Nova Scotia Fund Returns 7.93% in Fiscal 2024

Assets of the Nova Scotia Pension Services Corp., which oversees four pension funds, rose to nearly $10 billion.



The Novia Scotia Pension Services Corp., which manages four pension funds in the province of Nova Scotia,
announced that its Public Service Superannuation Plan returned 7.93% in the fiscal year ending March 31. In April, the corporation reported a 7.38% return for the Teachers’ Pension Plan for its fiscal year, which ended December 31, 2023.

The corporation manages the pension investments of four defined benefit plans in Nova Scotia: the Teachers’ Pension Plan, the Public Service Superannuation Plan, the Members of the Legislative Assembly Pension Plan and the Sydney Steel Corp. Superannuation Fund. The pensions have more than 79,600 plan members, with a combined C$13.7 billion ($10 billion) in assets.

The corporation’s pension fund returns are in line with other Canadian plans during the fiscal year. CPP Investments returned 8%, PSP Investments returned 7.2% and British Columbia Investment Management 7.5%.

While Nova Scotia’s PSSP achieved a return of 7.93%, this figure was below the fund’s policy benchmark of 9.96%, yet better than its actuarial rate of return of 5.75%.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

Pension assets of the PSSP rose to C$7.906 billion at the end of the period. Pension liabilities stood at C$7.619 billion. Like many of its Canadian peers, the fund has a funding surplus, with a funded status of 103.8%.

The Teachers’ Pension Plan achieved a 7.38% return in its fiscal year, below its 10.14% benchmark but above its 5.80% actuarial rate of return. Assets of the fund grew to C$5.759 billion, with liabilities reaching C$7.376 billion. The funded status of the TPP increased to 78.1% at the end of the fiscal year, up from 75.1% in the prior year.

The TPP noted in its announcement that higher benchmarks for its real assets portfolio, an asset class that has become a common source of underperformance across pension funds across the world, were primary among the reasons the plans did not exceed their benchmarks.

“With the PSSP, the TPP’s overall benchmark for fiscal 2023 was a challenging one, primarily due to the higher, inflation-linked benchmarks for the real asset components of the portfolio,” the corporation’s annual report stated. “But, also in line with the PSSP, the TPP demonstrated strong absolute performance for the combined calendar years of 2023 and 2024, having near top-quartile placement among its Canadian peers.”

PSSP allocates 30.88% of its assets to fixed income and 27.62% to equities. Real assets comprise 30.32% of the portfolio, with absolute-return strategies and cash having allocations of 9.23% and 1.95%, respectively.

The TPP allocates 24.35% of its portfolio to fixed income, 31.61% to equities, 31.32% to real assets, 8.83% to absolute-return strategies and 2.89% to cash.

Related Stories:

Saskatchewan Healthcare Pension Returns 8.43% in 2023

British Columbia Investment Management Returns 7.5% in Fiscal 2024

PSP Investments Returns 7.2% in Fiscal Year 2024

Tags: , , , ,

NASCAR Considering Ban on Investment Stakes From Sovereign Wealth Funds

New charter agreements could also include rulings on private equity stakes, per reports.



NASCAR, the American auto-racing sanctioning and operating company, is reportedly considering a ban on investments in team charters from sovereign wealth funds.
 

NASCAR, the National Association for Stock Car Auto Racing LLC, issues 36 charters, which guarantee a team’s placement into races; underperforming teams can have their charters revoked, and charter agreement negotiations are ongoing. Front Row Motorsports announced in May that it bought a charter to expand its team. It did not disclose the purchase price. Another charter was sold for between $20 million and $25 million, according to published reports. 

The charter negotiations, which are not finalized, can include clauses related to private equity stakes in teams, including maximum stakes that funds could take in teams.  

Institutional investors, including sovereign wealth funds, have increasingly purchased stakes in sports teams and leagues. The $925 billion Saudi Public Investment Fund owns stakes in several sports ventures through its subsidiary SRJ Sports Investments. It also owns sports leagues such as LIV Golf and the Saudi Pro League and owns an 80% stake in the Premier League’s Newcastle United Football Club through a controversial takeover.  

For more stories like this, sign up for the CIO Alert newsletter.

In July 2023, the Qatar Investment Authority purchased a 5% stake in Monumental Sports & Entertainment, the parent company of several Washington. D.C.-based sports teams, including the NHL’s Washington Capitals, the NBA’s Washington Wizards and the WNBA’s Washington Mystics.  

The rumored ban on SWFs investing in NASCAR would not be the first such ban. The U.S.’s National Women’s Soccer League excluded ownership stakes from sovereign wealth funds in new rules codified in March.  

Sovereign wealth fund ownership stakes in sports leagues, specifically those from the Gulf states, have been controversial, with some accusing these funds of sportswashing, or using their ownership in these leagues to redirect public attention from human rights issues in these countries.  

While institutional sovereign capital is flowing into sports, private equity ownership in sports is ubiquitous. PE funds have ownership stakes in several NASCAR teams, and PE ownership is widespread across almost all sports leagues. 

A spokesperson for NASCAR did not respond to requests for comment.  

Related Stories: 

OMERS Deal Values Maple Leaf Sports & Entertainment at $8B 

Are Esoteric Asset Classes the New Hedges? 

Fore: Wealthy Saudi Fund, Already Muscling Into Golf, Steps Up in Soccer, Too 

 

Tags: , , , , ,

«