustainable Investing Report, exceeding its climate targets:

CDPQ published today its Sustainable Investing Report for the year ended December 31, 2024.

This report highlights CDPQ’s results in 2024, including exceeding its climate targets earlier than planned in its climate strategy enhanced in 2021. CDPQ has also made progress on several social and governance fronts over the past year.

With this report, CDPQ confirms that its long-term strategy for sustainable investing is beneficial for its global performance, enabling it to manage complex and growing risks and to seize the best opportunities to deploy its constructive capital in Québec and around the world.

“Sustainable investing is an integral part of our fiduciary duty. To achieve the best performance for our depositors, we must align our capital with strong business models that create value now and will do so in the future. I would like to congratulate our teams for the colossal work that has been accomplished, having reached our targets faster than anticipated,” said Charles Emond, President and Chief Executive Officer of CDPQ. “We will need to continue finding the balance between ambition and pragmatism in our approach to take into account the current environment that companies are navigating. But always with a long-term view in order to have assets that are well positioned for the future. This is the best way to fulfill our mandate for the pensions of more than six million Quebecers.”

“CDPQ’s leadership in sustainable investing, both in Québec and around the world, is real and recognized. This leadership position opens doors to the most innovative partners and facilitates access to excellent opportunities, ensuring our continued success in the coming years,” said Marc-André Blanchard, Executive Vice-President and Head of CDPQ Global and Global Head of Sustainability. “We continue to view sustainable investing as an expression of our constructive capital both to ensure the resilience of our portfolio and generate optimal long-term returns. The transition must be analyzed through both the prism of risk management and investment opportunities.”

Environment

Climate targets have been achieved through CDPQ’s investments in low-carbon or low-footprint assets, the decarbonization of its portfolio companies and engaging in proactive dialogue with portfolio companies:

• $58 billion in low-carbon assets, including $15.5 billion in Québec, representing an overall increase of $40 billion in low-carbon assets since 2017, thereby exceeding the target of $54 billion by 2025.
• A 69% decrease in our portfolio’s carbon intensity since 2017, exceeding the target of a 60% reduction by 2030.
• $330 billion in assets with a low-carbon footprint, or nearly 80% of its total portfolio.
• $6.2 billion in transition assets to decarbonize the highest-emitting sectors.

Social

CDPQ values openness and a variety of perspectives to enrich its decisions and enhance its performance, both internally and in the composition of portfolio company Boards of Directors and external managers. It also adheres to fair tax principles across its activities and analyzes each investment opportunity according to demanding criteria:

• 47% of its employees and 42% of its Board of Directors are women.
• 27% of its employees in Canada identify as members of one of the following groups: visible minorities, ethnic minorities or Indigenous people.
• 73% of its actively managed public companies had at least 30% women on their Boards of Directors, representing an increase of 78% over four years.
• 310 pre-investment opinions on tax practices were issued.

Governance

CDPQ positions governance at the heart of its practices and investments. It works on optimizing its governance practices and actively helps improve those of its portfolio companies and external managers. In 2024, its support and influence were expressed in different ways:

• 12 Québec companies supported with implementing sustainable business practices.
• Dialogue with 537 portfolio companies in which CDPQ is a shareholder.
• Using its voting rights on 34,857 resolutions at 3,326 shareholder meetings to express its sustainability convictions.
• 47% support for shareholder proposals on environmental issues.

The 2024 Sustainable Investing Report is available online.

ABOUT CDPQ

At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at December 31, 2024, CDPQ’s net assets totalled CAD 473 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.

CDPQ's 2024 Sustainable Investment Report is available here.

Below you can read the message from CEO Charles Emond:

Profitable ambitions for our depositors

The debate around the topic of sustainability is not new, but the intensity around it was unprecedented in 2024. As a long-term investor, our vision is unequivocal: sustainable investing is an integral part of our fiduciary duty.

To achieve the best performance for our depositors, we must align our capital with strong business models that create value now and will do so in the future, while taking all stakeholders into account.

Our approach has not only been profitable, it also allows us to maintain an informed and responsible view of the risks our assets will face in the years to come, and what it will take to make them more resilient, particularly in terms of climate risks.

Strong ambitions, targets achieved

Let’s take a step back. In 2017, CDPQ launched its first climate strategy, which put the organization’s leadership at the forefront of sustainable investing worldwide. Four years later, we raised and expanded our ambitions, based on clear and measurable objectives.

Today, having achieved our targets faster than anticipated, I would like to congratulate our teams for the colossal work that has been accomplished.

We have reduced the carbon intensity of our portfolio by 69% and more than tripled our low-carbon assets, which now amount to $58 billion, compared to 2017, as well as closely supported portfolio companies as they transitioned to more sustainable business models and completed our exit from oil production. In doing so, we have taken decisive action to decarbonize our portfolio, which today has close to 80% of assets that are low-carbon or low-intensity.

These are major initiatives that were well executed. And above all, we should never lose sight of the fact that this strategy has enabled us to generate excellent performance for our depositors.

Our figures bear that out: over five years, the annualized return of our approach to the energy transition has reached nearly 12%, compared to the MSCI ACWI Energy index’s position of roughly 8%. Our return was stimulated by renewable assets, which generated performance that was twice as strong as that of the oil segment of the MSCI ACWI for the period.

In short, it is possible to perform well while benefiting the planet and future generations.

Achievements beyond climate

In addition to what has been achieved to address climate change, we have made progress on other issues, such as social aspects.

Our international taxation commitment, which is aligned with the recommendations of the Organisation for Economic Co-operation and Development (OECD), remains an important focus of our approach so that businesses adopt the most responsible behaviour in their own communities. We were one of the first investors in the world to make such a commitment, convinced that fair taxation promotes stronger economies.

In addition, we have also made advancements on representation. For example, 47% of our employees are women and 27% of our employees in Québec and Canada identify as members of visible or ethnic minorities or as Indigenous people. Beyond the statistics, what does this mean? It means that we can benefit from broader perspectives, a more varied range of experiences, and therefore richer reflections and deeper debates, to better fulfill our role and cover all the angles.

A more difficult environment going forward

It goes without saying that more difficult years lay ahead. Global geopolitical tensions could create upheavals, and even lead to lost ground, especially in the energy sector. Does that make us want to change course? No. Headwinds only test our convictions.

As such, we will need to continue finding the balance between ambition and pragmatism in our approach to take into account the current environment that companies are navigating.

There was also this message from Marc-André Blanchard, Executive Vice-President and Head of CDPQ Global and Global Head of Sustainability:

The deployment of our constructive capital is a source of long-term value creation.

Financial value, because we generate performance for our depositors; economic and strategic value, because we support companies and economies; and, lastly, sustainable value, because we seek to align the return on our investments with positive impacts on society and the environment.

We analyze the current transition through two prisms: risk management and investment opportunities. On the one hand, physical climate risks, as well as those related to sustainability, are crucial for a long-term investor like CDPQ. Extreme climate events, whose strength and frequency considerably disrupt local and global economies, cannot be ignored. We therefore favour sustainable business models and the development of resilience. On the other hand, the transition and the accelerating decarbonization of the economy are generating investment opportunities that are significant, promising and profitable.

It is therefore important for us to support our portfolio companies by leveraging sustainability to protect and create value through targeted interventions that strengthen the strategic positioning of our companies, particularly in Québec.

We are pleased to present our achievements in this report. CDPQ’s leadership in sustainable investing, both in Québec and around the world, is real and recognized. For the members of our organization, it is a source of immense pride. Our leadership position also opens doors to the most innovative partners and facilitates access to excellent opportunities, ensuring our continued success in the years to come.

We continue to view sustainable investing as an expression of our constructive capital in order to remain well positioned in the transition to ensure the resilience of our portfolio and generate optimal long-term returns.

Alright, I've pretty much stopped covering these sustainable investment reports at Canada's Maple Eight because I personally believe they should be part of the annual report given how important this activity remains at Canada's large pension funds.

Admittedly, it's not my favourite topic and it's not because I'm anti responsible/ sustainable investing, it just doesn't interest me that much and I find all these large pension funds try to show how committed they are and I get it, it matters to their members.

I'm more focused on investments and I look at everything like renewable energy stocks which have been hammered by Trump's tariffs, including First Solar, a US company:

 

So nowadays I'm focusing all my attention on markets and what is getting destroyed as policy uncertainty reigns in the US.

Still, CDPQ's Sustainable Investing Report is worth discussing for a lot of reasons.

First,CDPQ is an internationally recognized leader in this area and it has a bit of a different approach than its peers. 

They also sent me a media alert earlier today and I think it's worth noting a few things. 

Let me first go back to September 2021 when CDPQ first announced its climate strategy:

Caisse de dépôt et placement du Québec (CDPQ), a global investment group, announced today its ambitious new plan to fight climate change. Since implementing the organization’s first climate strategy in 2017, CDPQ has surpassed its targets and is now looking to build on this experience to intensify its efforts in achieving a net-zero portfolio by 2050.

Leveraging the expertise its teams have acquired over the past several years, CDPQ is basing its new climate strategy on four vital and complementary pillars to meet the transition’s major challenges.

Two of these pillars build upon the organization’s accomplishments since 2017 while increasing its ambition:

• 1. Hold $54 billion in green assets by 2025 to actively contribute to a more sustainable economy. 
• 2. Achieve a 60% reduction in the carbon intensity of the total portfolio by 2030.

Two new pillars have been added to move CDPQ’s climate action into the next stage:

• 3. Create a $10-billion transition envelope to decarbonize the main industrial carbon-emitting sectors. 
• 4. Complete our exit from oil production by the end of 2022.

As a long-term investor, CDPQ designed this strategy with a distinctive approach that will deliver its depositors the return they need while helping meet the enormous challenges of climate change.

Keep those four pillars in mind and the targets they set four years ago.

What is worth noting is they reported $58 billion in low-carbon assets, including $15.5 billion in Québec, exceeding the $54 billion target by this year.

More interestingly, they exited out of oil and gas producers at the end of 2022 (pillar #4) and I noted this in Charles Emond's message:

These are major initiatives that were well executed. And above all, we should never lose sight of the fact that this strategy has enabled us to generate excellent performance for our depositors.

Our figures bear that out: over five years, the annualized return of our approach to the energy transition has reached nearly 12%, compared to the MSCI ACWI Energy index’s position of roughly 8%. Our return was stimulated by renewable assets, which generated performance that was twice as strong as that of the oil segment of the MSCI ACWI for the period.

I must admit, I am surprised their energy transition portfolio returned 12% beating out the 8% return of the MSCI ACWI Energy index, but keep in mind they have made a killing in renewable energy projects and other investments in that portfolio.

And it continues. Freschia Gonzales of Benefits and Pension Monitor reports CDPQ grows its infrastructure footprint with Verene's acquisition of Brazilian transmission assets:

Verene Energia, a power transmission platform owned by global investment group CDPQ, has agreed to acquire Equatorial Transmissão S.A., the transmission business unit of Equatorial S.A.  

The deal includes seven power transmission lines totalling 2,430 km, commissioned between 2019 and 2021, across four Brazilian states in the North, Northeast, and Southeast regions.  

The concession period for these assets extends until 2047. 

The transaction, valued at up to $1.263bn, represents CDPQ's fourth investment in Latin America’s power transmission sector since 2022.  

According to Yahoo Finance, this strategic acquisition positions Verene as a growing player in Brazil’s transmission infrastructure. 

Emmanuel Jaclot, CDPQ's executive vice-president and head of Infrastructure, said the new acquisition by their platform Verene reflects CDPQ's continued interest in investing in Brazil, which he called “a key market for us.”  

Jaclot said that the country’s power transmission sector offers “a stable and predictable regulatory framework that is attractive to our clients.” 

He added that Verene now operates over 4,000 km of high-voltage lines and is gaining scale to support Brazil's decarbonization goals. 

According to Reuters, Equatorial Energia stated that the sale concludes a profitable cycle of capital allocation in the transmission segment and enables the company to pursue new strategic directions.  

The proceeds are expected to support debt reduction, finance new projects, and potentially fund shareholder distributions. 

The agreement follows Verene Energia’s earlier acquisition of a 124-km transmission line in Pará, Brazil, in July 2024, according to a CDPQ press release.  

That deal, worth up to $210m, was CDPQ’s third transmission investment in the region within two years. 

Financial close for the current transaction is expected by December 2025, subject to customary closing conditions and approvals from Brazil’s Agência Nacional de Energia Elétrica (ANEEL) and the Conselho Administrativo de Defesa Econômica (CADE). 

Electricity transmission is a huge area where Canada's large pension funds are investing all over the world. It ties in to increased demand from data centres to the electrification of everything and it's part of  decarbonizing economies.

Anyway, take the time to read the 2024 Sustainable Investing Report here.

As Charles notes above, a more difficult environment lies ahead but they will keep their long term focus on sustainable investing and delivering the requisite returns:

It goes without saying that more difficult years lay ahead. Global geopolitical tensions could create upheavals, and even lead to lost ground, especially in the energy sector. Does that make us want to change course? No. Headwinds only test our convictions.

Below, the US clean energy industry remaining heavily dependent on foreign imports, CNBC’s Pippa Stevens reports on the tariff impact that’s sending solar stocks tumbling.

Next, Aswath Damodaran, NYU Stern School of Business professor of finance, joins CNBC's 'Closing Bell' to discuss market outlooks, how the market's tariff reaction compares to previous financial crisis, and more.

Third, Josh Brown, CEO of Ritholtz Wealth Management, joins CNBC's "Halftime Report" to explain why he believes today's positive move is a bear market bounce and how investors should navigate it.

Fourth, Tom Lee, Fundstrat co-founder and managing partner and Fundstrat Capital CIO, joins 'Squawk Box' to discuss the fallout from President Trump's sweeping new global tariffs, what he got wrong about Trump's tax policy, impact on the markets, what the administration's endgame is with tariffs, and more.

Fifth, former Treasury Secretary Lawrence Summers warned that the US is now likely headed toward a recession, and two million jobs could be lost due to President Donald Trump's tariffs. Summers, a Harvard University professor and paid contributor to Bloomberg TV, says he expects markets to head lower. He speaks on Bloomberg Television’s Wall Street Week with David Westin.

Sixth, Paul Krugman, Nobel-prize winning economist and long time NY Times columnist, discusses tariffs, trade wars, and his take on political influence in the markets. He speaks with Bloomberg's Tom Keene and Paul Sweeney.

Lastly, Bridgewater founder Ray Dalio joins 'Squawk Box' to discuss the fallout from President Trump's sweeping new tariffs, impact on markets and businesses, bringing manufacturing back to the US, state of US-China trade relations, importance of a diversified portfolio, and more.

Stock Titan reports New Gold consolidates 100% interest in its New Afton mine:

New Gold Inc. (NGD) has announced an agreement to acquire the remaining 19.9% free cash flow interest in its New Afton Mine from Ontario Teachers' Pension Plan for $300 million, consolidating its ownership to 100%. The transaction will be funded through cash on hand, existing credit facility, and a $100 million gold prepayment financing.

The gold prepayment arrangement will require delivery of gold ounces over 12 months, representing approximately 8% of the company's expected consolidated gold production during that period. The transaction is expected to close in early May 2025 and doesn't require shareholder approval.

The deal comes as New Afton enters a period of anticipated significant free cash flow growth, driven by increasing production and improved costs. The company has committed $17 million towards exploration in 2025, with a strong focus on K-Zone, following exceptional drill results from September 2024.

New Gold's $300 million acquisition of Ontario Teachers' 19.9% free cash flow interest in New Afton represents a strategically sound consolidation with compelling financial characteristics.

The transaction structure is particularly noteworthy as it avoids equity dilution while still maintaining balance sheet flexibility. By funding through a combination of cash on hand, existing credit facility, and a $100 million gold prepayment arrangement, management demonstrates disciplined capital allocation. The gold prepayment effectively functions as a form of secured debt with physical delivery rather than cash repayment, creating a clean financing structure.

While committing approximately 8% of expected consolidated gold production for the delivery period, this represents a measured sacrifice of near-term output for complete ownership of future cash flows. The transaction essentially transforms a perpetual royalty-like obligation into a time-bounded delivery commitment.

Timing appears opportunistic, with New Afton entering its strongest production cycle as the C-Zone ramps up. The elimination of the $20 million change-of-control payment provision also removes a potential impediment to future corporate flexibility.

From a valuation perspective, acquiring the final ownership piece of an asset you already operate and understand intimately reduces execution risk substantially. The transaction price likely reflects a discount to what would be required for a new acquisition with similar cash flow characteristics, given the absence of integration risk or operational uncertainty.

This consolidation of the New Afton mine's economic interest comes at a pivotal operational inflection point. The C-Zone ramp-up marks a significant expansion phase that typically drives step-change improvements in production volume and unit cost profiles in underground block cave operations.

Block cave mining represents one of the most technically complex yet economically attractive underground mining methods, with high initial capital requirements but substantially lower operating costs once established. New Gold's mention of their "extensive block caving expertise" is particularly relevant, as this specialized mining method requires significant technical capabilities that many competitors lack.

The $17 million exploration commitment for 2025 focuses on the K-Zone, suggesting high confidence in near-mine resource expansion potential. In mature mining districts, near-mine exploration typically yields the highest return on investment compared to greenfield programs.

Full ownership consolidation provides New Gold complete operational flexibility to optimize mining sequences, capital allocation, and processing decisions without considering split economic interests. This streamlined decision-making is especially valuable during expansion phases and when evaluating mine life extension opportunities.

From an operational perspective, New Afton's location in British Columbia offers significant advantages: established infrastructure, skilled labor availability, and a stable mining jurisdiction. The company's reference to "social partnerships" indicates strong community relationships, increasingly critical for operational continuity in modern mining.

Earlier today, Ontario Teachers’ issued a press release stating it has reached agreement to sell its remaining stake in future free cash flow from New Gold’s New Afton Mine:

Toronto, ON, April 7, 2025 – Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) has reached an agreement to sell its remaining 19.9% free cash flow interest in the New Afton Mine (“New Afton”) to New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) for US$300 million. New Afton is a high-quality gold and copper mine located near Kamloops, British Columbia.

Ontario Teachers’ announced a strategic partnership with New Gold in 2020, focused on the company’s New Afton mine. At that time, Ontario Teachers’ agreed to acquire a 46.0% free cash flow interest in New Afton for upfront cash proceeds of US$300 million. In 2024, Ontario Teachers’ free cash flow interest in New Afton was reduced from 46.0% to 19.9% in exchange for a cash payment of US$255 million from New Gold. Upon closing of this latest transaction, Ontario Teachers’ will have no further financial interest in New Afton.

Christopher Metrakos, Senior Managing Director, Infrastructure & Natural Resources, Ontario Teachers’ Pension Plan said:

“We are pleased with the favourable outcome of our strategic partnership with New Gold, a leading Canadian mining company. This partnership has yielded positive returns for Ontario Teachers' while providing significant support and financial flexibility to the Company throughout the investment period, enabling them to achieve commercial production at New Afton’s C-Zone ahead of schedule. We look forward to seeing continued success for New Gold and wish them well.”

Ontario Teachers' Natural Resources group operates under a global mandate to seek investments in energy, metals, timberland, agriculture and aquaculture, and natural climate solutions. These investments provide the fund with commodity-linked cash flows, inflation protection, and diversification.

About Ontario Teachers’ 

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. 

It was a long day for everyone, including me, so let me get right t it.

New Afton is a high-quality gold and copper mine located near Kamloops, British Columbia owned by New Gold.

Back in February 2020, New Gold announced a $300M partnership with Ontario Teachers’ Pension Plan and the New Afton Mine to add significant financial flexibility (all dollar figures are in USD):

Toronto, Ontario – New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) is pleased to announce that it has entered into a strategic partnership with Ontario Teachers’ Pension Plan (“Ontario Teachers’”). Under the terms of the strategic partnership, Ontario Teachers’ has agreed to acquire a 46.0% free cash flow interest in the New Afton mine (“New Afton”) with an option to convert the interest into a 46.0% joint venture interest in four years, or have their interest remain as a free cash flow interest at a reduced rate of 42.5%, for upfront cash proceeds of $300 million payable upon closing of the transaction (the “Transaction”). The proceeds from the Transaction will be used to improve New Gold’s financial flexibility and to reduce net indebtedness.

Key Transaction Highlights

• Provides New Gold with immediate cash proceeds of $300 million at an attractive cost of capital, materially reducing New Gold’s net indebtedness and increasing financial flexibility.
• New Gold retains full operating control over New Afton during development of the C-Zone as the mine transitions to expand its operating mine life.
• Ontario Teachers’ is a world-class financial sponsor whose support of New Afton serves to increase New Gold’s visibility and its vision of creating value for all stakeholders.
• Overriding buyback option provides New Gold with the flexibility to potentially re-acquire 100% of New Afton in the future.
• New Gold will retain 100% of the exploration claims outside of the New Afton mining permit area and has granted Ontario Teachers’ an option to acquire its proportionate share of these claims upon conversion into the joint venture interest.

Summary Transaction Terms

• Ontario Teachers’ will initially acquire a 46.0% free cash flow interest in the New Afton mining claim area with a four-year term (“Interim Interest”) for $300 million in upfront proceeds and New Gold will retain 100% ownership of New Afton.
• After four years, Ontario Teachers’ has an option (“JV Interest Option”) to convert the Interim Interest into a 46.0% partnership interest in New Afton (“JV Interest”) with New Gold holding the remaining 54.0% partnership interest in a limited partnership New Gold and Ontario Teachers’ will form at the time of conversion.
• If Ontario Teachers’ does not exercise the JV Interest Option, Ontario Teachers’ will continue to hold a free cash flow interest in New Afton, but at a reduced rate of 42.5% (“Reduced Interest”).
• New Gold will hold (i) an overriding buyback option to re-purchase and cancel the Interim Interest (the “Buyback Option”) during the JV Interest Option exercise period and (ii) a right of first offer for the life of the agreements.

“We are pleased to be partnering with Ontario Teachers’, one of the world’s preeminent and most well-respected investors, in this transformational transaction that provides us with up front cash allowing us to restructure our balance sheet and lower our level of net indebtedness via a true shared risk and upside partnership focused on free cash flow. This transaction provides New Gold with an attractive cost of capital, further strengthens our financial position, allows us to benefit from the full exploration potential elsewhere on the New Afton land package and provides the opportunity to re-acquire 100% of New Afton,” said Renaud Adams, President and Chief Executive Officer of New Gold. “Ontario Teachers’ is known to conduct in-depth due diligence and partner with high quality management teams that share its values of integrity and operational excellence. We look forward to our partnership with Ontario Teachers’ as we continue our mission to turn New Gold into Canada’s leading intermediate diversified gold producer.”

“We are delighted to partner with New Gold, a leading Canadian mining company, in this distinctive transaction. We gain access to a free cash flow interest from a top quality asset in a stable and well-established mining area, with the ability to convert to a JV interest in four years. Ontario Teachers' Natural Resources group has a global mandate to pursue investments that provide attractive returns and inflation protection through exposure to a basket of key commodities,” said Dale Burgess, Senior Managing Director, Infrastructure & Natural Resources of Ontario Teachers’.

After five years, OTPP has decided it's time to part ways with New Gold and this was an excellent investment and partnership for both parties.

Why now? A lot of reasons, it was part of their agreement and to be truthful, gold has done exceptionally well over the past year due to heightened policy uncertainty and higher inflation expectations.

I think now is as good a time as ever for Teachers' to sell its remaining 19.9% free cash flow interest in its New Afton Mine back to New Gold for $300 million and use that money to invest elsewhere.

It's as simple as that and as Chris Metrakos, Senior Managing Director, Infrastructure & Natural Resources, Ontario Teachers’ Pension Plan said in the press release:

“We are pleased with the favourable outcome of our strategic partnership with New Gold, a leading Canadian mining company. This partnership has yielded positive returns for Ontario Teachers' while providing significant support and financial flexibility to the Company throughout the investment period, enabling them to achieve commercial production at New Afton’s C-Zone ahead of schedule. We look forward to seeing continued success for New Gold and wish them well.”

Below, Jo Taylor, CEO of Ontario Teachers' Pension Plan, one of the world’s largest institutional investors, speaks on some of the promising investment opportunities in India. 

OTPP recently announced its participation in the latest follow-on unit capital raise by National Highways Infra Trust (NHIT), maintaining its 25% stake. NHIT is an Infrastructure Investment Trust (InvIT) sponsored by the National Highways Authority of India (NHAI), the Government of India’s nodal agency for national highway development. See details here.

Also, Dan Niles, Niles Investment Management founder, joins 'Closing Bell Overtime' to explain where he is seeing opportunity in the market and why he is still cautious on stocks long-term.

Third, Trivariate’s Adam Parker and Apollo Global's Torsten Slok, join 'Closing Bell' to discuss navigating the noise in the market, earnings and tariffs.

Lastly, DoubleLine CEO-CIO and Founder Jeffrey Gundlach joins CNBC’s Closing Bell with Scott Wapner on April 7, 2025, to discuss the recent reciprocal tariffs announced by President Donald Trump, emphasizing the significant widening of credit market spreads. He also expresses concern about the potential for leveraged investors to go bankrupt, stating, “This type of thing usually ends with forced liquidations.” Mr. Gundlach suggests maintaining a defensive position and holding cash due to expected continued volatility. In addition, he highlights rising recession probabilities, the Federal Reserve’s challenges in balancing inflation and recession risks, and the potential impact of tariffs on foreign investment in the US.

Amalya Dubrovsky , Karen Friar and Ines Ferré of Yahoo Finance report the Dow plunges 2,200 points, Nasdaq enters bear market as Trump tariffs spark worst meltdown since 2020: 

US stocks cratered on Friday with the Dow Jones Industrial Average (^DJI) plunging more than 2,200 points after China stoked trade-war fears and Fed Chair Jerome Powell warned of higher inflation and slower growth stemming from tariffs.

The Dow pulled back 5.5% to enter into correction territory. Meanwhile, the S&P 500 (^GSPC) sank nearly 6%, as the broad-based benchmark capped its worst week since 2020. The tech-heavy Nasdaq Composite (^IXIC) dropped 5.8% to close in bear market territory.

The major averages added to Thursday's $2.5 trillion wipeout after China said it will impose additional tariffs of 34% on all US products from April 10 — matching the extra 34% duties imposed by Trump on Wednesday.

That ramped up investor worries that countries are more likely to retaliate than negotiate, leading to a protracted global trade war.

Investors flocked to government bonds as the 10-year Treasury (^TNX) yield fell to 3.9%, nearing its lowest levels since October.

Economists are warning that with tariffs as-is, the risk of a US recession is rising. The monthly jobs report, unusually overshadowed Friday, showed a labor market that held steady ahead of Trump's biggest tariffs. The US added 228,000 jobs in March, beating estimates, though the unemployment rate ticked up to 4.2%.

Meanwhile, Federal Reserve Chair Powell for the first time addressed the reality of the tariffs, saying they were "higher than anticipated." He said it is "too soon to say" what the proper rate path should be. Traders have ramped up bets on interest rate cuts this year to five, as the Fed is expected to set its efforts to cool inflation aside to tackle the bigger risk of economic slowdown.

Trump, posting on Truth Social on Friday, added to fears by saying that his policies "will never change" and warning that China "played it wrong."

Brian Evans, Alex Harring and John Mellow of CNBC also report Dow drops 2,200 points Friday, S&P 500 loses 10% in 2 days as Trump’s tariff rout deepens:

The stock market was pounded for a second day Friday after China retaliated with new tariffs on U.S. goods, sparking fears President Donald Trump has ignited a global trade war that will lead to a recession.

Here’s a tally of the stock market damage:

• The Dow Jones Industrial Average dropped 2,231.07 points, or 5.5%, to 38,314.86 on Friday, the biggest decline since June 2020 during the pandemic. This follows a 1,679-point decline on Thursday and marks the first time ever that it has shed more than 1,500 points on back-to-back days.
• The S&P 500 nosedived 5.97% to 5,074.08, the biggest decline since March 2020. The benchmark shed 4.84% on Thursday and is now off more than 17% off its recent high.
• The Nasdaq Composite home to many tech companies that sell to China and manufacture there as well, dropped 5.8%, to 15,587.79. This follows a nearly 6% drop on Thursday and takes the index down by 22% from its December record, a bear market in Wall Street terminology.
• The selling was broad with only 14 members of the S&P 500 higher on the day. Major market indexes closed at their lows of the session.

China’s commerce ministry said Friday the country will impose a 34% levy on all U.S. products, disappointing investors who had hoped countries would negotiate with Trump before retaliating.

Technology stocks led the bleeding Friday. Shares of iPhone maker Apple slumped 7%, bringing its loss for the week to 13%. Artificial intelligence bellwether Nvidia pulled back 7% during the session, while Tesla fell 10%. All three companies have large exposure to China and are among the hardest hit from Beijing’s retaliatory duties.

Outside of tech, Boeing and Caterpillar — big exporters to China — led the Dow lower, falling 9% and nearly 6%, respectively.

“The bull market is dead, and it was destroyed by ideologues and self-inflicted wounds,” said Emily Bowersock Hill, CEO and founding partner at Bowersock Capital Partners. “While the market may be close to the bottom in the short-term, we are concerned about the impact of a global trade-war on long-term economic growth.”

China’s efforts to respond to Trump’s tariffs extended beyond reciprocal duties of their own. Beijing added several companies to its so-called “unreliable entities list,” which asserts that the firms have broken market rules or contractual commitments. In addition, China opened an antitrust investigation into DuPont on Friday, sinking shares nearly 13%.

The 10-year Treasury yield fell back below 4% Friday as investors flooded into bonds for safety, pushing prices up and rates lower. The CBOE Volatility index, Wall Street’s fear gauge surged above 40, an extreme level seen only during rapid market declines.

Trump appeared to be steadfast in the face of the markets backlash to his tariff blitz announced Wednesday evening, posting on Truth Social Friday that his “policies will never change.”

“The fear now as we go into the weekend [is] the trade war escalates, and the US doesn’t back down,” said Jay Woods, chief global strategist at Freedom Capital Markets.

All told, the S&P 500 dropped 9% on the week, its worst week since the breakout of Covid in early 2020.

Alright, it was a disastrous week in the stock market after Trump announced his tariffs on Wednesday.

The selling has been brutal and it hit all sectors, especially Energy, Technology, Financials and Industrials -- the so-called cyclical sectors:

    S&P 500 sector performance for past 5 days at close on April 4, 2025
 

Even defensive sectors like Staples, Utilities, Real Estate and Healthcare were down this week, there was no place to hide.

Retail stocks were obliterated this week as tariffs hit countries like Vietnam where many retailers manufacture their items:

However, some retail stocks like Nike, The Gap and Deckers Outdoor (DECK) bounced on Friday as news came out that Vietnam will likely sign a deal with the Trump administration to exempt it from tariffs.

The carnage in Technology continued this week with the Nasdaq selling off 11% over the past two days:  

This isn't just a Mag-7 story but clearly mega cap tech shares like Apple, Meta, Nvidia and Tesla had a terrible week and are weighing down the Nasdaq and other stock indexes:

 

Nvidia seems to be in a total freefall and can decline further from these levels and that makes me nervous even if I find the selloff there overdone.

And it's not just tech shares, Financials, Industrials and Energy also had a very rough week:

In total, roughly $11 trillion has been wiped away in the US stock market since January 17th when President Trump took the oath of office to start his second term. Stocks erased a combined $6.6 trillion in value on Thursday and Friday.

I think it's fair to say Trump 2.0 is getting off to a terrible start.

The wealth destruction in the US and all over the world this week is why economists are increasing their risk of a recession.

Keep in mind, the stock market is a leading indicator, it impacts consumer confidence, there's a massive negative wealth effect going on and since consumption is 70% of the economy, it doesn't portend well for economic activity going forward.

What is baffling to most economists are the tariff rates the Trump administration imposed on Wednesday are vastly higher than World Trade data shows:

Trump’s plan established a 10% baseline tariff on almost every country, though many nations such as China, Vietnam and Taiwan are subject to much steeper rates. At a ceremony in the Rose Garden on Wednesday, Trump held up a poster board that outlined the tariffs the administration contends are “charged” to the U.S., as well as the “discounted” tariffs the U.S. would implement in response.

Those reciprocal tariffs are mostly about half of what the Trump administration said each country has charged the U.S. For example, the poster said China charges a tariff of 67% and that the U.S. will implement a 34% reciprocal tariff in response.

However, a report from the Cato Institute said the trade-weighted average tariff rates in most countries are much lower than the Trump administration said. The report is based on trade-weighted average duty rates from the World Trade Organization in 2023, the most recent year available.

The Cato Institute said the 2023 trade-weighted average tariff rate from China was 3%, not the 67% the administration said it was.

The administration said the European Union charges the U.S. a tariff of 39%, but the Cato report said the EU’s 2023 trade-weighted average tariff rate was 2.7%.

In another example, the administration said India imposes a 52% tariff on the U.S., but Cato found that India’s 2023 trade-weighted average tariff rate was 12%.

And the Mickey Mouse formula they used to calculate their tariffs makes you wonder if they're serious or just looking for a shock effect.

Apart from the questionable methodology, the tariffs were not well thought out, instead of slapping  a nominal 5% tariff on everyone and then negotiating, they took out the big bazooka.

Whatever the case, these tariffs are the biggest tax since 1968, they are contractionary and they are already backfiring in a spectacular way as a full-blown trade war develops.

The so-called “Mar-a-Lago Accord” to weaken the US dollar is going to end up causing an epic global recession unless they walk these tariffs back soon, like next week.

Admittedly, I am baffled with the Trump administration, reading Trump's posts, listening to Lutnick, Navarro and Bessent this week, I get this uneasy sense they're knowingly trying to crash the global economy.

Perplexing, yes, it will cost Republicans dearly in mid-term elections if the US succumbs to a recession but none of this seems to matter much to Trump and his advisors.

And that's terrifying, there is no end in sight as this colossal policy mistake keeps getting worse.

This is why the path of least resistance is to sell stocks, starting with the riskiest sectors first.

The only good news today was the CBOE Volatility Index  (VIX) hit a 5-year high of 46 showing there was real fear as the selloff intensified:

However, I remind my readers the VIX went over 65 in March 2020 when there was real fear due to the pandemic.

Will it hit a new high next week? I hope not but I'm very nervous that without an announcement that they're rethinking their tariff strategy, policy uncertainty will only lead to more selling.

The problem with Trump is he is incapable of admitting when he's wrong and doesn't seem to listen to experts who tell him things he might not like to hear.

Still, the market is sending him and his administration a clear message, back off from tariffs or suffer the consequences.

Will they listen before it's too late? I certainly hope so but have my doubts.

Lastly, here are the best and worst performing US large cap stocks this week (data from barchart.com):

 

Below, the CNBC HalfTime Report Investment Committee react to the continued market plunge following President Trump's Tariff announcement.

Next, Avery Sheffield, VantageRock senior portfolio manager and CIO; Cameron Dawson, NewEdge Wealth CIO; and Malcolm Ethridge, Capital Area Planning Group managing partner, join CNBC's 'Closing Bell' to discuss how to position amid the market selloff.

Third, Chris Toomey, Morgan Stanley Private Wealth Management managing director, joins CNBC's 'Closing Bell' to discuss how he's advising clients during the market selloff.

Fourth, Kyle Bass, Hayman Capital Management founder and CIO, joins CNBC's 'Power Lunch' to discuss market outlooks in the wake of tariff announcements.

Fifth, Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets, joins CNBC's 'Power Lunch' to discuss how markets are reacting to tariffs, recession odds, and more.

Sixth, BCA Research Chief Global Investment Strategist Peter Berezin says the worst is yet to come for stocks and he sees the S&P 500 falling to 4,450 by year-end. And he says that call may still be too bullish. He speaks on "Bloomberg Markets."

Lastly, Oaktree Capital co-Chair Howard Marks says credit yields are still very healthy. Speaking with Lisa Abramowicz on "Bloomberg Open Interest," Marks also discusses the impact of the Trump administration's tariffs on the economy and financial markets.