Alexandra Heal of the Financial Times reports Canadian pension giant turns to Blackstone and KKR to seal infrastructure megadeals:

One of the world’s biggest infrastructure investors is turning to private capital groups to help it land megadeals, as firms such as KKR & Co. Inc., Blackstone Inc. and BlackRock Inc. expand their influence in a sector long dominated by pension funds.

Canada Pension Plan Investment Board has built almost US$80 billion in exposure to energy and infrastructure by investing directly in companies. But in the past year it has started backing some of the biggest managers’ funds, it told the FT.

“Infrastructure deals are becoming increasingly large,” said James Bryce, head of infrastructure at CPPIB. “As an investor with [a fund], are we able to open up for both of us deal opportunities that we may not have been able to chase on our own?”

CPPIB’s shift demonstrates the extent of the infrastructure market’s transformation from a backwater where deals were cut by pension plans to one of the most important strategies of the largest private capital groups.

It also underlines the growing size of infrastructure deals coming to market, as artificial intelligence and energy security become two of the world’s most popular investment themes.

Infrastructure megadeals this year include two involving BlackRock’s Global Infrastructure Partners, the acquisition of Aligned Data Centres and power group AES for US$40 billion and US$33 billion respectively.

Last year marked a record for infrastructure fundraising by firms who manage cash for institutional clients, with US$200 billion raised, according to McKinsey & Co.

“Twenty years ago, there was no $20 billion infrastructure fund,” said John Graham, chief executive of CPPIB. “If you wanted to deploy a billion dollars into this space you would have been 80 per cent of the fund… It was probably somewhere in the past five years where there was an inflection.”

GIP, which BlackRock bought two years ago, now manages US$170 billion in assets and recently raised a US$25 billion fund. KKR’s latest infrastructure fund just raised US$19 billion, and Blackstone’s open-ended vehicle now manages around US$75 billion.

Bryce said CPPIB’s infrastructure arm would still mostly invest directly in companies, but backing some funds would allow it to work with those managers to source and underwrite large deals together.

Over the past year, CPPIB has committed 500 million euros to EQT’s 22-billion-euro flagship infrastructure fund and US$750 million to KKR’s equivalent, as well as pledging to invest in Blackstone’s open-ended funds. 

This is an interesting article because CPP Investments CEO John Graham is right:

 “Twenty years ago, there was no $20 billion infrastructure fund. If you wanted to deploy a billion dollars into this space you would have been 80 per cent of the fund… It was probably somewhere in the past five years where there was an inflection.”

When I met former CEO Mark Wiseman back in 2011 (or around that time), he told me their strategy in private equity would always be to partner up with the best funds on large co-investments, and go more direct in infrastructure and real estate.

Times have changed a lot since then. What exactly happened five years ago?

Well, the pandemic happened, and it changed everything for large private equity boutiques that were more focused on private equity and real estate.

All of a sudden, their focus shifted increasingly to private credit and infrastructure, where they can massively scale into projects.

That was a game changer. Even BlackRock wanted a piece of the action and acquired GIP two years ago. 

All of a sudden, the Maple 8 Funds were no longer the only infrastructure players in town, they had massive competition.

And just like in private equity, you're not going to beat the Blackstones and KKRs of this world, much wiser to partner up with them on infrastructure megadeals when it makes perfect sense.

The good thing about infrastructure is it's a relatively stable asset class where you can deploy mega billions and since it's heavily regulated, you can manage risks appropriately and embed inflation protection in your long-dated contracts. 

I don't want to make it sound like there are no risks in infrastructure -- there definitely are; look at what a fiasco Thames Water turned out to be --  but in general it's a boring asset class with extremely long duration and that appeals to pension funds.

Of course, things are changing fast there too. There's more competition; pension funds are buying and selling assets more frequently and there are more risks than meets the eye (I will get into this with an expert in another post).

Will CPP Investments continue to buy companies directly in infrastructure? 

Sure it will. James Bryce, their Head of Infrastructure (featured above), sees all sorts of deals and when it makes sense, they will acquire companies on their own.

But the really big megadeals will continue well into the future, so expect them to partner up with KKR, Blackstone, BlackRock, EQt and others when it makes sense and those deals will figure more prominently in the future.

Interestingly, if you look at BCI's Infrastructure approach, they partner up with two or three large infrastructure investors (like Macquarie and Brookfield) and co-invest with them on large deals.

This is the right approach; this is the right strategy going forward. 

What will happen is the big funds will become larger and the medium to small funds will really need to differentiate themselves if they want to survive.

All this to say, even in boring infrastructure, the landscape is changing fast because competition for megadeals is ferocious.

Below,The AI boom is colliding with the limits of the physical world, creating opportunities well beyond chips and data centers, according to Parnassus Investments CIO Todd Ahlsten. He joins Bloomberg to discuss why the historic surge in AI infrastructure spending is entering a riskier phase, where he sees longer-term opportunities, and why traditional software companies including Salesforce, Workday and ServiceNow could face pressure as AI changes the economics of seat-based software. He joins Ed Ludlow on "Bloomberg Tech."

Also, dive into KKR’s Real Assets business. In this episode of “Dining In at KKR” KKR’s Head of Real Assets, Raj Agrawal, sits down with James Foye, a Principal on the Infrastructure team, to discuss how KKR turned a global financial crisis into opportunity, launching KKR’s Infrastructure business.

KKR created its Infrastructure business in 2008, amid tremendous volatility following the Global Finance Crisis, when existing managers struggled to protect capital. The firm’s decision to enter the space with a distinct risk-return strategy, which allows for capital preservation, reflects its bias for action that is built on a culture of empowering a team of leaders.

Today, KKR manages more than $100 billion in its infrastructure business and has successfully tested its investment thesis that private infrastructure is able to provide downside protection during periods of volatility – such as the COVID supply-chain disruptions in 2020. The team still operates with that entrepreneurship, business-owner mentality it had back in 2008.

Layan Odeh of Bloomberg reports Healthcare of Ontario Pension Plan's PE boss departs:

Healthcare of Ontario Pension Plan’s global private equity head Lori Hall-Kimm is leaving to pursue another opportunity.

Mark Cormier and Roman Gula, both managing directors within the private equity group, will succeed Hall-Kimm as acting co- heads on an interim basis and report to Chief Investment Officer Michael Wissell, according to an internal memo seen by Bloomberg.

A representative for HOOPP confirmed the contents of the memo.

Since Hall-Kimm joined HOOPP in 2022, the private equity arm’s net assets climbed to C$24.2 billion ($17.5 billion) from roughly C$20 billion. She previously spent six years at the Canada Pension Plan Investment Board, where she held several roles within its private equity unit, according to her LinkedIn profile.

HOOPP, which had C$132 billion of assets at the end of 2025, serves hospital and community-based healthcare workers in Canada’s most populous province, with more than 504,000 active, deferred and retired members.

Layan Odeh and Paula Sambo of Bloomberg also report CPPIB is said to see several departures across senior ranks: 

Canada Pension Plan Investment Board has seen several departures from its senior ranks over the past few weeks, according to people familiar with the matter.

The affected asset classes included investment risk, credit, real assets and sustainable energies, according to the people, who asked not to be identified due to the sensitivity of the matter, as well as Bloomberg News analysis and LinkedIn posts.

The “circumstances are a mix of voluntary and involuntary departures, all in line with business-as-usual retention rates and usual efficiency decisions due to evolving markets and strategies,” Michel Leduc, the pension manager’s head of public affairs, said in a statement.

The Toronto-based firm, which manages C$863.6 billion ($625 billion) in net assets, had 2,084 employees at the end of its last fiscal year, down from 2,125 from a year earlier.

“We continued to focus on operating discipline,” Chief Executive Officer John Graham said in the annual report. He added that the pension plan managed around C$220 billion more in assets with fewer employees than at the of fiscal 2023.

Just another random Wednesday when you learn of senior departures at Canada's large pension funds.

Undoubtedly, the biggest one is Lori Hall Kimm, Head of Global PE at HOOPP: 

Lori joined HOOPP in 2022 as the Head of Global Private Equity. In her role, Lori leads the Private Equity team and is responsible for the strategic, operational and investment activities for private capital. She also oversees its global portfolio, which ranges across a variety of industries and asset classes. In 2025, Lori was named to the Private Equity International Women of Influence in Private Markets list, which recognizes influential women making their mark in the alternative assets industry.

Prior to joining HOOPP, Lori spent six years with CPP Investments, most recently as Managing Director, Direct Private Equity, where she led the team responsible for the Consumer/Retail sector. Previously, she spent nearly 11 years in the Private Capital team at Ontario Teachers’ Pension Plan, helping establish their London office and leading their European fund and co-investments and also worked in investment banking at Goldman Sachs.

Lori holds a BBA (Honours) from the Schulich School of Business at York University and an MBA from the Columbia Business School. 

I never met or spoke to Lori, don't know her well but she had a stellar reputation and all the right credentials.

So why is she leaving HOOPP? To pursue another opportunity?

Maybe but I'm not going to play coy with you; it's been brutal in private equity over the last few years.

I've seen senior departures in Private Equity at CPP Investments, OTPP, OMERS, BCI and now HOOPP.

Typically, what happens behind the scenes is that differing views on strategy and/ or unsatisfactory returns lead to leaders being replaced with new leaders who are either on board with the new strategy or replaced as well.

But make no mistake, private equity has been brutal both from an absolute return standpoint as well as a relative one as public equities continue to soar into the stratosphere, led by a handful of high-flying tech names. 

Importantly, there is a structural change going on where higher rates, higher input costs, a terrible environment for distributions, are all impacting returns over the last few years.

Private equity used to be a hot asset class, professionals were sought after, nowadays, not so much.

I saw the same thing in real estate after the pandemic. La Caisse fired over half its real estate team as it shifted strategy from being an operator to solely being an investor. A lot of amazing real estate professionals were let go. It was just brutal.

All this to say, restructurings happen often at Canada's large pension funds, it's never fun and a lot of good people are let go.

Yesterday, Limin Yang posted a very nice post on LinkedIn saying he's leaving CPP Investments after 19 years. He's an investment risk leader who has worked across public and private markets as well as sustainable investing.

I reached out to him, told him I'd love a guest post on risk, and put him in touch with some consultants.

The guy is smart, experienced and let me tell you, over the next three years, you're going to need experienced risk professionals like him.

I didn't ask him why he's leaving CPP Investments, he said they restructured his group, he didn't have any hard feelings.

That's the way it should be, once you leave an organization, make sure you sign a fair package and say goodbye, adios, till we meet again, if we ever do.

Where it gets tricky is if you're fired without cause, for dubious reasons. Then my advice is to get a great lawyer, and don't stop until you receive more than a fair package because once you're let go from these shops, good luck landing an equally great job (most never do). 

So why is CPP Investments letting go of senior people across divisions?  

Simple: they are in cost-cutting mode because too many critics feel they are way, WAY overbloated as an organization and there's lots of fat to cut.

I personally think the board of directors put pressure on John Graham, and he relayed the message to his senior team.  

Nobody will ever admit this to me publicly or privately but I've seen so many restructurings at these shops, I know exactly how it works behind the scenes.

It's not fun, it's part of the ecosystem of these large organizations, and that's another reason why they pay above average, because this is rarely a job for life and when senior people get let go, it's not easy for them to bounce back and find an equally high-paying job.

Alright, enough on restructurings, brings back bad memories for me.

Below, private equity has long promised investors better returns than public markets, while offering entrepreneurs like Dan Namerow life-changing exits. But the market that made those deals work has changed. Higher interest rates have made debt-financed buyouts harder to justify, while deals struck at peak valuations in 2020 and 2021 have become more difficult to exit. 

University of Chicago Booth professor Steven Kaplan says US buyout funds largely beat public markets for decades, but that pattern has reversed since 2019, while PitchBook reports that the backlog of companies held by private equity firms has risen to more than 33,000. The result is a tougher environment where firms are being judged less on leverage and multiple expansion, and more on whether they can actually improve the businesses they buy.

Last week, IMCO CEO Bert Clark wrote a comment on LinkedIn on why it's time to look beyond some common measures of investment performance:

Many Canadian pension funds report annually on their net value add (NVA) — the extent to which their returns exceed chosen benchmarks, net of management fees and operating expenses. Sector observers sometimes treat this figure as a proxy for overall investment performance.

In recent years, many pensions have had to explain their negative NVA, particularly those with private assets that have tended to underperform public markets. In doing so, some pointed instead to their smoother long-term investment results as better indicators of overall investment performance.

But both NVA and return volatility are imperfect measures of investment success. NVA is hard to measure, typically quite small, and does not directly reflect pension objectives. And volatility does not reliably capture the risks that can impair long-term returns.

It may be time to assess pension performance through a simpler set of questions: Are target returns being met? Does the portfolio contain large risks? Are operations cost effective?

Overall return objectives as opposed to NVA

NVA can be useful when a strategy closely tracks its benchmark, such as with actively managed public equity mutual funds and their relevant indexes. It is less useful when the strategy differs materially from the benchmark, as is often the case with the private market strategies that represent a significant proportion of many pension portfolios.

NVA is also typically very small relative to total pension fund returns. CEM Benchmarking has reported that the 10-year average NVA across its pension fund database was just 18 basis points. The vast majority of overall returns are driven by investment decisions that have nothing to do with NVA, such as asset mix, asset class strategies, leverage, and currency exposure.

Most importantly, NVA says little about whether pensions are meeting the return objectives that flow from their liabilities. Rolling asset-class NVAs up into a total portfolio measure only shows performance relative to a mix of benchmarks. If the objective is to achieve a defined long-term return target, that target should be the primary measure of success.

Common secondary performance measures, such as comparisons with broad equity market indexes should, like NVA, also be approached with caution. Many indexes are too concentrated today to serve as realistic overall portfolio alternatives: US companies represent 63% of the MSCIACWI market cap; and the 10 largest US companies represent over 37% of the MSCI US index. And while peer fund comparisons can provide context for pension results, they should also be interpreted with care. Pension funds differ in term of their liabilities, inflows / outflows, risk tolerances, and investment strategies.

The best measure of investment performance for a pension is its own target return. Measures such as NVA, peer results, and broad market indexes can provide useful context, but none should be treated as a proxy for overall investment success.

Concentrations of risk as opposed to volatility

Pensions often prefer smoother year-over-year results, especially when they have net outflows. But return volatility is not a good proxy for the risks in a portfolio that can lead to weak long-term returns. Return smoothness may simply reflect exposure to private assets whose valuations adjust more gradually.

A better approach to assessing portfolio risk is to scan portfolios for the things that can create long-term problems like excessive leverage, large exposures to a single investment, manager, market segment, asset class, geography or currency, or inadequate safe harbours. This provides more insight into whether a portfolio has been well-constructed to achieve their target returns without taking excessive risk in any area.

Costs matter

Costs are a key input in any business, yet they are often overlooked in the investment industry. Returns are sometimes quoted before costs, high manager fees are common, and expensive operations are often tolerated. Pension costs deserve scrutiny because they directly reduce returns, are controllable in a way that markets definitely are not, often impact returns more than NVA, and reflect basic organizational discipline.

By themselves, common performance measures such as NVA and return volatility are imperfect gauges of overall pension performance. A more useful framework would focus on whether pensions are meeting their return objectives, avoiding large risks, and controlling costs. Things like NVA, peer results and return volatility can serve as context, but none is an adequate measure of success on its own. 

Excellent comment by IMCO's CEO Bert Clark explaining the pitfalls of net value add (NVA) and return volatility and why "a more useful framework would focus on whether pensions are meeting their return objectives, avoiding large risks, and controlling costs."

One of the questions I get a lot is why we are paying senior executives at large Canadian pension funds millions in compensation if they cannot beat their respective benchmarks?

It's a fair question but it fails to address the risk side of the equation. 

In an earlier comment, The Case for Avoiding Unnecessary Complexity,  Bert Clark delved into why there are periods where concentration risk is high in an index and trying to beat it would entail taking unacceptable risk at a pension fund:

Big bets can also undermine the strategy of owning growth assets. Individual companies and market segments regularly reach excessively high valuations, then suffer steep drops in value with prolonged or no recovery. Japanese equities peaked in 1989, Nortel peaked in 2000, Russian equities peaked in May 2008, BlackBerry/Research In Motion peaked around 2008, U.S. technology stocks peaked in 2000, and North American REITs peaked in 2021. They all then fell in value. Some recovered over a very long time. Some are still recovering. Some will never recover.

A large allocation to any one of these companies or market segments would have materially detracted from an investor’s long-term portfolio returns. Avoiding the exuberance that can build around individual companies and market segments takes discipline. This is why IMCO explicitly avoids outsized allocations to any single asset class, sector, investment or theme.

 He even states the following: 

While the S&P 500 has been an effective way to gain diversified growth exposure over the last century, today investors with scale can build better diversified growth portfolios with exposure to both public and private assets, a balance of geographies and market segments (small-cap, large-cap, and different industries). At IMCO this is the approach we take.    

Now, I want to make it clear: there is nothing wrong with adhering to a mostly passive strategy over the long run. This is what Norway's massive sovereign wealth fund has done since its inception, participating in the bubbles when stocks surge and feeling the pain when a bear market strikes.

It does this is a very cost-effective way and many critics of the Maple 8 approach think our large pension funds should adopt the same passive model as Norway's Fund.

But as I keep stating, the objective function of a sovereign wealth fund isn't the same as that of a pension. The former wants to maximize returns over the long run while the latter wants to maximize returns without undue risk of loss. It's a subtle but important difference.

A pension fund starts with known liabilities over the next 75+ years and wants to make sure it has enough assets to cover those liabilities without placing the plan in a situation where a severe deficit occurs and members have to pay to make up the difference (which can happen).

So, when Bert Clark asks, "are target (actuarial) returns being met?", he knows that is ultimately what counts the most over the long run for any pension plan.

Now, I know there are critics who will tell me: "Leo, I get all that but when these pension funds are underperforming their own passive benchmarks over a three, four, and five-year period, there's a real problem with their strategy." 

My answer is maybe there is, maybe there isn't; we need to measure a strategy over a longer period of time but I am also open-minded and see the structural changes impacting private markets large Canadian pension funds invest in. 

And if there is a structural, long-term change impacting these markets, Canada's large pension funds will need to respond and figure it out.

That much I'm willing to admit and anyone who disagrees with me needs to really make their case.

Alright, let me wrap it up there but before I forget, IMCO announced a $300-million commitment to KingSett Real Estate Growth LP No. 9 (“KingSett LP9”), the ninth vintage of KingSett Capital’s Growth Fund strategy:

KingSett LP9 invests selectively across Canadian real estate sectors, including industrial, multi-residential, office and retail, with a focus on the Greater Toronto Area, Vancouver and Montreal. KingSett Capital (“KingSett”), a longstanding IMCO strategic partner, will seek to create value through leasing execution, operational improvements, structured capital solutions and asset-level repositioning. For IMCO clients, the investment provides targeted exposure to high-quality Canadian real estate assets that align with IMCO’s Real Estate strategy, supporting stable income and long-term value creation.

“Canada is a strategically important market for IMCO,” said Richard Varkey, Managing Director and Head of Real Estate at IMCO. “Through KingSett LP9, we gain access across the Canadian real estate market where we see attractive fundamentals, supported by KingSett’s skilled team and strong execution capabilities, as well as deep local insights. This investment supports our objective to deliver resilient performance in line with our clients’ long-term objectives.”

“We are pleased IMCO continues to be a core investor for KingSett, and that we are able to further expand our relationship through LP9,” said Rob Kumer, CEO, KingSett Capital. “IMCO’s collaborative and thoughtful approach reinforces our valued partnership as we pursue real estate investment opportunities across Canada.”

More broadly, IMCO invests approximately one-third of its assets under management in Canada across public and private markets, reflecting its commitment to supporting long-term client outcomes while contributing to the Canadian economy.

Good move, the folks at KingSett understand the Canadian real estate market better than most investors and it's good to leverage off their expertise. 

Below, Ed Yardeni, Yardeni Research president, joins 'Squawk Box' to discuss the latest market trends, bond yields, state of the economy, and more.

Also, Adam Parker, Trivariate founder and CEO and CNBC contributor, joins 'Closing Bell' to discuss the 30-year treasury yield topping 5.33 percent.

Chris Tolomia of Quartz reports Norway sovereign wealth fund posts record $184B profit, discloses SpaceX stake:

Norway's Government Pension Fund Global posted a first-half profit of more than 1.75 trillion Norwegian kroner, or roughly $184.9 billion, a record for a six-month period, as equity markets — particularly in Asia — surged in the second quarter. The fund also disclosed a stake in SpaceX, according to CNBC. 

The fund returned 9.4% in the first half, outperforming its benchmark index by 0.22 percentage points. Its total value stood at 22,683 billion kroner, or around $2.34 trillion, at the end of June. Equities, which make up 72.1% of the portfolio, returned 13% over the period, with the technology sector — up 25.3% — and telecommunications sector — up 42.9% — contributing the most. Consumer discretionary was the weakest sector, falling 4%.

"The result is driven by good returns in the equity market, particularly from Asian technology stocks," Norges Bank Investment Management CEO Nicolai Tangen said in a statement on Wednesday. Asia and Oceania equity holdings returned 31.3% in the first half, the strongest of any regional grouping. At a press conference, Tangen highlighted semiconductor stocks as a key driver of returns, according to CNBC.

Norges Bank Investment Management, which manages the fund on behalf of Norway's Ministry of Finance, also revealed that it holds a 0.05% interest in SpaceX, a position worth slightly more than $1.2 billion. Among its largest individual positions, the fund holds a 1.3% interest in Nvidia, valued at $61.8 billion, and a 1.2% interest in Apple, valued at $52.7 billion as of June 30. Its portfolio spans more than 7,000 companies in over 50 countries, giving it ownership of roughly 1.5% of all publicly listed equities worldwide. 

With the SpaceX position added, the fund now has meaningful exposure to both publicly traded companies under Elon Musk's leadership. The fund's Tesla position, which amounts to a 1% ownership interest, was reported to be valued at approximately $15.7 billion by the close of June. The fund rejected Musk's pay arrangements at Tesla on two occasions — opposing his $56 billion package in 2024 and then his trillion-dollar award when it came before shareholders again at the company's late-2025 annual meeting. When reporters at Wednesday's press conference pressed Deputy CEO Trond Grande on how the fund's SpaceX exposure had changed over time, he declined to discuss specific holdings.

The fund's equity investments fell 2.6% in the first quarter as markets faced volatility, before rebounding 15.98% in the second quarter. Fixed-income investments, which make up 25.8% of the portfolio, returned 0.9% in the first half. The fund received 94 billion kroner in capital inflows during the period, though a stronger Norwegian krone reduced the fund's krone-denominated value by 427 billion kroner. 

Last week, I covered the mid-year and quarterly performance of some major Canadian pension funds:

• OTPP earned 9.5% in the first half of the year, driven by its major investment in SpaceX 
• OMERS returned 4.8% in the first half of the year 
• La Caisse gained 5.1% in the first half of the year 
• And CPP Investments delivered 7.5% in its fiscal Q1

I wanted to begin this week by covering Norway's GPFG, which is a great proxy for 70% Global Equities/ 25% Global Bonds (the Fund also has 5% in unlisted global real estate).

Not surprisingly, the Fund snapped back strongly in Q2, posting a 9.4% gain in the first half.

Tech stocks led the charge in Q2, boosting the Fund's return in the first half. 

As far as its stake in SpaceX, it's peanuts relative to the biggest investors there:

The curtain is finally lifting on who owns SpaceX (SPCX), and the stock is surging over 5% Monday.

More than 1,500 investors disclosed stakes, but only 23 account for over 80% of the reported shares.

Bloomberg, Yahoo Finance

The concentration is even more striking at the other end. Nearly 1,340 investors reported positions of fewer than 100,000 shares, yet together they own less than 1% of the shares in the filings.

Those disclosures offer the first broad look at SpaceX ownership since the company went public on June 12. Large investment managers are required to report their US stock holdings every quarter, and the latest batch includes some familiar names with enormous positions.

Alphabet (GOOGL, GOOG) leads the pack with more than 551 million shares, while Fidelity reported more than 302 million. Gigafund, Saudi Arabia's Public Investment Fund, and Nvidia (NVDA) each disclosed more than 100 million.

Holder

Shares owned (millions)

Value Friday

Alphabet

551.2

$77.2B

Fidelity

302.6

$42.4B

Gigafund

171.8

$24.1B

Saudi Public Investment Fund

154.1

$21.6B

Nvidia

122.8

$17.2B

Harvard Management Co.

12.9

$1.8B

Fidelity's number reflects stock held across its managed funds and accounts rather than one giant corporate wager. But the breadth of the list is striking anyway, spanning Big Tech, venture capital, sovereign wealth, traditional asset management, and even the Ivy League.

Harvard may be the biggest surprise. Its nearly 13 million SpaceX shares make the company the largest individual stock position in Harvard Management Co.'s publicly disclosed US equity portfolio. 

You can view the full list of institutional investors in SpaceX here.

The stock has recently popped nicely after reaching a low of $104 the day after its first earnings, but remains below the high of $225 and only $10 above its IPO price:

You have a lot of big funds in here, so expect significant volatility going forward. 

Getting back to Norway's GPFG, Nik Martin of DW reports the Fund is warning of an AI-driven stock market bubble:

As if the vast scale of artificial intelligence (AI) investments wasn't scary enough, the head of the world's largest sovereign wealth fund is also sounding the alarm.

Nicolai Tangen, CEO of Norway's Government Pension Fund Global (GPFG), warned last week that, in an extreme market collapse, a massive loss to its $2.4 trillion (€2.07 trillion) portfolio is "not completely improbable."

The fund, created to invest the Nordic country's vast oil and gas revenues, delivered a record profit of 1,753 billion Norwegian kroner ($186 billion/€161 billion) in the first six months of the year.

Yet, Tangen warned that the AI-chip trade — whose lofty valuations helped drive those gains — now poses a serious risk. A sharp correction, he warned, could potentially erase much of the massive wealth built up over the past 30 years.

During what Tangen called an "abnormal" period of low taxes, low inflation and low interest rates, the investments now finance roughly a quarter of the Norwegian government's budget.

Why fund managers remain invested despite AI concerns

While Tangen might sound overly alarmist, Bill Megginson, a leading researcher on sovereign wealth funds, believes many established fund managers share his cautious stance on stock valuations, but are "staying the course, queasily."

"Few managers are inclined to take profits when such a fundamental technology buildout, fueled by literally unprecedented levels of capital spending, shows little evidence of brittleness," Megginson, a finance professor at the University of Oklahoma, told DW.

Major technology companies are expected to invest more than $1 trillion in AI-related infrastructure like chips, data centers and power infrastructure in the race to match or beat human intelligence.

China, meanwhile, is developing capable AI models at a fraction of the cost of their rivals in the United States.

The Bank for International Settlements warned in June that AI "exuberance" risks ending in a bust if returns fall short of expectations.

Why Norway's wealth fund cannot easily hedge risk

Unlike Saudi Arabia or Singapore's sovereign wealth funds, which make large investments in private equity, infrastructure and real estate, Norway largely follows a benchmark-based investment strategy by buying index funds that track major global markets.

Technology accounts for roughly a third of the fund's stock investments.

"The oil fund follows a very passive, broadly diversified global index strategy," Karin Thorburn, research chair in finance at the Norwegian School of Economics, told DW.

Although this approach "eliminates a lot of the uncertainty of picking individual stocks," Thorburn said Norway's GPFG fund managers have "almost no room to deviate from the index or actively hedge."

A strict government mandate means the Norwegian fund cannot take significant protective positions, including holding large amounts of cash. 

Most institutional investors, on the other hand, hedge by buying options or futures, which rise in value when regular investments like stocks drop, offsetting some of the declines.

Thorburn, who served on a 2022 Norwegian government panel probing the growing geopolitical risks to the fund, said portfolio managers trust in the collective knowledge of the financial markets.

"If you were to start betting against the markets, you could be right 50% of the time, but also wrong 50% of the time," she said. "So wisely, the government has decided that we don't do that."

How vulnerable is Norway's fund to an AI-driven sell-off?

Javier Capape, a Madrid-based sovereign wealth fund specialist, thinks Norway is "unusually exposed" through its investment strategy of roughly 70% equities and 30% bonds.

"I would not describe Norway as literally 'unhedged,'" Capape said, noting that Norges Bank Investment Management, a unit at the central bank that manages the country's sovereign wealth fund, also uses currency, interest-rate and equity derivatives to protect against a crash.

Norway's strategy also contrasts sharply with that of Berkshire Hathaway, until last year run by one of the world's most successful investors, Warren Buffett.

Berkshire is currently sitting on around $365 billion in cash and short-term Treasuries.

Norway's fund does, however, benefit from continuous inflows of oil and gas revenues from its North Sea fields. In 2026, this is projected to be the equivalent of €63 billion. 

Norway's giant fund is a sovereign wealth fund, the biggest in the world, and it has a different objective function than Canada's large pension funds, which look at their liabilities first to determine the right asset mix over the long run.

Because Norway's GPFG invests heavily in global equities, and those indexes are heavily concentrated in technology stocks, its returns are far more volatile.

But over the last three years, there's no doubt Norway's giant fund has benefited from the "AI bubble" and posted some incredible returns. 

The problems will come when a bear market hits US stocks and the giant beta boost becomes a giant beta drag.

Norway's Fund is already warning that a negative scenario will hit its massive portfolio; it will hit all funds, including Canada's Maple 8 funds, but less so because their asset mix is more diversified between private and public markets.

Let me wrap it up there.

Below, NBIM CEO Nicolai Tangen discusses the company’s half-year results, its investment outlook and the impact of macroeconomic headwinds. Great insights here, take the time to listen to him.

 Layan Odeh of Bloomberg reports Canada’s top pension earns 7.5% in its best quarter in over a decade:

Canada Pension Plan Investment Board earned 7.5% in its first fiscal quarter, fueling its best performance since 2015 with investments in stocks and energy. 

Net assets rose to C$863.6 billion ($622.5 billion) in the period ended June 30, up about 9% from the previous quarter. “Our investment portfolio remains well positioned to benefit from favorable public equity market performance, with meaningful contributions across our globally diversified portfolio,” 

Chief Executive Officer John Graham said in a statement Friday. Public equity holdings were buoyed by AI-related sectors and “resilient” corporate earnings. Investments in real assets — particularly energy — as well as a stronger US dollar further boosted returns, according to the statement. 

Canada’s largest pension plan made 14 credit investments during the quarter, the largest being $1 billion in Blackstone Inc.’s private credit fund.

 CPPIB also pledged to buy up to $1 billion in auto loans from Global Lending Services and committed around €270 million ($312.4 billion) to finance a European corporate loan portfolio originated by Ares Management Corp. 

The Toronto-based pension plan also invested in the AI buildout, allocating $150 million in a delayed draw term loan facility supporting CoreWeave’s deployment of AI compute infrastructure across four data centers. 

It also put $1.75 billion toward EQT AB’s strategy to build AI systems, led by data center developer and operator EdgeConneX. CPPIB routinely receives more contributions than required to pay benefits during the first part of the calendar year, partially offset by benefit payments exceeding contributions in the final months of the year.  

Earlier today, CPP Investments issued a press release stating its net assets total $863.6 billion at first quarter of Fiscal 2027: 

Highlights:

• Net assets increase by $70.3 billion
• Net income of $60.2 billion
• Net return of 7.5%
• 10-year net return of 9.4%

TORONTO, ON (August 14, 2026): Canada Pension Plan Investment Board (CPP Investments) ended its first quarter of fiscal 2027 on June 30, 2026, with net assets of $863.6 billion, compared to $793.3 billion at the end of the previous quarter.

The $70.3 billion increase in net assets for the quarter consisted of $60.2 billion in net income and $10.1 billion in net transfers from the Canada Pension Plan (CPP). CPP Investments routinely receives more CPP contributions than required to pay benefits during the first part of the calendar year, partially offset by benefit payments exceeding contributions in the final months of the year.

The Fund, composed of the base CPP and additional CPP accounts1, generated a 10-year annualized net return of 9.4%. For the quarter, the Fund’s net return was 7.5%. Since CPP Investments first started investing the Fund in 1999, and including the first quarter of fiscal 2027, it has contributed $609.3 billion in cumulative net income.

“Our investment portfolio remains well positioned to benefit from favourable public equity market performance, with meaningful contributions across our globally diversified portfolio,” said John Graham, President & CEO. “This led to CPP Investments delivering its strongest quarterly investment performance in more than a decade. While a strong quarter is welcome, a single quarter isn’t how we measure success. Our focus remains on delivering the long-term investment performance required to help sustain the Canada Pension Plan for generations of contributors and beneficiaries.”

Performance was broad-based, with gains from across asset classes. Public equities generated strong returns, supported by resilient corporate earnings, strong performance in AI-related sectors and improving investor sentiment. Real assets, particularly energy, also contributed meaningfully, alongside steady gains in credit and positive contributions from external manager programs. Fixed income delivered more modest gains amid elevated bond yields and evolving expectations for monetary policy, while foreign exchange movements, primarily from a stronger U.S. dollar, further enhanced overall results. CPP Investments intentionally constructs a diversified global portfolio that is less concentrated than public market indices, supporting the Fund’s long-term resilience.

Performance of the Base and Additional CPP Accounts

The base CPP account ended its first quarter of fiscal 2027 on June 30, 2026, with net assets of $773.4 billion, compared to $712.9 billion at the end of the previous quarter. The $60.5 billion increase in net assets consisted of $55.5 billion in net income and $5.0 billion in net transfers from the base CPP. The base CPP account’s net return for the quarter was 7.7% and the 10-year annualized net return was 9.5%.

The additional CPP account ended its first quarter of fiscal 2027 on June 30, 2026, with net assets of $90.2 billion, compared to $80.4 billion at the end of the previous quarter. The $9.8 billion increase in assets consisted of $4.7 billion in net income and $5.1 billion in net transfers from the additional CPP. The additional CPP account’s net return for the quarter was 5.7% and the annualized net return since inception was 6.5%.

The additional CPP was designed with a different legislative funding profile and contribution rate compared to the base CPP. Given the differences in its design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. As a result of these differences, we expect the performance of the additional CPP to generally differ from that of the base CPP.

Furthermore, due to the differences in its net contribution profile, the additional CPP account’s assets are also expected to grow at a much faster rate than those in the base CPP account.

Long-Term Financial Sustainability

Every three years, the Office of the Chief Actuary of Canada (OCA), an independent federal body that provides checks and balances on the future costs of the CPP, evaluates the financial sustainability of the CPP over a long period. In the most recent triennial review published in May 2026 (revised report), the Chief Actuary reaffirmed that, as at December 31, 2024, both the base and additional CPP continue to be sustainable over the long term at the legislated contribution rates.

The Chief Actuary’s projections are based on the assumption that, over the 75-year projection period following December 31, 2024, the base CPP account will earn an average annual rate of return of 4.05% above the rate of Canadian consumer price inflation, known as a real return. The corresponding assumption is that the additional CPP account will earn an average annual real rate of return of 3.53%.

The OCA report provides forward-looking return assumptions and projected financial states for the base and additional CPP. The table below presents CPP Investments’ historical net real returns, which reflect realized performance over past periods.

CPP Investments continues to build a portfolio designed to achieve a maximum rate of return without undue risk of loss, while considering the factors that may affect the funding of the CPP and its ability to meet its financial obligations on any given day. The CPP is designed to serve today’s contributors and beneficiaries while looking ahead to future decades and across multiple generations. Accordingly, long-term results are a more appropriate measure of CPP Investments’ performance and impact on plan sustainability.

Operational Highlights

Corporate developments

• John Graham, President & CEO of CPP Investments, was named the 2026 Canadian Business Leader of the Year by the Canadian Chamber of Commerce. The award celebrates exceptional leaders who exemplify what it means to be a nation, business and community builder.

• Appointed Geoffrey Rubin as incoming Head of Asia Pacific, in addition to his existing role as Senior Managing Director & One Fund Strategist. He succeeds Agus Tandiono who, after 12 years with CPP Investments, has decided to retire from his role as Senior Managing Director & Head of Asia Pacific. This change will be effective at the end of 2026.

• Released additional portfolio-level disclosure on the climate-related characteristics of its portfolio, introducing a framework classifying the portfolio according to carbon intensity and transition governance indicators of portfolio companies. CPP Investments has reported portfolio carbon footprint metrics since 2018.

• CPP Investments Insights Institute released a new report, Measuring What Matters: Evaluating the Total Portfolio Approach, examining how performance should be evaluated once risk choices, portfolio design and implementation are made explicit within a Total Portfolio Approach framework.

Board appointment

• Welcomed the appointment of Elizabeth Cannon to the Board of Directors, effective May 26, 2026. Dr. Cannon has more than four decades of experience in academia and governance and is currently Professor and President Emerita at the University of Calgary.

First Quarter Transaction Highlights

Capital Markets and Factor Investing

• Completed eleven co-investments alongside external fund managers, committing approximately C$1.2 billion across macro-themed strategies and equity trades in technology, financial and industrial sector opportunities.

Credit Investments

• Invested US$100 million into a credit-linked note with Barclays Bank Plc, a leading global financial institution, for a diversified portfolio of corporate loans across geographic markets.

• Invested €118 million in a senior first-mortgage loan secured by Capital Dock, a 217,000 square foot Class A office building located in Dublin’s South Docklands. The property is owned by a joint venture led by Kennedy Wilson.

• Committed US$88 million to purchase equity residuals in Element Fleet Management’s Chesapeake IV program, which issues asset-backed securities backed by a portfolio of U.S. fleet lease receivables, alongside Blackstone. Based in Toronto, Canada, Element is a global leader in fleet management and intelligent mobility solutions.

• Invested US$73 million in a synthetic risk transfer with a U.S. global systemically important bank, backed by a portfolio of U.S. subscription line facilities to large, diversified private equity sponsors.

• Invested US$75 million in the Class A notes of a private financing structure backed by the General Catalyst Customer Value Fund, which finances customer acquisition costs for technology companies in the U.S.

• Expanded an existing forward-flow agreement with Affirm, a leading U.S. payments provider with a broad merchant network, for a committed capacity of US$1.7 billion in outstanding loan portfolio balance.

• Committed approximately €270 million to finance a portfolio of European corporate loans originated by an Ares Management fund.

• Committed US$600 million-equivalent in a second separately managed account by TPG Asia Real Estate (formerly TPG Angelo Gordon), targeting real estate credit opportunities in South Korea.

• Invested A$302 million (C$299 million) in the A$1.9 billion (C$1.8 billion) first-lien term loan supporting CC Capital and One Investment Management’s privatization of Insignia Financial, a wealth management platform in Australia.

• Invested an additional US$100 million in a synthetic risk transfer referencing a portfolio of non-bank originated agency residential mortgage warehouses, increasing our total investment to US$175 million.

• Invested US$150 million in a delayed draw term loan facility supporting CoreWeave’s deployment of AI compute infrastructure across four data centres in the U.S. and Canada through a special purpose vehicle.

• Invested US$150 million in the preferred equity of Cerity Partners, a national registered investment advisor in the U.S.

• Committed US$1 billion in financing to Blackstone Private Credit Fund, which is a U.S.-based investment fund focused on providing senior secured loans to large, performing companies.

• Entered into a two-year forward flow commitment with Global Lending Services, a U.S. auto financing solutions provider, to acquire up to US$1 billion of auto loans.

• Agreed to sell our remaining interests in a European non-performing loan portfolio to a newly formed joint venture between Arrow Global and Fortress Investment Group, generating approximately C$1 billion in net proceeds. Our original investment was made in 2017.

Private Equity

• Committed US$85 million to acquire interests in three funds managed by Arcline Investment Management through a Stepstone-managed co-investment vehicle. Arcline is a growth-oriented private equity firm focused on the industrial sector.

• Invested US$15 million in Ollin Biosciences’ Series B initial closing to support the development of OLN324, a potential treatment for diabetic macular edema and wet age-related macular degeneration. Based in the U.S., Ollin Biosciences is a clinical-stage biotechnology company.

• Increased our investment in Beeline Medicines, a newly created biopharmaceutical company in the U.S. focused on developing new therapies for autoimmune diseases, by approximately US$11 million through a Series A extension, alongside Bain Capital.

• Committed US$100 million to Francisco Partners Agility IV, a private equity fund focused on global technology investments.

• Committed US$400 million to KKR Asian Fund V, a private equity fund focused on upper mid-market and large-cap buyout investments across Asia Pacific.

• Committed approximately US$300 million to funds managed by Sequoia, including Expansion Fund II, Growth Fund XII, and Direct Investment Vehicle 2026. Sequoia is a multi-stage global venture and growth investor.

• Committed an additional C$50 million to the Northleaf Venture Catalyst Fund III series, bringing our total commitment to Northleaf’s Canadian venture capital and growth equity program to approximately C$240 million.

• Committed US$124 million to a continuation vehicle managed by New Mountain Capital holding Azuria Water Solutions, a U.S. water infrastructure services provider.

• Committed US$104 million indirectly in the acquisition of Zentiva, a leading European generics and over-the-counter pharmaceuticals company, alongside GTCR.

• Invested US$100 million for a minority stake in Sealed Air, a U.S.-based leading global provider of food and protective packaging solutions, alongside CD&R.

• Invested US$100 million in Accuity Healthcare, a leading provider of pre-bill, revenue integrity services to hospital and healthcare systems in the U.S. through a single-asset continuation vehicle managed by Frazier Healthcare Partners.

• Committed US$50 million to Accel Core, which will invest in Accel’s core technology sectors, expected to include artificial intelligence, security, developer tools, fintech, defense and software. Accel is a leading global venture capital firm.

• Sold our 2.5% stake in Planet Labs, a U.S. satellite imagery and geospatial data company. Net proceeds were approximately US$342 million. Our original investment was made in 2021.

• Sold a diversified portfolio of 33 limited partnership fund interests in North American and European buyout funds to Blackstone Strategic Partners and Ardian, for net proceeds of approximately C$4.0 billion. The portfolio of interests represents various investments made in funds over the course of approximately 20 years.

Real Assets

• Invested US$1.75 billion to support EQT’s strategy to build AI Infrastructure, led by global data centre developer and operator EdgeConneX.

• Formed a strategic partnership with CtrlS Datacenters Ltd., a leading data centre operator in India. As part of the partnership, we will invest INR 40 billion (C$588 million) for an 8.2% stake in the company and we have allocated up to INR 30 billion (C$441 million) for a 48% stake in a joint venture to develop hyperscale data centre campuses across India.

• Completed the acquisition of a 50% stake in Inkia Energy, Peru’s largest power generation platform, at a total enterprise value of US$3.4 billion, alongside I Squared Capital.

• Formed a South Korea hospitality partnership with BlueCove Investment, a Korean hospitality-focused asset manager. We have announced a KRW 500 billion (C$474 million) programmatic venture, ​in which we will hold a 95% interest.

• Committed US$1.2 billion in financing to Caturus, an integrated natural gas and LNG platform in the United States, increasing our stake to 31%.

• Invested €400 million for a significant minority stake in Proudreed, a high-quality, diversified portfolio and one of the largest last-mile urban logistics platforms in France, alongside funds managed by Blackstone.

• Sold our 45% stakes in AMLI 3464 and AMLI Fountain Place, multifamily properties in the U.S. Combined net proceeds from the sales were approximately US$123 million. Our ownership interests were initially established in 2012 and 2016, respectively.

• Sold a 0.7% stake in Constellation Energy, a U.S.-based power producer, through a registered block trade for net proceeds of US$742 million. Our position was acquired through the sale of Calpine Corp. to Constellation in 2026, and we continue to hold a 1.3% stake in Constellation.

• Sold our 72% stake in the Elephant Park U.K. build-to-rent portfolio with Lendlease, to Greystar. Net proceeds were approximately C$670 million. Our original investment in the portfolio was made in 2017.

Transaction Highlights Following the Quarter

• Committed C$1 billion to acquire a majority stake in Tarchon, a 1.4 GW subsea electricity interconnector project between Germany and the U.K., alongside Elia Group’s international development platform, WindGrid.

• Committed US$100 million to a U.S.-based real estate property management business.

• Invested C$95 million in a mezzanine loan secured by Starwood Capital’s Italian logistics portfolio.

• Committed US$200 million to Advent Mid-Market Private Equity SCSp, which will focus primarily on control buyouts in North America and Europe across the business and financial services, consumer, healthcare and industrial sectors.

• Entered into an agreement to acquire LXP Industrial Trust, one of the largest portfolios of modern warehouse and logistics facilities in the U.S., in a transaction valued at approximately US$5.2 billion, in partnership with Brookfield Asset Management.

• Invested in the mezzanine tranche of CIBC’s commercial banking synthetic risk transfer, backed by a diversified portfolio of Canadian mid-market commercial loans.

• Sold our remaining 10.1% stake in the Unibail-Rodamco-Westfield Germany retail platform, generating net proceeds of €75 million. Our initial investment was made in 2015.

• Committed US$300 million to Balbec Capital’s IGCF-VII, which will invest in asset-backed private credit opportunities across the U.S. and Western Europe, including residential whole loans, mortgage servicing rights, consumer credit and commercial real estate lending.

• Committed US$250 million to Carlyle Aviation Partners Fund VII, which acquires and leases commercial aircraft globally across the full age spectrum and invests in aviation debt.

• Invested US$270 million to acquire limited partner stakes in funds managed by Leonard Green & Partners and Apollo through a secondary transaction. The portfolio primarily consists of buyout investments in North America and Europe.

• Committed €250 million to Azora Southern European Opportunities Fund III, which will primarily focus on value-add opportunities in structuring undersupplied sectors such as hospitality and living across Spain, Italy and Portugal.

• Committed €350 million to Aermont Capital Real Estate Fund VI. Aermont are a pan-European real estate manager, focused on operationally intensive sub-sectors with platform build-out capability, for long-term value creation.

• Committed US$500 million to Apollo Investment Fund XI, which targets control-oriented buyout investments across North America, Europe and Asia.

• Completed the sale of our remaining 8% stake in Elis SA through a block trade, generating net proceeds of approximately C$800 million. Our original investment was made in 2017.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2026, the Fund totalled C$863.6 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

It's Friday, and it was a very busy week for me covering mid-year results, so I will close it with CPP Investments' quarterly results, which I do not normally cover.

Delivering 7.5% in its first fiscal quarter with net assets just shy of $864 billion is extremely impressive.

Performance was broad-based, led by public equities and real assets (particularly energy), and the strength in the US dollar also contributed to the strong quarterly gain.   

As you can read, Credit and Private Equity were also busy, investing in lots of deals and funds.

So even though a quarter doesn't make a year, the Fund is definitely off to a great start.

In related news, CPP Investments just launched expanded portfolio carbon footprint reporting:

TORONTO, ON (August 14, 2026): Canada Pension Plan Investment Board (CPP Investments) today announced additional portfolio-level disclosure related to its carbon footprint, introducing a snapshot of carbon intensity and transition governance indicators across the Fund’s holdings.

CPP Investments’ Climate Change Principles, including regular reporting on its portfolio emissions, help inform how the organization fulfills its mandate against the backdrop of increasing climate risk and opportunities as the world navigates a whole economy transition.

“Our investment strategy remains focused on delivering long-term value to help ensure the Canada Pension Plan’s financial sustainability for many generations. We consider material risks, including climate-related risks and opportunities, to support risk-adjusted returns over decades. We know that progress towards a lower-carbon future will not be linear, and we are committed to continued transparency as we invest across sectors and work with companies to reduce risk and preserve value,” said John Graham, President & CEO, CPP Investments.

Framework to Analyze CPP Investments’ global portfolio carbon footprint

CPP Investments has reported portfolio carbon footprint metrics since 2018. This enhanced reporting provides a point-in-time view of the composition of that footprint by classifying individual portfolio holdings across two dimensions: Carbon Intensity and Transition Governance.

Carbon Intensity refers to a company’s Scope 1 and Scope 2 greenhouse gas emissions (GHG) relative to its total enterprise value by utilizing the Partnership for Carbon Accounting Financials metric of tonnes of carbon dioxide equivalent per $1 million of Enterprise Value Including Cash (tCO₂e/$M EVIC).

Using information from the S&P Global LargeMid Cap reference portfolio, applying Global Industry Classification Standard (GICS) level 3 industry classification and then taking into account definitions of “hard to abate” and “high emitting” from the International Energy Agency and TPI respectively, we established a threshold of 40 tCO2e/$M EVIC to capture assets from harder to abate industries and those that have elevated carbon intensity relative to the rest of the portfolio. Companies at or below the threshold are not necessarily low-emitting or do not necessarily have low transition risk. Companies above the threshold are not necessarily high-emitting or necessarily have high transition risk.

Transition Governance refers to observable evidence that a company has taken steps to understand and prepare for transition-related risks and opportunities and there is evidence of a company’s alignment with at least one of three key indicators of transition-related governance or planning: either Science Based Targets initiative (SBTi) approved targets, Transition Pathway Initiative (TPI) Level 4 or 5 or participation in CPP Investments’ Decarbonization Investment Approach (DIA). Where the analysis has identified evidence of transition governance as above, companies are categorized as Confirmed. Holdings that do not meet these criteria or holdings that have not yet been assessed due to data limitations, lack of external coverage, or an inability to match a company to external datasets, or the company has not yet been assessed through DIA, are categorized as Unconfirmed.

Results of Framework Analysis

The framework shows that for CPP Investments $787 billion investment portfolio at 31 March 2026 (excluding government issued securities) 86.7% of the portfolio was below the 40 tCO2e/EVIC threshold.

Approximately 83.5% of the investments included as “evidence confirmed” were covered by third party transition governance indicators (SBTi and TPI) with the remainder covered by the DIA (16.5%).

The Notes provide additional information on the methodology, sources of information and results of the analysis.

Future Disclosure

These metrics will be disclosed annually, in addition to the portfolio carbon footprint. Values will fluctuate over time depending on factors such as changes in portfolio companies’ management of climate-related risks, opportunities, market valuation movements affecting Enterprise Value including Cash (EVIC), data quality, and the Fund’s composition and growth. In addition, the Framework is a simplified indicator of climate-related characteristics of the portfolio at a point-in-time, not a specific assessment of whether companies are implementing their transition plans.

CPP Investments does not set fixed portfolio-level targets for these disclosed categories or for its portfolio carbon footprint more broadly. Maintaining flexibility allows CPP Investments to invest across sectors where it sees long-term value and support companies as they respond to the transition to a low-carbon economy.

“CPP Investments’ investment approach continues to be grounded in disciplined underwriting, active ownership and a belief that the transition to a lower-carbon economy will unfold unevenly across sectors and regions. Because companies will respond differently to these changes, this disclosure provides additional transparency into carbon intensity and transition governance indicators across our portfolio of assets while remaining consistent with our mandate and climate change principles,” said Richard Manley, Chief Sustainability Officer, CPP Investments.

Enhanced transparency, consistent investment discipline

CPP Investments invests across the global economy, and climate-related risks and opportunities vary significantly by sector, geography and business model. Across the portfolio, CPP Investments assesses financially material climate-related risks and opportunities and incorporates them into investment decisions.

This additional disclosure does not alter CPP Investments’ investment strategy, underwriting approach, stewardship framework, or portfolio construction flexibility but aims to develop and disseminate accurate and accessible information.

CPP Investments uses its rights and influence as an owner to encourage stronger climate risk oversight and strategic transition planning where transition risk is material. In public markets, this may include engaging directly with boards of directors and exercising voting rights to promote effective governance of climate-related risks and opportunities. For example, during the 2026 proxy season, we voted against 950 directors on the boards of companies for failure to provide appropriate oversight of climate risk during the last proxy voting season.

In private assets, CPP Investments may work with general partners, boards and management teams, particularly where it has board representation or other governance rights, to support stronger risk assessment, transition-related planning and governance practices over time.

CPP Investments will continue to pursue its investment strategy and invest across sectors and assets that can generate long-term value, while enhancing transparency into how climate-related considerations are reflected across the portfolio. 

So what is this all about? Basically, it changes nothing in terms of the way CPP Investments invests but it will provide more portfolio transparency on its carbon footprint.

As Richard Manley, Chief Sustainability Officer, CPP Investments states: "This disclosure provides additional transparency into carbon intensity and transition governance indicators across our portfolio of assets while remaining consistent with our mandate and climate change principles." 

Keep in mind, transparency in reporting its results and carbon footprint is very important to CPP Investments and any initiative that improves disclosure is welcome news.

That's all from me. Like I said, I typically do not cover CPP Investments quarterly results, but today was what Frank Switzer called a "double-header'.  

Below, Tom Lee and Mark Newton break down the Fundstrat Top Ideas positioning, the macro outlook, and member questions at the monthly Macro Update & Top Ideas webinar.

Also, Sandisk CEO and Chairman David Goeckeler joins 'Squawk on the Street' to discuss Investor Day, memory demand, how the company has changed over the past decade, and more. 

Man, did that stock bounce big after Citadel took over Situational Awareness's portfolio! :)