Mathieu Dion of Bloomberg News reports Quebec premier pushes Caisse to invest at home:

Quebec Premier Francois Legault said he wants the province’s pension fund to invest more locally, including making bets in the manufacturing sector, as Canada adjusts to a new reality of U.S. trade barriers.

The Caisse de Depot et Placement du Quebec, Canada’s second-largest pension manager, is planning to have $100 billion of its funds invested in the French-speaking province by next year — about 20 per cent of its current net assets and a similar proportion to the previous year. But it’s not enough for Legault, who has been running the province since 2018.

A new “ambition target” will be set for 2030, according to a document entitled “Quebec Power: Answer to a New World Context” that describes his economic vision.

“The Caisse de depot is doing more than it did seven years ago, but they need to do even more,” Legault said during a presentation Monday, adding that the government is discussing the issue with the institution’s management.

In an interview with Montreal-based news outlet La Presse, he went further, saying La Caisse must take “calculated risks” in sectors such as manufacturing and critical minerals.

La Caisse, which had $496 billion under management as of June, has a dual mandate to produce returns and contribute to Quebec’s economic development, but the law establishing it states that it must act independently.

“We clearly have a competitive edge here — we know the market, we know our companies and we can deploy capital across the full spectrum of financing solutions,” a spokesperson for La Caisse said in an emailed statement.

“That said, investing the hard-earned money of Quebecers means we must keep responsibility front of mind. We need businesses to launch projects that benefit the economy and at the same time help protect and grow Quebecers’ retirement savings.”

Legault’s nationalist party, the Coalition Avenir Quebec, has collapsed in public opinion polls about a year before a likely provincial election. The premier is now attempting a series of policy moves to try to boost the party’s popularity, including a controversial battle to make doctors more productive and now a broad vision for economic growth. 

What a lovely topic to discuss on hump day.

What are my thoughts on Legault's idea to push La Caisse to invest more in our province to bolster "Quebec Power"?

To be blunt, just like his party's new health care initiative headed by current health minister and former La Caisse senior executive Christian Dubé, c'est de la bullshit tabernac!  (it's bullshit goddamn it!).  

Why in God's name is Quebec's government forcing La Caisse which already invests more than any other large Canadian and global pension fund right in its own backyard to invest more in Quebec?

Because we are going to counter Donald J. Trump's stupid tariffs and win? Are you kidding me? 

This is precisely the reason why I hate when politicians interfere with pension funds, they have no clue whatsoever and they typically make a bad situation much worse with their asinine policies.

Let the experts at La Caisse decide how much to invest in Quebec and how much to invest globally. 

No doubt, their Quebec portfolio headed by Kim Thomassin has done well over the last 5 years but if we head into a global recession, watch out, that portfolio is going to get dinged hard! 

I 100% guarantee a bad outcome if La Caisse invests more in Quebec than it has already pledged.

I have no problem with La Caisse's dual mandate but let's not lie to Quebec's population contributing their hard earned money to this organization, there's an opportunity cost investing more in Quebec.

More investments in Quebec means less investments globally at a time when great opportunities will arise at the global level. 

In other words, if there are better opportunities in the US, Europe and Asia, why invest more in Quebec? To make Quebec's billionaires a lot wealthier? (most of whom got huge help from La Caisse)

Yes, we ave good businesses in Quebec, I don't have a problem investing in companies we know and understand, but give me a break with this "Quebec Power" nonsense, we are nothing compared to the global economy and the sooner we realize this, the better off we will be over the long run.

In short, when it comes to investing in Quebec or co-investing alongside strategic partners like KKR, Blackstone and many others in incredible global deals, hands down I would choose the latter.

And La Caisse does both well, so let them do their job and stop interfering with their investment policy, you are going to bungle it up just like "la loi 2" is going to bungle up Quebec's healthcare.

The optics of this is terrible, makes La Caisse look like an extension of the Quebec government.

La Caisse is not Investissements Quebec or Hydro Quebec, it has to have independent governance or else you will weaken the organization and make it the laughingstock on the Maple 8 funds. 

But Legault and Dubé don't get it, they will learn the hard way when voters kick them out of office.

My message to politicians is simple: "stay in your lane and let experts decide where to invest hard earned pension contributions."

Lastly, to our dear health minister, you might have had a great reputation at La Caisse but you sir will go down in history as the worst health minister Quebec has ever known. Point final. (watch, I predict Legault will eventually throw Dubé under the bus)

Freschia Gonzales of Benefits and Pensions Monitor reports Canada opens door to airport privatization, sparking pension fund interest: 

Canada’s airports are valued in the billions and generate over $120bn in annual economic output, supporting nearly 436,000 jobs.  

According to the Financial Post, the federal government is now signaling openness to privatization and new private-sector partnerships, which may soon lead to a dramatic shift in airport ownership and investment opportunities. 

The latest federal budget, the first from Prime Minister Mark Carney, states that the government will “consider options for the privatization of airports” and explore “new ways to attract private sector investment,” as reported by the Financial Post.  

This move is part of a broader strategy to unlock more economic potential from Canada’s airports and to jump-start private investment in nation-building infrastructure projects.  

The government’s initial steps include negotiating lease extensions with not-for-profit airport authorities, enabling more economic development on airport lands, and reviewing ground lease rent formulas. 

The groundwork for these initiatives was laid in the previous government’s economic update, which appointed former Bank of Canada governor Stephen Poloz to lead a task force focused on boosting domestic investment by large pension funds.  

However, as per the Financial Post, earlier policy statements had stopped short of explicitly endorsing privatization, despite previous studies and reports, such as the 2016 Credit Suisse valuation commissioned by the Trudeau government. 

Industry experts see renewed potential in this approach. 

“It’s encouraging that the government is open to airport privatization, as private investors, including Canadian pension funds, can provide the capital needed for airport improvements and expansions,” said Andras Vlaszak, director in global infrastructure advisory at KPMG Canada, as cited by the Financial Post. 

Vlaszak noted that such a move could allow the government to recycle capital into higher-growth projects. 

The government has also committed to direct investment in airport infrastructure, allocating $55.2m over four years, plus $15.7m ongoing, to support safety-related projects at local and regional airports, according to the Financial Post.  

This funding, delivered through the Airports Capital Assistance Program, includes a priority runway extension at the Îles-de-la-Madeleine Airport. 

Despite these efforts, private investment in airport development has so far been muted.  

In March, Transport Canada outlined ways for private investors to participate in airport land development, such as commercial subleases and minority stakes in share-capital subsidiaries.  

Some pension officials view these measures as positive, but others maintain that only a controlling stake would meet their investment criteria.  

Canadian pension funds, including the Ontario Teachers’ Pension Plan Board, the Caisse de dépôt et placement du Québec, and PSP Investments, have a history of investing in international airports and have expressed interest in expanding their domestic infrastructure portfolios, as reported by the Financial Post. 

The evolving landscape for Canadian airports comes at a time when trade diversification and new economic realities are reshaping the country’s infrastructure needs.  

As noted by the Financial Post, airports are central to Canada’s growth and trade diversification, and the current environment presents significant opportunities for institutional investors to play a pivotal role in the sector’s future.  

So, will the federal government finally privatize Canadian airports allowing Canada's large pension funds to invest?

I hope so and have been openly advocating for doing so but some experts have contacted me privately telling me they're not convinced it's going to happen.

Why? Basically airports are cash cows for the federal government, generating huge revenues every year and they have hardly invested in them over the last ten years (never mind the REM extension at Montreal's airport).

One expert shared this with me:

From the government perspective, airports are a very lucrative perpetuity. It’s guaranteed revenues with 0 expense. The government made very little investment in the 1930, 40’s and some in the 50’s, bar YMX in the 70’s. Then all the improvements were done by LAA’s (local airport authorities) since 1992, still the government is cashing 12% on gross revenue. What’s the value of that, no cash down, no debt, no improvement cost and $0.12 for every dollar of airport revenue. And on top of this, assets have to be maintained at state of the art standard. The plus value is through the roof when you look at the investments made in YVR, YYC, YEG, YYZ,YUL and smaller airports. 

If this expert's figures and assertions are right, it helps explain the reluctance of the federal government to partially or fully privatize airports.

Still, my argument is if the government knows how much revenues airports are generating, it can easily ascribe a value to those future cash flows and sign a super long-term lease with pension funds to control them.

Of course, in a fair and transparent bidding process, it would need to open this up to international funds as well and that can create political backlash.

There are many details to be ironed out before the federal government can move forward to privatizing airports, and as the article states pension funds prefer controlling interests.

And our airports might generate a lot of revenues but they're not in good shape.

Take Montreal's Trudeau airport, it's a complete embarrassment. 

One expert shared this:

YUL is indeed a shamble because improvements have been reduced to minimum and judged too expensive, now, no matter how rich any investor is, rebuilding YUL to be an airport again will take years and years, because the magnitude of the project is overwhelming…. Ground side access plans were drawn in the early 2000 and kept on being postponed and postponed. Soon enough, ground side improvement is going to be like LHR R3

I agree, I'd shut down Montreal's airport and build residential housing there and I'd move to reopen Mirabel airport. Unfortunately, it's too late, and I fear we we are stuck with this abomination of an airport for better or for worse.

Running airports is no easy business, Canadian pension funds use an operating company to do it for them and their investments in airports is only as good as the expertise in those operating companies.

For example, one expert shared this with me on PSP and its airports operator, Avi Alliance:

The platform PSP has in place means that PSP is the financial partner and Avi Alliance is the operating partner. PSP can appoint board members but these board appointments are external experts because PSP doesn’t have the knowledge in house. The problem with these platforms is that they work just fine as long as additional capital is allocated over time. A maturing plan and/or other asset allocation decisions lead to friction as a partner like Avi Alliance would like to continue to grow. Infrastructure is still in demand but I have seen this happening with other platforms. I am not sure whether the government thinks about this, but perhaps they should. By the way, I am not saying that the pension funds should not take over these assets; quite the opposite, these brownfield assets fit their mandate well.

Lots of great insights surrounding this discussion and I look forward to seeing if the federal government does move ahead to finally partially or fully privatize airports. 

I remain hopeful but skeptical and need to see the details in writing.

Below, Airports aren’t just runways and terminals—they’re bustling business hubs designed to generate revenue from multiple streams. In this video, we dive into the airport business model, exploring how airports earn money from landing fees, passenger charges, retail concessions, parking, and more.

Discover the strategies behind airport pricing, how airlines and passengers help drive profits, and the challenges airports face in today’s competitive travel industry. Whether you're a frequent flyer or simply curious about the business of air travel, this video will give you an inside look at what makes airports tick.

Pablo Mayo Cerqueiro and William Mathis of Bloomberg report Canada Pension Plan to raise $1.36 Billion in EDP share sale: 

The Canada Pension Plan Investment Board, one of the world’s largest pension funds, is set to raise about €839 million ($1.359 billion) from the sale of its 5.4 per cent stake in Portuguese energy company EDP SA.

CPPIB will price the sale at €3.729 ($6.04) each, the bottom of the marketed range, in an overnight placing arranged by Goldman Sachs Group Inc., according to terms seen by Bloomberg News. The offering of about 225 million shares was multiple times oversubscribed at that level, the terms show.

China Three Gorges Corporation is EDP’s top shareholder with 21.4 per cent of capital with Oppidum Capital S.L. holding 6.82 per cent and Blackrock Inc 6.08 per cent, according to the utility’s website.

Shares in EDP fell 9.7 per cent last week after it reported lower profit and narrowed its guidance for the full year. The company announced a new strategic plan to spend €12 billion ($19.44 billion) between 2026 and 2028 to expand its wind and solar energy projects as well as power networks in Iberia.  

So what is this all about? Exactly four years ago, CPP Investments reached 5% qualified shareholding in EDP:

Lisbon, December 10th, 2021: Pursuant to the terms and for the purposes of articles 17 and 244 of the Portuguese Securities Code and of the CMVM Regulation no. 5/2008, EDP - Energias de Portugal, S.A. (EDP) is providing the following information to the market:

On December 9th, 2021, Canada Pension Plan Investment Board (“CPPIB”) notified EDP, in accordance with article 16 of the Portuguese Securities Code, that it had reached a qualified shareholding correspondent to 5.0116% of EDP’s share capital and of the respective voting rights, directly held. The 5% threshold was crossed by such company on December 3rd, 2021. Previously CPPIB’s overall position was 2.0094%.

Information regarding the chain of controlled undertakings and voting rights is disclosed in the attachment.

EDP – Energias de Portugal, S.A. 

A year later, EDP Renewables and Engie’s joint venture partnered with CPP Investments to develop a floating offshore project in California:

London, UK, 9th December 2022 – Ocean Winds (OW) and the Canada Pension Plan Investment Board (CPP Investments), through their 50/50 offshore wind joint venture Golden State Wind, were awarded a 32,500 hectares lease area by the U.S. Bureau of Ocean Energy Management (BOEM) in the Morro Bay area off the central coast of California.

The lease area awarded is one of five sites off the coast of California that was the subject of an auction held by the U.S. Bureau of Ocean Energy Management (BOEM). This auction is particularly notable as it is the first floating offshore wind lease sale in the country, and the first offshore wind lease sale of any kind, on the West Coast.

OW is already developing around 4GW of offshore project in the Northeast of the U.S., Mayflower Wind off the New England coast, and Bluepoint Wind off the New York and New Jersey coasts. The latest is the project being developed out of the seabed lease area awarded during the New York Bight auction earlier this year.

Bautista Rodriguez, CEO of Ocean Winds said: “As a pioneer in floating offshore wind and firm believer in its capabilities to produce large capacity of clean energy and create local opportunities around the world, Ocean Winds is very proud to have been awarded a new project during this first floating offshore wind auction in the U.S. We are committed to bringing the country and California closer to meeting their clean energy goals, while building a new domestic industry, creating jobs, and boosting the local economy.”

Ocean Winds has more than 10 years of experience in floating offshore wind, most notably through the development and operation of Windfloat Atlantic, the world’s first fully commercially operational floating offshore wind farm. OW has a substantial portfolio of floating projects in Europe and South Korea and is ideally positioned to bring this technology to the Golden State.

When fully built out and operational, Golden State Wind’s lease area can accommodate approximately 2 GW of offshore wind energy, generating enough energy to power the equivalent of 90000 homes. This will bring the U.S. and California closer to meeting their clean energy goals of 15 GW of floating offshore wind generation by 2035 in the U.S. and 5 GW by 2030 in California – building a new domestic industry, creating jobs for Californians, and boosting the local economy.

As part of OW and CPP Investments’ winning bid, Golden State Wind committed to invest in workforce development and supply chain initiatives and to work closely with key local stakeholders to maximize the benefits to California from the emerging offshore wind industry. 

I invite you to read more about Golden State Wind here. Let me give you the gist of it:

Golden State Wind is a joint venture of Ocean Winds (OW) and Reventus Power, managed by OW.

OW is a global offshore wind company with more than 10 years of experience in the floating offshore wind sector. Created as a 50/50 joint venture of EDP Renewables and ENGIE, OW develops, builds, and operates offshore wind farms in communities around the world, based on our belief that offshore wind energy is an essential part of the global energy transition. OW, headquartered in Madrid, currently has 17 offshore wind projects in 8 countries and our total portfolio of offshore wind gross capacity in operation, under construction, or in advanced development is currently 18.8 GW. For more information, please visit www.oceanwinds.com. 

Reventus Power originates and invests in the development and long-term management of offshore wind projects globally. As a portfolio company of CPP Investments’ Sustainable Energies group, Reventus invests flexibly, and at scale, across the asset lifecycle. Reventus invests alongside strategic partners, bringing deep in-house technical, financial, and commercial expertise to projects across three continents. The team is proven in delivering value through the realisation of high quality offshore wind projects around the world. For more information, please visit www.reventuspower.com/.

In 2023, CPP investments bet big on green hydrogen, making a 130 million euro ($143 million) investment and the purchase of a majority stake in a three-year-old Dutch firm, Power2X.

Power2X's current projects include a green hydrogen and ammonia development in Portugal and a solar power and green hydrogen project in Spain. 

At the time, Portugal's largest utility EDP and oil and gas company Galp Energia were both planning to build green hydrogen plants in the same industrial hub of Sines. 

Why am I sharing all this with you?

Because EDP is huge and so is EDP Renewables in North America. 

Clearly CPP Investments made a strategic investment in this company to strengthen ties team up with them on joint ventures so their Sustainable Energy Group which was created back in 2021 can benefit from their expertise.

CPP Investments is now selling its 5.4% stake in EDP, raising $1.35 billion.  

Interestingly, Goldman is taking care of the transaction which was oversubscribed, which shows you there is strong investor interest in EDP.

I wouldn't read too much into this sale, all part of CPP Investments' portfolio management.

They're raising liquidity to invest in other opportunities. 

Below, During Capital Markets Day, on November 6th,EDP presented its strategic roadmap for the coming years, reinforcing its commitment to delivering clean, affordable, and secure energy to communities across the globe. With decades of experience in the renewables sector, EDP will continue to invest in more resilient grids, flexible clean technologies, and digital innovation—driving sustainable value for customers, partners, and shareholders.

Also, EDP Renewables North America LLC (EDPR NA), its affiliates, and its subsidiaries develop, construct, own, and operate wind farms, solar parks, and energy storage systems throughout North America. Headquartered in Houston, Texas, with 58 wind farms, 10 solar parks, and eight regional offices across North America, EDPR NA has developed more than 9,400 megawatts (MW) and operates more than 8,400 MW of onshore utility-scale renewable energy projects. 

With more than 1,000 employees, EDPR NA’s highly qualified team has a proven capacity to execute projects across the continent. Very impressive firm. 

Rian Howlett , Karen Friar and Ines Ferré of Yahoo Finance report the Dow, S&P 500, Nasdaq end volatile week lower amid worst tech sell-off since April:

US stocks came off session lows on Friday as investors weighed bearish consumer sentiment data and odds that the AI investment boom will pay off, while monitoring the ongoing US government shutdown for any signs of an end.

The tech-heavy Nasdaq Composite (^IXIC) fell 0.3% as it shed more than 3% over the past five days, its biggest weekly loss since April.

The S&P 500 (^GSPC) also declined nearly 2% for the week, while the Dow Jones Industrial Average (^DJI) closed the session higher but ended the past five days with losses of more than 1%.

Stocks pared declines after Democrats laid down conditions for a deal to end the government shutdown, a proposal that Republicans subsequently rejected. Democrats had suggested including a one-year extension of expiring health care subsidies in legislation to reopen the government.Stocks ended a volatile week with the Nasdaq Composite posting the index's deepest loss since April, with seesaw stretches for "Magnificent Seven" stalwarts Nvidia (NVDA) and Tesla (TSLA). The S&P 500 and the Dow also closed out the bumpy week in the red as persistent worries about an AI bubble and Big Tech valuations run high.

Markets on Friday also digested more signs of an economic slowdown: namely, a bearish reading on consumer sentiment from the University of Michigan. Overall sentiment dropped to 50.3, the worst reading since 2022, as respondents fretted over the shutdown's effects.

Friday's data point came the day after October job cuts hit their highest level for the month in more than 20 years, underscoring what’s shaping up to be the worst year for layoffs since 2009.

The private data reverberated through Wall Street more than usual, given the current dearth of official updates on the economy. The Bureau of Labor Statistics was scheduled to release the October jobs report on Friday, but for a second straight month, the data's publication has been delayed by the government shutdown.

In the latest tech extravagance, Tesla approved a $1 trillion pay package for CEO Elon Musk on Thursday, setting high targets for growth in the EV maker's market value. Musk is also being asked to deliver on his promises for its robotaxi and Optimus humanoid robot — the hardware side of the AI boom. Tesla shares fell over 3%. 

Bitcoin hovers near $102,000. Here's why one strategist sees the risk of going even lower in the near-term

Bitcoin (BTC-USD) had a rough week, with the token briefly slipping below $100,000 before trimming losses.

On Friday morning, the world's largest cryptocurrency was sitting as much as 20% below its all-time high of above $126,000, notched on October 6.

Wall Street has attributed the slide to early adopters offloading their large holdings. Since late June, net sales from long-term holders have exceeded 1 million bitcoin, according to research from Compass Point analyst Ed Engel.

A massive liquidation of leveraged crypto positions on Oct. 10 also weighed on the market, with bitcoin struggling to find a footing after breaking below support levels of $117,000 and then $112,000.

“We haven’t really reclaimed this level since then, and I think that’s a sign we are, unfortunately, in a bear market,” said Markus Thielen, founder and CEO of Singapore-based 10X Research.

There’s no jobs report today. Here’s what it might’ve shown.

Yahoo Finance's Emma Ockerman writes:

How was the job market in October?

Don’t look to the government to answer that question right now.

The shutdown of the federal government — now the longest-running in US history — has delayed two consecutive job reports from the Labor Department. October’s should’ve been released today, while September’s was originally scheduled for release on Oct. 3

That means the most recent comprehensive picture of the state of the labor market is from August, when data showed a 4.3% unemployment rate, a modest gain of 22,000 jobs, along with stalled hiring and separations.

Private data sources are available and referenced often, but economists have often said that those can’t totally replace government releases. The Labor Department’s monthly jobs report is a mammoth feat that pulls employment, hours, and wage data for workers on nonfarm payrolls from a survey of businesses while also providing data from a separate household survey that offers statistics on employment and unemployment.

Read more here.

Sean Conlon and Pia Singh also report the Nasdaq closes lower, capping its worst week since April:

The Nasdaq Composite closed lower Friday, pressured by more losses in artificial intelligence stocks, to post a losing week as new economic data added to investors’ fears of a slowdown.

The tech-heavy index shed 0.21% to finish at 23,004.54. In contrast, the S&P 500 and the Dow Jones Industrial Average inched into the green. The broad-based index gained 0.13% to close at 6,728.80, while the 30-stock index added 74.80 points, or 0.16%, to settle at 46,987.10. At their lows of the day, the Nasdaq had pulled back 2.1%, while the S&P 500 and Dow had fallen 1.3% and more than 400 points, or roughly 0.9%, respectively.

Stocks came off their lows after Senate Minority Leader Chuck Schumer, D-N.Y., offered up a new plan to Republicans that would enable the record-breaking U.S. government shutdown to end. Under the proposal, short-term funding would be provided for federal government operations in exchange for a one-year extension of enhanced Affordable Care Act tax credits.

In the midst of the stoppage, concerns among investors around the strength of the U.S. economy have grown. A survey from the University of Michigan revealed Friday that consumer sentiment has neared its lowest level ever. The data comes just a day after firm Challenger, Gray & Christmas reported that layoff announcements in October reached their highest level for the month in 22 years.

Investors have been getting little on the economic data front because of the ongoing shutdown. The Bureau of Labor Statistics would have released the nonfarm payrolls report Friday. For the second month in a row, however, it is unable to do so. Economists surveyed by Dow Jones had been expecting the report to show a decline of 60,000 jobs and an increase in the unemployment rate to 4.5%.

The Senate is expected to vote Friday on advancing a House-passed stopgap funding measure. The longest-ever federal funding lapse has posed a threat to economic activity, including causing flight disruptions due to shortages of air traffic controllers, who have been working without pay since October.

Transportation Secretary Sean Duffy said Wednesday that he will be cutting flights by 10% at 40 major airports starting Friday, a move that could affect 3,500 to 4,000 flights daily. As of Friday morning, more than 700 U.S. flights had already been canceled.

“No one likes the dark, and we’ve been in the dark for a while as far as government data is concerned, but I think we might further have some behavior being impacted,” Leah Bennett, chief investment strategist at Concurrent Asset Management, told CNBC. “I think that speaks volumes to why valuations should, at least in the short term, continue to erode.”

The three benchmark indexes closed in the red this week, as fears about elevated tech sector valuations and a highly concentrated market persisted. The Nasdaq was down around 3% week to date, seeing its worst performance in a five-day period since the week ended April 4, when the index dropped 10%. The S&P 500 and the Dow each lost more than 1% on the week.

Among Friday’s laggards was leading artificial intelligence player Oracle, which fell almost 2%. That brought its decline this week to just about 9%. Advanced Micro Devices, down nearly 9% on the week, and Broadcom, off by more than 5% this week, were lower as well.

Key AI leaders lost steam on Thursday, with Nvidia, AMD, Tesla and Microsoft posting significant declines that weighed on the broader market. Major U.S. stock averages closed lower across the board, with the tech-heavy Nasdaq Composite notably dropping 1.9% and the 30-stock Dow closing lower by almost 400 points.

“You have had a bit of a rotation, which has been helpful in the value stocks, which kind of leads me to believe that the sell-off isn’t overly concerning with the [‘Magnificent Seven’],” Bennett said, adding that “AI spending is still here.”

“This AI rally that we’ve had I think does resume,” she continued. “It’s hard to call the top, but I don’t think we’re at the end of it.” 

Last week, the Fed, earnings and the government shut down powered stocks higher.

This week, tech stocks got dinged and hyper-growth tech shares and AI darlings really got clobbered after their meteoric rise since Liberation Day.

Just have a look at the worst-performing US large caps this week (full list here): 

There was so many bearish comments in the news this week, pick you favourite:

• Buffett indicator (market cap to GDP) at an all-time high 
• Dr. Michael Burry warning of bearish activity in Nvidia and Palantir 
• Government shutdown costing the economy billions each week 

And the list of on and on.

But if you were paying attention today, you saw shares of Nvidia  bounce back and close marginally positive.

I don't know if it was the Democrats trying to reopen government was the main reason for many stocks reversing course today or it was plain old FOMO.

Remember, most portfolio managers are underperforming their benchmark, they need to chase winners to make some gains.

They're going to be buying the Mag-7s on any dip, especially Nvidia. 

The other thing I want people to keep in mind is we are a week away before fund 13Fs are made public.

I'm always highly suspicious when stocks sell off a week before 13Fs are made public, I call it hedge fund manufactured nonsense.

Who knows, maybe November will be a really bad month but I'm highly skeptical that the bubble is popping right now.

Was it a rough week for tech shares? Absolutely. Is it the beginning of a massive selloff in stocks? I strongly doubt it but will remain vigilant over the next couple of weeks (with a bullish bias).

Below, WisdomTree’s Jeremy Siegel joins 'Closing Bell' to discuss the government shutdown, anxiety over the AI trade and much more.

Next, 3Fourteen’s Warren Pies joins 'Closing Bell' to discuss the market's reaction to the latest government shutdown news, the unsettled equity market and much more.

Third, Wells Fargo’s Ohsung Kwon joins 'Power Lunch' to discuss if investors should buy the dip, the bull case for why equity indices will rally and much more.

Lastly, Morgan Stanley’s Chris Toomey join 'Closing Bell' to discuss the government shutdown's impact on equity markets, the latest labor market data and much more.

James Bradshaw of the Globe and Mail reports OMERS review recommends rework of two-tiered governance structure:

The Ontario government is being urged to rework an unwieldy governance structure at one of the province’s largest pension funds after representatives for police and firefighters complained of a breakdown in transparency and efficiency. 

The province released the results late Wednesday of a review it commissioned last year to improve governance at the Ontario Municipal Employees Retirement System (OMERS), which manages $141-billion for 640,000 public-service workers. 

Pension expert Robert Poirier, the special adviser chosen to lead the review, makes 33 recommendations to the Minister of Municipal Affairs and Housing, Rob Flack. 

Chief among them is that the province should dissolve one of OMERS’s two boards, known as the Sponsors Corporation, and replace it with a new “sponsors council,” which would add five non-voting members to the 14-member body. 

The change would eliminate the large and expensive corporate structure that supports the Sponsors Corporation, which has its own staff and fiduciary duties. 

In its place, it would create a simpler, more streamlined council supported by the sponsors’ own resources. The council would be directly accessible to all of the plan’s members, giving them more visibility and input into how OMERS is governed. 

That is expected to save OMERS an estimated $10-million each year and create a more focused and transparent leadership structure, the report says. 

The report’s recommendations would preserve the current division of duties, with the Sponsors Corporation (SC) – or sponsors council, if that change comes to pass – setting the plan’s contribution rates and benefits for plan members, and an independent, 15-member Administration Corporation (AC) board administering the plan and investing its assets. 

The unusual, two-tier board structure at OMERS dates back to a 2006 restructuring. In addition to setting contributions and benefits, the SC board has also been responsible for making appointments to the AC board. 

“Faced with a governance structure that has failed to adapt and evolve since 2006, the proposed amendments in this report aimed to realign the governance model with its original intent,” Mr. Poirier said in the report. 

The SC board has been the target of pension plan members’ complaints, which boiled over last year when some members felt blindsided by planned changes to contribution rates set to take effect in 2027. Some members such as police, firefighters and other higher-paid municipal workers will see contributions rise by $15 to $20 per pay period. 

Several OMERS employers wrote to the government in June, 2024, claiming the current structure lacked transparency and fair representation and had become inefficient. 

One of those complaints was from transit agency Metrolinx, where Mr. Poirier was a director. He is the chief executive officer of consulting firm NeuState Advisory and a former executive in the pensions division of asset manager State Street Corp. He was appointed to lead the review last August. 

Mr. Poirier also recommends establishing minimum standards for communication, transparency, engagement and mandatory consultations with sponsors and other plan members. 

He said his report’s recommendations are aimed at returning to “the foundational principle of pension governance as a collaborative agreement between employees and employers,” with both groups actively participating. 

It is now up to the province to decide whether to implement the report’s recommendations – and which ones to tackle first. In a statement, the Ministry of Municipal Affairs and Housing said the review was intended “to strengthen trust, transparency, and accountability” at OMERS. 

“After months of analyzing the plan’s governance and meeting with key plan employee associations and employers, Mr. Poirier’s full report is now publicly posted, and members are being engaged on the recommendations,” the statement said. 

In a statement in response Mr. Poirier’s report, the Sponsors Corporation said the current dual structure “has been key to SC improving access, enhancing security and preserving fairness for members and employers.” 

“There are significant changes in governance in this report. Whether these changes add strength to OMERS will be revealed over time.” 

The chair of OMERS’s AC board, George Cooke, said in a statement that the report “sets the stage for a new chapter in OMERS governance” and “successfully balances” the core tenets of the legislation that created the pension fund with efforts to address the sponsors’ concerns. 

“We are pleased to see that the report recognizes the importance of maintaining OMERS as a jointly sponsored pension plan and clearly delineates the accountabilities and respective roles of the administration and the sponsors,” he said. 

The report recommends extending Mr. Cooke’s term as chair for another four years to oversee the transition. He has led the AC board since 2013. And it calls for a progress report to the minister by June, 2027, followed by periodic governance reviews starting five years from now and every 10 years after that. 

The employee associations did not raise concerns about the performance of the AC board, OMERS’s investment performance or the fund’s capacity to pay pensions.

Robert Poirier's governance review report is available here.

Below, the overview and executive summary of the review:

Overview

Special Advisor Robert Poirier was appointed in 2024 to conduct a review of the OMERS governance model. The review was initiated in response to fairness, equity and transparency concerns raised by stakeholders who are part of the pension plan.

It had been more than a decade since the last review was undertaken in 2012. After extensive consultations with key plan employee associations and employers, the Special Advisor submitted his report to the government, including his findings and recommendations. The government is considering these recommendations and any future changes to the OMERS governance model would be informed by this report in a manner that supports the plan’s long-term sustainability.

The government will not be making any changes to contribution rates, plan benefits or the supplemental plan.

Below is an executive summary excerpt of the Special Advisor’s report.

Executive summary from the review

This 2025 OMERS Governance Review marks a critical juncture in the ongoing evolution of OMERS. Despite a more than decade-long window following the 2012 review, the steps to implement meaningful reforms have fallen well short. Rather than improving, the governance structure has become inward-looking and drifted further away from the fundamental objective of a jointly sponsored pension plan.

The Sponsors Corporation has increasingly operated within the confines of the Board and its affiliated corporation. This inward focus has significantly limited its engagement with the broader Sponsor and Non-Sponsor community and plan members, undermining transparency and accountability.

Faced with a governance structure that has failed to adapt and evolve since 2006, the proposed amendments in this report aimed to realign the governance model with its original intent. The return to the foundational principle of pension governance as a collaborative agreement between employees and employers — where both parties actively participate in negotiating the plan design, contribution levels and the types of benefits that best support members’ retirement security.

To address these challenges and restore alignment with the original purpose of a jointly sponsored plan, the report proposed the following key recommendations:

• maintain the current jointly sponsored, bicameral (two-entity) model
• maintain the current Sponsor representation and voting
• maintain the Sponsors’ statutory powers related to the ABCs (Appointments, Benefits and Contributions)
• replace the Sponsors Corporation with a new Sponsors Council
• establish an additional 5 non-voting members (Observers) in the Sponsors Council
• establish minimum standards in the act for communication, transparency, engagement and mandatory consultations with Sponsors and Non-Sponsors, (including other Non-Sponsor retiree groups), on specified changes
• enshrine the current 12-year board term limits in the act and allow for changes by regulations
• establish a transition period and increase the term limit from 12 to 16 years for the current Sponsor-appointed independent chair to oversee the transition
• establish a report back to the Minister of Municipal Affairs and Housing on the progress of the implementation and transition by June 2027
• establish a periodic governance review by the Minister of Municipal Affairs and Housing in 5 years from this review and every 10 years thereafter

In conclusion, this 2025 Governance Review presented a critical opportunity to restore trust, transparency and accountability within the governance model of one of the largest pension plans.

By embracing the recommendations in this report, OMERS can better serve its diverse membership, strengthen its long-term sustainability and reinforce its mandate to safeguard the retirement security of its members.

In his letter to Minister Flack, Robert Poirier notes:

Throughout this review, I have engaged extensively and frequently with an expanded spectrum of stakeholders, including the boards and executive leadership at OMERS Sponsors Corporation and Administration Corporation, retiree organizations, union and non-union leaders, employers, and pension experts. Our consultations have been widely praised by both labour and employer groups for their transparency, clear communication, and sincere engagement. The insights gained from these consultations were crucial in guiding the areas of focus and the development of the recommendations in this report.

I wish to sincerely thank the Ministry of Municipal Affairs and Housing for its support
throughout this process. I particularly want to acknowledge the exceptional contributions by the members of the Review Team, Jennifer Wong, Policy Manager, and Michael Beckett, Senior Economist, who have demonstrated professionalism, responsiveness, and dedication throughout this process and have played a critical role in the success of this review. I would also like to extend my appreciation to the Ministry of Finance for its valuable pension expertise and thoughtful input.

This report and its recommendations are intended to strengthen the OMERS’ governance model by identifying areas where it may no longer serve the best interests of plan members and organizations and aim to foster meaningful change that rebuilds accountability and  regains the trust of its membership. I’m confident that the recommendations in this report will be of value to you and your Ministry as you consider next steps. 

I would encourage you to read the entire report here, it's very well written, doesn't mince its words and provides clear guiding principles and recommendations to strengthen governance at OMERS.

For a pension governance wonk like me, this report is truly exceptional, setting the standard for others to follow in their governance review.

It reviews the current governance structure and exposes weaknesses and why OMERS is better off moving to a one board model that other Maple 8 pension funds have espoused.  

When I covered Robert Poirier's governance review last year, I also expressed my doubts on OMERS two-tiered governance structure, stating "it's time to do away with this dual board which none of OMERS' large peers have (one is plenty)."

Lastly, I invite you to read the statement from George Cooke, Independent Board Chair, OMERS Administration Corporation:

Yesterday, the Ontario government published the report of the Special Advisor, Robert Poirier, following his review of the OMERS governance model.

This review was initiated more than a year ago by Ontario's Minister of Municipal Affairs and Housing, and the report sets the stage for a new chapter in OMERS governance. As OMERS Independent Board Chair, accountable to some 640,000 Plan members, I thank Robert Poirier for his work on this report.

In my view, the report successfully balances the heart of the 2006 OMERS Act which underlines the important role Plan sponsors play, with the governance concerns raised by Plan sponsors and stakeholders during the review in 2012 and most recently in late 2024. Those concerns included transparency in the Sponsors Corporation Plan design decisions, the lack of representation of some OMERS members and employers in the governance model, and the inefficiencies that come from the duplication of resources between the AC and SC.

From the start, the AC Board welcomed and fully cooperated with the review. The AC Board believes that decisions about Plan design and contribution rates should be in the hands of OMERS sponsors, acting on behalf of members and employers. We are pleased to see that the report recognizes the importance of maintaining OMERS as a jointly sponsored pension plan and clearly delineates the accountabilities and respective roles of the administration and the sponsors.

The report also recommends a course of action to address the unique and duplicative structure where OMERS is run by two corporations, two Boards and two management teams, as established in the 2006 Act.

We are pleased with the report’s vision that would provide additional stakeholder groups with visibility on governance matters and plan design decisions as well as the recommendation that sponsor representatives be able to freely share information and act directly on their constituents’ behalf.

The issuance of this report is a step forward in making OMERS governance better for our members, employers, sponsors, and stakeholders. More than 640,000 members and their families rely on this Plan as a source of stable retirement income, and we appreciate this work on their behalf.

George Cooke
Independent Board Chair
OMERS Administration Corporation Board of Directors

Background on OMERS governance:

OMERS is governed by two boards that lead two corporations – the Administration Corporation (AC) and the Sponsors Corporation (SC) – that oversee different elements of OMERS governance under distinct mandates:

AC Board

SC Board

The AC Board is responsible for administering the OMERS Plan, serving members and employers, and investing Plan funds globally.

The SC is responsible for determining benefit levels, setting contribution rates, and appointing the board members on both Boards.

Great statement from George Cooke and I agree with the recommendation that his mandate be extended to oversee the implementation of all these recommendations once the government passes them. Below, OMERS CEO Blake Hutcheson delivers an address to the Empire Club of Canada on the story of OMERS (May 2024). 

The story of OMERS keeps getting rewritten and with better and more streamlined governance, this organization will continue to deliver value for its members. 

Darcy Song of top1000funds reports Canada marks five-year reign as global transparency leader: 

Canada has been named the country with the most transparent pension funds for the fifth consecutive year, according to the 2025 Global Pension Transparency Benchmark, with each of the five Canadian funds assessed ranked in the top 15 funds globally.

The results reaffirmed the strengths of the Canadian model, known for its sound governance, clear investment mandates and well-run in-house capabilities. The Canada country ranking was eight points ahead of the two countries in second place, Australia and the Netherlands, which had an overall transparency score of 92.

The GPTB assesses the largest five funds in 15 countries and in Canada that was CPP Investments, CDPQ, BCI, OTPP and PSP. The overall transparency score is based on the measure of four factors – three of which Canada led the way. It displayed the best-in-class governance, performance and responsible investing disclosure practices, but lost out to the Netherlands in cost disclosures.

In large part the leadership displayed by Dutch pension funds in cost reporting is due to regulation. Dutch funds are legally required to report on their costs under a prescribed method – through the Financial Assessment Framework – to the regulator De Nederlandsche Bank.

CEM Benchmarking product manager Edsart Heuberger, who is research lead for the GPTB, says Canada’s leadership position is partly driven by a healthy dose of peer competition.

“With a region like Canada, there’s always been a bit of an effect of thinking ‘what’s CPP doing? If CPP is doing it, we better do too’,” he says.

“The Maple 8 funds pride themselves on great governance and great transparency. They’re all big. They’re all wanting to be leaders and competitive with one another. They want to say this is who we are, and this is what we have to be – that’s why I think they’re leaders in all but one category in the four factors.”

Europe showed strength in transparency as a region, with half of the top 10 most transparent countries belonging to the continent.

Heuberger notes that some nations don’t have a prevailing culture of transparency which is manifested in the ranking, such as Latin America and Japan (despite its massive pension assets).

“In countries like Mexico and Chile, which are the two Latin American countries in our benchmark, and to a lesser extent Brazil, we just don’t see a lot of progress,” he says. “Even though this [transparency benchmark] has been in the public domain for five years, there hasn’t been much impetus for change, that we’ve heard or seen.”

“Likewise, some of the Japanese pension funds didn’t seem to have lot of movement. Maybe that’s just reflective of that [reserved] Japanese business culture,” he says, noting that the $1.9 trillion Government Pension Investment Fund (GPIF) only ranked 32 in the overall benchmark.

“Another aspect is there are some highly regulated markets … like Australia and the Netherlands, and the UK, and you do see those markets do well.”

A joint initiative between Top1000funds.com and CEM Benchmarking, the 2025 edition of the GPTB marks the final instalment of a five-year project which was established to showcase and encourage best practice in the industry and provide a self-improvement framework for fiduciary investors.

Among all 75 funds assessed, 61 per cent improved their score (compared to 72 per cent last year) and 15 per cent had worse scores.

All 15 countries represented in 2025 fared better than five years ago when the GPTB released its first edition. The countries that have improved transparency the most over the five-year period are Australia (20 points), Canada (18 points) and the United States (16 points). 

Earlier today, CPP Investments announced it once again ranked highly among the world's most transparent pension funds:

CPP Investments has once again earned global recognition for leadership in pension fund transparency, reflecting its belief that openness and accountability build trust and strengthen long-term performance. 

In the newly released 2025 Global Pension Transparency Benchmark (GPTB), CPP Investments earned a score of 97 — up one point from 2024 — ranking second globally behind only Norway’s Government Pension Fund Global. 

Canada’s leader for years 

This marks the fifth consecutive year CPP Investments has been recognized as Canada’s top-ranked pension fund for transparency, maintaining its leadership position since the benchmark’s inception in 2021. 

“In Canada, there’s often a sense of ‘What’s CPP Investments doing? If CPPIB is doing it, we’d better follow,’” said Edsart Heuberger, Product Manager at CEM Benchmarking, the Toronto-based firm that co-develops the Global Pension Transparency Benchmark. He noted that Canada continues to lead all countries reviewed in pension fund transparency, in part due to CPP Investments’ influence. 

Measuring what matters 

The GPTB evaluates the public disclosures of 75 pension funds across 15 countries, focusing on the five largest in each market. Funds are assessed across four categories: governance and organization, performance, costs, and responsible investing. Each category is evaluated for clarity, completeness, comparability, and overall information value. 

CPP Investments’ strong 2025 result was driven by a perfect score of 100 in governance, along with scores in the high 90s for both performance and responsible investing. This reflects the quality of disclosures on board structure and oversight, investment strategy, and the integration of environmental, social, and governance factors in decision-making. 

“Transparency goes beyond disclosure, it’s about providing the right information clearly so that stakeholders are better informed and more confident in the Fund’s strategy,” says Michel Leduc, Senior Managing Director and Global Head of Public Affairs and Communications. 

Transparency strengthens trust 

At CPP Investments, transparency is a way of working — built into how the organization communicates, reports, and engages with Canadians. By designing information for clarity and accessibility, CPP Investments strengthens public trust and reinforces confidence in the CPP’s long-term sustainability. 

Since the GPTB launched five years ago, CPP Investments’ score has improved by 16 points, reflecting sustained efforts to enhance openness and accountability across all major areas of fund management. 

Its approach to assembling, designing, disseminating, and engaging on strategy, risk, asset allocation, costs, and climate-related issues stands out as a leading example of accessible financial disclosure. 

Looking ahead, the organization aim to continue building on this foundation — evolving with stakeholder expectations while delivering long-term value for generations of Canadians. 

I would invite you to read more on the Global Pension Transparency Benchmark here.

Below, the 2025 results for the world's most transparent pension funds (full list is available here). As you can see, Canadian pension funds were among the most transparent in the world, led by CPP Investments, CDPQ (now La Caisse) and BCI:

At the very top of the list is Norway's Government Pension Fund Global with a perfect score.

No big surprise there, as CEO Nicolai Tangen explains to Amanda White of top1000funds, the world's largest sovereign wealth fund aims to be the global leader in transparency: 

Transparency has been high on the agenda of Nicolai Tangen since he became chief executive of Norges Bank Investment Management, responsible for the management of the $1.43 trillion Government Pension Fund Global, three years ago.

It’s not just because being transparent is the right thing to do, or that the Norwegian sovereign wealth fund is a ‘fund for the people’ and stakeholder management is crucial. It’s because transparency builds trust and a platform to be more impactful in generating change.

“Knowledge of the fund is linked to the trust that people have in the fund,” Tangen says in an interview with Top1000funds.com about the fund taking top spot in the Global Pension Transparency Benchmark for 2023. “We are really dependent on the trust of the Norwegian people, because this is a democratically-anchored fund it has to do with the trust of the people and the politicians and the whole governance structure here. Norway is a very transparent and democratic society and so we have to reflect that in the way we run the fund.”

But importantly, as an investor, being transparent allows the fund to be more influential when it wants to address change in the portfolio companies it invests in.

“By being more transparent you are more impactful when you try to investigate change,” Tangen says. “We work hard with our portfolio companies to get them to be more transparent, to disclose more on what they do on climate and so on. So we owe to them to be as transparent as we can be.” 

Back in 2007, after I left PSP Investments, I wrote a big report for the Treasury Board of Canada Secretariat on the governance of the public sector pension plan and in that report, I delved deeply into the governance of Norway's massive wealth fund and their world-leading transparency.

In short, Norway's Government Pension Fund Global is way ahead of everyone else when it comes to transparency and you see it in their communications, detailed and timely disclosures, video presentations, podcasts and more.

Norway's GPFG sets the transparency bar globally and CPP Investments sets it within Canada although La Caisse is a close second and BCI isn't far behind.

I like what Michel Leduc, Senior Managing Director and Global Head of Public Affairs and Communications states in their press release: “Transparency goes beyond disclosure, it’s about providing the right information clearly so that stakeholders are better informed and more confident in the Fund’s strategy.”

Indeed but just like governance, transparency is something that needs to be improved every year.

For example, if it were up to me, CPP Investments would have a detailed list of all their hedge funds (established and emerging managers), private equity funds, real estate and private credit funds with the exact amounts invested in each one of them for each fiscal year. 

I would have detailed information on secondaries and co-investments, not just in the annual report but also on its websites.

There would be a section on benchmarks with clear explanation on performance targets and how compensation is determined not just in the annual report but on the website.

I'd have detailed performance attribution on every major deal CPP Investments ever did going back to inception of the Fund, that includes all private co-investments. Again, on the website, once click and I have all the information. 

Most importantly, I would list the total compensation of every employee at the end of every fiscal year.

If we want to talk up diversity, equity and inclusion, let's be radically transparent on compensation.

Sure, the Fund will push back for "competitive reasons" but this is my perfect world of transparency.

Put it all out there, Canadians are contributing to your Fund helping to pay your salaries and bonuses so everyone deserves to know details on compensation right down to the associate level. 

I would implore Norway's massive wealth fund to do the same.

Lastly, I like hearing from actual employees at all levels, not just CEOs and senior execs, put more interviews on your website featuring all employees and what they do and give us a glimpse of what it feels like working at CPP Investments.

I'll stop there because I can go on and on on governance and transparency but my point is don't sit and pat yourselves on the back, always aim to do more, to be better and really outdo yourselves in terms of setting a high bar on pension transparency.

Below, a candid discussion with Nicolai Tangen, CEO of Norges Bank Investment Management which manages the assets of Norway's massive sovereign wealth funds. Listen carefully to his views on the secret sauce behind the Fund's long-term success (March, 2025).