Matt Toledo of Chief Investment Officer reports Norway’s sovereign wealth fund returned 15.1% in 2025:

Norway’s sovereign wealth fund saw strong performance in equities and energy infrastructure in 2025. The Government Pension Fund Global, managed by Norges Bank Investment Management, reported a 15.1% return last year, with fund assets reaching 1.526 trillion kroner ($2.228 trillion).

The fund’s return was 28 basis points lower than its benchmark index, according to an NBIM statement released Thursday. 

“The fund delivered very strong results in 2025,” NBIM CEO Nicolai Tangen said in a statement. “Stocks in technology, financials and basic materials stood out, making a significant contribution to the overall return.” 

The fund allocated 71.3% of its assets to publicly listed equites, 26.5% to fixed income and 1.7% to real estate. NBIM also manages a portfolio of unlisted renewable energy infrastructure, accounting for 0.4% of the total portfolio. 

NBIM’s equity portfolio returned 19.3%, while fixed income and unlisted real estate yielded 5.4% and 4.4%, respectively. The fund’s renewable energy infrastructure portfolio—which includes wind and solar farms—returned 18.1% last year. 

Within the fund’s equity portfolio, the basic materials sector performed the best, with a 40.9% return, followed by financials (32%), telecommunications (32%), and technology (28.5%). Because of the size of the allocations to different market sectors, technology stocks returned 864 billion kroner to the fund, followed by financials (675 billion kroner), industrials (312 billion kroner) and consumer discretionary (151 billion kroner). 

In a press conference announcing the fund’s 2025 returns, NBIM presented several stress testing risk scenarios which could negatively impact the performance of the fund in the future. In one scenario, the fund projected a market correction in the artificial intelligence sector—if the productivity gains of AI were not realized—that could result in a 37% fall in the fund’s value.  

Chloe Taylor of CNBC also reports the world’s largest sovereign wealth fund made $247 billion in 2025, driven by tech and banking rally:

Norway’s $2 trillion sovereign wealth fund made $247 billion in 2025, its management team said Thursday, thanks to rallying tech, financial and mining stocks.

The fund posted annual profit of 2.36 trillion kronor, or $246.9 billion. By the end of last year, the fund’s total value stood at 21.27 trillion Norwegian kroner Over the course of 2025, the fund returned 13.5 trillion kronor — its highest annual return since the fund’s inception in the nineties.

The overall return was 0.28 percentage points lower than the return on its benchmark index.

Equities, which make up about 71% of the fund’s investments, returned 19.3% last year.

Norges Bank Investment Management (NBIM) manages the fund on behalf of the Norwegian population. Set up in the 1990s to invest excess revenues from Norway’s oil and gas industry, the fund is currently an investor in more than 7,000 companies across 60 countries.

Its most valuable investments include a 1.3% stake in Nvidia, a 1.2% stake in Apple and a 1.3% stake in Microsoft.

“Stocks in technology, financials and basic materials stood out, making a significant contribution to the overall return”, Nicolai Tangen, NBIM’s CEO, said in a statement on Thursday.

NBIM’s holdings in the basic materials sector include mining giant Fresnillo — the best-performing stock on London’s FTSE 100 last year, which surged 452.5% amid a silver boom and its acquisition of Probe Gold.

In the financial sector, NBIM holds significant stakes in Bank of America, JPMorgan Chase and Goldman Sachs. The fund also has various holdings in global lenders, including European banking giants Santander, UBS, HSBC and UniCredit. Europe’s banking sector has been a source of major returns for investors in recent years.

Outside equities, NBIM’s fixed income investments returned 5.4% in 2025, while unlisted real estate returned 4.4%. Its renewable energy infrastructure holdings returned 18.1% last year. 

The fund increased in value by 1.53 trillion kroner — around $159.9 billion — in 2025.

White House clash

While the fund’s returns were positive in 2025, some of its decisions drew criticism — notably from the White House.

In September, the U.S. State Department told CNBC it was “very troubled” by fund’s decision to exit positions in American machinery manufacturer Caterpillar and five Israeli banks, citing “unacceptable risk” that the companies were contributing to rights violations in Palestinian territories.

A spokesperson argued NBIM’s Caterpillar exit “appears to be based on illegitimate claims against Caterpillar and the Israeli government.”

Norway’s finance minister, Jens Stoltenberg, later said the divestment was “not a political decision.”

American equities account for 38.8% of all the fund’s investments.

Stoltenberg told Bloomberg last week that he saw no reason for the fund to exit the United States.

“Our presence in the United States reflects the size of the U.S. market. And I think that’s the best way for a very long-term fund,” he said at the World Economic Forum in Davos, Switzerland. 

Norway's Government Pension Fund Global (GPFG) is the world's largest sovereign wealth fund and the most transparent fund in the world, consistently outranking global peers.

Results came out a week ago and I wanted to cover them this week for a couple of reasons.

First, it gives us a glimpse of what a well diversified global fund returned last year and also a glimpse into the performance of its massive unlisted real estate portfolio.

Second, this Fund is a close as you get to 70/30 allocation of global stocks and bonds (in reality its 71% in global listed equities, 27% in fixed income and 2% unlisted real estate and renewable energy).

In this regard, the Fund is heavily expose to global public markets and has no allocation to private equity.

It gives you a good idea of what Canada's large pension funds would be delivering if they didn't invest in private markets and primarily invested in global public markets.

Canada's large pension funds will be reporting their annual results in the weeks ahead and I don't expect them to deliver anywhere close to 15% for 2025 given they're more diversified across public and private markets.

Still, I expect decent performance across the Maple 8 funds with some issues in private equity mostly but nothing that will detract from the overall performance. 

So, keep Norway's 2025 performance in your head but also bear in mind it's a totally different asset allocation and objective function.

Norway's GPFG has a lot more global beta embedded in its portfolio and is a lot more exposed to the US tech sector which is good when these stocks are rallying, not so good when they're selling off (like thus far this year).

Below, CEO Nicolai Tangen and Deputy CEO Trond Grande presents the fund's results for 2025 at the fund's Oslo office Auditorium.

Great presentation, pay attention to their discussion on concentration risk impacting the Fund. I also like the way Nicolai calls upon analysts and portfolio managers to discuss sector performance. great insights here, take the time to listen.

I wish all our Maple 8 Funds and others did a similar detailed performance analysis of their annual results in a live presentation made public on YouTube. 

James Bradshaw of the Globe and Mail reports CEO’s payout, workplace relationship spur upheaval at Ontario pension plan:

Senior executives at CAAT, a $23-billion Ontario pension plan, raised concerns about the approval of an unusually large payout to the plan’s chief executive officer, setting in motion a governance crisis that has resulted in abrupt departures and scrutiny from the provincial regulator, according to sources.

Board chair Don Smith was recently suspended from his position on the board of trustees at the CAAT Pension Plan by the union that appointed him, three sources told The Globe and Mail.

The Globe spoke with eight sources familiar with the matter to understand what caused recent upheaval in CAAT’s senior ranks. The Globe is not identifying the sources because they are not authorized to discuss the matter.

CAAT is a multiemployer pension plan that serves Ontario’s colleges and more than 800 public- and private-sector employers. It has a total of about 125,000 members.

Mr. Smith’s suspension was a reaction to the abrupt departure of three executives from the plan in January, three sources said, amid concerns over decisions approved by the board. Two of the key flashpoints were a $1.6-million vacation payout to chief executive officer Derek Dobson that board leadership approved last year in lieu of vacation time, and a workplace relationship that Mr. Dobson has been having with a CAAT employee that the board sanctioned. Mr. Smith oversaw both of those decisions.

In response to questions from The Globe, Emily Visser, a spokesperson for the Ontario Public Service Employees Union, confirmed in a statement “that we have suspended one trustee from their position, pending an internal investigation,” but did not name the board member.

OPSEU represents staff at many employers that participate in the CAAT plan, and appoints nine trustees to CAAT’s board. OPSEU appointed Mr. Smith.

Ms. Visser said in the statement that the union has been reassured that CAAT is in strong financial health.

CAAT spokesperson Stephen Hewitt also confirmed in a written statement that OPSEU “suspended Don Smith as its nominee,” but said Mr. Smith “remains a trustee.”

OPSEU representatives “have the right to remove him from the board. He currently serves as chair until he is formally removed,” Mr. Hewitt said.

There is sufficient concern about governance at CAAT that the provincial regulator overseeing pension plans, the Financial Services Regulatory Authority of Ontario, is also looking into what transpired at CAAT and whether there was a failure of governance, three sources said.

FSRA is “aware of recent developments at CAAT” but does not comment on its supervisory activities at specific pension plans, spokesperson Russ Courtney said in a statement. He added that the regulator’s mandate “includes promoting good administration of pension plans.”

Mr. Hewitt said CAAT maintains “a regular and ongoing dialogue with FSRA, and this has been the case with respect to the recent leadership changes at the plan.”

Over the course of several months, tensions inside the pension plan’s senior ranks have been building, four sources said. They came to a head in late January when three of CAAT’s top executives – chief investment officer Asif Haque, chief financial officer Mike Dawson and chief pension officer Evan Howard – left the pension plan on Jan. 19.

In an all-staff e-mail the next day, reported by The Globe, Mr. Dobson said they were “leaving the organization on good terms,” but did not provide a reason for their departure. Mr. Dobson also held a hybrid town hall to answer staff questions on Jan. 22, CAAT said.

In his e-mail to staff, Mr. Dobson cited a need for “the right alignment of our executive team.”

In fact, the three executives left the organization after they warned board members they had lost faith in Mr. Dobson’s leadership, three sources said. However, the board stood by Mr. Dobson, and the organization negotiated terms for the three senior leaders to leave CAAT, the sources said.

Mr. Haque, Mr. Howard and Mr. Dawson did not respond to multiple requests for comment.

Mr. Hewitt said in the plan’s statement that decisions on executive departures are a confidential matter between the former employees and CAAT. He added that CAAT’s board “continues to have confidence” in the CEO and his ability to lead the organization.

CAAT was founded in 1967 to serve Ontario’s colleges of applied arts and technology. Under Mr. Dobson, it has expanded rapidly to serve a wider array of employers, with more than $23-billion of assets and $6-billion in funding reserves. The Globe has been a participating employer in CAAT since 2022.

The plan is well funded, with a 124-per-cent funding ratio, meaning it has $1.24 in assets for every dollar it expects to owe in pensions, according to the pension plan’s most recent disclosures. The concerns under investigation do not appear to relate to its investment performance, solvency or ability to pay pensions.

The senior executives who left CAAT approached its board in part to raise concerns about the $1.6-million payout to Mr. Dobson that the board approved in November, to compensate him for unused vacation time, three sources said. The payment was the third such payout that Mr. Dobson has received at CAAT, including a previous payment in 2019, two sources said.

The recent payout has invited scrutiny over whether the board applied enough rigour in approving such a large one-time payment to its CEO.

CAAT’s board “is aware of concerns” about vacation payments made to the CEO, and appointed an independent expert “to conduct a governance review” in 2025, Mr. Hewitt said.

The review covers CAAT’s governance policies, procedures and practices and is in advanced stages, he said.

Unlike most large public-sector pension funds in Canada, CAAT does not disclose compensation details for its most senior executives.

Another source of tension has been the personal relationship Mr. Dobson has been having with another CAAT employee for more than a year.

Mr. Dobson disclosed to CAAT’s board that he “had commenced a consensual relationship with a CAAT employee” in November, 2024, Mr. Hewitt said.

The employee does not report directly to Mr. Dobson, whose “full compliance” with company policies was reviewed by external legal counsel, CAAT said.

“Both the CEO and the employee will continue in their current roles within the organization and CAAT has implemented a number of measures to prevent any perceived conflicts of interest or perceptions of favouritism in light of the relationship,” Mr. Hewitt said.

Those measures include barring the CEO from having input into performance appraisals, compensation decisions or potential promotions, CAAT said.

But internally, sources said, there are still questions about the propriety of the relationship, and whether trustees should have sanctioned it given the CEO’s authority over employees.

There have been other changes to CAAT’s leadership team in recent months. The plan’s chief human resources officer left last June, and its senior vice-president of technology and IT services management as well as its head of policy and government relations departed early this year. 

Ana Pereira of the Toronto Star also reports CAAT pension plan board chair suspended by OPSEU amid governance crisis:

The chair of the CAAT pension plan board, Don Smith, has been suspended amid a governance crisis at the plan.

On Tuesday, the Globe and Mail reported that Smith oversaw an approval made by the board to grant CAAT CEO Derek Dobson a $1.6 million vacation in-lieu payout and sanctioned Dobson’s relationship with a CAAT employee. 

CAAT, which manages the pensions of more than 120,000 public- and private-sector workers across Canada (including Toronto Star employees), confirmed that the Ontario Public Service Employees Union (OPSEU) removed Smith as its nominee on the plan’s board of trustees.

Smith, who is also a professor at Georgian College, remains as trustee.

OPSEU members of the sponsors committee have the right to remove him from the board, said CAAT, and he currently serves as chair until formally removed.

A web page containing Smith’s biography has been withdrawn from CAAT’s website. 

The news comes after CAAT announced the sudden departure of three senior executives — the chief investment officer, chief financial officer and chief pension officer — last Wednesday. 

Originally created to support Ontario colleges, CAAT now serves 800 participating employers with $23 billion in assets. The plan is well-funded, holding $1.24 for every dollar in promised benefits. In the unlikely event of a deficit, all pensions would continue to be paid in full, as is required by law. 

In a statement, CAAT spokesperson Stephen Hewitt said reasons behind employee departures are confidential. 

Sometime prior to December 2025, the board of trustees became aware of “concerns” that had been raised with respect to vacation payments made to Dobson, according to Hewitt, confirming the $1.6 million attributed to anonymous sources in the Globe. 

He said the board has appointed “an independent expert” to conduct a governance review, which is on track to be completed in the “coming weeks.” 

“If changes are needed to continue to provide effective governance and align with best practices, the board will consider them,” Hewitt said, emphasizing that CAAT continues to “have confidence” in the CEO’s leadership. 

In a statement, OPSEU president JP Hornick said the union has “no influence on the administrative decision-making of the CAAT Pension Plan Board of Trustees” and that one trustee has been suspended pending an investigation.  

“The union continues to be invested in the ongoing protection of our members’ pensions and has been reassured by CAAT Pension Plan that the plan is in strong financial health,” Hornick said. 

CAAT also confirmed that, in November 2024, Dobson informed the board of trustees that he had begun a consensual relationship with a fellow employee. The disclosure was compliant with the pension plan’s policies on workplace relationships, said Hewitt, and the CEO’s conduct was reviewed by external lawyers. 

“The employee is long tenured, was not hired by the CEO, is not a direct report of the CEO and is multiple levels removed in terms of reporting lines,” added Hewitt. He said Dobson will not have an input in the employee’s performance appraisals, compensation decisions or promotions. 

Both the CEO and the employee will continue in their roles at CAAT. 

Dobson has been leading the pension plan since 2009. He is also a sitting member of the Pension Policy Council at the C.D. Howe Institute.  

Josh Welsh of Benefits Canada also reports a Canadian pension plan faces governance crisis amid executive departures:

A governance crisis is unfolding at CAAT Pension Plan, following concerns raised by senior executives about an unusually large payout to CEO Derek Dobson, according to the Globe and Mail.

Board chair Don Smith has been suspended from his position by the Ontario Public Service Employees Union (OPSEU), which appointed him as a trustee. The suspension came after three senior executives - chief investment officer Asif Haque, chief financial officer Mike Dawson, and chief pension officer Evan Howard - abruptly left the organization on January 19, according to the Globe.

OPSEU spokesperson Emily Visser confirmed the trustee suspension but stated the union has been reassured of CAAT's strong financial health.

The departures followed internal disputes over two key issues: a $1.6-million vacation payout to Dobson approved by the board in November 2024 in lieu of unused vacation time, and a workplace relationship between Dobson and a CAAT employee that trustees sanctioned.

Both decisions were overseen by Smith.

According to sources cited by The Globe, the three executives warned board members they had lost faith in Dobson's leadership, but the board stood by the CEO and negotiated exit terms for the departing executives.

Meanwhile, CAAT spokesperson Stephen Hewitt confirmed the pension plan has appointed an independent expert to conduct a governance review.

To fill the Plan's critical roles, CAAT has since promoted 17-year veteran Kevin Fahey to the role of CIO and appointed former trustee Scott Blakey as an interim executive vice president.

CAAT serves approximately 125,000 members across Ontario's colleges and more than 800 public- and private-sector employers. Despite the upheaval, the Plan remains financially stable with a 124-per cent funding ratio, according to the Plan’s most recent disclosures. 

CAAT has experienced additional leadership turnover recently. Their chief human resources officer departed in June, while the senior vice-president of technology and IT services management and the head of policy and government relations left earlier this year, according to the Globe.

The Financial Services Regulatory Authority of Ontario (FSRA) told the Globe they are now reviewing the situation for potential governance failures.   

Wow, I knew something was up at CAAT Pension Plan when I covered the departure of the CIO, CFO and CPO in late January.

Never in my career working at pensions or in almost 20 years of covering them did I ever see a CIO, CFO and CPO all "resigning" on the same day. It was extremely odd and now we get more information as to the context surrounding the departures.

Someone obviously leaked the story to James Bradshaw at the Globe and I'm glad they did or else people would be completely clueless.

I'm going to share my thoughts and will be brutally honest.

CAAT Pension Plan might be in great financial shape and have great investment and other professionals but this governance crisis shows me that OPSEU has no idea what is really going on there and this was not handled correctly.

Importantly, following these serious allegations, the CEO and Chair should have been placed on administrative leave pending the findings of an independent report.

I'm shocked at the nonsense I'm reading in these articles, at a minimum, the relationship between Don Smith and Derek Dobson needs to be examined.

And to be truthful, after all this, Derek Dobson should just step down for the good of the organization. 

I don't see how he can continue being the CEO after all this, he has surely lost the confidence of members and many employees.

When three senior execs all lose confidence in the CEO, the Board doesn't side with the CEO and make arrangements for their exit, the Board immediately places the three execs and senior executives on administrative leave pending an in-depth investigation and the independent report must be made public to all members.

That's the way I would have handled it if I was Chair at CAAT Pension Plan just like if I was the Chair at any other pension fund and a similar situation.

For example, La Caisse had a huge India bribery scandal, I would have placed all execs on administrative leave including their head of Infrastructure pending the findings of a detailed independent report which I would have made public. 

Instead what happens all too often is the execs make off like bandits with huge severance packages and nobody has any idea what the hell happened.

In the case of CAAT, the Board "arranged for the departure of the three senior execs," meaning they got a big severance and in return have to sign a non disclosure agreement.

And if Derek Dobson is forced to stepped down,  I can guarantee you he'll get a whopping severance package for all his years of service and CAAT's members who have modest salaries and pensions will be left in the dark as far as details.

On that subject, CAAT Pension Plan and HOOPP are the only two pension plans I cover that do not disclose the top five salaries of senior execs even though by law, the Financial Services Regulatory Authority of Ontario (FSRA) forces them to disclose this information (so I'm told).

It's a matter of good governance -- Governance 101 -- you always publish the top five compensations at the pension fund you're in charge of. 

Now, as far as the specific charges again Derek Dobson, let me be quick.

Vacation pay. Who accumulates $1.6 million in vacation pay over the years? Unheard of, this is why other organizations force everyone including the CEO to take their full vacation or lose their pay.

A consensual relationship with an employee at CAAT.  Even if he disclosed it to the Board and was approved by an external legal representative, it's a) bad judgment on his part and b) there's always a perception of conflict of interest even if the employee doesn't report to him.

Totally unethical in my opinion, if you're the CEO and want to have a relationship with an employee, fine but that employee can't continue working at the same organization. Period.

Lack of confidence from three senior execs. In my opinion, this is the most serious charge and warrants a full investigation. When the CIO, CFO and CPO go to the Board and express lack of confidence in their leader, you don't side the CEO and send them packing and if you do, you better have a damn good reason for doing so. 

In short, CAAT's Board collectively screwed up here and I'm wondering whether they need a professional board made up of qualified independent professionals with experience (I'm NOT interested but can recommend top guns).

This is a full-blown governance crisis at CAAT and it's not over, more to come.

And the sad part is poor Kevin Fahey, the new CIO, and other CAAT employees are just trying to do their job and this causes unneeded distractions.  

I stand by Kevin and his investment team but after reading this, I cannot see how Derek Dobson can continue to be CAAT Pension Plan's CEO and Plan Manager. 

Again, for the good of the organization, he should step down.

Those are my thoughts on this governance crisis at CAAT. I want o make it clear that I have nothing against Derek Dobson, think he did a wonderful job at CAAT for many years and promoted DB plans but enough is enough, the place needs to change at the very top.

As far as Don Smith, he needs to immediately resign as a trustee and the entire Board needs to be reviewed to make sure they are qualified and doing their job properly.

Alright, back to trading these crazy markets, unlike the senior pension fund managers I cover, I don't have the luxury of $1,6 million vacation pay or huge bonuses at the end of the calendar of fiscal year.

And neither do CAAT's members, they deserve the truth, the whole truth and nothing but the truth.

Below, the CAAT Pension Plan is committed to providing a secure retirement income for its members and provide innovative retirement income solutions to our employers. Listen to insights from CAAT’s 2024 annual performance update.

It's a shame this happened but I'm convinced CAAT Pension Plan will come out of this a lot stronger.  

…

IPE Real Assets reports University Pension Plan Ontario buys stake in Schroders Capital’s Dutch industrial portfolio

Schroders Capital and University Pension Plan Ontario (UPP) have formed a European logistics and industrial real estate investment partnership.

As part of the new partnership targeting Northwestern Europe, the Canadian pension fund has acquired an interest in Schroders Capital’s portfolio of industrial logistics and warehousing assets in the Netherlands.

Financial details were undisclosed.

Peter Martin Larsen, senior MD and head of private markets, UPP, said: “We are delighted to establish this partnership with Schroders Capital. The partnership supports our strategy to build a resilient, income-generating real estate portfolio by partnering with leading real estate specialists focusing on markets with strong fundamentals.

“By partnering with Schroders, we are strengthening our European real estate platform while positioning ourselves to deliver reliable, long-term, inflation-linked returns for our members.”

Nick Montgomery, global head of real estate, Schroders Capital, said: “We are thrilled to welcome UPP as a strategic partner and investor in our logistics and industrials portfolio.

“UPP’s long-term approach and strong focus on responsible investment are closely aligned with our own values. This partnership exemplifies growing institutional confidence in our platform and underscores the relevance of our pan-European, sector-focused strategy for secure and sustainable returns.”

Pieter Akkerman, co-head of real estate Netherlands and portfolio manager, Schroders Capital, said: “There is a clear opportunity set in this sector and our strategy aligns with the long-term occupational trends in logistics and industrial sectors.

“The growth of e-commerce from the expansion of online shopping, supply chain resiliency, the tight supply of quality assets and increased sustainability standards are all driving investment opportunities across AAA-rated European economies.

“We have an established portfolio, delivered by a team with local operational expertise across the Netherlands and Germany, combined with the global capabilities of the Schroders Capital platform.”

Earlier today UPP issued a press release stating it has formed a strategic partnership with Shroders Capital in European logistics and industrial real estate​:

Schroders Capital and University Pension Plan Ontario (UPP) have formed a strategic partnership to invest in high-quality logistics and industrial real estate across Northwestern Europe.

This partnership combines long-term capital and sector expertise, with a shared focus on long-term value creation and embedding material environmental, social, and governance considerations into asset management to support effective risk management and long-term pension security. It also supports UPP’s strategy to build a well-diversified real estate portfolio focused on stable, long-term returns for members.

Schroders Capital’s real estate team focuses on a range of mid-sized, urban, industrial logistics assets in high-demand locations, including income-generating land and last-mile distribution. They pursue long-term steady returns correlated to inflation through a mix of capital gains and income, delivered by a team of more than 50 real estate professionals, harnessing strong local operational expertise across core markets and a strong track-record of outperforming the industry benchmark since managing the assets in 2006.

Peter Martin Larsen, Senior Managing Director and Head of Private Markets, UPP, said:

“We are delighted to establish this partnership with Schroders Capital. The partnership supports our strategy to build a resilient, income-generating real estate portfolio by partnering with leading real estate specialists and focusing on markets with strong fundamentals. By partnering with Schroders, we are strengthening our European real estate platform while positioning ourselves to deliver reliable, long-term, inflation-linked returns for our members.”

Nick Montgomery, Global Head of Real Estate, Schroders Capital, said:

“We are thrilled to welcome UPP as a strategic partner. UPP’s long-term approach and strong focus on responsible investment are closely aligned with our own values. This partnership exemplifies growing institutional confidence in our platform and underscores the relevance of our pan-European, sector-focused strategy for secure and sustainable returns.”

Pieter Akkerman, Co-Head of Real Estate Netherlands and Portfolio Manager, Schroders Capital, said:

“There is a clear opportunity set in this sector and our investment thesis aligns with the long-term occupational trends in logistics and industrial sectors. The growth of e-commerce from the expansion of online shopping, supply chain resiliency, the tight supply of quality assets and increased sustainability standards are all driving investment opportunities across AAA-rated European economies.

We have established capabilities delivered by a team with local operational expertise across the Netherlands and Germany, combined with the global capabilities of the Schroders Capital platform.

We’re pleased in the trust placed in us by UPP.”

Alright, very quickly, this is another great partnership for UPP which will allow the an to expand its European real estate portfolio in the all important logistics (industrial) space. 

Schroders Capital is a large global alternatives firm specializing in private markets and it has over $111 billion asset under management with a particular focus on European real estate.

The firm publishes excellent investment insights and I did read their latest on the European real estate market where I noted this:

For the industrial sector, the uncertainty over tariffs and manufacturing weakness seen earlier in 2025 led occupiers to exercise caution, but with recovering exports prospects should improve. Prime rents remained broadly unchanged over Q4 2025 and occupier demand remains well supported by structural drivers such as growing e-commerce penetration and expectations that government-led investment on defence and infrastructure will further stimulate logistics space requirements.  

You'll also recall Sophie van Oosterom, their former Global Head of Real Estate, is now the global head of real estate at CPP Investments. 

In short, it's an excellent firm with a great reputation and UPP has now acquired an interest in its portfolio of industrial logistics and warehousing assets in the Netherlands.

Pieter Akkerman (featured above), co-head of real estate Netherlands and portfolio manager, Schroders Capital, is a seasoned investor with solid credentials in charge of that portfolio:

Pieter is Co-Head Real Estate Netherlands at Schroders Capital, having joined in February 2022 after 10 years as managing director at Cairn Real Estate since 2011. Pieter started working in 2001 as an analyst within investment banking for Lehman Brothers before joining ABN AMRO MeesPierson in 2005 where he became managing director Real Estate (in 2008) responsible for all real estate investment funds and strategies.

Schroders Capital is the private markets investment division of Schroders, one of the world’s leading asset managers. It offers investors a local approach to investing across a broad range of private asset strategies, supported by a global perspective.

Schroders Capital is one of Europe’s largest real estate managers with deep real estate expertise on the ground across real estate sectors. The business aims to deliver superior risk-adjusted returns, portfolio diversification and positive impact in investors’ portfolios. Investment strategies are offered in a broad range of open and closed ended funds, listed REITS, specialist funds, joint ventures, separate accounts and global real estate securities. 

Peter Martin Larsen, Senior Managing Director and Head of Private Markets, UPP, is striking the right partnerships to invest in private markets globally and I'm sure this one will prove to be another great one over the long run.

When it comes to private markets, you absolutely need to establish the right partnerships to be successful over the long term.

Below, Pieter Akkerman, co-head of real estate Netherlands and portfolio manager, Schroders Capital, takes part in a Real Asset Media panel discussion which took place back in 2022.

AIMCO's CIO Justin Lord spoke with Sarah Rundell of Top1000Funds on their new strategy focusing on cost, efficiency and less directs: 

Efficiency, cost savings and less direct investment in private equity are key tenets of investment strategy at C$182 billion ($133 billion) Alberta Investment Management Corporation (AIMCo) under the leadership of new chief investment officer, Justin Lord.

Lord has been at AIMCo for 14 years, climbing the ladder to lead the public markets division before he was promoted to the helm in July last year, tasked with steadying the ship after a tumultuous 2024 when the provincial government of Alberta terminated the entire 10-member board and its CEO Evan Siddall citing underperformance and rising costs. [See Chaos at AIMCo as politicians take control].

In an interview from AIMCo’s Edmonton offices, Lord tells Top1000funds.com that centralising the investment process has been a key focus in his first six months as CIO, particularly around liquidity management in a quest to boost efficiency across the platform, add value and increase investment performance for the pension funds, endowments and insurers AIMCo serves.

“Sometimes efficiency is the easiest form of alpha,” he says.

Liquidity management supports both efficiency and the ability to allocate capital when attractive opportunities arise, he continues.

Positioning the portfolio

Lord is comfortable with AIMCo’s current liquidity levels in the context of today’s valuations and does not view markets as broadly overvalued. Still, he notes that the rapid evolution of AI presents both significant opportunity and emerging risk, and is an area the investment teams are monitoring closely alongside inflation, geopolitical volatility and trade uncertainty.

These risks aside, he believes three main factors will support asset values and markets in 2026.

AI and the proliferation of technology across industries will continue to drive capital expenditure and support growth and earnings expectations in large cap equities; a shift in monetary policy as the Federal Reserve moves to cut rates will impact asset values and fan favourable fiscal and regulatory conditions that support global economic activity.

“These factors – AI, lower rates and favourable fiscal and regulatory conditions – will ensure the continuation of earnings growth, certainly in public equities,” he reflects, adding that tactically, AIMCo remains close to home in its target asset mix.

“Where we see opportunities to deviate from our target asset allocation include infrastructure, pockets of private credit in respect to current credit spreads, and also, to some extent, real estate over the next couple of years.”

Perhaps one of the most significant changes is underway in private equity where AIMCo will increasingly chip away at direct investment in favour of fund and co-investments in a strategy designed to better tap the benefits of collaboration with private equity partners. In 2023, around 36 per cent of the private equity program was in direct and co-investments and around 64 per cent in funds.

Direct investment requires AIMCo’s own due diligence yet leading private equity firms have developed sophisticated operating platforms with expertise in areas like digitisation, supply chain management, AI applications and nurturing talent that help create value in the underlying portfolio companies on the platform, he says.

“Through fund and co-investment, we can tap into GP management capabilities that successfully operate the underlying business.”

Lord believes the diversification benefits of private equity are particularly pronounced today given private equity has underperformed public markets and benchmarks. “We view private equity as a diversified return generator in the portfolio but even more so today given the backdrop of concentration and current valuations in large cap, liquid public markets.”

He’s also bullish on opportunities and returns picking up as liquidity returns to private equity in general.

Like in private equity, he believes private credit represents a significant growth opportunity but given tighter spreads and increased competition, is being selective in this key driver of long-term value.

While other Maple 8 institutions develop a total portfolio approach, Lord explains that AIMCo’s key objective is to meet the management of individual client portfolios. Because each one has a unique and different objective, risk appetite and nuance to consider, it makes TPA challenging.

“If anything, TPA is at a client level at AIMCO where we are focused on portfolio management for individual clients to reflect their circumstances regarding risk, portfolio construction and strategies like rebalancing and hedging,” he says.

Costs were also at the heart of the decision to scale back AIMCo’s international expansion and close recently opened offices in Singapore and New York. [See AIMCo sheds more costs with NYC, Singapore offices the latest casualties]

Lord maintains that AIMCo can provide value to its clients and access to opportunities without boots on the ground in these locations. Offices in Edmonton, Calgary, Toronto and London secure the coverage and access to the curated relationships AIMCo seeks in the US, Europe and Asia, he says.

“A geographical footprint divided between Calgary, Edmonton, Toronto and London is optimal to continue to deliver opportunities.”

He does float the idea, however, of “additional internalisation” of AIMCo’s public markets operations in Alberta and Toronto. London primarily houses private asset class teams.

Lord points to high client satisfaction scores as proof that AIMCo’s investment strategy and refreshed governance is delivering for client funds.

The recent confirmation of former Alberta civil servant Ray Gilmour as CEO is a force of stability rather than symbolic of the asset manager being drawn closer to the government and political pressure.

“With the board and executive positions filled, including the recent announcement of Ray Gilmour’s permanent appointment as our CEO, there is certainly a sense of optimism within the organisation to start the year.”

Lord is also quick to rebuff any suggestion that the asset manager will bow to political pressure to invest more in Alberta: risk and return priorities must be met before investing more in AIMCo’s backyard.

“AIMCo is operationally independent from the government through all aspects of our business. Particularly as it relates to our autonomy over investment decisions which are guided by our internal processes, sound financial principles and our clients’ long-term objectives,” he concludes.

Great interview with AIMCo's CIO Justin Lord to kick off a busy week ahead.

Justin is a no nonsense, practical kind of investment professional who focuses on delivering consistent outcomes.

That's the sense I got when I discussed mid-year results with him back in August, he's a solid CIO with extensive public markets experience who will lean on his private market teams as needed in this role.

As far as the new strategy, it seems very sensible to me, they will adopt the partnership approach that CPP Investments, PSP Investments and others have, focusing solely on fund investments and co-investments to lower fee drag.

And unlike other large pension funds, no foreign offices in New York, Singapore and other places, only Edmonton, Calgary, Toronto and London.

The emphasis is on delivering cost efficient outcomes utilizing existing personnel.

Now, the devil is always in the details and how you execute this strategy.

Also some nuances I need to discuss here.

The article above states in 2023, "around 36 per cent of the private equity program was in direct and co-investments and around 64 per cent in funds." 

Co-investments are a form of direct investing but when they say direct, they mean purely direct where AIMCo owns a majority stake.

Going forward, more co-investments where they own a significant minority stake (49%) and they will rely on their partners to add value to these investments, not the internal team. 

The private equity team led by Peter Teti will continue to negotiate with the right partners, secure great co-investment opportunities and make sure they deliver solid long-term returns and maintain an adequate allocation to the asset class.

Turnaround time in co-investments will be critical and it doesn't matter where they are located as long as they can analyze deals quickly and be a trusted partner when the GPs offer them a co-investment.

That's the way I see this, over time the ratio of fund investments to co-investments will be 60/40 and may even 55/45 if all goes well.

But direct investments where AIMCo takes a controlling stake are over and I think this is the right strategy.

Lastly, I am so tired of people peddling their great "total portfolio approach" and it was refreshing to read this from Justin:

“If anything, TPA is at a client level at AIMCO where we are focused on portfolio management for individual clients to reflect their circumstances regarding risk, portfolio construction and strategies like rebalancing and hedging,” 

When you have a lot of clients like AIMCo, BCI, La Caisse, your total portfolio approach needs to be base don each client's needs and liabilities.

Alright, let me wrap it up by saying it's good Ray Gilmour is now officially the CEO and they can put the who "AIMCo purge" behind them and focus on executing on their strategy and delivering consisten results.

Below, Blackstone President and COO Jon Gray joins 'Squawk Box' to discuss the company's quarterly earnings results, investing in AI, dealmaking environment, state of the AI boom, real estate market, and more.

Gray aslo talked to Bloomberg saying he expects a strong deal environment amid an economy that looks pretty good this year. Speaking with Dani Burger on "Bloomberg Open Interest," he also comments on the fears of an AI bubble and what he sees as risks to the markets.

Rian Howlett ,  Karen Friar and Laura Bratton of Yahoo Finance report the Dow, S&P 500, Nasdaq slide to cap volatile week and month, metals sink after Trump taps Warsh for Fed:

US stocks slid on Friday as President Trump said he would nominate Kevin Warsh to lead the Federal Reserve, against a background of a rising dollar and a screeching halt to 2026's roaring metals rally.

The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) fell 0.4% and 0.9%, respectively, recording another down session for tech stocks. The Dow Jones Industrial Average (^DJI) dropped 0.4%.

Despite Friday's volatility, all the gauges notched slight January gains. The Dow and Nasdaq both posted their third straight losing weeks, while the S&P 500 snapped its losing streak, rising 0.3% over the past five days.

Markets are calculating the potential impact after Trump said he has chosen frontrunner Warsh as the US central bank's next chair. The former Fed governor has a hawkish record on interest rates but has recently voiced support for cuts — which Trump has aggressively campaigned for.

The dollar (DX-Y.NYB) rose on the prospect of Warsh as the Fed's leader. Meanwhile, gold (GC=F) and silver (SI=F) plunged, putting the brakes on runaway rallies. Gold fell below the $5,000 level, while silver sank as much as 25%, its biggest daily drop on record.

In addition, the watch is on for the next trade move from Trump, who threatened to hit Canadian aircraft imports with a 50% tariff. The US would also decertify all new jets from the likes of Bombardier (BDRBF), Trump said, claiming Canada has used certification hurdles to effectively ban the sale of US Gulfstream jets. Meanwhile, Mexico is facing new levies after Trump promised to impose new tariffs on countries providing oil to Cuba.

On the earnings front, Apple's (AAPL) shares rose after the iPhone maker's results closed out a mixed bag of Big Tech reports for the week. While its quarterly profit topped estimates, fueled by record phone sales, its CEO Tim Cook warned the global memory shortage would hit future margins.

 Meanwhile, shares in Sandisk (SNDK) rose 5% following upbeat forward guidance from the data storage company. Oil producers were another highlight on Friday's docket with Exxon (XOM) and Chevron (CVX) beating earnings estimates by slim margins. Results from American Express (AXP) and Verizon (VZ) were also in focus. 

Lisa Kailai Han, Alex Harring and Pia Singh of CNBC also report S&P 500 falls for third straight day as speculative silver trade unwinds, but ends month positive:

Stocks retreated on Friday as technology shares remained in a funk, even as investors largely approved of President Donald Trump’s pick of Kevin Warsh to lead the Federal Reserve. Still, the S&P 500 squeaked out a January gain, despite Friday’s losses and volatile trading this month.

The broad index fell 0.43% to finish at 6,939.03, its third straight down day. The Dow Jones Industrial Average pulled back 179 points, or 0.36%, to settle at 48,892.47. The tech-heavy Nasdaq Composite underperformed, dropping 0.94%, to end the day at 23,461.82. All three indexes fell more than 1% at session lows.

“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” said Trump in a Truth Social post.

Warsh’s selection was likely to ease concern about Fed independence because of his experience as a Fed governor and strong stance at times against inflation. While he is likely to push for lower rates in short term as Trump wants, the financial markets view him as someone who wouldn’t always follow the president’s direction and maintain credibility for monetary policy.

The U.S. dollar rallied and U.S. Treasury yields held steady, signaling that investors appeared satisfied with Trump’s pick.

“Kevin Warsh’s nomination for Fed Chair is exactly what markets were hoping for, as he’s a steady hand, well known in market circles and is expected to maintain the independence of the central bank, which is critical for markets,” said Richard Saperstein, chief investment officer of Treasury Partners. “Most importantly, Warsh faces few hurdles when it comes to being confirmed by the Senate.”

But other variables threw cold water on stocks in the session.

Spot gold and silver dropped around around 9% and 28%, respectively. Over the past year, gold and silver futures have soared about 67% and 142%, respectively.

Retail investors have piled into trades tied to the precious metals, especially in recent weeks as a speculative bubble formed. The iShares Silver Trust (SLV), a popular choice among individual traders, plunged more than 28% in Friday’s session, its worst day on record. Such a move can be indicative of forced selling, given that fundamentals rarely change on a trade so quickly, according to Matt Maley, chief market strategist at Miller Tabak.

“This has been the hottest asset for day traders and other short-term traders recently,” Maley said. “There has been some leverage built up in silver. With the huge decline today, the margin calls went out.”

Still, investors continued to parse through earnings reports.

Apple swung between gains and losses despite beating fiscal first-quarter expectations and reporting a significant surge in iPhone sales. That follows Microsoft’s 10% post-earnings drop on Thursday, marking its worst day since 2020 and wiping out more than $350 billion in market cap. KLA Corp lost more than 15% on Friday after its forecast suggested a deceleration in growth.

But outside of tech, Verizon shares surged nearly 12%, marking their best day since 2008. The telecommunications giant beat analyst expectations and provided a strong full-year outlook for earnings.

Despite Friday’s weakness, the major averages recorded a positive month. The S&P 500 and Dow logged gains of 1.4% and 1.7%, respectively, for January, while the Nasdaq notched a 1% gain. The small cap-focused Russell 20009 jumped more than 5% in the month.

Chloe Taylor of CNBC also reports silver plunges 30% in worst day since 1980, gold tumbles as Warsh pick eases Fed independence fear:

Gold and silver prices plunged Friday, as President Donald Trump’s nomination for the next chair of the Federal Reserve, Kevin Warsh, appeared to relieve concerns about the central bank’s independence and sent the dollar soaring.

Spot silver was down 28% at $83.45 an ounce, trading near its lows of the day. Silver futures plummeted 31.4% to settle at $78.53, marking its worst day since March 1980.

Meanwhile, spot gold shed around 9% to trade at $4,895.22 an ounce. Gold futures dropped 11.4% to settle at $4,745.10.

The sharp moves down were initially triggered by reports of Warsh’s nomination. However, they gained steam in afternoon U.S. trading as investors who piled into the metals raced to book profits. Metals were also under pressure as the dollar spiked higher, making it more expensive for foreign investors to buy gold and silver and spoiling the theory that metals would replace the greenback as the globe’s reserve currency.

The dollar index last traded around 0.8% higher.

“This is getting crazy,” said Matt Maley, equity strategist at Miller Tabak. “Most of this is probably ‘forced selling.’ This has been the hottest asset for day traders and other short-term traders recently. So, there has been some leverage built up in silver. With the huge decline today, the margin calls went out.”

Trump picks Warsh

National Economic Council Director Kevin Hassett had been the favorite to replace Powell for some time, but Warsh became the front-runner in prediction markets in recent days.

In a note on Friday morning, Evercore ISI’s Krishna Guha said the market was “trading Warsh hawkish.”

“The Warsh pick should help stabilize the dollar some and reduce (though not eliminate) the asymmetric risk of deep extended dollar weakness by challenging debasement trades – which is also why gold and silver are sharply lower,” the firm’s vice chairman said.

“But, we advise against overdoing the Warsh hawkish trade across asset markets – and even see some risk of a whipsaw. We see Warsh as a pragmatist not an ideological hawk in the tradition of the independent conservative central banker.”

Claudio Wewel, FX strategist at J. Safra Sarasin Sustainable Asset Management, told CNBC’s “Squawk Box Europe” on Friday that a “perfect storm” of geopolitical tensions had helped precious metals move higher this year, pointing to the U.S. capture of Venezuelan President Nicolás Maduro and Washington’s threats to use military force in Greenland and Iran.

More recently, he said, speculation over who would be nominated as the next Fed chair had been influencing metals markets.

“The market has clearly been pricing the risk of a much more dovish contender, that’s been largely helping the gold price along with other precious metal prices. Over the last 24 hours, the news flow has changed a little bit,” Wewel said, prior to Trump’s announcement.

‘Even good assets can sell-off’

Gold and silver both enjoyed record-smashing rallies in 2025, surging 66% and 135%, respectively, over the course of the year.

Coeur Mining lost 17%. Silver ETFs were dragged into the action, with the ProShares Ultra Silver fund last seen more than 62% lower. The iShares Silver Trust ETF lost 31%. Both funds were headed for their worst days on record.

Precious metals have been on a stellar rally over the past 12 months, amid broader market volatility, the decline of the U.S. dollar, bubbling geopolitical tensions and concerns about the independence of the Federal Reserve.

Katy Stoves, investment manager at British wealth management firm Mattioli Woods, told CNBC on Friday morning that the moves were likely “a market-wide reassessment of concentration risk.”

 “Just as tech stocks — particularly AI-related names — have dominated market attention and capital flows, gold has similarly seen intense positioning and crowding,” she said. “When everyone is leaning the same way, even good assets can sell off as positions get unwound. The parallel isn’t accidental: both represent areas where capital has flooded in based on powerful narratives, and concentrated positions eventually face their day of reckoning.”

Meanwhile, Toni Meadows, head of investment at BRI Wealth Management, contended that gold’s run to the $5,000 mark had happened “too easily.” He noted that the unwinding of the greenback had supported gold prices, but that the dollar had appeared to stabilize.

“Central bank buying has driven the longer-term rally but this has tailed off in recent months,” he said. “The case for further reserve diversification is still there though as Trump’s trade policies and intervention in foreign affairs will make a lot of countries nervous about holding U.S. assets, especially those countries in the emerging markets or aligned to China or Russia. Silver will mirror the direction of gold, so it is not surprising to see falls there.”

Alright, another wild week on Wall Street which ended with a good old fashion selloff in precious metals.

Last week I discussed how silver and gold took off after Davos highlighted geopolitical tensions and and warned to be wary of parabolic moves (ie. never chase them higher, especially when they go full vertical).

Yesterday I went over IMCO's World View 2026 and stated the slide in the US dollar was overdone and I was expecting a snapback.

I know the dollar slid earlier this week after Trump's comments but even that signalled to me that something was afoot.

Call it the "Warsh effect", call it what you want but the Trump administration manipulates markets and you have to almost read right through their statements if you plan on making money. 

Of course he picked Kevin Warsh, the best choice by far, Scott Bessent made sure of that and I'm sure top hedge funds were advised ahead of time (that's why they charge the big fees!). 

So the dollar rallied and metals sold off but they were due for a major reckoning, including copper:

 

 

Now, to be clear, these weekly charts remain bullish as long as price remains above 10-week exponential moving average and weekly MACD is positive and trending up but when you have such a steep red candle like today, it typically means something has fundamentally changed.

We shall see, I expect more volatility next week and it's not all about Kevin Warsh and geopolitical tensions, there's strong demand for metals, especially copper where billionaire investor Robert Friedland warns the world has an insatiable thirst for metals, from surging military budgets to AI data centers and the greening of the global economy, but it does not have a credible way to supply the metals it intends to consume over the next few decades.  

On the daunting scale of copper the world needs to produce over the next two decades, he states:

“You can’t build electric cars and windmills and solar and have a modern military without these metals. So, there’s a reason why underwater power cables are so expensive. That’s what it looks like when you put up a windmill offshore Nantucket Island and you want to bring that electricity and be green. It’s all copper, copper, copper, copper, copper. Copper right now, we’re expecting that to be a $270 billion a year market by tomorrow morning. And where’s this metal going to come from? There’s no copper inventory at all.”

“How much copper are we using? We’re consuming 30 million tonnes of copper a year, only 4 million tonnes of which is recycled. That means to maintain 3% GDP growth…..now listen carefully, with no electrification…this is with burning oil and gas. To maintain global 3% GDP growth, we have to mine the same amount of copper in the next 18 years as we mined in the last 10,000 years (combined). In the next 18 years, I’ve got to mine the same amount of copper as we mined the last 10,000 years…without electrification, without data centers, without solar and wind and the greening of the world economy. You people have no idea whatsoever what we’re facing. You’re dreaming.” 

He might be right but price action of copper and other metal shares can experience violent volatility as this all plays out.

Alright, let me wrap it up with some stock market action.

Here are this week's top-performing US large cap stocks (full list here):

When you see Verizon (VZ) and AT&T (T) among the top performers, you know it's not a great week (I can kick myself for selling Deckers Outdoor too soon!). 

Below, George Heppel, BMO, joins 'Closing Bell Overtime' to talk the steep drop in metal commodity prices.

Next, Jeremy Siegel and Tom Lee join Closing Bell to discuss Kevin Warsh's nomination as Fed Chair and the move in gold and silver today.

Third, the Investment Committee debate what the Warsh pick means for the market and your money.

Fourth, Jay Hatfield, founder, CEO, and portfolio manager at Infrastructure Capital Advisors, joins BNN Bloomberg to discuss gold and silver prices moving amid trade tensions.

Lastly, Kevin Warsh, President Trump's choice for the next Fed Chair, was in conversation on federal monetary policy and the role of the Federal Reserve during the 2025 Reagan National Economic Forum in Simi Valley, California.